An SWP is the mirror image of a SIP. Instead of putting money in each month, you take a fixed amount out — for example ₹20,000 a month — while your remaining units stay invested and can keep growing.
It is popular with retirees who want a regular, predictable income from a corpus without withdrawing everything at once. You control the amount and frequency, and can stop any time.
For example, from a ₹50 lakh corpus you might withdraw ₹25,000 a month. If the fund grows faster than your withdrawals, your capital can even last indefinitely; if not, it slowly depletes. SWPs can also be more tax-efficient than dividend payouts.