A Recurring Deposit (RD) in the mutual fund context is closely linked to Systematic Withdrawal Plans (SWP) and Systematic Transfer Plans (STP)—two powerful tools for disciplined, periodic money management. An SWP allows investors to withdraw a fixed amount from their mutual fund at regular intervals, similar to how an RD matures periodically, providing a steady income stream. An STP enables the automatic transfer of a fixed sum from one mutual fund scheme (typically a liquid or debt fund) to another (usually an equity fund) at regular intervals, replicating the RD habit of periodic investment while optimising returns and managing risk.
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