SWP Calculator

What is SWP (Systematic Withdrawal Plan)?

Systematic Withdrawal Plan (SWP) is a smart way to generate a regular income from your mutual fund investments. It allows you to withdraw a fixed amount monthly, quarterly, or annually while your remaining money continues to grow in the market. It is an ideal solution for retirees looking for a pension-like income.

SWP vs. Fixed Deposit (FD)

In a Fixed Deposit, the interest is fully taxable as per your income slab. In SWP, only the profit portion of your withdrawal is taxed (Capital Gains), making SWP much more tax-efficient than FDs for those in higher tax brackets.

Frequently Asked Questions (FAQs)

Q1. Will my capital finish if I withdraw monthly?
It depends on your withdrawal rate. If you withdraw less than the fund's growth rate (e.g., Fund grows at 10% and you withdraw 6%), your capital will actually increase over time. If you withdraw more than the growth rate, your capital will deplete.

Q2. Is SWP available in all Mutual Funds?
Yes, almost all open-ended mutual fund schemes (Equity, Debt, and Hybrid) offer the SWP facility.

Q3. Can I start SWP for my parents?
Absolutely! You can invest a lumpsum amount in a conservative hybrid fund or debt fund in your parents' name and set up an SWP to provide them with a steady monthly income.

Q4. How to start an SWP with AviUrade Financial Services?
You can start an SWP on your existing portfolio or make a new investment. Contact us at +91-7218593096 or visit our office to get a customized SWP plan suited for your needs.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer:

The results generated by this calculator are for illustrative purposes only. The calculations assume a constant rate of return and do not account for tax deductions (Capital Gains/TDS) or exit loads. Past performance is not an indicator of future returns. Please consult AviUrade Financial Services before planning your SWP.