SYSTEMATIC WITHDRAWAL PLAN

Create a Regular Income from Your Mutual Fund Corpus

SWP lets you withdraw a fixed amount from your mutual fund investment every month or quarter — creating a steady income stream while the remaining corpus continues to grow.

Monthly

Or quarterly payouts

Tax

Efficient withdrawals

Lock-in period

Set Up SWP Talk to Advisor

SWP Illustration

Initial Corpus₹50,00,000

Monthly Withdrawal₹30,000

Fund Return Rate10% p.a.

Corpus After 10 Yrs₹67,40,000

Total Withdrawn₹36,00,000

KEY BENEFITS

Why SWP is Smarter Than Fixed Deposits for Income

Regular Monthly Income

Set a fixed withdrawal amount and receive it directly in your bank account on a predetermined date every month or quarter — just like a salary, but from your own corpus.

Corpus Continues Growing

Unlike a fixed deposit where the principal is locked, your remaining mutual fund units continue to grow at market rates — potentially offsetting or exceeding your withdrawals.

Tax Efficient

Each SWP withdrawal is treated as a partial redemption — only the gain component is taxed. For equity funds held over 1 year, LTCG tax applies, which is often lower than FD interest tax.

No Lock-In

There is no fixed tenure for an SWP. You can stop, modify, or restart your SWP anytime without penalties. Your remaining investment is accessible as a lump sum at any time.

Fully Customisable

Choose your withdrawal amount, frequency (monthly, quarterly, annually), and start date. Adjust the withdrawal amount as your income needs change over time.

Ideal for Retirement

SWP from a diversified hybrid or balanced advantage fund provides a reliable post-retirement income that inflation-proofs better than traditional pension or FD strategies.

WHO SHOULD USE SWP

Is SWP Right for You?

SWP is most valuable for those who have built a corpus and need to convert it into regular income without depleting it too fast.

✓Retirees looking for a monthly income from their savings
✓Investors with a lump-sum corpus needing regular cash flow
✓Parents funding annual college fees from a corpus
✓Self-employed individuals with irregular income needing monthly stability
✓Anyone replacing FD interest income with a tax-efficient alternative
✓Investors who want income while keeping capital invested

Requirements

✓Existing mutual fund investment to withdraw from
✓Completed KYC with the fund house
✓Active bank account for credit of withdrawal
✓Minimum corpus requirement (varies by fund: typically ₹25,000+)
✓PAN card and Aadhaar for tax documentation

THE PROCESS

How to Set Up Your SWP

Assess Your Corpus

Our advisor reviews your existing mutual fund investments, estimates sustainable withdrawal amounts, and identifies the best funds to initiate your SWP from.

Set Withdrawal Amount

Decide the monthly or quarterly amount you need. We help calculate a sustainable withdrawal rate (typically 6–8% per year) so your corpus isn't depleted prematurely.

Fill the SWP form with the fund house specifying the amount, frequency, and your bank account. Most fund houses process SWP registrations within 1–2 business days.

Receive & Track

Money is credited to your bank on the SWP date. Track your remaining corpus, units redeemed, and tax liability from one consolidated dashboard.

Frequently Asked Questions

How is SWP different from dividend payout?

Dividend payouts depend on the fund's distributable surplus and are declared at the fund manager's discretion — they're not guaranteed. SWP gives you a predictable, fixed withdrawal on a date you choose, regardless of market conditions. SWP is generally more tax-efficient too, since dividends above ₹5,000 are subject to TDS.

Can my corpus run out with SWP?

Yes, if you withdraw more than the fund earns, the corpus will gradually deplete. The key is choosing a sustainable withdrawal rate. If your fund earns 10% annually and you withdraw 8%, your corpus stays stable or grows slightly. Our advisors help calculate the right rate for your specific corpus and goals.

Is SWP income taxable?

Each SWP withdrawal involves redeeming units. Only the capital gain portion (withdrawal value minus original cost) is taxable. For equity funds, LTCG (after 1 year) is taxed at 10% above ₹1 lakh, and STCG at 15%. For debt funds, gains are taxed per your income tax slab. TDS does not apply to SWP.

Can I change my SWP amount later?

Yes. You can modify the SWP amount, frequency, or bank account by submitting a change request to the fund house. Most fund houses allow modifications with at least 10 business days' notice before the next SWP date. You can also stop the SWP entirely anytime.

Which funds are best for SWP?

Balanced advantage funds, hybrid funds, and large-cap equity funds are generally most suitable for long-term SWPs as they offer lower volatility. For short-term corpus (under 3 years), debt or liquid funds reduce the risk of redeeming at a market low. Our advisors help match the fund to your withdrawal timeline.