What is SWP (Systematic Withdrawal Plan)?

A Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows investors to withdraw a fixed amount of money at regular intervals while the remaining investment continues to stay invested and potentially earn returns.

SWP is commonly used by retirees and long-term investors who require a regular monthly income without redeeming the entire investment at once.

SWP Calculation Formula

Every month, your investment first earns returns and then the withdrawal amount is deducted from the accumulated balance.

Benefits of SWP

• Provides a regular monthly income.
• Remaining investment continues to grow.
• Helps manage retirement expenses.
• More tax-efficient than withdrawing the full investment.
• Flexible withdrawal amount and frequency.

Example

Frequently Asked Questions