Investing
SWP
Also known as: Systematic Withdrawal Plan
The reverse of a SIP, where you withdraw a fixed amount from a fund every month.
An SWP lets you pull out a set amount, say ₹20,000, from your mutual fund each month while the rest stays invested and keeps growing.
It is popular for retirement or any time you want a steady income stream from a lump corpus.
It is also more tax-efficient than dividends, because each withdrawal is treated as a mix of your own capital and gains.
For example
Retire with ₹50L in a fund, set up a ₹30,000/month SWP, and you get a salary-like income while the balance keeps trying to grow.