22 Aug More powerful than SIPs & insurance bonus! Gurmeet Chadha reveals new wealth tool
In a post on X (formerly Twitter), Chadha said that SWPs are set to play a crucial role in retirement and cash flow planning, offering investors flexibility and efficiency at a time when financial planning is becoming increasingly personalized.
Highlighting the appeal of SWPs, Chadha said the instrument is “far better than insurance schemes giving assured bonus” and described it as “flexible, tax efficient & empowers investors to decide his cash flows.”
The next BIG trigger for MF industry will be retirement & cash flow planning using SWP (systematic withdrawal plan).
It’s far better than insurance schemes giving assured bonus.
Flexible, tax efficient & empowers investor to decide his cash flows
Will not be surprised if SWP…
— Gurmeet Chadha (@connectgurmeet) August 21, 2025
He added that he would not be surprised if the SWP book crosses Rs 20,000 crore monthly over the next 3–5 years, underscoring the potential scale of adoption.
Chadha also positioned SWPs as superior to the widely popular SIPs (Systematic Investment Plans), remarking that “SWP is more powerful than SIP as a financial planning tool.”
What is an SWP and how does it work?
An SWP works by allowing an investor to put a lump sum into a mutual fund and then withdraw a fixed amount regularly, such as monthly or quarterly, while the remaining money stays invested.This makes it different from a SIP, where money is invested in small amounts at regular intervals to build wealth.With SWPs, the focus shifts to generating steady cash flows for the investor, making them particularly useful for retirement planning, as they provide income while keeping the invested capital working in the markets.
Also read: Is Rs 4 crore enough for retirement corpus? Gurmeet Chadha gives simple calculation metric
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