SWP (Systematic Withdrawal Plan) Calculator

Total Investment

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Withdrawal per month

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Return rate (p.a)

Time Period (Y)

All about the SWP Calculator

What Is SWP?

Systematic Withdrawal Plan, or SWP, is a mutual fund investment facility that enables you to withdraw a fixed amount from your mutual fund investments at specified intervals (monthly, quarterly, annually, etc.), you can specify the day of the month/quarter when the withdrawal should be made and the amount will be credited directly to your bank account on the specified day. As long as there are remaining units in your mutual fund scheme account, you may continue your SWP. It is basically a reverse of Systematic Investment Plans (SIPs). In a SIP, you invest fixed amounts in a mutual fund at fixed time intervals. You invest an amount periodically through SIP in a mutual fund in order to accumulate a corpus. Similarly, in SWPs, you withdraw a fixed amount of money from a mutual fund at specified intervals.

What Is Kuvera’s SWP calculator?

Kuvera’s SWP Calculator simulates your monthly withdrawals from your mutual fund investments. It helps you easily determine how long you can continue your SWP based on your initial investment, how much you can withdraw at the selected intervals and the value of your investment at the conclusion of the SWP. In this SWP calculator, just enter the total investment amount in mutual funds, the amount for periodic withdrawal, the expected annual rate of return, and the tenure of investment.

How Does The Kuvera SWP Calculator Work?

The Kuvera SWP calculator is very easy to use. Just enter a few key values and the calculator does the rest automatically to help you simplify your investment decisions.

To use Kuvera SWP calculator, enter the following values:

Investment Amount: The total amount that you wish to invest in mutual funds
Withdrawal amount per month
Expected annual rate of return (%)
Time Period : Tenure, or duration up to which you wish to make withdrawals.

The Kuvera SWP Calculator uses a mathematical formula to calculate how long you can withdraw from your mutual fund plan periodically, which is quite difficult for an individual to calculate otherwise.

Let's discuss the formula,

A = B ((1+r/n)^nt – 1) / (r/n))

In this mathematical formula,

A denotes the potential value of the investment amount in the future.

B denotes the principal balance or the amount to be withdrawn at each interval.

r denotes the expected annual rate of interest on the investment options.

n denotes the no. of times rate of interest will compound on the investment amount.

t denotes the total time intervals.

For example, an investor makes an initial investment of INR 2,40,000 in a mutual fund scheme. He chose an SWP of INR 20,000 per month, and the tenure of his withdrawal from the SWP plan is one year, i.e. 12 months, at an estimated rate of interest of 7% per annum. Using the above-mentioned formula for deriving the compound interest, the estimated balance at the end of the entire mutual fund scheme shall be INR 9,194, which signifies a profit on the initial investment.

This formula for calculating the final value of your mutual fund is quite tricky and confusing. However, using the Kuvera SWP calculator will make the computation considerably more straightforward and easy.

Benefits Of Kuvera’s SWP Mutual Fund Calculator

Kuvera SWP Calculator is one of the best SWP calculators available online, there are numerous benefits of using Kuvera’s SWP calculator. With this, it is possible:

To determine the monthly income from mutual fund investments made through the Systematic Withdrawal Plan.
To calculate the amount at maturity and withdrawal amounts.
To compute the mutual fund scheme's ideal monthly withdrawals.
You can easily modify the total investment amount, the withdrawal amount, the estimated rate of return, and the time period to obtain different results. This allows you to compare several SWP plans and obtain the optimal level of customization.

The calculator for the systematic withdrawal plan demonstrates how you may create fixed cash flows through the SWP until you reach a sufficient unit balance in your account. Some of the other key features of Kuvera’s calculator are:

It instantaneously shows you the result.
It is absolutely free of cost and easily accessible to everyone.
It helps you to choose the most viable investment strategy to maximize your financial gains.
The SWP calculator displays the final value of investment once the SWP period has ended. This allows you to plan ahead for your future investments and finances.
It is a very user-friendly, easy-to-use, and a handy tool that you can use anywhere - on any PC, laptop, or mobile phone. Investors are just required to enter the variables and the calculator does the rest.

Who Should Invest In A SWP scheme?

An SWP is one of the best investment strategies for retirees, those on sabbatical, professionals with irregular incomes, or business persons. Kuvera would let you compare various SWP mutual fund schemes, and Kuvera's SWP would aid you to choose the best suited to achieve your financial goals.

SWP is not only for retirees, but also for individuals with many dependents. The SWP option is also available to employees with familial obligations who require supplementary income. Individuals may select an SWP option for a variety of other reasons as well, such as their children's educational and travel demands and their impending financial aspirations.

What Is SWP In Mutual Fund?

In the case of SWP in mutual funds, you invest a corpus or lump sum initially and then withdraw that amount at a predetermined frequency to generate a regular stream of income. However, the amount to be withdrawn from the mutual fund and the time intervals are fixed as per the discretion of the investor. This chosen frequency of withdrawal in SWPs can either be monthly, quarterly, half-yearly, or annually.

Bank fixed or postal deposits are generally the first options for investors who want a consistent cash flow from their assets. However, investors are now concerned about their future needs for income because of the lowering interest rates on these investment options. SWP, a mutual fund product, offers a remedy for this. So how does SWP work in mutual funds? A systematic withdrawal plan (SWP) is a mutual fund investing strategy that enables investors to take fixed income from their mutual fund investments at predetermined intervals, such as monthly, quarterly, or annually. The positive aspect is that returns are tax-efficient and there is no TDS on gains, unlike typical investment options.

The SWP plan creates cash flows (revenue) by redeeming units from the scheme at a predetermined frequency. The amount of SWP and the scheme net asset value (NAV) on the withdrawal date determine the number of units that must be redeemed to produce this cash flow.

In volatile markets, SWP is the preferred choice. Investors can make a partial withdrawal while continuing to invest in mutual funds. As a result, investors get a predictable, steady return on their investments. Investors can use the SWP option to supplement their primary income with a second income to meet their financial commitments. When an investor is on the verge of attaining a goal and needs money, SWPs can be useful. Since fluctuating markets impact the NAV of the mutual fund scheme, SWP makes sure that the objective may be reached without a cash crunch. The investors may retain or reinvest the withdrawn funds according to their financial objective. To determine the amount needed to achieve their financial goals, one might use the SWP calculator.

SWP in mutual funds can usually be done through two modes:

Fixed Amount SWP:

For example, you have invested a principal amount of INR 10 lakh in a mutual fund, and you wish to generate a regular income out of it. Through a fixed amount SWP, you choose to withdraw a fixed amount of INR 10,000 every month. Through a fixed amount SWP, irrespective of the market performance of your underlying fund, you would receive a fixed amount of INR 10,000 in your bank account every month.

If your withdrawal is 12% of the underlying fund per annum, i.e. 1.2 lakh, and your underlying fund gives you a better return than 12%, then your initial investment amount of INR 10 lakh will stay intact along with the additional profits which you are not withdrawing.

But if your underlying fund gives you returns less than 12%, you will be withdrawing from your initial investment amount. This may guide you to consider other better investment options.

Capital Appreciation

Let us assume that you have invested a principal amount of INR 10 lakh in an equity-oriented hybrid fund. Through the capital appreciation SWP, you will withdraw only the profits from the underlying fund at the end of each month and keep the original investment amount intact. For example, in the first month, if the profit in your investment amount was INR 9,000, you will withdraw this amount keeping the principal amount intact. In the second month, the profit in your investment was INR 7,000; you will withdraw this amount and keep the principal amount intact. This is a good strategy for investors who need regular income on a monthly basis.

Conclusion

Systematic Withdrawal Plan, or SWP, is one of the finest methods for securing a steady income from mutual fund assets without any need for liquidation of the entire investment amount. Using the Kuvera SWP calculator, you may choose the appropriate SWP for a mutual fund and optimize your returns.

FAQs

Online investing in India simplified - Kuvera

Are you looking to invest in direct mutual funds or stocks?

Welcome to Kuvera — the first 100% free online investment and financial planning platform. Discover the best investment options without subscription fees, hidden charges, or commissions, and give more power to your investments.

At Kuvera, we make investing easy, and the experience awesome. Benefit from our AI-powered technology to super-charge your investments. Set your financial goals, invest in only direct plans, minimize your long term tax impact through tax harvesting, manage family accounts, consolidate your entire investment portfolio, and more.

How to Select and Invest in the Best Mutual Fund Plans in India?

Starting your investment journey with mutual funds can be challenging. At Kuvera, we make it easier with goal planning, selection of funds, tax optimisation, and more. Create your financial goal to know the required investment amount as a lump sum and/or SIP and check out our intelligent recommendations of funds. Or choose your preferred MFs and get started. Kuvera is an online investment platform that offers direct plans with zero commissions and charges zero subscription fees.

Are you searching for the best direct mutual funds to invest in?

The Kuvera app is one of the best mutual fund apps you can use to select investments for your portfolio. Simply follow the given steps:

Step 1: Download the Kuvera app on your smartphone, or sign up on our website with your email id and mobile number. Step 2: Get on board with our quick and simple KYC flow. Step 3: Go to 'Invest' and discover direct mutual funds based on your requirement.

There are several ways to find the best-performing mutual funds on Kuvera. Explore different categories of mutual funds based on your risk appetite, including equity, debt, and hybrid funds. You can also consider investing in global funds and NFOs through Kuvera.

You can also plan your specific financial objectives like owning a home, child’s education, a dream wedding, or building a retirement corpus through goal-based money investment. Enter the amount required for your goal, and the time you have. Viola! Kuvera will tell you how much you need to invest and the best mutual fund schemes that will help you accomplish the goal.

Keep Track of Top Stocks with Kuvera

To maximise your wealth, the key is to find stocks that have the potential to outperform the market. Before buying, you need to do thorough research on the stock's fundamentals. Kuvera makes it easy to find the best shares to invest in with all the necessary details in one place.

Search for any stock and track share prices on the Kuvera app. Keep an eye on stocks that are top gainers/losers for the day, or ones with 52-week highs or 52-week lows, along with total market capitalization.

Click on any stock you want to analyse on the Kuvera, the best investment app, and get all the details you’ll need.

The stock’s real-time price
Day’s high
Day’s low
52 week high
52 week low
1-year return
5-year return
Price-to-earnings (PE) ratio
Price-to-book (PB) ratio
Earnings per share (EPS)
Market cap
Trading volume
Dividend yield

You can also check the company’s detailed history and its financials, including the balance sheet, income statement, and cash flow. What’s more, you can also compare these details of stock with industry peers on the Kuvera app.

Import your stock portfolio on Kuvera and get a single view of all your investments. Track MFs, stocks, FD and insurance - all on one dashboard.

International Money Transfer with the Kuvera App

At Kuvera, we offer a faster and more affordable option for international money transfer through our partner Wise (formerly Transferwise). It is a smarter alternative to traditional international transfers and makes it easy to send money to your loved ones.

In contrast to some providers who sneak a markup into the exchange rate, Wise uses an exchange rate provided by Reuters to ensure fair and low-cost transfers. There are no hidden charges involved, and you can track the status of your transfers.

Transfer your money online using Wise through these few simple steps:

Step 1: Create a free account with Wise on its website or app. Step 2: Enter the transfer amount and your bank details. Step 3: Input account details from the Kuvera app. Step 4: Enter the rest of the required details and click ‘Confirm’. Step 5: Pay for your transfer using your preferred payment method.

In addition to the various benefits of transferring money through Wise, you can win an Amazon Pay Gift Card worth Rs. 1000 on your first international money transfer.

Invest in fixed deposits with the Kuvera App

Fixed deposits are one of the oldest and safest investment options offered by financial institutions. As an individual, you may want to diversify your portfolio by investing in such safe and fixed-income investments. That is why the Kuvera app lets you compare interest rates and invest in FDs.

Fixed Deposit facilities offered by Bajaj Finance Limited (“BFL”), Shriram Finance Limited ("Shriram") and Mahindra Finance Limited ("Mahindra") through commercial arrangements between Vueark Technology Services Private Limited (“VTSPL”), a 100% subsidiary of AASPL, and each such Fixed Deposit issuer.

To invest in FDs through the Kuvera app, follow the given steps:

Step 1: Go to the ‘Invest’ section and click on FD. Step 2: Find the best FDs for your investment based on your preferred tenure. Step 3: Click on the name of the investment to view the details, and then select 'Start FD'. Step 4: Enter the investment amount, tenure, and deposit option (cumulative/non-cumulative), and click on ‘Continue’. Step 5: Add details of your bank account to start investing.

You can compare FDs with similar tenure on the Kuvera app to find which financial institution is offering the best interest rates. Moreover, our app lets you calculate your returns from investments.

Why Choose Kuvera?

Are you looking to invest in direct mutual funds or stocks?

By investing in direct plans on Kuvera, you can earn up to 35% more in 20 years as you do not have to pay any commission ever.

For a longer answer, take a look at some of the benefits you will get by investing through our website/app.

100% free platform: A big reason why people consider Kuvera to be the best investment platform in India is that we impose no charges/fees. Kuvera’s online platform is completely free to use, with no feature locked behind a paywall. There are no fees, hidden commissions, or AUM linked charges
On your side: At Kuvera, we want you to invest at your own pace and comfort. We enable you to become your own wealth manager. And that’s why we created an investing experience that has no place for any #FOMO or pressure. You won’t find “hot tips”. Kuvera is your safe space to invest.
Switch to direct plans with Tradesmart: Regular plans for mutual funds can be cumbersome and expensive. But, what can you do if you already have one? We offer Tradesmart, which lets you switch to direct plans of the same plan. Now, you have no need to continue paying commissions.
Achieve your financial goals: Everyone has a dream, which might involve owning a car, purchasing a new home, sending kids abroad for education, or having ample funds after retirement. With Kuvera’s goal-based investment, you too, can make your dreams a reality.
Better account management: With Kuvera’s automated tracking facility, you can easily track your entire investment portfolio. You can also let your financial advisor guide your investment decisions by adding him/her as a manager to your Kuvera account.
Manage your family’s account: You can add multiple accounts to your login ID, which will allow you to look after your family members’ investments.

Kuvera is the one platform for all your investment needs. We have an experienced team of data-driven ex-money managers and technologists who understand your investment-related requirements.

Frequently Asked Questions

1. Can I start an SIP using the Kuvera app?

Yes, you can start a Systematic Investment Plan (SIP) using the Kuvera platform. Create your goal to get our recommendations, or find an MF of your choice. Select it and enter the amount for SIP and / or the lump sum amount you want to invest. If you do not have a folio, you can create a new one to start investing.

2. What is the use of following goal-based money investment?

It is common to spend money impulsively on things like a fancy gadget or an expensive vacation and end up not having enough funds for the important stuff. A goal-based investment prevents this as you are less likely to take money away from your goal of child’s education or retirement. When the money is tagged against a goal, we get more committed to ensure the financial goal is on track.

3. How do I create my financial goal on Kuvera?

To create your financial goal, follow these steps:

Step 1: Go to Create a Set a Goal Step 2: Enter an estimated cost of that goal. Step 3: Enter your age, investment period, planned loans, and upfront investment (if any). Step 4: Kuvera app will show the required monthly investment for this goal. Step 5: Add this goal to view recommended investments.

4. How does Kuvera’s Tax Harvesting technique work?

Tax Harvesting is a technique that involves benefitting from LTCG tax on equity funds. Long-term capital gains earned from equities and equity-related investments are taxable at a 10% rate on returns above Rs. 1,00,000 in a financial year. If you sell and buy back part of your investments every year, you can save on taxes. This utilises the ₹1 Lakh annual LTCG exemption by selling and buying back part of your investment such that you “realise” gains and not pay taxes on the exempt Rs 1 Lakh of LTCG. At Kuvera, we monitor your portfolio and recommend a transaction when applicable. We use sophisticated modelling to decide when is the right time to harvest taxes. Then we recommend the transactions you need to execute to harvest LTCG.

5. Why would I want to switch from a regular plan to a direct plan for mutual funds?

In regular plans, you pay commissions to the broker or the distributor, which can be as much as 1.5% of the value of your holding, every single year. This 1.5% leakage can make a huge difference, if you look at the compounded value over years. By investing in Direct Mutual funds, you save this commission every year. If you compare an investment of Rs 1 lakh in a Direct Plan and a Regular Plan, your investments will be worth 35% more in just 20 yrs when you invest in Direct Plans.

Direct MF plans are better than regular plans because they generate higher returns, have higher NAV, have no risk of mis-selling and give you full control of your investment.