A corpus of Rs. 1 crore seems like a sizable amount for your financial future. Whether it’s from a maturing investment, a business exit, or years of disciplined saving, the question now is how to use that money to generate regular income.

A SWP allows you to withdraw a fixed sum from your mutual fund SIP investment at regular intervals while keeping most of it invested. This gives you space to not only have money for daily use at your disposal but also consistently give returns on the amount invested.

In this article, we will explore how SWP works and how a SWP return calculator can help you plan sustainable withdrawals based on your financial goals.

What Is An SWP And How Does It Work?

An SWP helps you withdraw a specific amount of money from your investment at regular intervals. The rest of the investment continues to remain in the fund and earn potential returns in the long-term.

Here’s a simple example. Let’s say you have built up a corpus of around *Rs.1 crore through a mutual fund SIP investment or through a lumpsum amount and choose to withdraw Rs. 50,000 every month. This Rs. 50,000 is paid out by redeeming a portion of your units. The rest remains invested and continues to access potential growth opportunities in the market. This can help you if your corpus potentially lasts for several years while providing regular cash flow.

This structure can make SWPs suitable for retirees or those seeking income from existing wealth.

Using A SWP Return Calculator

Before deciding how much to withdraw, it’s important to understand how long your money can last. This is where a SWP return calculator can help. The calculator helps you estimate this based on four key inputs: your initial investment amount, monthly withdrawal amount, expected annual rate of return and the Duration of withdrawals.

The calculator then projects how long your withdrawals can potentially be sustained. You can adjust the withdrawal amount or horizon to test different scenarios.

Using A SWP Return Calculator Helps You:

  • Plan withdrawals that are aligned with your needs and market conditions

  • Avoid the risk of depleting your corpus too early

  • Understand the impact of return fluctuations on long-term sustainability

How Much Can Rs. 1 Crore Generate Monthly?

The answer depends on how much risk you’re comfortable taking and how long you want your money to last. Let’s look at a few illustrative scenarios using a SWP return calculator:

1.      Conservative investment

    • Expected return: 6% per annum

    • Withdrawal: Rs. 80,000 per month

    • Result: The corpus may last approximately 16 years.

2.      Moderate investment

    • Expected return: 8% per annum

    • Withdrawal: Rs. 80,000 per month

    • Result: The corpus may last around 20–21 years

3.      Aggressive scenario

    • Expected return: 10% per annum

    • Withdrawal: Rs. 90,000 per month

    • Result: The corpus could last 22 years.

These figures are indicative and based on consistent return assumptions, which may not reflect actual market behaviour. The goal of the calculator is not to guarantee outcomes, but to help you make informed estimates.

Why Systematic Withdrawal Plans Are Popular For Income Planning

SWPs offer several advantages for those seeking regular income from their investments. One key benefit is customisation which means you decide how much to withdraw and how often. Another feature is flexibility -- you can stop/pause your withdrawals or change the withdrawal amount at any time. Lastly, SWP also offers the potential for continued growth over time because a portion of your money stays invested.

This can make SWPs a more sustainable option than a lumpsum withdrawal and more efficient than traditional fixed deposits or pension plans owing to the higher growth potential.

Things To Consider Before Setting Up An SWP

While SWPs are useful, here are a few points to keep in mind:

  • Fund selection matters – The performance and volatility of the fund will directly affect the sustainability of your withdrawals

  • Be realistic with return expectations – Always run conservative scenarios using a SWP return calculator

  • Inflation impact – Over time, your monthly expenses may rise. Factor this into your planning by periodically reviewing your SWP amount

  • Market risk – If you’re relying on mutual funds, especially equity-oriented funds, be prepared for market ups and downs

Conclusion

A Rs.1 crore corpus opens multiple possibilities. If regular income is what you're looking for, an SWP offers a structured and flexible way to access your funds. But to get the most out of it, it’s essential to plan.

Using a SWP return calculator helps you simulate different outcomes and choose a withdrawal strategy that fits your goals. Whether you want your income to last 15, 20, or 30 years, the calculator gives you understanding and control over your financial future.

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