SWP Calculator (Systematic Withdrawal Plan)
Calculate monthly withdrawals, investment growth, and maturity balance.
What is an SWP?
A Systematic Withdrawal Plan (SWP) is an investment strategy that allows investors to withdraw a fixed amount at regular intervals from their mutual fund investments. It is widely used by retirees, individuals seeking steady income, or anyone who wants to balance returns with liquidity.
Benefits of SWP
- Provides regular income without fully redeeming the investment.
- Helps maintain financial discipline.
- Offers flexibility in withdrawal amount and frequency.
- Balances growth with liquidity needs.
Example of SWP
Suppose an investor puts Rs.10,00,000 into a mutual fund with an expected annual return of 8% and withdraws Rs.15,000 per month. Over a 10-year period, the SWP Calculator can help estimate the balance left after regular withdrawals, while accounting for market growth.
Problems & Solutions in SWP
Problem: What if the withdrawal amount is higher than the returns generated?
Solution: The principal investment may reduce faster. The solution is to adjust withdrawal to a sustainable level.
Problem: Market fluctuations affect long-term balances.
Solution: Diversify across funds and monitor portfolio performance regularly.
FAQs on SWP Calculator
Q1. Who should use an SWP?
Anyone who wants regular income while keeping their money invested, such as retirees.
Q2. Can I change the withdrawal amount?
Yes, SWPs are flexible, and you can modify or stop withdrawals anytime.
Q3. How is SWP different from SIP?
SIP invests money regularly, while SWP withdraws money regularly.
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