SBI Mutual Fund - Bandhan SWP is a facility that helps you provide regular pay-outs to your eligible family members from the growth option of your investment in eligible open-ended schemes of SBI Mutual Fund.

The beneficiary should be your family member. Eligible beneficiaries include child / sibling aged 15 years and above, spouse and parents of the investor. The beneficiary availing the facility should be a resident individual.

• If beneficiary is KRA complaint, acknowledgement copy is required. Else investor should submit relevant verifiable documents evidencing proof of identity and proof of address.
• Proof of relationship such as Passport, PAN card, Birth Certificate, SSC / Degree certificate, Marriage Certificate, etc., wherein the name of the specified beneficiary family member is mentioned.
• Cancelled cheque leaf of the Bank account or Copy of Bank Statement/Passbook of the beneficiary family member.
• The unitholders opting for the facility shall take the prior written consent from the beneficiary family member for sharing the pay-out through SWP and it shall be deemed that the unitholders have obtained such consent. In case of any objection received by us from the beneficiary family member on the SWP mandate being credited to his / her Bank account under the facility, the unitholder will have to produce the written consent from the beneficiary family member within 30 days, failing which the facility shall be discontinued with immediate effect.

The unitholder has the option to discontinue the facility anytime by submitting cancellation request to SBI Mutual Fund / SBI Funds Management Private Limited or CAMS (R&T) office at least 7 days prior to the next SWP date.

If you are withdrawing from an equity oriented scheme:

• If the withdrawals are within first year of investment - Short term capital gain will be applicable only on the gain/appreciation portion of the withdrawal amount
• If the withdrawals are after one year of investment – As per the prevailing tax rates, long-term capital gains on equity oriented funds are exempted from tax

However, please note that in the Union Budget 2018, it has been proposed to introduce Long Term Capital Gains (LTCG) on equity oriented mutual fund schemes. LTCG from sale of equity shares and equity mutual fund schemes are proposed to be taxed at 10%, if an individual’s total capital gains cross Rs1 lakh. Currently, there is no LTCG tax if one holds the equity mutual fund units for more than a year. The Union Budget 2018 has proposed that all gains up to January 31, 2018 will be grandfathered. Only the Gains that would arise after January 31, 2018 would be considered. Education Cess is also proposed to change to 4%.

Please consult your financial advisor/ tax advisor before taking any decision of investment.

If you are withdrawing from a debt oriented scheme:

• Withdrawals within three years of investment – Short term capital gain will be applicable only on the gain/appreciation portion of the withdrawal amount
• Withdrawals after three years of investment - long-term capital gain tax will be applicable only on the gain/appreciation portion of the withdrawal amount

This is basis the current tax laws. If there is any change, the same will be applicable to Bandhan SWP facility.

Please consult your financial advisor/ tax advisor before taking any decision of investment.

There is no Gift tax as per the prevalent tax laws. However, tax on any (interest) income generated on the Bandhan – SWP amount will be borne by the beneficiary depending on his tax liability.

The amount of pay-out will be minimum Rs.5000/- and in multiples of Rs.1/- thereof. Minimum number of monthly instalments would be 12.

You can select any one of the given dates: 1^st/5^th/10^th/15^th/20^th/25^th/30^th (last working day in case of February). Only monthly option is available as the Bandhan SWP.

If you redeem or switch all the units of the scheme in which have initiated Bandhan SWP, then the facility will be discontinued. If you plan to continue SWP in the new scheme, you need to submit a new application for starting Bandhan SWP in the name of the beneficiary from the new scheme.