How SWP Works
Each month, the fixed withdrawal is deducted and the remaining corpus earns the expected monthly return. The balance reduces over time. If monthly return > withdrawal rate, corpus may even grow.
Formula per period: New Balance = Previous Balance × (1 + r) – Withdrawal, where r = annual rate / 12 / 100.
What if balance reaches zero?
If your withdrawal is too high relative to the corpus and expected return, the fund will be exhausted before your planned period. Reduce withdrawal or increase corpus.
⚠️ Disclaimer: For illustrative purposes only. Mutual funds are subject to market risk. Consult a SEBI-registered advisor. Source: AMFI India.
Last Updated: June 2025 · Reviewed by Wolf Office Tools Editorial Team