SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount regularly from your
existing mutual fund investment. It provides a steady income flow while your remaining investment
continues to grow with market returns.
SWP is ideal for retirees or anyone seeking regular income from their investments. Unlike redeeming
your entire investment, SWP lets you withdraw systematically while the remaining corpus continues to
earn returns.
When you set up an SWP, you specify:
• Total Investment: Your initial corpus in the mutual fund
• Withdrawal Amount: Fixed amount to withdraw monthly
• Expected Return: Anticipated annual return rate
• Time Period: Duration for which you want to withdraw
Each month, the specified amount is withdrawn from your investment, and the remaining balance
continues to earn returns based on the fund's performance.
✓ Regular Income: Provides steady cash flow for monthly expenses
✓ Tax Efficiency: Only capital gains are taxed, not the entire withdrawal
✓ Flexibility: Adjust withdrawal amount or pause as needed
✓ Continued Growth: Remaining investment keeps earning returns
✓ Inflation Protection: Can increase withdrawal amount over time
• Retirees: Generate monthly pension-like income
• Investors: Create regular cash flow from lumpsum investments
• Parents: Fund children's education with systematic withdrawals
• Anyone: Seeking regular income without liquidating entire investment