SWP: Your Key to Stable Retirement Income & Financial Freedom

• SWP (Systematic Withdrawal Plan) offers retirees a reliable solution for generating regular income after their primary earnings stop.
• It allows investors to withdraw a fixed amount from mutual fund investments monthly or quarterly, while the remaining corpus continues to grow.
• Benefits include stable, pension-like income, customizable withdrawal frequency, and potential tax efficiency as capital gains tax applies only to withdrawn amounts.
• While providing financial independence and peace of mind, SWP carries market risk; choosing balanced or debt funds is advised to mitigate this.
• Example: Investing ₹20 lakh and withdrawing ₹20,000 monthly allows for both regular income and investment growth.

Why It Matters: SWP offers retirees a stable, customizable income stream from mutual funds, balancing cash flow with investment growth.