How to Generate a Monthly Income from ₹1 Crore Using SWP?

📌So, you’ve built a ₹1 crore corpus using the 15-15-15 rule —congratulations! 🎉 Now, the next step is to make this wealth work for you by generating a steady monthly income. The best way to do this? A Systematic Withdrawal Plan (SWP) in mutual funds!

Let’s explore how you can use SWP to create a regular income stream without depleting your wealth too quickly.

What is SWP (Systematic Withdrawal Plan)?

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (monthly, quarterly, or annually). It helps you:

✅ Create a regular cash flow for monthly expenses
✅ Keep your investment growing while withdrawing money
✅ Enjoy tax-efficient withdrawals compared to traditional options like FDs

How to Generate Monthly Income from ₹1 Crore?

Here’s how an SWP strategy works if you invest your ₹1 crore in a debt or hybrid mutual fund offering a stable 8% annual return:

Investment Amount: ₹1 crore
Expected Annual Return: 8%
Monthly SWP (Withdrawals): ₹60,000
Wealth Remaining After 20 Years: ₹50+ lakhs

By withdrawing ₹60,000 per month, your money keeps growing while still providing you with a steady, tax-efficient income!

Best Mutual Funds for SWP

For a stable and risk-free income, consider:

✔️ Debt Funds – Low risk, stable returns (e.g., Banking & PSU Debt Funds, Corporate Bond Funds)
✔️ Hybrid Funds – Balanced approach with equity and debt exposure
✔️ Dividend Yield Funds – Ideal for long-term growth with periodic withdrawals

Why SWP is Better Than Fixed Deposits?

🏦 Tax Efficiency: SWP withdrawals are taxed only on capital gains, whereas FD interest is fully taxable
📈 Higher Growth Potential: Unlike FDs, your money continues to grow in mutual funds
🔄 Flexible Withdrawals: You can modify or stop withdrawals anytime

Key Takeaways

📌 SWP helps turn your investment into a retirement paycheck
📌 Your wealth keeps growing while you withdraw money
📌 It’s a tax-friendly and flexible way to generate passive income

Instead of letting your money sit idle, let SWP work for you! Start planning today to secure your financial future with a steady, stress-free income. 🚀

Click here to learn about 15-15-15 rule

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