Bank of India SWP Plan

What a Systematic Withdrawal Plan Means in a Bank of India Fund

An SWP plan is a standing instruction to your fund house, you tell it how much to redeem, on what date, and how often, and the AMC keeps sending that amount to your bank account until the units run out or you cancel the mandate.

Nothing about the underlying investment changes. Your money still sits in a Bank of India equity, hybrid, or debt scheme and keeps earning (or losing) based on the fund’s NAV. The SWP only automates the selling part.

• Each withdrawal sells a specific number of units, calculated at that day’s NAV.
• The remaining units continue to grow or shrink with the market.
• You can stop, pause, or change the amount whenever you want; there’s no lock-in on the facility itself.

Bank of India Funds Suited for an SWP

Updated as of 06 August 2026

How the Bank of India SWP Plan Works, Step by Step

• Invest a lump sum, or transfer an existing lump sum, into a Bank of India direct growth scheme.
• Complete the SWP request form on the AMC portal, the RTA website (CAMS or KFin), or through your distributor.
• Choose the withdrawal amount, the date each month (or quarter), and the start date.
• The fund redeems units on that date and credits your bank account, usually within two to three working days.
• Review the statement every few months to check whether your corpus is holding up or depleting faster than expected.

Examples: Ramesh Iyer, a 61-year-old retired bank employee in Nagpur, moved his gratuity into a Bank of India Conservative Hybrid Fund and set up a monthly SWP of ₹15,000. Three years on, his corpus has dipped only slightly because the fund’s returns have mostly kept pace with his withdrawals. His neighbour, who withdrew a similar amount from a pure equity fund during a weak market phase, saw his corpus fall faster since redemptions during a downturn eat into more units for the same rupee amount.

Deciding the Withdrawal Amount with a Systematic Withdrawal Calculator

Before locking in a figure, run the numbers through a systematic withdrawal calculator rather than picking a round number. It takes your invested amount, an assumed rate of return, and your withdrawal frequency, then shows how long the corpus lasts.

• A withdrawal rate under 6-7% of the corpus annually tends to be sustainable for hybrid and debt-oriented funds.
• Withdrawing more than the fund’s average return steadily erodes the principal, not just the gains.
• Re-run the calculator once a year, since your corpus and the fund’s performance both change.

Tax Treatment of Bank of India SWP Withdrawals

Each SWP instalment counts as a redemption, so it attracts capital gains tax on the gain portion, not the entire withdrawal.

• Equity-oriented funds: gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh a year; units held less than a year attract 20%.
• Debt-oriented funds: gains are added to your income and taxed at your slab rate, regardless of the holding period.
• No TDS: There is no TDS on SWP payouts to resident individuals, but you’re still liable to report and pay the tax due.

Conclusion

The Bank of India SWP plan works well when the fund matches the investor’s need for stability. A conservative hybrid or debt scheme suits someone who needs the payout to hold steady each month, while an equity or multi-asset fund suits someone chasing growth alongside income. Run the numbers on a systematic withdrawal calculator before fixing an amount, check the tax impact for your fund type, and revisit the plan once a year so withdrawals don’t outpace what the fund can realistically deliver.