Is SWP from mutual funds taxable?

Each SWP redemption is taxed as a capital gain. Equity fund gains above ₹1L held for 1+ year are taxed at just 10% LTCG — far more efficient than FD interest taxed at slab rates.

SWP Calculator (Systematic Withdrawal Plan)

Find out exactly how many years your retirement corpus will last with a monthly withdrawal. Compare SWP with traditional FD-based pensions.

＋Equis / Investment Analytics

FORM SWP · REV. 01

Starting Corpus

Lump sum

₹

Monthly Withdrawal

Fixed amount per month

₹

Expected Return Rate

Per annum

ASSET

Investment Report

Total Withdrawn: ₹1,10,000 | Duration: 0.9 Years

Months Corpus Lasts11 Months

In Years

0.9 Years

EQUIS Take (Asli Sach)

FD interest pe dependent rahoge toh inflation corpus kha jayegi. SWP (Equity/Hybrid fund) se

monthly income bhi aati hai aur bacha hua paisa inflation ko beat karta hai.

The Math Behind SWP Calculator (Systematic Withdrawal Plan)

Understanding the true mechanics of this instrument helps you make optimal decisions with your money.

water_drop

1. SWP vs. FD for Retirement Income

An FD pays interest from a static corpus. An SWP lets the remaining corpus continue earning market-linked returns. Over 20+ years, an SWP from a balanced fund can provide 2-3x more total income than an equivalent FD.

receipt

2. The 4% Safe Withdrawal Rate

Academic research shows that withdrawing 4% of your initial corpus per year (inflation-adjusted) has never historically depleted a balanced portfolio over 30 years. This is the gold standard for retirement income planning.

timer

3. Inflation Erosion Warning

If you withdraw a fixed ₹50,000/month for 20 years, the real purchasing power of that ₹50,000 will drop to approximately ₹22,000 due to inflation (at 4%). Increase your SWP by 5-6% annually to maintain your standard of living.

Frequently Asked Questions

How is SWP tax treated in mutual funds?expand_more

Each SWP redemption is treated as a capital gain. For equity funds held > 1 year, gains above ₹1 Lakh are taxed at 10% LTCG — far more tax-efficient than FD interest which is taxed at the full slab rate.

What is the 4% safe withdrawal rate?expand_more

Research (the Trinity Study) found that withdrawing 4% of your initial portfolio value per year (inflation-adjusted) has historically never depleted a balanced (60% equity, 40% debt) portfolio over 30 years. This is the gold standard for retirement planning.