Planning for long-term income from your investments? While SIPs are great for accumulation, lump sum investing combined with a Systematic Withdrawal Plan (SWP) can provide a reliable stream of cash flow especially for those looking at income over retirement or fixed durations.
Here’s a detailed look at how a lump sum of around ₹4 lakh can be structured to deliver over ₹67,000 in monthly payouts for as long as 30 years.
To generate a reliable monthly income using a Systematic Withdrawal Plan (SWP), the first step is to accumulate a sufficient investment corpus. In this case, a one-time lump sum of ₹3.99 lakh is invested in an equity mutual fund with a long-term horizon of 30 years.
If this amount is held for the full duration and earns an assumed annual return of 12%, the Lump Sum Calculator, estimates the following outcome:
Since the investment duration exceeds 12 months, Long-Term Capital Gains (LTCG) tax applies on the capital gains generated. Here’s how the taxation could look:
Once the lump sum has compounded over the long term, the next step is to structure it into regular payouts using a Systematic Withdrawal Plan (SWP). Assuming the post-tax corpus stands at approximately ₹1,01,51,572 and is allocated to a low-volatility scheme generating 7% annual returns, the Systematic Withdrawal Plan (SWP) calculator shows the following projection:
This example illustrates how a modest one-time investment, when given sufficient time to grow and combined with an SWP strategy, can potentially support a steady stream of income over a long duration.
While actual returns and tax treatment will depend on market conditions and policy changes, such planning tools help investors better understand how to structure their investments to meet their goals. It is important to assess your own financial situation, consult a qualified advisor, and align investment strategies with your personal risk profile and liquidity needs.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Published on: Jul 7, 2025, 3:21 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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