SWP
A plan that pays you a fixed amount from your mutual fund every month, the reverse of an SIP.
SWP stands for Systematic Withdrawal Plan. Instead of putting money in each month like an SIP, it takes money out: the fund sells just enough units to pay you a fixed sum on a set date. It is often used in retirement to turn a lump sum into a steady monthly income, while the rest stays invested. The amount you draw can attract capital gains tax, so check the current rules.
Questions people ask
What is the full form of SWP?
SWP stands for Systematic Withdrawal Plan. The fund sells just enough units to pay you a fixed amount on a set date, while the rest stays invested. It is the reverse of an SIP.
What is an SWP used for?
Commonly to turn a lump sum into a steady monthly income, for example in retirement, without pulling the whole amount out at once.
Is SWP money taxed?
The units sold can trigger capital gains tax, depending on the fund type and how long you held them. Rates change at Budget time, so check the current rules.
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