SWPs: Smart Income Without Depleting Savings

• Systematic Withdrawal Plans (SWPs) offer regular income from mutual funds while keeping the main corpus invested and growing.
• Ideal for retirees, funding education, or managing cash flow during career breaks, as highlighted by Atul Shinghal.
• Optimal withdrawal rates are typically 3-5% annually to ensure corpus longevity and inflation protection.
• Taxation is on capital gains, making SWPs often more tax-efficient than fixed deposits or annuities.
• Benefits include predictable cash flow, flexibility, growth potential, and an inflation hedge, but risks like market volatility exist.

Why It Matters: SWPs provide a flexible, tax-efficient way to generate regular income from investments, crucial for long-term financial stability.