How much can I withdraw via SWP?

You can withdraw any amount, but to sustain your corpus long-term, keep annual withdrawals at 4-6% of total investment (the '4% rule').

Only the capital gains portion of each withdrawal is taxable. If you withdraw ₹10,000 and ₹3,000 is gains, only ₹3,000 is taxed. This makes SWP more tax-efficient than FD interest.

Can SWP amount be changed?

Yes, you can increase, decrease, pause, or stop SWP anytime. There's complete flexibility.

What Is SWP (Systematic Withdrawal Plan)?

SWP allows you to withdraw a fixed amount from your mutual fund investment at regular intervals, providing a steady income stream while keeping the rest invested.

How SWP Works

You invest a lump sum in a mutual fund, then set up automatic monthly/quarterly withdrawals. The fund redeems units worth your withdrawal amount. Remaining units continue to grow. It's like creating your own monthly 'salary' from investments.

SWP vs FD for Regular Income

FD gives 6-7% interest, fully taxable. SWP from a debt fund can generate similar or better returns with more tax efficiency — only the gains portion is taxed, and after 3 years, indexation benefit applies. For large corpuses, SWP is significantly more tax-efficient.

Setting Up SWP

Invest a lump sum in a suitable mutual fund. Set withdrawal amount and frequency. Keep withdrawals below the expected return rate to preserve capital. For example, withdraw 6-7% annually from an equity fund averaging 12% returns — your capital keeps growing.