How This ICICI Prudential Mutual Fund Can Secure Your Financial Freedom – News18

ICICI Prudential has started a new way of investment which can give investors regular money and help them in achieving their financial goals. The new scheme is a combination of a Systematic Investment Plan (SIP) and a Systematic Withdrawl Plan (SWP). It is called Freedom SIP.

People can choose their desired SWP and SIP schemes while planning the time limit for the scheme. The combination of both schemes will help the investors in achieving cash flow after their retirement or whenever they require it. This goal-planning facility can initially help the investors in systematically investing money and then reaping its benefits through the SWP scheme.

Freedom SIP initially asks the investors to choose a SIP scheme in which they would be investing for a defined time. After selecting the scheme, the investor has to choose an SWP scheme through which they will automatically receive money accumulated from their SIPs. Freedom SIP enables the customer to choose the whole plan at once by deciding the place to invest and the way to withdraw.

Investors can choose the SIP tenure which could be either 8 years, 10 years, 12 years, 15 years, 20 years, 25 years and 30 years. Post completion of the pre-defined tenure of SIP, the investment would be switching to the target scheme automatically, as prior chosen by the investor during the signup. The switch will only take place only if the source scheme and target scheme are different.

Investors have the freedom to select the desired amount they prefer to withdraw. If not selected by the customer, then the withdrawal amount will be based on the SIP amount and SIP tenure. For instance, if the monthly SIP amount is Rs 10,000 for the time period of 10 years, then the SWP amount per month will be Rs 15,000. Similarly, for 12 years it will be Rs 20,000, for 15 years will be Rs 30,000 and so on. For the same investment in SIP for 30 years, the SWP amount will be Rs 1,20,000 per month. Freedom SIP is a goal-based investing solution to avoid future financial problems.