What is a systematic withdrawal plan & how to go about it? Bharat Phatak explains

Systematic Withdrawal Plan (SWP) is a convenient way for retirees to withdraw small amounts of investments over time. Unlike taxable bank deposits, a cash flow received through SWP is not necessarily charged to tax as income. Mutual funds, including equity, debt, aggressive hybrid, defensive hybrid, and balanced advantage funds, offer SWP which allow a minimum deposit of ₹25,000 and minimum withdrawals of ₹1,000. SWP provides a cash flow at a lower income tax rate, it allows the investor to keep capital intact.