Use our SWP calculator to create a strategy for consistent income from your mutual fund investments. It allows you to explore how much you can withdraw monthly while still maximizing the potential growth of your remaining balance.
Terms and Conditions : This calculator is meant for investor education purpose only and not aimed at soliciting investments in any particular scheme of SBI Mutual Fund.
How is an SWP better?
1 The rate of return applied to the SWP is based on the returns of the performance of the fund selected
2 The rate of return applied to traditional savings instruments is 6% pa.
3 The tax deduction for fixed deposit is calculated assuming the person, falls in the 30 per cent tax bracket
Your Systematic Withdrawal Plan
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Duration
Frequently asked questions
When do I use a Systematic Withdrawal Plan?
An investor can use a Systematic Withdrawal Plan when he wants to have a regular cash flow from his investments. The need for a Systematic Withdrawal Plan differs for every person. SWP can be useful for child education, paying EMI’s, retirement etc.
Who can choose to invest in a Systematic Withdrawal Plan?
Any person who has invested in any of SBI Mutual Fund open-ended schemes can choose to start a Systematic Withdrawal Plan for a regular cash flow subject to lock-in period, if any.
How does a Systematic Withdrawal Plan work?
A Systematic Withdrawal Plan(SWP) works in an opposite way to Systematic Investment Plan(SIP).A Systematic Investment Plan(SIP) allows an investor to invest a fixed amount at pre-determined intervals and a Systematic Withdrawal Plan(SWP) is a facility which allows an investor to withdraw a fixed amount at pre-determined intervals. The investor can choose the amount, the frequency and the duration of the SWP according to his needs. Withdrawals through SWP are subject to Exit Load as applicable.
How does long term and short term capital gain affect my tax implications ?
The tax implications on Mutual Funds are determined based on the type of Mutual Fund and holding period (from date of acquisition up to the date of the redemption/transfer).
For equity-oriented schemes (having at least 65% equity exposure): If the holding period is less than 1 year, then you realise Short Term Capital Gains which are taxable at a flat rate of 15%**. If the holding period is more than 1 year, then you realise Long Term Capital Gains which are taxable at a flat rate of 10%** if the Long Term Capital Gains exceed Rs.1,00,000 in a year. Long Term Capital Gains up to Rs.1,00,000 in a year are tax-free.
For non-equity oriented schemes (if units acquired on or after April 1, 2023):
- Schemes having up to 35% equity exposure: The capital gains on redemption of such units would be treated as Short Term Capital Gains irrespective of holding period and would be taxed as per the slab rates** applicable to the investor
- Schemes having between 35% to 65% equity exposure: If the holding period is less than 3 years, then you realise Short Term Capital Gains which are taxable at the applicable slab rates**. If the holding period is more than 3 years, then you realise Long Term Capital Gains which are taxable at a flat rate of 20%** after allowing indexation benefit.
** Plus applicable surcharge and cess
Note: The above information is provided for only general information purposes and does not constitute tax or legal advice. In view of the individual nature of tax implications, each investor is advised to consult with his/ her tax consultant with respect to the specific tax implications arising out of their transactions.
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