After years of SIP investing, retirees often need regular monthly income without selling everything at once. SWP (Systematic Withdrawal Plan) withdraws a fixed amount from your mutual fund holdings each month.
How SWP works
You hold units in a mutual fund. Each month, units worth your withdrawal amount are redeemed and cash is paid to your bank. Remaining units stay invested and can grow.
SWP vs dividend
SWP gives predictable cash flow you control. Dividends depend on fund profits and are not guaranteed.
Planning tips
- Withdraw only a sustainable % of corpus (many use 4–6% rule as rough guide)
- Keep 1–2 years expenses in liquid/debt fund
- Review withdrawal yearly as markets change
Use Master Calc SWP Calculator with corpus, withdrawal and expected return. Pair with Retirement Planning Calculator.
Disclaimer: Market risk applies. Not financial advice.