1. SIP (Systematic Investment Plan)

👉 You invest a fixed amount regularly (monthly/quarterly) in a mutual fund.

Example: ₹5,000 every month in a mutual fund.

Purpose: Build wealth slowly with discipline & compounding.

Best for: Long-term wealth creation.

🔹 Think of it like: “Saving small drops regularly to fill a big bucket.”

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2. SWP (Systematic Withdrawal Plan)

👉 You withdraw a fixed amount regularly from your mutual fund investment.

Example: You have ₹10 lakh in a mutual fund → you withdraw ₹20,000 every month.

Purpose: Create a regular income (like salary/pension).

Best for: Retired people or those needing monthly cash flow.

🔹 Think of it like: “Taking small sips of water from a full tank.”

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3. STP (Systematic Transfer Plan)

👉 You transfer money systematically from one mutual fund to another.

Example: Put ₹5 lakh in a debt fund (safe) → transfer ₹10,000 every month into an equity fund (growth).

Purpose: Shift money gradually, reduce risk of market timing.

Best for: Investors who want to move from safe to risky assets slowly.

🔹 Think of it like: “Pouring water from one jug to another slowly, not all at once.”

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✅ In short:

SIP = Put money in (regularly)..
SWP = Take money out (regularly)…
STP = Shift money from one fund to another (regularly)….