MoneyWiseGuide
Plan your Systematic Withdrawal Plan and check sustainability of withdrawals
Min: ₹25,000 | Max: ₹10,00,00,000
Min: ₹1,000 | Max: ₹50,00,000
Min: 4% | Max: 15%
Min: 1 year | Max: 40 years
Enter withdrawal details to check sustainability
Systematic Withdrawal Plan allows you to withdraw a fixed amount regularly from your mutual fund investments, providing steady cash flow while the remaining balance continues to earn returns.
Retirees seeking regular income, investors wanting to use corpus gradually, or anyone needing periodic cash flows while keeping investments active.
SWP allows you to withdraw a fixed or variable amount regularly from your mutual fund investment while keeping the remaining corpus invested. It's the opposite of SIP - perfect for retirees or anyone needing regular cash flow from investments.
SWP gives you control over withdrawal amount and frequency, while dividends are uncertain and fund-dependent. SWP is more tax-efficient as you're redeeming units (capital gains tax) vs dividends (added to income). SWP provides predictable cash flow.
The 4% rule suggests withdrawing 4% annually from your corpus. For India, conservative planners recommend 3-3.5% due to inflation and market volatility. Higher withdrawal rates risk depleting corpus faster. Balance withdrawal rate with expected returns.
Not necessarily. Corpus sustainability depends on withdrawal rate vs returns. If returns exceed withdrawals, corpus grows. If withdrawals exceed returns, corpus depletes. Use our calculator to check how long your corpus will last at different withdrawal rates.
Hybrid/Balanced Advantage Funds (60-40 equity-debt mix) work well for moderate risk. Conservative Hybrid Funds for low risk. Large-cap/Index funds for higher returns with volatility. Choose based on risk tolerance and withdrawal needs.
SWP is treated as redemption. Equity Funds: Long-term (>1 year) - 12.5% above ₹1.25L annually. Debt Funds: Taxed as per income slab. Each SWP creates a taxable event only for gains on units redeemed, not entire withdrawal amount. More tax-efficient than dividends.
Yes! You can increase, decrease, pause, or stop SWP anytime. Most fund houses allow online modifications. Flexibility to adjust withdrawals based on needs, market conditions, or corpus performance is a key SWP advantage.
During crashes, consider reducing SWP amount temporarily to preserve corpus since you're selling more units at lower NAV. Keep 2-3 years' expenses in debt funds as buffer. Resume normal SWP when markets recover. Maintain emergency fund separately.