📉 SWP Calculator

About SWP (Systematic Withdrawal Plan)

SWP allows you to withdraw a fixed amount regularly from your mutual fund investments. It's ideal for retirees or anyone seeking regular income while keeping their corpus invested.

Benefits of SWP

• Regular Income: Fixed monthly cash flow for expenses
• Capital Appreciation: Remaining corpus continues to grow
• Tax Efficiency: Only gains portion is taxable, not entire withdrawal
• Flexibility: Change withdrawal amount or frequency anytime
• Rupee Cost Averaging: Sell fewer units when NAV is high

How SWP Works

• Invest a lump sum in mutual fund scheme
• Set monthly/quarterly withdrawal amount and date
• Units are redeemed to credit your bank account
• Remaining corpus continues to earn returns
• Modify or stop withdrawals anytime

Types of SWP

• Fixed Withdrawal: Same amount every period
• Appreciation Withdrawal: Only gains are withdrawn
• Custom Withdrawal: Flexible amounts as needed

Ideal For

• Retirees needing regular pension-like income
• Creating second income source
• Managing lump sum inheritance or retirement corpus
• Paying regular bills or EMIs
• Supplementing salary during sabbatical

Best Practices

• Keep withdrawal rate sustainable (3-5% of corpus annually)
• Choose balanced or conservative funds for stability
• Review and adjust withdrawal amount yearly
• Maintain emergency fund separately
• Consider inflation while planning withdrawals
• Don't withdraw more than returns generated

Tax Implications

• Equity Funds: LTCG above ₹1L at 10%, STCG at 15%
• Debt Funds: As per income tax slab
• Only capital gains portion is taxable, not principal
• More tax-efficient than fixed deposits

SWP vs Fixed Deposit

• SWP: Higher returns potential, partial tax on gains
• FD: Fixed returns, entire interest fully taxable
• SWP: Corpus continues to grow with markets
• FD: Principal remains constant