A Systematic Withdrawal Plan (SWP) is a mutual fund facility that allows investors to withdraw a predetermined fixed amount of money from their mutual fund corpus at regular monthly intervals. It is widely used to create a steady source of post-retirement monthly income or cash flow.

Key Advantages of SWP:

• Regular Cash Payouts: Get a dependable stream of monthly funds directly credited to your bank account.
• Capital Growth & Compounding: The remaining corpus in your fund continues to generate market-linked returns and compound over time.
• Tax Efficiency: Unlike traditional Fixed Deposit interest which is taxed at income tax slab rates, SWP redemptions are subject to capital gains tax only on the profit portion of the redeemed units.
• Disciplined Exit Strategy: Eliminates the risk of attempting to time the market when redeeming your wealth.