Question 1

What is SWP?

Accepted Answer

Systematic Withdrawal Plan — you invest a corpus once and withdraw a fixed amount at a regular interval (usually monthly). The remaining balance keeps growing at the fund's return rate. Used for retirement income or supplementing salary.

Question 2

How long will my corpus last?

Accepted Answer

It depends on the gap between your withdrawal rate and the return rate. If you withdraw 8% annually but the corpus earns 10%, it lasts indefinitely. If you withdraw 12% but earn 8%, it depletes in roughly 12-15 years.

Question 3

Is SWP tax-efficient?

Accepted Answer

Yes — only the gain portion of each withdrawal is taxable, not the principal. For equity funds held > 1 year, gains are LTCG-taxed at 12.5% above ₹1.25L. SWPs are typically more tax-efficient than dividend plans.

Month	Balance at begin	Withdrawal	Interest earned	Balance at end
1	₹10,00,000	−₹10,000	₹6,667	₹9,96,667
2	₹9,96,667	−₹10,000	₹6,644	₹9,93,311
3	₹9,93,311	−₹10,000	₹6,622	₹9,89,933
4	₹9,89,933	−₹10,000	₹6,600	₹9,86,533
5	₹9,86,533	−₹10,000	₹6,577	₹9,83,110
6	₹9,83,110	−₹10,000	₹6,554	₹9,79,664
7	₹9,79,664	−₹10,000	₹6,531	₹9,76,195
8	₹9,76,195	−₹10,000	₹6,508	₹9,72,703
9	₹9,72,703	−₹10,000	₹6,485	₹9,69,187
10	₹9,69,187	−₹10,000	₹6,461	₹9,65,649
11	₹9,65,649	−₹10,000	₹6,438	₹9,62,086
12	₹9,62,086	−₹10,000	₹6,414	₹9,58,500

SWP Calculator

Corpus over time

Withdrawal schedule (first 12 months)

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