Calculate regular monthly income payouts and remaining balance in Systematic Withdrawal Plans.
| Year | Total Withdrawn | Interest Generated | Closing Corpus Balance |
|---|
SWP allows investors to redeem a fixed amount from their mutual fund investments at regular intervals (usually monthly), providing a predictable stream of regular cash flows while the remaining balance continues earning returns.
Under SWP, the fund house automatically redeems mutual fund units equivalent to your selected payout amount every month.
Yes, SWP offers predictable, reliable monthly income and is significantly more tax-efficient compared to dividends, which are fully taxable as income.
Tax applies only to the capital gain portion of each redeemed unit, not on the entire withdrawal amount.
If your annual withdrawal rate exceeds the portfolio return rate, your primary investment corpus will gradually decrease over time.
A safe withdrawal rate of 4% to 6% per annum generally allows the corpus to sustain long-term inflation without depleting.