What is a Systematic Withdrawal Plan (SWP) SBI?
A Systematic Withdrawal Plan (SWP) SBI, also known as an SBI SWP plan, is a facility offered by SBI Mutual Fund that allows investors to withdraw a fixed amount of money from their mutual fund investments at regular intervals. Instead of redeeming your entire investment at once, you can choose to withdraw smaller, more manageable amounts, making it a convenient way to generate a steady income stream. This is particularly beneficial for retirees or those seeking a supplementary income.
How Does an SBI SWP Plan Work?
With an SWP plan SBI, you can choose the frequency of your withdrawals- monthly, quarterly, half-yearly, or annually. You also decide the fixed amount you want to withdraw. This amount is then automatically debited from your mutual fund units at the chosen intervals and credited to your bank account. The remaining units continue to stay invested, potentially earning further returns.
List of SBI SWP Plans
Below is the list of the best SIP plans that fall under SBI SWP plans:
Details of SBI SWP Plan
Below are the details of SWP Plan SBI that you can choose in 2025:
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SBI Equity Hybrid Fund-Growth
The investment objective of SBI Equity Hybrid Fund-Growth is to provide investors long-term capital growth and liquidity of an open-ended scheme by investing in a diversified portfolio of equity and debt. The fund invests in equities of high-growth companies and balances risk by allocating a portion of the portfolio to fixed income instruments.
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SBI Conservative Hybrid Fund-Growth
The scheme seeks to provide investors an opportunity to invest primarily in debt and money market instruments and secondarily in equity and equity related instruments, aiming for moderate long-term capital appreciation.
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SBI Magnum Medium Duration Fund-Growth
The scheme aims to provide investors attractive returns with moderate liquidity by investing in debt and money market instruments, maintaining the portfolio's Macaulay duration between 3 and 4 years.
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SBI ELSS Tax Saver Fund Regular-Growth
The prime objective is to deliver the benefits of investment in a portfolio of equity shares while offering tax deductions under Section 80C of the Income Tax Act. It also seeks to distribute income periodically depending on distributable surplus.
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SBI Infrastructure Fund-Growth
The fund aims to provide long-term capital growth through active management of investments in a diversified basket of equity stocks of companies directly or indirectly involved in infrastructure growth in the Indian economy, and in debt & money market instruments.
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SBI Banking & Financial Services Fund Regular-Growth
The scheme seeks to generate long-term capital appreciation by predominantly investing in equity and equity-related securities of companies engaged in banking and financial services.
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SBI Large & Midcap Fund-Growth
The scheme seeks to provide long-term capital appreciation through a diversified portfolio predominantly comprising large-cap and mid-cap companies.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
13.82% |
13.34% |
|
| HDFC Life |
20.53% |
16.08% |
|
| Axis Max Life |
26.3% |
22.2% |
|
| ICICI Prudential Life |
16.7% |
14.89% |
|
| Tata AIA Life |
21.87% |
22.18% |
|
| Bajaj Life |
17.52% |
14.5% |
|
| Birla Sun Life |
19.43% |
16.41% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
12.97% |
11.89% |
|
| Star Union Dai-ichi Life |
15.2% |
- |
|
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Last updated: Nov 2025
Benefits of an SWP Plan SBI
Below are the benefits of the systematic withdrawal plan SBI:
- Regular Income: An SBI SWP provides a predictable and consistent income stream, which can be helpful for managing your expenses.
- Tax Efficiency: Withdrawals from mutual funds may be more tax-efficient than receiving interest income, as capital gains tax rules apply. Consult a tax advisor for personalized advice.
- Rupee Cost Averaging: By withdrawing a fixed amount regularly, you are essentially selling units at different NAVs. This can potentially average out the cost of your remaining units over time.
- Disciplined Approach: The systematic withdrawal plan SBI builds a disciplined approach to withdrawing money, preventing you from prematurely depleting your entire investment.
SWP Calculator
Your total Investment
₹5,00,000
Total amount withdrawn
₹6,00,000
SBI SWP Interest Rate
It's important to understand that an SBI SWP doesn't offer a fixed "interest rate". Instead, the withdrawals are made from your existing mutual fund investment. The value of your remaining investment is subject to market fluctuations. If the market performs well, your remaining investment may grow, even after regular withdrawals. Conversely, if the market underperforms, the value of your holdings may decrease. Therefore, it's crucial to understand the market risks associated with mutual fund investments before opting for an SWP. You are essentially selling a portion of your investment at the prevailing Net Asset Value (NAV) at each withdrawal.
Choosing the Right SBI SWP
When considering an SBI SWP, carefully evaluate your financial needs, risk tolerance, and investment goals, retirement planing. Consult with a financial advisor to determine the most appropriate withdrawal amount and frequency. Also, consider the historical performance of the underlying mutual fund scheme you choose for your systematic withdrawal plan SBI.
Conclusion
An SBI SWP can be a valuable tool for generating a regular income stream from your mutual fund investments. By understanding how an SWP plan SBI works and considering the associated market risks, you can make informed decisions about your financial future. Remember to carefully assess your individual circumstances and seek professional advice before making any investment decisions.
