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  • ICICI Prudential Advisor Series - Dynamic Accrual Plan 31.85 0.00(0.00%)
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Asian Paints Ltd.(INE021A01026)
NSE: Asian Paints BSE: 500820 Sector: Chemicals
NSE Mar 16 2018, 4:01
1,160.80 23.90(+3.90%)
BSE Mar 16 2018, 4:01
2,260.90 23.90(+3.90%)
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What is a systematic withdrawal plan?

Systematic withdrawal plan is a facility offered by mutual funds, allowing an investor to withdraw a pre-determined amount at pre-decided intervals from selected mutual fund schemes. Through the way of SWPs, an investor can create a regular cash flow for fulfilling his retirement needs or any specific needs including your child's education, wedding, etc.

Under a systematic withdrawal plan, an investor can customize the cash flow either withdrawing the capital gains on the investment amount or a fixed amount.

Why opting for a systematic withdrawal plan is a good idea?

  • Redemptions from SWP are not subject to tax deductions, though the capital gains are taxed on the amount withdrawn.
  • An investor can also opt for withdrawing the capital appreciation and keep the capital invested to enjoy the gains on a regular interval.

Withdrawal options in SWP

With a fixed withdrawal option in SWP, one can access a specified amount from the investment on a monthly or a quarterly basis. Whereas, with the appreciation withdrawal option, only the appreciation on the investment can be withdrawn on a monthly or quarterly basis.

How Does SWP Work?

A Systematic Withdrawal Plan works opposite to SIP. In the case of SWP, an investor instead of saving money on a regular basis can withdraw a fixed sum of money from his investment.

20 Years SWP Returns Calculator