At an average annual return of 8% in equity or hybrid mutual funds, a ₹1 Crore corpus sustains ₹60,000 / month monthly withdrawals for 30+ Years (Perpetual at 7.2%). Over 20 years, you withdraw ₹1,44,00,000 while leaving ₹1,39,26,803 in remaining portfolio value.

In an SWP, each monthly payout is treated as a partial redemption of units. Only the capital gains portion (not the principal) is taxable. For equity funds held over 12 months, LTCG is taxed at 12.5% only on aggregate profits exceeding ₹1.25 Lakhs in a financial year, making it vastly more tax-efficient than 30% slab rate FD interest.

Yes. Most Indian AMCs (HDFC, SBI, ICICI Prudential, Nippon) allow annual step-up SWP percentages (e.g. 5% to 6% annual increase) to match rising living costs, provided your underlying portfolio return exceeds your total withdrawal rate.