SWP Retiree Plan

When you start an SWP, the mutual fund company redeems units of your scheme equivalent to the withdrawal amount you've specified. This happens on a fixed date every month. The remaining units continue to stay invested and generate returns, potentially extending the life of your corpus.

In India, SWPs are often more tax-efficient than dividends or interest income. Only the 'capital gains' portion of each withdrawal is taxable, rather than the entire amount. For equity funds held over one year, you benefit from Long-Term Capital Gains (LTCG) tax rates.

A common rule of thumb in retirement planning is the '4% Rule,' which suggests withdrawing 4% of your initial portfolio value annually, adjusted for inflation. Our calculator helps you test different withdrawal rates against expected returns to see how long your money will last.

SWP is perfect for retirees who need a stable monthly income but want their capital to keep growing in a market-linked instrument. It provides the psychological comfort of a monthly 'salary' while maintaining the benefits of professional fund management.