Mutual Funds & ETFs

What is the difference between SWP and dividend payout?

A systematic withdrawal plan (SWP) is a facility where you instruct a fund to redeem a fixed amount at regular intervals, giving you a predictable cash flow you control. A dividend payout distributes a fund's surplus when and as the fund decides, so the amount and timing are not in your hands. For example, an SWP can send you ₹10,000 every month by selling units, while a dividend arrives irregularly and reduces the fund's value when paid. SWP offers control and consistency; dividends do not. Amounts depend on fund value and are not guaranteed.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.