Systematic Withdrawal Plan(SWP) Calculator

 SYSTEMATIC WITHDRAWAL PLAN (SWP)

Systematic Withdrawal Plan or SWP is a facility that is offered by mutual funds through which an investor can withdraw a ‘pre-determined’ amount at ‘pre-decided’ intervals from her/his investments in (selected) mutual fund schemes. It helps in creating a supplementary income for those with specific needs – like regular cash flows to elderly parents, meeting child’s education, etc., or a regular source of income to retirees. 

THE NEED OF SYSTEMATIC WITHDRAWAL PLAN (SWP)

It states that mutual fund investments face the market fluctuations, and these may impact the fund NAV unfavorably, especially when an individual is moving towards a goal, the fund returns may erode if not withdrawn right on time. Thus, with the help of the Systematic Withdrawal Plan, the user can time-up their withdrawals as per their financial needs. 

Systematic Withdrawal Plan also helps the investors who want a second income apart from their salary. 

THE WITHDRAWAL OPTIONS

• Fixed-withdrawal: With the fixed-withdrawal option the investor can access a specified amount from their investment either monthly or quarterly.
• Appreciation-withdrawal: With this option, the investor can withdraw only the appreciated amount either monthly or quarterly.

THE WORKING OF SYSTEMATIC WITHDRAWAL PLAN (SWP)

Systematic Withdrawal Plan (SWP) has an opposite working compared to Systematic Investment Plan (SIP). Over here, instead of you saving or investing a fixed amount every month, you as an investor can withdraw a fixed amount from your investments regularly or monthly. 

NOTE: The calculator will showcase an estimate; not an accurate figure.