ET in the classroom: Manage your cash flows smartly with systematic withdrawal plans (SWP)

Retirees prefer SWPs in hybrid and large-cap mutual funds for stable, tax-efficient monthly income. Units sold offer balanced withdrawals, reflecting market movements. Avoid volatile sectoral funds. SWPs provide long-term tax benefits, unlike high-tax dividends and TDS on amounts over ₹5,000. Flexible SWP activation can be based on need, managed through mutual fund houses.