What it is: SWP allows investors to withdraw a fixed amount regularly (monthly/quarterly) from their mutual fund investments, ideal for steady income needs like retirement.
How it works: Units are redeemed to match the chosen withdrawal amount; two types exist—fixed (fixed amount) and appreciation (only gains withdrawn).
Key benefits: Offers predictable income, customisable frequency, and better control vs lump-sum or dividend withdrawals.
Points to note: Choose a stable fund, set a sustainable withdrawal rate, and be mindful of market impact on your remaining investment.
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