Passlane Sign in

Ch.9 · KYC and Folio Management · hard

What is a 'Capital Appreciation SWP'?

0% of students got this wrong

EXPLANATION

A Capital Appreciation SWP withdraws only the gains generated above the original investment value at each interval, leaving the principal amount invested. This preserves the corpus while generating regular income from growth.

A.An SWP where withdrawals increase each year by 10% automatically

B.An SWP that withdraws only the capital appreciation component while keeping the principal intact [✓ Correct]

C.An SWP reserved for senior citizens above age 60

D.An SWP linked to the repo rate declared by RBI

EXPLANATION

A Capital Appreciation SWP withdraws only the gains generated above the original investment value at each interval, leaving the principal amount invested. This preserves the corpus while generating regular income from growth.

Practising Chapter 9 one question at a time?

Try the full chapter — 80 questions, tracked score, weak area breakdown.

Practice Chapter 9 →Take the mock test →