A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount or a fixed percentage from your mutual fund investment at regular intervals (monthly, quarterly, or annually). The remaining corpus continues to stay invested and has the potential to grow.

In an Aggressive Hybrid Fund, your money is diversified between equity and debt, aiming for growth with some stability. SWP is especially useful for retirees, those seeking regular cash flow, or anyone who wants to supplement their income while keeping their capital invested.

How it works: You invest a lump sum, select your withdrawal amount/frequency, and the fund redeems enough units to pay you as per your schedule. If the fund grows faster than your withdrawal rate, your corpus can grow even as you withdraw regularly.

• Regular Income: Provides a steady cash flow, ideal for retirees or those needing periodic income.
• Potential for Capital Growth: The remaining corpus stays invested and can grow if fund performance exceeds withdrawals.
• Tax Efficiency: Only capital gains portion of each withdrawal is taxed, often more efficient than interest income.
• Flexibility: You can adjust withdrawal amounts and frequency as per your needs.
• Volatility Management: Aggressive hybrid funds balance equity growth with debt stability, helping manage market swings.
• Peace of Mind: Reduces the temptation to withdraw large sums during market corrections, supporting disciplined investing.
• Customizable for Goals: SWP can be tailored for retirement, education, or any long-term financial need.

Assumptions:
• Initial investment: ₹10,00,000
• Fund growth: 12.5% per annum
• Initial withdrawal: 7% of corpus (₹70,000 in Year 1), increased by 5% each year
• Withdrawals made annually at the start of each year

Summary: Even after 20 years of increasing annual withdrawals, the remaining corpus is higher than your initial investment, demonstrating the potential of SWP in a well-performing aggressive hybrid fund.

• Sustainable Withdrawals: With a prudent withdrawal rate and periodic increases, your corpus can last for decades-even grow-if the fund performs well.
• Inflation Protection: Increasing withdrawals by 5% annually helps your income keep pace with inflation.
• Capital Preservation: At the end of 20 years, you still retain a large portion of your initial investment, offering long-term financial security.
• Peace of Mind: SWP offers predictable cash flows, reduces anxiety about market timing, and supports disciplined spending.
• Flexibility: You can modify withdrawal amounts or frequency if your needs change.
• Professional Guidance: For best results, review your SWP plan periodically with a Qualified Personal Finance Professional (PFP) or Certified Financial Planner (CFP).