Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Systematic Withdrawal Plan allows investors to redeem fixed amounts from mutual fund holdings at regular intervals for steady cash flow.
SWP is the reverse of SIP — withdraw a fixed amount monthly from your mutual fund to fund expenses or retirement income.
Each SWP instalment redeems units at NAV, triggering capital gains tax on profit portion. Remaining units continue compounding. Useful for retirees supplementing pension without timing lump-sum exits.
Retiree with ₹50 lakh in hybrid fund starts ₹25,000 monthly SWP. Fund grows 8% yearly while paying income — corpus may last 15+ years depending on returns and withdrawal rate.
SWP gives fixed predictable cash flow from any growth fund. Dividend depends on fund distribution policy and is not guaranteed.
Yes. Each withdrawal includes return of capital and capital gains. Gains taxed per STCG/LTCG rules for the fund type.
High withdrawal rates relative to returns deplete corpus. Use SWP calculator to model sustainable withdrawal percentages.