SIP / SWP
SWP explained: regular withdrawals from an investment
How systematic withdrawals work, what affects the remaining corpus and which risks to review.
A systematic withdrawal plan (SWP) allows an investor to redeem a chosen amount from a mutual fund at regular intervals. Each withdrawal is funded by selling units at the prevailing NAV.
The remaining corpus depends on investment performance, withdrawal size, frequency, costs and taxes. If withdrawals exceed the growth of the investment, the corpus can reduce and may eventually be exhausted.
An SWP does not create guaranteed income. Consider the time horizon, liquidity needs, tax treatment and scheme risk before deciding how withdrawals should be structured.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
This article provides general educational information, not individual investment, tax or legal advice. Eligibility, risks and product terms apply. Product suitability depends on individual circumstances.