- Date : 21/02/2023
- Read: 3 mins
Are you curious about the Fixed Amount Benefit introduced by Motilal AMC? This article is a complete guide to the newly introduced plan. Have a read of it to know more.
With the launch of its new Motilal Oswal Fixed Amount Benefit (FAB) plan, Motilal Oswal Asset Management Company (MOAMC) is empowering investors to take greater control of their long-term financial aspirations and lifestyle preferences. This article briefly explains the FAB plan that has been newly introduced by the Motilal AMC, covering the following points:
What are the features of the FAB plan?
How would taxes be implied in the FAB plan?
Where to use the FAB plan?
Also Read: Additional Employee Benefit Options
What Are The Features Of The FAB Plan?
The Fixed Amount Benefit plan has the following features:
Flexibility: It allows an individual to make lumpsum investments flexibly. There are no restrictions on the amount of investment.
Frequency: It enables an individual to decide and set the withdrawal frequency. An individual chooses the withdrawal frequency either as monthly, quarterly, or yearly (annually).
Tenure: It gives the investors/ retirees the freedom to choose a suitable time for withdrawal.
Funds: It provides a variety of options in terms of funds to the customers. Numerous active and passive fund options are available.
Customization: It gives the customers the freedom to customize the withdrawal percentage.
Also Read: What Is An Annuity?
How Would Taxes Be Implied In The FAB Plan?
There is no specific tax implication on the FAB, but based on the type of scheme an individual owns, capital tax gains are implied on the amount respectively. If an individual has an equity-oriented investment scheme, a 15% tax implication is observed. Similarly, the charge for an equity-oriented investment scheme with a duration of 1 year or more would be 10%. (Facts and Figures From Motilal Oswal)
Where To Use The FAB Plan?
There is no particular place or time when an individual can use the fixed amount. It depends on the individual as to where they want to use it. Senior citizens can avail of it post-retirement, and investors can rely on it as a steady income source. Apart from this, an individual can use it at any place and time.
The FAB plan introduced by Motilal AMC stands for “Fixed Amount Benefit.” FAB is a plan that helps an individual withdraw a sum from investments regularly at a fixed percentage. Its features include ease of customization, flexibility, freedom of selection, and numerous options for funds. There are no restrictions in terms of its use.
Also Read: Introducing FAB Plan