SWP Calculator

Plan monthly income from your corpus with a Systematic Withdrawal Plan.

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FD Comparison

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Frequently Asked Questions

What is a Systematic Withdrawal Plan?
SWP is a mutual fund facility that lets you withdraw a fixed amount monthly from your corpus. The remaining balance continues to earn returns, making it an efficient way to generate regular income in retirement while the corpus potentially grows.
How does SWP compare to a Fixed Deposit?
SWP from equity or balanced funds typically earns 8-12%, higher than FD rates of 6-8%. For the same monthly withdrawal, SWP corpus depletes more slowly. Over 15-20 years, SWP generally outperforms FD due to higher underlying returns.
Is SWP taxable in India?
Yes. For equity mutual funds: long-term gains (over 1 year) above ₹1.25 lakh/year are taxed at 12.5%. Short-term gains at 20%. Debt funds are taxed at your income slab rate. SWP is generally more tax-efficient than FD interest, which is fully taxable.
How much corpus do I need for ₹50,000/month?
At 10% annual return, approximately ₹60 lakh corpus can sustain ₹50,000/month for 20+ years. At 6%, you need close to ₹1 crore. The higher your investment return, the smaller the corpus needed for the same monthly income.

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