What is SWP?
SWP (Systematic Withdrawal Plan) is the opposite of a SIP: a fixed amount is withdrawn from your fund every month or quarter and paid to your bank account.
It is often used after retirement to create a regular income while the rest of the money stays invested. Each withdrawal sells some units, so it may attract exit load and capital gains tax.
Example
With ₹20 lakh in a hybrid fund, an SWP of ₹12,000 a month gives a regular income while the remaining money continues to grow.
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