What is a Systematic Withdrawal Plan (SWP)?

An SWP is a facility provided by mutual funds that allows an investor to withdraw a fixed amount of money at regular intervals (usually monthly) from their existing investment. It is essentially the reverse of an SIP. While SIP is used to build a corpus, SWP is used to generate regular income from that corpus, making it a popular choice for retirees.

How SWP Works

When you start an SWP, the mutual fund house sells a certain number of units from your portfolio to provide you with the fixed withdrawal amount. The remaining units continue to grow according to the fund's performance. If the rate of return is higher than the withdrawal rate, your corpus can actually grow even while you are withdrawing from it.

How to Use the SWP Calculator

Enter the following details to see your withdrawal projection:

• Total Investment: The initial amount you have invested in the mutual fund.
• Monthly Withdrawal: The amount you plan to withdraw every month.
• Expected Return Rate (%): The annual rate of return expected from the remaining balance.
• Withdrawal Period (yr): The number of years you plan to continue the withdrawals.

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