SWP Calculator
Plan your regular withdrawals and track investment growth with the Systematic Withdrawal Plan calculator.
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Insights & Questions
Everything you need to know about SWP calculations.
An SWP allows you to withdraw a fixed amount of money from your mutual fund investment regularly (monthly, quarterly, or annually). It is the opposite of an SIP and is often used to generate a regular monthly income after retirement.
When you set up an SWP, the fund house redeems a certain number of units equivalent to the withdrawal amount you've chosen. The remaining units continue to stay invested and grow based on the market performance.
Yes, SWP is generally considered more reliable as you can choose the exact amount you want to withdraw. Dividends are not guaranteed and are dependent on the fund's performance and the house's discretion.
In SWP, every withdrawal is treated as a redemption. Only the 'gain' part of the withdrawal is taxable. For equity funds held over a year, it falls under LTCG (12.5% above ₹1.25L). This makes SWP more tax-efficient than FDs.
Yes, if the rate of return on your investment is higher than the rate of withdrawal, your total corpus will continue to grow even while you are withdrawing money every month.
A common financial practice is to withdraw around 4-6% of the initial corpus annually to ensure that the principal lasts for a long duration, though this depends on the expected return of the fund.