How a systematic withdrawal plan works
An SWP schedules regular redemptions from an existing mutual fund investment. For a fixed rupee withdrawal, the fund generally redeems more units when the net asset value (NAV) falls and fewer when it rises. The value of the units you still hold can rise or fall.
How to use the calculator
- Choose monthly or yearly withdrawals.
- Enter the amount invested, the amount you want to withdraw each period and the number of years.
- Enter an assumed annual return, then check the closing balance, total withdrawals and any shortfall. Try a lower return to see how sensitive the result is.
What the results mean
The closing balance is the estimated value still invested. Total withdrawn counts the cash the model can pay out. Estimated investment gain or loss is the closing balance plus total withdrawals, less the starting investment. The model applies growth before each scheduled withdrawal and stops withdrawals once the balance is exhausted.
What can change the outcome?
- Market timing. Early losses can force more units to be redeemed and leave fewer units to benefit from a recovery, even if the long-run average return meets your assumption.
- Inflation. A fixed withdrawal generally buys less over time. Increasing the withdrawal can shorten the life of the corpus.
- Costs and taxes. Exit loads and applicable tax can affect the net proceeds. Check the scheme documents and the tax rules applicable to your circumstances.
For more on mutual fund withdrawals, see AMFI’s guide to redemptions and its guide to redemption costs.