SWP(SystematicWithdrawalPlan)
Definition
A facility that allows investors to withdraw a fixed amount from their mutual fund investment at regular intervals while the remaining corpus stays invested. SWP is commonly used by retirees or those seeking periodic cash flows. Each withdrawal may attract capital gains tax.
Example
A retiree with Rs 50 lakh in a balanced fund can set up a monthly SWP of Rs 30,000 to receive regular income while the remaining amount continues to earn returns.
Related Calculators
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