SWP Calculator

SWP allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (usually monthly). Your remaining corpus continues to earn returns, making it an efficient way to generate regular income from investments.

In SWP, each withdrawal is treated as a redemption. For equity funds, LTCG above ₹1.25 lakh/year is taxed at 12.5% (holding > 1 year). For debt funds, gains are taxed as per your income slab. Only the gain portion of each withdrawal is taxable, not the principal.

SWP from equity mutual funds can potentially offer higher post-tax returns than FD interest, especially for those in higher tax brackets. FD interest is fully taxable, while SWP benefits from indexation (debt) or lower LTCG rates (equity).

A safe withdrawal rate is the maximum monthly amount you can withdraw so your corpus lasts the entire planned period. It accounts for the returns earned on the remaining balance. The 4% rule (annual) is a popular guideline.

Yes, SWP can work as a self-managed pension. Unlike traditional pensions, SWP offers flexibility — you can adjust withdrawal amounts, and your remaining corpus stays invested for growth. However, returns are market-linked and not guaranteed.