Understand SIP, STP, SWP, Asset Allocation & More with simple real-life cases (on request from DM's)
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SIP – Systematic Investment Plan
STP – Systematic Transfer Plan
SWP – Systematic Withdrawal Plan
Lumpsum Investment
Asset Allocation
Emergency Fund
ELSS – Equity Linked Saving Scheme
SIP – Systematic Investment Plan
You invest a fixed amount every month in a mutual fund.
🧠 Think of SIP like an EMI – but for wealth creation.
✅ Works best for regular income folks
✅ You don’t have to time the market
✅ Builds long-term discipline
📍Example:
A person invests ₹5,000/month in an Index Fund via SIP. After 10 years (assuming 12% CAGR), it grows to ~₹11.6 lakhs
His total investment? Just ₹6 lakhs
Return? ₹5.6L profit without doing anything daily.
Illustration:
🎯 Returns Summary
- Total Investment: ₹1,20,000
- Value at Year End: ₹1,26,837.02
- Gain: ₹6,837.02
- Approximated XIRR: ~12%
STP – Systematic Transfer Plan
STP allows you to move money gradually from one mutual fund to another (usually from debt to equity).
✅ Useful when you have a lump sum amount (like ₹5–10L) but want to avoid market volatility.
🧠 Strategy:
- Park ₹5L in a liquid or ultra short-term fund
- Set up STP of ₹25K/month into an equity mutual fund
This way you avoid investing the entire lump sum at a market high. Also useful when doing goal-based investing
Example
10-month STP table with growth applied:
Debt Fund grows at 6% annual interest
Equity Fund grows at 12% annual interest
₹1,00,000 is initially invested in the debt fund.
₹10,000 is transferred monthly to the equity fund.
The Annual Information Statement (AIS) is your financial footprint recorded by the Income Tax Department.
Think of it as your "CCTV footage" of financial activity.
Let’s break it down 👇
AIS includes everything the IT Dept knows about your:
🔹 I. Income Sources (General)
Salary
Rent Received
Dividend
Interest from Savings Bank
Interest from Deposits
Interest from Others
Interest from Income Tax Refund
Rent on Plant & Machinery
🟪 III. Special Income (Section 111, 115A/B/AC/AD, etc.)
PF Balance from Employer (u/s 111)
Infrastructure Debt Fund Interest (u/s 115A(1)(a)(ia))
Interest from Specified Company (Non-Resident) (u/s 115A(1)(a)(aa))
Bonds/Government Securities Interest
Units of Non-Resident Income (u/s 115A(1)(a)(ab))
Offshore Fund Income / LTCG (u/s 115AB(1)(b))
Foreign Currency Bonds/Shares Income (u/s 115AC)
Foreign Institutional Investor Securities Income (u/s 115AD(1)(i))
Specified Fund Securities Income (u/s 115AD(1)(i))
🔸 IV. Commissions, Insurance & Other Receipts
Insurance Commission
Life Insurance Policy Receipts
National Savings Scheme Withdrawal
Securitization Trust Investment Income
Government Payable Sums
Specified Senior Citizen Income
Business Trust Distributed Income
Investment Fund Distributed Income
Donations Received
🟦 V. Asset Sales / Transfers
Land/Building Sale
Immovable Property Transfer Receipts
Vehicle Sale
Securities/Mutual Fund Units Sale
Off-Market Debit Transactions
Off-Market Credit Transactions
Repurchase of Units by MF/UTI
Virtual Digital Assets Transfer Receipt
🟩 VI. Business & GST
Business Receipts
GST Turnover
GST Purchases
Business Expenses
Rent Payment
Miscellaneous Payment
Non-Resident Sportsmen/Sports Association Payment (u/s 115BBA)
CBDT has notified 57 types of Income and Expenses that will be available in AIS.
📍 Find your AIS at:
Login → Services → Annual Information Statement
(It goes way beyond Form 26AS)
Why check AIS?
✅ Catch errors before filing ITR
✅ Spot missing or excess income
✅ Avoid tax notices
✅ See exactly what the IT Dept seesincometax.gov.in
On my hunt for a new sofa for our newly renovated home, after exploring 10+ options I landed in a local store who promised to provide the design and fabric we wanted. We chose the fabric after exploring 30+ books & brands
With all customisation, the sofa costed a bomb + 2% extra for paying via. Credit card. Finally we agreed the sofa to be delivered on April 3rd
In between, we also planned to get a dining table, hence the store person told they would deliver both by April 7th considering Eid
We were okay with that as we will still get it before my kids birthday. Finally today morning the store person calls and says, we are not getting the fabric that was discussed, i will send you 2-3 books to home - choose an alternative and we will get the sofa done