An SWP (Systematic Withdrawal Plan) lets you withdraw a fixed amount from a mutual fund at regular intervals — weekly or monthly — while the rest of your money stays invested. It is the opposite of an SIP: instead of adding a set amount each period, you take one out. On Rupeezy you set up an SWP on the fund's own Redeem/SWP screen in the app.
How does an SWP work?
Each SWP instalment is a small, automatic redemption — the plan sells just enough units to pay out the amount you chose, on the schedule you set, and leaves the rest of your holding invested. Because every instalment is a redemption, the units are sold at the fund's applicable NAV for that day, and any exit load the fund charges applies — so what you receive can differ slightly from the amount you set. You decide the withdrawal amount, the frequency (weekly or monthly), and optionally how many instalments to run; the plan then places each withdrawal for you until you stop it or it completes.
When should I use an SWP?
An SWP suits you when you want a steady flow of money out of an investment rather than selling it all at once. Common situations:
- You want a regular income from a lump sum. If you already hold a large amount in a fund — for example after retirement or a one-time windfall — an SWP turns it into a predictable payout each month while the balance keeps working.
- You'd rather exit gradually than in one go. Withdrawing a fixed amount over many dates spreads your sales across different NAVs, instead of redeeming everything at a single day's price.
- You want to keep the rest invested. Only the units needed for each instalment are sold; whatever you don't withdraw stays in the fund and can continue to grow.
If instead you want to sell your whole holding, or take out a single amount just once, a one-time redemption is the simpler choice — see How to redeem or sell mutual fund investments on the Rupeezy app?.
How do I set up an SWP on Rupeezy?
You start an SWP from the same place you redeem a fund — open the fund, tap Redeem/SWP, and switch to the SWP tab to set your amount, frequency and (for monthly plans) a date. For the full walkthrough, see How to redeem or sell mutual fund investments on the Rupeezy app?.
Things to keep in mind
- Each withdrawal is a partial redemption. The applicable NAV and any exit load apply to the units sold, so the amount credited can differ from the figure you set — and, like any redemption, an SWP can have tax implications on the gains realised.
- Your remaining units stay exposed to the market. The balance left invested still rises and falls with the fund's NAV; an SWP does not lock in or protect it.
- An SWP is available on the Rupeezy mobile app. You manage it from the fund's Redeem/SWP screen.