SWP: Turn Your Mutual Funds Into a Monthly Paycheck

An SWP redeems a fixed rupee amount from your fund on a date you choose, giving you a self-made monthly salary.

Only the gain portion of each withdrawal is taxed, not the whole payout — far cheaper than FD interest taxed at your slab.

Keep withdrawals near 4-6% a year of the corpus so the capital can keep growing and outlast you.

Sequence-of-returns risk is the silent killer: a market crash in year one with heavy withdrawals can break the plan.

Debt funds bought after 1 April 2023 lose indexation and are taxed at slab, so equity or hybrid funds usually work better for SWP.