for Periodical Income Debt mutual funds, especially available with SWP, are one of the most popular

Advantages of SWP in Debt Mutual Funds
Regular Income: It provides for regular cash inflow for periodical expenses that can be planned for, perfect for retirees or those with fixed financial requirements.
Flexibility: It allows an investor to choose the amount to withdraw and when to withdraw.
Tax Efficiency: SWP will attract capital gains tax rather than income tax. This is more beneficial to investors, particularly in long-term investments.
Capital Preservation: If applied prudently, SWP ensures that the core investment stays intact while still providing periodic income.
Hedge Against Inflation: Mutual funds with the SWP would generate returns on debt that go beyond inflation as time passes in contrast to FDs, fixed returns.
3. SWP against Fixed Deposit for Periodical Income
Debt mutual funds, especially available with SWP, are one of the most popular substitutes for periodical income through regular fixed deposits or FDs. Let us now compare these two products across various relevant parameters: