A systematic withdrawal plan (SWP) allows unit holders to withdraw a fixed amount from their mutual fund investments at regular intervals, while the investment stays deployed and working. Ideal for retirees and pensioners seeking a regular inflow of funds, SWPs have even catalysed senior citizens to invest in mutual funds despite their general wariness of equity markets.
The Securities and Exchange Board of India (Sebi) has been standardising the SWP process across asset management companies (AMCs). An estimated 14-15% of mutual fund investments, as of March 31, 2026, avail the SWP facility. UTI and Tata Mutual Fund have proactively outlined the process for death claims for SWP unit holders in their offer documents. Yet, on-ground experiences of bereaved families tell a different story.
