Last Updated:June 18, 2025, 18:09 IST
Systematic Withdrawal Plan allows you to withdraw a fixed amount periodically from your mutual fund investments.
SWP is ideal for someone who needs a regular income. (Representative Image)
The Systematic Withdrawal Plan, or SWP, is an excellent option for investors who have built up a significant portfolio and are now looking for a stable income stream. Unlike the Systematic Investment Plan (SIP), which focuses on growing wealth through monthly payments, SWP allows you to withdraw a fixed amount periodically from your mutual fund investments.
So if you are someone who needs regular income, such as retirees or those with specific financial goals, this plan provided by mutual funds is for you. In this article, join us as we look into how to start SWP, how it works, and its key benefits:
Systematic Withdrawal Plan: How to Start
Step 1: Log on to your online investment platforms and click on the “Investments” option on your dashboard.
Step 2: From the portfolio section, select the mutual fund and tap on it.
Step 3: Now, tap on the three dots under the Action tab and click on Create SWP to withdraw money.
Step 4: Select the monthly withdrawal amount.
Step 5: You will be told how many times you can withdraw from your fund from the total amount available in the fund.
Step 6: Select the monthly billing date and hit the “Confirm SWP” button.
Systematic Withdrawal Plan: How It Works?
Individuals can determine the withdrawal amount (e.g., monthly, quarterly, etc.) and the frequency that suits their needs. It is to be noted that the withdrawals can come from either the principal or the capital gains, depending on the performance of the mutual fund.
Systematic Withdrawal Plan: Key Benefits
Regular Income: With this plan, you can enjoy withdrawals from your investment, ensuring a stable cash flow.
Investment Discipline: Like a SIP helps you learn the disciplined approach to investing, a SWP will help you steer clear of withdrawing large amounts due to the fear of the markets.
Tax Benefits: As an investor, you can either opt for the dividend option of a scheme or an SWP if you desire regular income from your investments. If you choose an SWP, then there is no tax deducted at source. Capital gains tax, however, will be applicable according to the type of the scheme and the amount of withdrawal.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- Location :
Delhi, India, India
- First Published:
#Start #Systematic #Withdrawal #Plan #Business #News
