Systematic Withdrawal Plan (SWP)
Withdrawing a fixed amount from a fund at regular intervals.
Definition
A Systematic Withdrawal Plan (SWP) lets you redeem a fixed amount from your mutual fund investment at regular intervals, creating a steady cash flow — popular for retirement income — while the rest stays invested and continues to grow.
Example
A retiree with ₹50 lakh invested can set up an SWP of ₹30,000/month for regular income while the corpus keeps compounding.
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