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Motilal Oswal Asset Management Company (MOAMC) has announced a new feature in the SWP facility called Motilal Oswal Fixed Amount Benefit (FAB) Plan. This facility is set against a backdrop where Systematic Withdrawal Plans lie shadowed by conventional investment options such as Fixed deposits, dividend plans for cash flow requirements and Pension schemes etc., owing to poor product awareness.

At the heart of this proposition, the company envisions empowering investors with more control in planning their long-term financial goals & lifestyle choices thereafter. FAB accomplishes this by offering a product to investors that is easy to enrol in, offers a completely digitized dashboard, & provides a detailed calculator for customizing their cash flow requirements

FAB enables investors to withdraw the regular sum of their investments at a fixed percentage and predefined frequency of their original investments, irrespective of the movement in the market value of their investments. Balance component continues to generate returns, which provides tax efficiency as well as wealth generation relative to other investment avenues. The investor can start with minimum withdrawal amount of INR 500 per month or above depending on their cash flow requirement. The frequency can be marked as Monthly, Quarterly or Annually. The withdrawal rate has been kept at 6% as default which investor can change to choose from either 8%, 10%, 12% per annum. The default withdrawal date is set at 7^th for every month but can be changed to choose from either 1^st, 14^th, 21^st or 28^th.

A fixed amount of income every month will help the investor to incur fixed monthly expenses, manage their lifestyle, most importantly, comfort and peace of mind. With this plan, the investor not only would benefit from fixed income every month as well as wealth generation over long term.  For more details, kindly refer our website: www.motilaloswalmf.com

Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company said, "Retirement planning can be a daunting task, but with the right investment strategy, it can also be an exciting opportunity to secure financial stability for your golden years. FAB provides an excellent option for not only retirees but also other investors seeking a reliable source of income, with the potential to generate steady returns on their investments. However, to make the most of this investment opportunity, investors must educate themselves on the intricacies of mutual fund returns and the necessary withdrawals for sustaining their desired lifestyle. By combining other securities with an SWP, people can maximize their investment returns and minimize risk, ensuring a comfortable and worry-free retirement."

According to Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, “The key feature of the FAB Plan is that it helps an investor to aim for an enhanced investment experience over traditional instruments. The design of the plan enables fixed withdrawal amount irrespective of short term market fluctuations, generating returns on the balance capital with tax efficiency as added advantage. We have introduced a new feature which offers the magic of “Income Bhi and Wealth Bhi”.

An illustration of The Magic of “Income BHI and Wealth BHI”
The investor will receive the fixed cash flow amount with 100% consistency irrespective of the market situation and NAV movements. The investor has complete control over how much they intend to withdraw and on which day of the month depending upon their requirements.

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