Calculate your Systematic Withdrawal Plan from mutual funds. Plan regular income and see how long your corpus will last.
| Year | Opening Balance | Withdrawal | Growth | Closing Balance |
|---|
A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals. It's an ideal way to generate regular income from your investments while keeping the remaining amount invested for potential growth.
For a ₹10,00,000 investment with ₹8,000 monthly withdrawal at 12% annual return:
Corpus Duration: 18 years 4 months
Total Withdrawals: ₹17,76,000
Annual Withdrawal Rate: 9.6%
Key benefits of SWP:
SWP vs FD: SWP offers potential for higher returns and tax efficiency.
SWP vs Dividend: SWP provides predictable income unlike variable dividends.
SWP vs Annuity: SWP offers flexibility and potential for capital appreciation.
SWP is ideal for retirees, those seeking regular income, or investors wanting to book profits systematically.
The corpus value after each withdrawal:
Where:
Monthly Return Rate = Annual Return ÷ 12
A commonly used rule is the 4% rule:
• Equity Funds: LTCG tax @10% (>1 year)
• Debt Funds: LTCG tax @20% with indexation (>3 years)
• STCG: As per income tax slab
• Start SWP after 1+ years for tax efficiency
• Keep withdrawal rate below 6-8% annually
• Review and adjust based on market performance
• Consider inflation-adjusted withdrawals