📐 Formula Used
Remaining Corpus after each month: C(n) = C(n-1) × (1 + r/12) – W where W = monthly withdrawal, r = annual return
Frequently Asked Questions
What is SWP?
SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount from your mutual fund at regular intervals (usually monthly) while the remaining corpus continues to earn returns.
How long can I run SWP?
As long as the corpus lasts. If the return rate is higher than the withdrawal rate, the corpus can last indefinitely and even grow.
Is SWP tax-efficient?
Yes. In equity funds, only the capital gains portion of each withdrawal is taxed (LTCG at 12.5% above ₹1.25L, STCG at 20%). Debt fund withdrawals are taxed at your slab rate.
What return rate should I use for SWP?
For equity-based SWP, use 10–12% p.a. conservatively. For debt-based, use 6–7% p.a.