A Systematic Withdrawal Plan (SWP) allows an investor to withdraw a specific amount from their lump sum investments periodically. You can set an Systematic Withdrawal Plan to be either monthly, quarterly or annually.
An Systematic Withdrawal Plan (SWP) calculator takes into consideration the returns from your investment to give you the total value of your investment at the end of your SWP tenure.
Investment consultants and mutual fund advisors are recommending SWP to retired folks as the best way to draw a regular income from their mutual fund investments. However, it is a useful financial facility for investors of all age groups, as it allows investors to withdraw a fixed amount at a predetermined regular interval and at the same time ensure their remaining investment is helping them generate additional returns.