Financial glossary
SWP
An SWP, or Systematic Withdrawal Plan, is a pattern of withdrawing a fixed amount from an existing investment at regular intervals while the remaining balance stays invested.
What SWP means
A Systematic Withdrawal Plan withdraws a chosen amount, commonly monthly, from an existing corpus. It is a withdrawal pattern, not a guaranteed-income product, and the remaining balance continues to be exposed to market movement.
Withdrawal and growth timing
A projection commonly withdraws the amount first, then applies that period's assumed growth only to the balance left afterwards. If the balance cannot cover a full withdrawal, only the remaining balance is paid out, and the balance is treated as exhausted at that point.
Simple example
A ₹50,00,000 corpus with a ₹35,000 fixed monthly withdrawal and an assumed 8% annual return can be projected month by month to see how the balance changes and whether it lasts a chosen duration.