SWP for Monthly Income: Build Your Own Pension

An SWP pays you a fixed amount monthly by redeeming units; only the gain portion is taxed, not the whole payout.

Equity and hybrid funds beat debt funds for SWP tax efficiency after the 2023 debt-fund tax change.

Keep your withdrawal near 5-6% a year so the corpus outlives you; higher rates risk running dry.

Sequence-of-returns risk is the silent killer — starting an SWP in a crash depletes units fast.

Balanced advantage and equity savings funds are the calmer choices for a retiree drawing income.