Retirement is a very good phase of life for those who have sufficient savings to spend. People are getting interested to save the money for their future which can be used after retirement. So if you are also one of them and want to save your extra money from monthly income then you can check this article where we will discuss with you a good retirement pension plan which will help you to invest in a good scheme. SIP is commonly used by average salaried person in mutual funds, but you can also use a combination of SIP+SWP for better refunds in retirement. We will discuss with you a very good strategy for investment in SIP and SWP Schemes, known as investment schemes in India.
What Are SIP and SWP Schemes?
The SIP term is used for systematic investment plan in mutual funds and the SWP terminology is used for systematic withdrawal plan. Both are investment schemes which is openly used by those individuals who are earning a sufficient monthly salary from their job and want to invest in mutual fund for their better future. While systematic investment plan allows you to invest in mutual fund with monthly investment where you can invest a little amount per month for a specific time period, after that you will able to get good returns from Mutual Funds in SIP scheme.
However the systematic withdrawal plan is also an investment plan where you can invest the whole amount at one time and after get it you will get Returns on specific tuners. While other investment schemes in India are providing the refund of investment after completing the maturity, SWP investment plan will allow you to get riddles on monthly basis, quarterly basis, yearly basis etc according to your need.
SIP + SWP: Ultimate Retirement Plan in India
This combination glitters in the long-term objectives. Initial SIP young (25-30 years old) with scanty investments and then replace it with SWP at 60. SWP in balanced funds have an average of 7-9% sustainables compared to equity SIPs which are at 12% in historical data of Value Research, over 20 years.
Example: Invest rs. 10,000/month through SIP into 30 years/12% CAGR. Corpus: rs. 2.5 crore. SWP rs. 1 lakh/month at 8% return after 60 years lasts 25+ years without loss of principal (use online calculators such as Groww or Zerodha).
| Investment Period | Monthly SIP | Expected Corpus (12% CAGR) | Monthly SWP (8% Yield) |
|---|---|---|---|
| 20 Years | ₹10,000 | ₹1.1 crore | ₹50,000 |
| 25 Years | ₹10,000 | ₹1.8 crore | ₹80,000 |
| 30 Years | ₹10,000 | ₹2.5 crore | ₹1.1 lakh |
Expected Returns: 12% SIP + 8% SWP After Age 60
The combination of SIP and SWP scheme of investment is helpful for those who are looking a long term investment plan with minimum or monthly investment. Most of the mutual fund companies and other investment companies are offering up to 12% Returns under SIP scheme for those who are opting it for 20 to 30 years. Apart from this investment companies are offering up to 8% return in SWP plan for long term investors. So if you want to get good income after retirement or getting age of 60 then you can select The combination of SIP + SWP investment scheme where you will able to invest monthly from your savings. and after that can get return on monthly basis under SWP after getting 60.
Top Benefits of Combining SIP and SWP for Monthly Income
There are various benefits of systematic investment plan and systematic withdrawal plan but we will focus on the specific benefits of SIP and SWP which will help you to understand the strategy of using these schemes combinedly: You should firstly start with SIP investment plan at the earlier stages of your job. After that you will able to save a lot number of money until the reaching of age 60. After that you should also start SWP plan at the last edges of your job or after 50 so it will help you to get monthly for quarterly returns according to your investment.
It is also important for investor to not combine both schemes as it may impact on each other in case of any mis balance with your investment and Returns. You can also use smartly withdrawal of money from SWP which will help you to reduce tax amount and you can also save a good amount for your future from the tax.
The step-by-step guide to SIP + SWP Investments
Evaluate Objectives: Retirement Calculators (e.g. on Moneycontrol). Goal 25x annual expenses corpus.
Investment Option: To grow in Equity (e.g. Parag Parikh Flexi Cap, 18% 10-yr return); To swap in Hybrid.
Open Account: Through apps such as Groww, Zerodha Coin or through AMC websites. Complete KYC (Aadhaar-linked).
Start SIP: Set auto-debit (min [?]500). Increase 10% yearly via top-up.
Construct Corpus: 20 years/20 + years salary 20/30.
SWP After 60: Choose payout frequency; rate (4-6% safe withdrawal).
Monitor Registered firms must rebalance once per year, with SEBI-registered consultant.
Best SIP+SWP 2026 funds (according to 5-yr returns, data of ET Money):
- Expansion stage (SIP): UTI Nifty 50 Index (14.5%), Mirae Asset Large Cap (15.2%).
- Income Phase (SWP): HDFC Balanced Advantage (12.8%), ICICI Pru Equity and debt (13.1%).
Minimum SWP required: Rs. 5-10 lakh corpus.
Investment in SIP and SWP Schemes Planning
However anyone can start investment in SIP plan with monthly investment but you should have sufficient fund to get the benefit of SWP. So once you have reached a sufficient number of investment in SIP plan then after that you can start SWP in the same plan also. Now you will also able to receive monthly returns according to your fund. You should insure that company will not pay you additional amount once your all the savings ended under SWP plan so you will only receive the monthly or quarterly installments according to your investment in SIP and SWP Schemes.
Common Mistakes to Avoid in SIP + SWP
- Breaking SIP when dipping- keep invested in order to compound.
- Huge SWP rates (>8%) danger of being depleted.
- Neglecting expense ratio (less than 1 percent ideal).
- No emergency fund- have 6-12 months expenses separate.