What is the primary advantage of a Systematic Withdrawal Plan (SWP) over a Dividend Mutual Fund? Option: "Tax-free dividends", "Lower risk", "Fixed regular income", "Higher returns"

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What is the primary advantage of a Systematic Withdrawal Plan (SWP) over a Dividend Mutual Fund?

"Tax-free dividends"

"Lower risk"

"Fixed regular income"

"Higher returns"

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What is the primary difference between a Systematic Withdrawal Plan (SWP) and a Dividend Plan in mutual funds?

SWP is for long-term investments, while Dividend Plan is for short-term goals.

SWP is managed by fund managers, while Dividend Plan is self-managed by investors.

SWP offers fixed withdrawals, while Dividend Plan payouts vary based on fund performance.

SWP invests in stocks, while Dividend Plan invests in bonds.

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Which of the following is a key benefit of a Systematic Withdrawal Plan (SWP)?

It guarantees the preservation of capital invested in mutual funds

It eliminates the tax implications of mutual fund withdrawals

It provides a consistent stream of income from mutual fund investments

It allows investors to time the market for optimal returns

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Which of the following is NOT a benefit of a Systematic Withdrawal Plan (SWP)?

"Rupee Cost Averaging"

"Tax benefits"

"Investment Discipline"

"Guaranteed highest returns in a bull market"

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What is a Systematic Withdrawal Plan (SWP)?

"A facility allowing investors to withdraw a fixed amount from a mutual fund scheme regularly"

"A type of investment that focuses solely on capital growth"

"A plan that guarantees a fixed return on investment"

"A high-risk investment strategy for short-term gains"

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How does SWP help mitigate market risk compared to a Dividend Plan?

SWP guarantees a fixed return, eliminating market fluctuations.

SWP withdrawals are not directly affected by market fluctuations at the time of redemption.

SWP diversifies investments across various asset classes.

SWP uses complex algorithms to predict market trends.