SWP Calculator

A common rule of thumb is the 4% rule — withdraw no more than 4% of your corpus annually (adjusted for inflation). For a ₹50 lakh corpus, that means around ₹16,600/month. However, in India with higher inflation and interest rates, a 3-5% withdrawal rate is considered safe depending on your return expectations.

SWP from equity or balanced funds can be more tax-efficient than FD interest, which is fully taxable at your slab rate. With SWP, only the gains portion of each withdrawal is taxed, and equity funds enjoy lower capital gains tax rates. Additionally, SWP offers the potential for corpus growth, while FD corpus remains fixed.

Yes, if the returns on your investment exceed your withdrawal rate, your corpus will grow over time. For example, if your fund earns 10% annually and you withdraw only 6% per year, the remaining 4% stays invested and compounds. This is why choosing the right fund and withdrawal amount is crucial.

During a market downturn, your fund NAV drops but you continue withdrawing the same fixed amount — meaning you redeem more units for the same rupee amount. This can accelerate corpus depletion. To protect against this, consider keeping 1-2 years of withdrawals in a liquid or debt fund and only running SWP from equity when markets are stable.