An SWP or Systematic Withdrawal Plan is a service offered by mutual funds that allows investors to withdraw a predetermined amount at regular intervals, usually monthly. This provides a steady income while keeping the rest of the investment growing.

While a Systematic Investment Plan (SIP) involves investing a fixed amount regularly into a mutual fund, an SWP involves withdrawing a fixed amount regularly from a mutual fund. SIP is ideal for accumulation, while SWP is for generating regular income.

Yes, most mutual funds allow you to adjust your withdrawal amount or even stop the SWP without any penalties. However, it’s best to consult with your mutual fund provider before making changes.

Inflation reduces the purchasing power of money over time. By including inflation in your calculations, you can better estimate the real value of your future withdrawals, ensuring that your income keeps pace with rising costs.

If the withdrawals exceed the returns generated by the investment, your principal will start depleting. The SWP Calculator helps you estimate when your investment might run out, allowing you to plan accordingly.

SWP is particularly beneficial for those looking for regular income without liquidating their entire investment. It’s ideal for retirees or those needing a stable cash flow while keeping some capital invested.

The primary risk is market volatility. If the market underperforms, your investment might deplete faster than expected. However, careful planning with tools like our SWP Calculator can help mitigate this risk.