Systematic Withdrawal Plan (SWP)
“Smart Withdrawals, Your Way”
What is SWP?
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals—monthly, quarterly, or annually—while the balance continues to stay invested. It’s a flexible way to create cash flow from your investments without redeeming the entire amount.
Why Choose SWP?
- Customizable Withdrawals: Choose your withdrawal amount and frequency.
- Flexibility: Start, stop, or modify your plan anytime.
- Tax Efficiency: Withdrawals may have more favorable tax treatment compared to FD interest (depending on the fund type and holding period).
- Growth Potential: The remaining corpus continues to stay invested.
- Convenience: Avoid lump-sum redemptions and plan payouts as per your needs.
How SWP Works Historically (Illustration)
| Initial Investment (₹) | Years | Total Withdrawn (₹) Total amount withdrawn via SWP over the period | Monthly SWP (₹) | Historic CAGR (%) Average CAGR assumed for calculation purposes | Corpus Left (₹) Remaining corpus value after withdrawals, assuming CAGR |
|---|---|---|---|---|---|
| 10,00,000 | 20 | 23,90,000 | 10,000 | 14.9 | 31,09,905 |
| 25,00,000 | 20 | 59,75,000 | 25,000 | 14.9 | 77,74,763 |
| 50,00,000 | 20 | 1,19,50,000 | 50,000 | 14.9 | 1,55,49,527 |
| 1,00,00,000 | 20 | 2,39,00,000 | 1,00,000 | 14.9 | 3,10,99,054 |
| 2,00,00,000 | 20 | 4,78,00,000 | 2,00,000 | 14.9 | 6,21,98,107 |
*Illustration above shows values based on historic CAGR (20 yrs: 14.9% Nifty TRI). Past performance may or may not be sustained in future.
Who Can Use SWP?
- Retirees: For planned withdrawals while keeping wealth invested.
- Professionals: To generate periodic payouts from accumulated investments.
- Families: For recurring expenses like school fees or household needs.
- Business Owners: For scheduled withdrawals during low cash-flow periods.
Our Value in SWP Planning
- Designing tax-efficient withdrawal strategies.
- Recommending the right mix of debt, hybrid, or equity funds for sustainability.
- Active monitoring so withdrawals remain aligned with your goals.
- Tailored planning for your life stage and financial needs.
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“Turn your investments into a reliable source of planned withdrawals. With SWP, you stay invested while creating cash flow at your convenience.”
Disclaimer
“The above examples are illustrative only and do not represent actual scheme performance. Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. Principal is not guaranteed.”
For official mutual fund data and SIP resources, visit https://www.amfiindia.com/
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