Question 1

What is SWP?

Accepted Answer

SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount regularly from your mutual fund investment.

Question 2

How does SWP work?

Accepted Answer

You invest a lump sum in a mutual fund and set up regular withdrawals. The remaining corpus continues to earn returns.

Question 3

Is SWP better than FD interest?

Accepted Answer

SWP from equity funds can be more tax-efficient and may offer higher returns, but carries market risk unlike FD.

Question 4

How is SWP taxed?

Accepted Answer

Only the capital gains portion of each withdrawal is taxed. Short-term gains are taxed at your slab rate, long-term at 10% above ₹1 lakh.

Question 5

Can I change SWP amount?

Accepted Answer

Yes, most fund houses allow you to modify or cancel your SWP at any time.

SWP Calculator – Systematic Withdrawal Plan

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