Whalesbook
Systematic Withdrawal Plans (SWPs) offer a structured way to get regular cash flow from your mutual fund investments, working like the opposite of an SIP. This method involves withdrawing a fixed amount at set intervals, with the fund selling your oldest units first (FIFO). This FIFO rule significantly impacts taxation, especially for equity funds, and the sustainability of your income depends on matching withdrawals with fund earnings. SWPs provide flexibility, allowing changes or stoppages as needed.