Glossary
SWP: meaning, example and why it matters
Systematic withdrawal plan: withdrawing a fixed amount from a mutual fund at regular intervals.
Worked example
From a ₹10,00,000 fund, withdrawing ₹10,000 a month takes ₹1,20,000 a year. If the fund earns 6% (₹60,000) the balance after a year is close to ₹9.4 lakh, before tax.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
An SWP turns a fund into a regular payout, but withdrawals above what the fund earns reduce the balance.
Related terms
See it in practice
Frequently asked questions
Is an SWP the same as a dividend?
No. An SWP redeems units you choose to withdraw; a dividend is a payout the fund declares, and it is not guaranteed.
Is this page investment advice?
No. SWP is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.