Drawbacks of SWP
- Averaged Returns: Since SWP averages cost, it also averages the returns earned by investors.
- Lower returns during Bear Markets: During bear markets, to meet the withdrawal demand of the investor, more units need to be sold. This means less returns for investors.
- Exit Load: Investors may have to pay an exit load if SWP is started immediately. It is advisable to wait at least for a year before starting SWP.