Is SWP better than FD for regular income?

SWP can be more tax-efficient since only gains are taxed, not the principal. FD interest is fully taxable.

What is a safe SWP withdrawal rate?

3-4% of corpus annually is generally considered safe for long-term sustainability.

Can I change SWP amount?

Yes, most mutual funds allow you to modify or stop SWP at any time.

How to Calculate SWP (Systematic Withdrawal Plan)

A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund at regular intervals. It's popular for generating regular income from investments.

SWP Remaining Balance Formula

Remaining = C × (1+r)^n - W × [((1+r)^n - 1) / r]

Where:

C = Initial corpus (investment amount)
r = Monthly return rate (annual return / 12)
n = Number of months
W = Monthly withdrawal amount

Step-by-Step:

1
Know your corpus
The total amount invested in the mutual fund.
2
Set withdrawal amount
How much you want to withdraw monthly.
3
Estimate return rate
Expected annual return of the fund.
4
Calculate sustainability
Check how long the corpus will last.

Worked Examples:

₹50L corpus, ₹30,000/month withdrawal

Corpus: ₹50,00,000Withdrawal: ₹30,000/monthReturn: 8%

Result: Corpus lasts ~30 years

With 8% annual return, monthly withdrawal of ₹30,000 is sustainable for about 30 years.