Get monthly income after retirement with SWPs!

What is SWP?

An SWP, or Systematic Withdrawal Plan, allows you to withdraw a set amount of money from your mutual fund at regular intervals, like monthly or quarterly, by automatically selling some of your units.

How does SWP work?

Let’s understand this with the help of an example

Meet Raj, who has been diligently investing in a mutual fund that offers SWP over the last 30 years of his career.

Now that Raj is retiring, he wants to ensure a steady stream of income instead of withdrawing his savings all at once.

He decided to set up a Systematic Withdrawal Plan (SWP) after retirement for 30 years to help manage his finances during retirement.

Here’s how Raj sets up his SWP

SWP Calculator

Process

Benefits for Raj

• Regular Income: Raj receives ₹40,000 every month, which supplements his pension, helping him cover daily expenses without financial worry.
• Investment Growth: Since Raj isn’t withdrawing all his money, the remaining investment keeps growing, helping him earn more profits over time.

By setting up an SWP, Raj can enjoy financial stability without worrying about market fluctuations or outliving his savings.

Taxation of SWP

When you redeem your mutual fund holdings via SWP, you may earn capital gains on redemption. Those capital gains are taxed based on the type of mutual fund redeemed and its period of holding.

Here are 4 few ways SWP can help you apart from securing your retirement

SWP could be a smart way to secure your: retirement, steady income, and investment growth without the need for constant management.