The existing investors who have their investments under dividend payout and dividend reinvestment option may also avail this facility by switching their investments to the growth option. The minimum withdrawal amount is Rs 5,000 per month for a period of 12 months.
SBI Mutual Fund executive director and CMO D P Singh told reporters here that 'Bandhan SWP' is tax-efficient solution as any fund transfer to immediate family members as it is considered as a gift under the law and does not attract any taxation. The SWP is more beneficial than a dividend payout option.
Echoing the view, SBI Mutual Fund managing director and CEO Anuradha Rao said, "SWP is the most tax efficient solution for individuals in the current tax regime".
Singh also noted that currently the option can be availed for a single relation, however, going forward it would be offered for multiple relations as well.
The announcement comes on the back of a a 10 per cent tax levy on distributed income from equity-oriented mutual funds as well as 10 per cent tax on long-term capital gains exceeding Rs 1 lakh from equities.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)