SWP in Mutual Funds: Stable Income for Retirement

• Systematic Withdrawal Plan (SWP) in mutual funds offers a stable income source for retirees.
• SWP allows investors to withdraw a fixed amount monthly or quarterly from their mutual fund investments, while the remaining capital continues to grow.
• Benefits include pension-like income, flexible withdrawal options, and potential tax efficiency where only capital gains are taxed.
• SWP carries market risk; investors are advised to choose balanced or debt funds to mitigate potential value depreciation during market downturns.
• It provides financial independence and peace of mind by ensuring a regular cash flow for expenses in retirement.

Why It Matters: SWP provides retirees a stable, regular income from mutual funds.