Is systematic withdrawal plan a good option for me?

I had started an SIP of Rs 5,000 in Aditya Birla Sun Life Pure Value Fund three years ago. It was offering good returns until Sebi re-categorisation. I need to switch to a better performing scheme and I am looking for systematic withdrawal plan. Please suggest a good scheme in any category.

I am a moderate to aggressive investor. The investment is for a long term-over 10 years. Also, will SWP be a good alternative?
--Meena Rajbhar

Dilshad Billimoriya, Director Dilzer Consultants, responds:

You haven't mentioned if there is a reason why you want an SWP? Is it for a regular Income? Unless you need a regular income, do not opt for SWP. Growth is the best option in mutual fund schemes.


For SWP, a combination of hybrid equity and liquid funds can be used as a bucket strategy. If you are a moderate aggressive investor, invest through STP in hybrid equity and after five years take SWP. Invest a lumpsum in liquid funds and after three years start the SWP. This is for better taxation and lower volatility impact on the portfolio.