SWP (Systematic Withdrawal Plan)

A Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund investment at regular intervals — commonly monthly. It’s a popular way for retirees to draw a “salary” from a lump-sum corpus while the remaining money keeps earning.

How long your money lasts depends on the corpus, the withdrawal amount and the returns:

• If your monthly withdrawal is less than your monthly earnings, the corpus can last indefinitely.
• If it’s more, the corpus shrinks and eventually runs out.

Because SWPs usually run on market-linked funds, returns are not guaranteed. See how long your corpus lasts with the SWP Calculator.