If you hold mutual funds through a demat account or broker app, managing your money just got easier. Until now, automatic withdrawal and transfer plans were only available if your funds were held directly with the fund house. SEBI has changed that.
You can now set up a Systematic Withdrawal Plan (SWP) — where your fund automatically sends money to your bank on a schedule — or a Systematic Transfer Plan (STP), which shifts money from one fund to another automatically. Think of it like a SIP, but in reverse or sideways: set it once, and it runs on its own.
What this means for you
- If you need a monthly payout from your investments — say, for household expenses or a parent's costs — you can now automate that without manually redeeming units each month.
- Want to gradually move money from an equity fund to a debt fund? Set up an STP and let it shift on your timeline, automatically.
- Less manual work means fewer chances of forgetting — or panic-selling at the wrong time.
What you can do
- Check your demat app or broker platform over the next few weeks for the SWP/STP option — it may take a little time to roll out.
- If you've been doing manual withdrawals from a demat-held fund, explore setting up an SWP so the process runs itself.
You're already investing — now your money can manage itself a little better too. 🌱