Knowledge Base

SWP — Systematic Withdrawal Plan

Remaining = Corpus × (1+r)^n − W × [((1+r)^n − 1) / r]

SWP provides regular income from your mutual fund corpus — like a self-made pension.

Equity fund SWP: First ₹1.25L LTCG is tax-free annually. Much better than FD interest taxation.

A ₹1 Crore corpus with 10% returns and ₹50K/month SWP can last 25+ years.

SWP from growth option is more tax-efficient than dividend option.

Start SWP from a balanced/hybrid fund for lower volatility in withdrawals.

Pro Tip

Keep 2-3 years of withdrawals in liquid/debt fund. Draw SWP from there during market downturns, let equity recover.

SWP — Systematic Withdrawal Plan - Complete Guide

Everything you need to know about SWP and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Remaining = Corpus × (1+r)^n − W × [((1+r)^n − 1) / r]

Key Concepts & Rules

SWP provides regular income from your mutual fund corpus — like a self-made pension.

Equity fund SWP: First ₹1.25L LTCG is tax-free annually. Much better than FD interest taxation.

A ₹1 Crore corpus with 10% returns and ₹50K/month SWP can last 25+ years.

SWP from growth option is more tax-efficient than dividend option.

Start SWP from a balanced/hybrid fund for lower volatility in withdrawals.

Expert Strategy

Keep 2-3 years of withdrawals in liquid/debt fund. Draw SWP from there during market downturns, let equity recover.

How to use this Calculator?

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3. Check the breakdown table for year-by-year projections.
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