SWP

An SWP (Systematic Withdrawal Plan) is a facility to withdraw a fixed amount from a mutual fund scheme at a regular interval, usually monthly. It is the mirror image of an SIP (Systematic Investment Plan): units are redeemed at the applicable NAV (Net Asset Value) to fund each payout, and whatever stays invested keeps moving with the market. Retirees commonly use it to turn a corpus into a monthly income. Withdraw faster than the scheme grows and the corpus depletes, so the rate you choose matters more than the scheme you choose.