SWP Calculator
Generate regular income from your investments with Systematic Withdrawal Plan.
Calculate withdrawals and remaining values
Why Choose SWP?
A Systematic Withdrawal Plan (SWP) is ideal for individuals looking for a regular source of secondary income, such as retirees. Unlike dividends which are not guaranteed, SWP gives you control over the cash flow while allowing the remaining corpus to grow.
Key Advantages
- Predictable Income: You decide how much money you need each month.
- Capital Appreciation: If the withdrawal rate is lower than the fund's return, your corpus can still grow.
- Tax Benefits: You are not taxed on the principal amount withdrawn, only on the capital gains.
Retirement Planning?
Structure your retirement corpus effectively to ensure it lasts a lifetime. Let's build a sustainable withdrawal strategy.
Plan Your RetirementSWP FAQs
Common questions about Systematic Withdrawal Plans
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investments at regular intervals (monthly, quarterly, etc.). This is a great way to generate a regular income stream.
In an SWP, you instruct the mutual fund house to redeem a specific number of units equivalent to the withdrawal amount you've chosen. The money is then credited to your bank account.
Yes, SWP is generally more tax-efficient than traditional fixed income instruments (like FDs) because you only pay tax on the capital gains component of the redeemed units, not on the principal component.
Yes, you can modify or cancel your SWP instructions at any time. You can increase or decrease the withdrawal amount based on your needs.
If the market drops and your fund's NAV decreases, more units will be redeemed to meet your fixed withdrawal amount. This can deplete your capital faster if the market remains down for a long period.