Motilal AMC unveils Fixed Amount Benefit (FAB) plan in SWP facility

Motilal Oswal Asset Management Company (MOAMC) on Monday introduced a new feature called Motilal Oswal Fixed Amount Benefit (FAB) Plan in SWP facility. Through the launch of this new feature, the AMC envisions to empower investors with greater control in planning their long-term financial goals and lifestyle choices thereafter.

FAB will accomplish this by offering investors a product that is easy to enroll for, provides a fully digitized dashboard, and a detailed calculator to optimize their cash flow needs.

Notably, Motilal AMC launched this facility against a backdrop where systematic withdrawal plans remain in the shadows like traditional investment options. Fixed depositDividend plans for cash flow requirements, pension plans etc. due to poor product awareness.

Also the new feature will be enabled investors To withdraw a regular amount of their investment at a fixed percentage of their principal investment and at a predetermined frequency, irrespective of fluctuations in the market value of their investments. The remaining component continues to generate returns, providing tax efficiency as well as wealth creation relative to other investment avenues.

Under FAB, the investor can start with a minimum withdrawal amount 500 or more per month depending on their cash flow requirement. The frequency can be marked as monthly, quarterly or annually.

Pearl The AMC has kept the Withdrawal Rate as default at 6% which the investors can change to choose from 8%, 10% or 12% per annum. The default withdrawal date is set on the 7th of every month, but can be changed to choose between the 1st, 14th, 21st or 28th.

In a statement, Motilal said, a fixed income every month will help the investor to meet fixed monthly expenses, manage their lifestyle and most importantly, comfort and peace of mind.

Thus, with this scheme, the investor will not only benefit from fixed income every month but also from wealth creation in the long term.

Naveen Agarwal, MD & CEO, Motilal Oswal Asset Management Company, said, “FAB offers an excellent option not only for retirees but also for other investors, who are looking for a source of income with the potential to generate steady returns on their investments. Looking for reliable sources. However, to make the most of this investment opportunity, investors must educate themselves on the intricacies of mutual fund returns and the withdrawals required to maintain their desired lifestyle.”

“By combining other securities with an SWP, individuals can maximize their investment returns and minimize risk, ensuring a comfortable and worry-free retirement,” said Agarwal.

Also, Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC informed that the key feature of FAB scheme is that it helps an investor to enhance the investment experience over traditional instruments. The design of the scheme enables fixed withdrawal amount irrespective of short term market fluctuations, generating return on the remaining capital with tax efficiency as an added advantage.

Chaturvedi said, “We have introduced a new feature which brings the magic of ‘income bhi aur wealth bhi’.”

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