SWP : SWP means Systematic Withdrawal Plan that allows to invest first a sum of money in mutual fund and withdraw partial Amount on the monthly basis. When ever you want invest in swp, you must know the factors that affect your SWP investment.
In this article we will discuss all the aspect of Systematic Withdrawal Plan (SWP) in detail.
What is SWP ( Systematic Withdrawal Plan)
SWP stands for Systematic Withdrawal Plan that means The Investor will invest large amount of money at first in Mutual Fund and then withdraw small amount of money every month and enjoy the benefits of market growth partially.
Lets understand the by the example
Mr Ram invested 10 lakhs at once in perticular Mutual fund and decided to withdraw the monthly 10,000 rupees.
If market grow 12% per year than he will enjoy the market growth and montly income too.
After withdrwal of monthly 10,000 rupees for 10 years, Mr Ram will have still ₹886547.79. (Intreseting !)
Again to understand the income and calculation we can use SWP Calculator for this purpose.
Mr Ram will get this kind of Result
| Month | Monthly Withdrawal | Remaining Balance |
|---|---|---|
| 1 | 10000.00 | 999488.79 |
| 2 | 10000.00 | 998972.74 |
| 3 | 10000.00 | 998451.78 |
| 4 | 10000.00 | 997925.88 |
| 5 | 10000.00 | 997394.99 |
| 6 | 10000.00 | 996859.07 |
| 7 | 10000.00 | 996318.06 |
| 8 | 10000.00 | 995771.91 |
| 9 | 10000.00 | 995220.59 |
| 10 | 10000.00 | 994664.03 |
| 11 | 10000.00 | 994102.19 |
| 12 | 10000.00 | 993535.02 |
| 13 | 10000.00 | 992962.47 |
| 14 | 10000.00 | 992384.48 |
| 15 | 10000.00 | 991801.02 |
| 16 | 10000.00 | 991212.01 |
| 17 | 10000.00 | 990617.42 |
| 18 | 10000.00 | 990017.18 |
| 19 | 10000.00 | 989411.25 |
| 20 | 10000.00 | 988799.57 |
| 21 | 10000.00 | 988182.08 |
| 22 | 10000.00 | 987558.73 |
| 23 | 10000.00 | 986929.47 |
| 24 | 10000.00 | 986294.24 |
| 25 | 10000.00 | 985652.99 |
| 26 | 10000.00 | 985005.64 |
| 27 | 10000.00 | 984352.16 |
| 28 | 10000.00 | 983692.47 |
| 29 | 10000.00 | 983026.53 |
| 30 | 10000.00 | 982354.26 |
| 31 | 10000.00 | 981675.62 |
| 32 | 10000.00 | 980990.53 |
| 33 | 10000.00 | 980298.95 |
| 34 | 10000.00 | 979600.80 |
| 35 | 10000.00 | 978896.03 |
| 36 | 10000.00 | 978184.57 |
| 37 | 10000.00 | 977466.37 |
| 38 | 10000.00 | 976741.34 |
| 39 | 10000.00 | 976009.44 |
| 40 | 10000.00 | 975270.59 |
| 41 | 10000.00 | 974524.73 |
| 42 | 10000.00 | 973771.79 |
| 43 | 10000.00 | 973011.71 |
| 44 | 10000.00 | 972244.42 |
| 45 | 10000.00 | 971469.84 |
| 46 | 10000.00 | 970687.92 |
| 47 | 10000.00 | 969898.58 |
| 48 | 10000.00 | 969101.74 |
| 49 | 10000.00 | 968297.35 |
| 50 | 10000.00 | 967485.32 |
| 51 | 10000.00 | 966665.59 |
| 52 | 10000.00 | 965838.08 |
| 53 | 10000.00 | 965002.72 |
| 54 | 10000.00 | 964159.43 |
| 55 | 10000.00 | 963308.14 |
| 56 | 10000.00 | 962448.77 |
| 57 | 10000.00 | 961581.25 |
| 58 | 10000.00 | 960705.49 |
| 59 | 10000.00 | 959821.43 |
| 60 | 10000.00 | 958928.97 |
| 61 | 10000.00 | 958028.05 |
| 62 | 10000.00 | 957118.58 |
| 63 | 10000.00 | 956200.48 |
| 64 | 10000.00 | 955273.67 |
| 65 | 10000.00 | 954338.07 |
| 66 | 10000.00 | 953393.58 |
| 67 | 10000.00 | 952440.14 |
| 68 | 10000.00 | 951477.64 |
| 69 | 10000.00 | 950506.02 |
| 70 | 10000.00 | 949525.17 |
| 71 | 10000.00 | 948535.02 |
| 72 | 10000.00 | 947535.47 |
| 73 | 10000.00 | 946526.44 |
| 74 | 10000.00 | 945507.83 |
| 75 | 10000.00 | 944479.56 |
| 76 | 10000.00 | 943441.53 |
| 77 | 10000.00 | 942393.65 |
| 78 | 10000.00 | 941335.83 |
| 79 | 10000.00 | 940267.97 |
| 80 | 10000.00 | 939189.98 |
| 81 | 10000.00 | 938101.76 |
| 82 | 10000.00 | 937003.21 |
| 83 | 10000.00 | 935894.24 |
| 84 | 10000.00 | 934774.75 |
| 85 | 10000.00 | 933644.63 |
| 86 | 10000.00 | 932503.79 |
| 87 | 10000.00 | 931352.13 |
| 88 | 10000.00 | 930189.54 |
| 89 | 10000.00 | 929015.91 |
| 90 | 10000.00 | 927831.15 |
| 91 | 10000.00 | 926635.15 |
| 92 | 10000.00 | 925427.80 |
| 93 | 10000.00 | 924208.99 |
| 94 | 10000.00 | 922978.62 |
| 95 | 10000.00 | 921736.57 |
| 96 | 10000.00 | 920482.74 |
| 97 | 10000.00 | 919217.01 |
| 98 | 10000.00 | 917939.27 |
| 99 | 10000.00 | 916649.41 |
| 100 | 10000.00 | 915347.30 |
| 101 | 10000.00 | 914032.84 |
| 102 | 10000.00 | 912705.91 |
| 103 | 10000.00 | 911366.39 |
| 104 | 10000.00 | 910014.16 |
| 105 | 10000.00 | 908649.09 |
| 106 | 10000.00 | 907271.08 |
| 107 | 10000.00 | 905879.98 |
| 108 | 10000.00 | 904475.69 |
| 109 | 10000.00 | 903058.07 |
| 110 | 10000.00 | 901627.00 |
| 111 | 10000.00 | 900182.36 |
| 112 | 10000.00 | 898724.00 |
| 113 | 10000.00 | 897251.81 |
| 114 | 10000.00 | 895765.64 |
| 115 | 10000.00 | 894265.38 |
| 116 | 10000.00 | 892750.88 |
| 117 | 10000.00 | 891222.01 |
| 118 | 10000.00 | 889678.63 |
| 119 | 10000.00 | 888120.60 |
| 120 | 10000.00 | 886547.79 |
Summary
Total Profit (Interest Earned): ₹1086547.79
Final Value of Fund: ₹886547.79
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Navnit Kumar is a seasoned financial expert with over 8 years of experience in the financial markets. He is an AMFI-registered Mutual Fund Distributor (MFD) and the author of two insightful books — Anybody Can Trade and Anybody Can Trade Options — both available on Amazon. Through his writing and expertise, Navnit aims to simplify investing and trading for individuals who aspire to achieve financial freedom with confidence.
