Calculate monthly income from your investments
Withdrawing ₹10,000 monthly from a corpus of ₹10,00,000 for 10 years at 8% return leaves ₹0
Advantages of Systematic Withdrawal Plan
Generates a steady cash flow from your investments, acting like a monthly salary or pension.
If withdrawal rate is lower than return rate, your corpus continues to grow while you withdraw.
SWP is more tax-efficient than FD interest as capital gains tax applies only on the profit component.
You can choose the amount, frequency, and date of withdrawal according to your needs.
Redemptions happen at different NAVs, which can work in your favor during market highs.
Perfect solution for senior citizens looking for regular income from their retirement corpus.
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount of money from your mutual fund investments at regular intervals (monthly, quarterly, etc.). While you withdraw money, the remaining amount in your fund continues to generate returns.
Steady cash flow
Better than FD interest
Customize withdrawals
Park your retirement corpus or large savings in a mutual fund suitable for your risk profile.
Decide how much you need monthly. A safe withdrawal rate is typically 4-6% annually.
On the specified date, fund house redeems units equivalent to your withdrawal amount.
Remaining units continue to participate in the market, potentially growing your corpus.
Common queries about SWP
In a falling market, more units are redeemed to generate the fixed withdrawal amount. This can deplete your corpus faster. It's advisable to have a conservative withdrawal rate.