New Delhi, Sept. 11 -- A systematic withdrawal plan (SWP) is a feature for mutual fund investors, which allows them to withdraw fixed amounts at regular intervals, while still keeping the corpus invested. It is a popular method of monthly or quarterly "encashment" for retired individuals or for supplemental cash flow, as per a Clear Tax report.

Thus, it allows you to generate monthly or quarterly income (as per your choice) while keeping the remaining corpus invested. It is among the most practical choices for individuals looking to maintain steady income after retirement and can be paused, modified, or stopped at any time, depending on your requirements.

From point of view of your bank balance, the SWP withdrawal can be described as be...