Systematic Withdrawal Plan (SWP)

With interest rate on bank deposits at an all-time low, it is best to consider Systematic Withdrawal Plan (SWP) for better liquidity and risk-adjusted post-tax return. In SWP, investors can withdraw a fixed amount from an existing mutual fund scheme at a predetermined interval. The invested amount generate market-linked return despite periodic withdrawals. SWP can be structured as retirement income at interval payouts of monthly or quarterly.