A Systematic Withdrawal Plan (SWP) is a structured strategy employed in mutual fund investing. Investors establish a plan to withdraw a predetermined amount from their mutual fund investment at consistent intervals. This process involves the automatic sale of mutual fund units by the fund company to meet the specified withdrawal amount requested by the investor.

SWP is commonly utilized by investors seeking to generate a steady income stream from their mutual fund investments, particularly retirees relying on these funds for regular expenses. It offers a methodical approach to receiving periodic payments while preserving the remainder of the investment for potential growth opportunities.