What is a SWP?
SWP, or Systematic Withdrawal Plan, is a service provided by mutual funds, enabling investors to withdraw a consistent amount periodically from their mutual fund investments. This option is particularly beneficial for individuals seeking a stable income stream while retaining their initial investment in the fund.
What is the SWP Calculator?
How does the SWP Calculator work?
The SWP Calculator illustrates the regular cash inflows generated by the systematic withdrawal plan. It utilizes a mathematical equation: A = PMT ((1+r/n)^nt – 1) / (r/n)) where A represents the Future Value of the Investment, PMT is the payment amount per period, n indicates the number of compounds in a period, and t represents the number of periods the money is invested.
To illustrate, consider an initial investment of Rs 1,20,000 in a mutual fund scheme. If you redeem an SWP amount of Rs 10,000 monthly over a 12-month withdrawal period, with an expected annual return of 7%, the calculator tracks the monthly balance, redemption amounts, accrued interest, and end-of-month balance.
How Stack Wealth can help you with your SWP?
Utilize Stack's best SWP Calculator to compute your monthly income from mutual fund investments using the Systematic Withdrawal Plan. Experiment with various withdrawal amounts and determine the maturity sum. This tool assists in finding the optimal monthly withdrawals from your mutual fund scheme. It also helps you determine the SWP surplus, which you may invest in other financial instruments.
Advantages of having a systematic withdrawl plan
Benefits of SWP mutual fund Calculator:
- Ensures accurate calculations for systematic withdrawal plans.
- Streamlines withdrawal strategy, optimizing financial goals.
- Helps mitigate market risks through strategic withdrawal planning.
- Tailors withdrawals to individual needs, enhancing financial flexibility.
- Facilitates long-term financial stability with systematic, calculated withdrawals.