Investments
SWP vs SIP
pronounced: [S-W-P- -v-s- -S-I-P]
SIP (Systematic Investment Plan) involves regularly investing a fixed amount in mutual funds to build wealth over time.
SWP (Systematic Withdrawal Plan) involves regularly withdrawing from accumulated investments to generate regular income.
Example
Investing ₹10,000/month in an equity mutual fund via SIP for 10 years at 12% p.a. returns ₹23.2 lakh. Your total investment = ₹12 lakh. Long-term capital gains tax of 12.5% applies on gains above ₹1.25 lakh.
Frequently Asked Questions
Last updated: 21 May 2026