A Systematic Withdrawal Plan (SWP) is an investment strategy that allows retired individuals to withdraw a fixed amount from their mutual fund investments regularly, either monthly or quarterly. This approach ensures that the remaining corpus continues to grow while providing a steady income. Investors typically build their mutual fund corpus through a Systematic Investment Plan (SIP) or a lump sum investment. For instance, if an investor sets a monthly withdrawal of ₹10,000 and the Net Asset Value (NAV) is ₹20, 500 units will be sold to meet this request. SWPs are advantageous as they allow flexibility in withdrawal amounts and timings, and they are not subject to Tax Deducted at Source (TDS) like fixed deposits. Taxation on SWP withdrawals depends on the type of mutual fund; for debt funds, gains are taxed at applicable rates if withdrawn before 36 months, while long-term capital gains are taxed at 20% after indexation if withdrawn thereafter. This makes early planning beneficial for individuals in higher tax brackets. Each withdrawal incurs tax only on the capital gains portion, allowing for potential offsets against losses.