Plan your systematic withdrawals and see how long your retirement corpus will last.
Your returns are higher than your withdrawals. Your wealth is actually growing!
SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount of money from your mutual fund investment at regular intervals (like monthly). It is the opposite of SIP.
SWP is ideal for retirees or anyone seeking a regular, predictable income from their accumulated investments.
Each SWP withdrawal consists of both principal and capital gains. You only pay tax on the capital gains portion, not the principal. Long Term Capital Gains (LTCG) on equity funds are taxed at 12.5% above ₹1.25 Lakhs per year.
If the mutual fund generates returns higher than your withdrawal rate, your original corpus will continue to grow even while you draw a regular income!