SWP Calculator

What is SWP?

SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals. It's the opposite of SIP - instead of investing regularly, you withdraw regularly while your remaining corpus continues to grow.

Key Benefits

• Regular Income: Get fixed monthly income like a salary or pension

• Tax Efficient: Only capital gains taxed, not entire withdrawal amount

• Flexibility: Change withdrawal amount or pause anytime

• Corpus Growth: Remaining amount continues earning returns

• Ideal for Retirees: Create your own pension plan

How SWP Works

You invest a lumpsum amount in a mutual fund and set up monthly withdrawals. Each month, units worth your withdrawal amount are redeemed. The remaining units continue to grow based on fund performance.

Example: Invest ₹10 lakh, withdraw ₹10,000/month. If fund gives 12% returns, your corpus can last 15+ years while providing regular income.

Important Considerations

• Sustainable Rate: Keep withdrawal rate below expected returns to preserve capital

• Market Risk: Returns fluctuate, corpus may deplete faster in bear markets

• Emergency Buffer: Keep 6-12 months expenses separate for emergencies

• Tax Planning: Long-term capital gains above ₹1.25L taxed at 12.5%

Pro Tips

• Conservative Withdrawal: Limit to 6-8% annually to make corpus last longer

• Balanced Funds: Choose hybrid funds for stable returns with lower volatility

• Review Quarterly: Adjust withdrawal if corpus depleting faster than expected

• Inflation Adjustment: Increase withdrawal by 5-6% annually to maintain purchasing power