SWP, or
systematic withdrawal plan, lets you withdraw a set amount regularly from a
lump sum investment in a mutual fund. For instance, if you invest ₹1 lakh in
HDFC Top 200 Fund and decide to withdraw ₹10,000 monthly, your investment will
decrease by ₹10,000 each month, with the remaining amount staying invested.
Here's an example: You invest ₹50,000 annually and withdraw ₹1,000 monthly at a
10% interest rate. At the end of the tenure, your total return is ₹4,563.
|
Month |
Balance at Begin |
Withdrawal |
Interested Earned |
|
1 |
Rs. 50000 |
Rs. 1,000 |
Rs. 408 |
|
2 |
Rs. 49,408 |
Rs. 1,000 |
Rs. 403 |
|
3 |
Rs. 48,812 |
Rs. 1,000 |
Rs. 398 |
|
4 |
Rs. 48,210 |
Rs. 1,000 |
Rs. 393 |
|
5 |
Rs. 47,604 |
Rs. 1,000 |
Rs. 388 |
|
6 |
Rs. 46,992 |
Rs. 1,000 |
Rs. 383 |
|
7 |
Rs. 46,375 |
Rs. 1,000 |
Rs. 378 |
|
8 |
Rs. 45,753 |
Rs. 1,000 |
Rs. 373 |
|
9 |
Rs. 45,126 |
Rs. 1,000 |
Rs. 368 |
|
10 |
Rs. 44,494 |
Rs. 1,000 |
Rs. 362 |
|
11 |
Rs. 43,856 |
Rs. 1,000 |
Rs. 357 |
|
12 |
Rs. 43,214 |
Rs. 1,000 |
Rs. 352 |
|
|
|
Total |
Rs. 4,563 |