Steady Income in a Falling Market: Understanding SWP Through a Real Family's Story
By Finance Square Private Limited · AMFI-registered Mutual Fund & SIF Distributor (ARN-361739) · APMI-registered PMS Distributor (APRN00694)
Between October 2024 and October 2026, the Nifty 50 fell 6.87%. For most investors who depend on their savings for a monthly income, that is an uncomfortable stretch: the market is down, the headlines are anxious, and every withdrawal feels like it is eating into capital that may not come back.
This is the story of one family who went through exactly that period, and came out of it with an 8.50% XIRR, ₹9.62 lakh already received as monthly income, and a portfolio worth ₹1.12 crore on ₹1.05 crore invested. There was no market timing and no clever bet behind it. What made the difference was a simple plan, built patiently, and a family that trusted that plan through a falling market.
We have told their story in full below, using figures from their transaction statement as on 19 October 2026. Before we get to the family, a quick word on the tool at the centre of it all: the Systematic Withdrawal Plan.
The short version
Market: From 18 Oct 2024 to 18 Oct 2026, the Nifty 50 fell 6.87% (−3.51% CAGR) and the Sensex fell 8.00% (−4.09% CAGR).
Portfolio: ₹1.05 crore invested, now worth ₹1.12 crore (XIRR 8.50%), after paying out ₹9.62 lakh through SWP.
Lesson: Structure did the work, not prediction: diversification, sustainable withdrawals, discipline and regular reviews.
First, what is an SWP?
An SWP lets you withdraw a fixed amount from your mutual fund investments at regular intervals, while the rest stays invested and keeps working for you. Think of it as your own monthly pension from your own capital.
Every month, the fund house redeems just enough units to pay you the fixed amount and credits it to your bank account. The units that remain stay invested. When markets are kind, the remaining units grow; when markets fall, more units are needed for the same payout. That is why the size of the withdrawal, relative to the portfolio behind it, matters so much.
WHO SHOULD CONSIDER AN SWP?
Retirees, HUFs, or anyone who needs regular cash flow without selling everything at once. Since only the capital-gains portion of each withdrawal is taxed, an SWP may be more tax-efficient than interest income. Tax treatment depends on the type of fund and your holding period, so please check with your tax advisor.
Where the story begins: savings scattered everywhere
When this family first came to us, their savings looked like those of many careful Indian households. Money sat in bank fixed deposits, a Senior Citizen Savings Scheme account, a Public Provident Fund account, an endowment insurance policy and a few existing mutual funds.
Each of these had been chosen sensibly at the time. But together, they had become hard to manage. Every product had its own maturity date, its own statements and its own interest rate. Interest from the deposits was fully taxable. And no single view told the family the one thing they really wanted to know: how much could they safely draw every month, and for how long?
What they needed was simple to say and harder to build: a steady monthly income from their savings, with the rest of their money still working for them, and one place to see and review it all.
This portfolio now represents the family's entire investment base, consolidated with Finance Square, an AMFI-registered Mutual Fund and SIF Distributor, rather than being spread across multiple distributors and advisers. FDs, SCSS and PPF are guaranteed or government-backed, while mutual funds carry market risk. A move like this suits only investors whose risk profile allows it, and it was made with that in mind.
Their Trust was the real Capital
Consolidating everything with one distributor is a big decision. Many families do the opposite: they spread their money across several distributors and advisers, hoping that more relationships means more safety.
This family chose differently. Three family members brought their entire investment base to one plan, with one point of contact. Over time, about ₹1.05 crore came in. Their investments previously held across FDs, SCSS, PPF, an endowment policy, and existing mutual funds were brought together into one portfolio.
And when the market fell, they stayed. They did not pull their money out or ask for the plan to be torn up. That trust is not something we take lightly. The portfolio and the SWP are reviewed with them regularly.
Consolidating the portfolio, so the family achieves lasting financial peace
Nothing was invested in one go. We did not wait for the market to fall before investing, and we did not rush to invest everything on day one. Money went in as each of the family's older assets matured or could be withdrawn: ₹1.05 crore over 22 tranches, across 27 months, from April 2024 to July 2026.
Here is how it came together:
April 2024: the first step. Existing mutual fund holdings were moved into a balanced advantage fund, and ₹7.5 lakh was placed in a low-duration debt fund as a parking space for money that would be invested gradually.
July to September 2024: the core takes shape. A multi-asset allocation fund was added with about ₹16 lakh. Weekly STPs (Systematic Transfer Plans) began moving money from the debt fund into it, so that equity exposure was built week by week, not on a single day.
November 2024: the largest tranche. ₹29.5 lakh went into a second multi-asset fund, from a different fund house. This money did not come from a maturity: it came from closing the family's SCSS account early, a decision explained below.
March to April 2025: a third pillar. About ₹13.9 lakh was invested in a third multi-asset fund, again from a different fund house, so that no single fund manager's view decided the outcome. This money came from the family's existing pure equity mutual fund schemes. Those schemes carried more risk than the family's risk profile called for, so after discussing it with them, the holdings were moved into a multi-asset fund, which spreads money across equity, debt and commodities such as gold and silver.
July to November 2025: smaller top-ups. As smaller amounts became available, they were added to the debt fund and the existing multi-asset holdings.
April 2026: the final large tranche. ₹15 lakh came in when the family's Public Provident Fund (PPF) account matured, and it was invested straight into the third multi-asset fund. No SWP has been started on this portion yet. The market has been weak, and this investment has not grown over the last six months, so we have chosen to give it time first. The plan is to start an SWP on this portion once it has had room to grow; the timing will be reviewed with the family.
THE BIGGEST DECISION: CLOSING THE SCSS EARLY
The ₹29.5 lakh invested in November 2024 did not come from a maturity. It came from the family's Senior Citizen Savings Scheme (SCSS) account, which held ₹30 lakh. The account had completed just over two years, so about three years of lock-in were still left. Closing it early meant paying a penalty of 1% of the principal: ₹30,000.
We discussed the trade-off with the family before they decided. Here is how the two options compared:
Staying in SCSS | Moving to a multi-asset fund with SWP | |
Income | Fixed interest, paid quarterly, for the rest of the term. It does not rise. | The SWP amount can be reviewed and stepped up over time, if the portfolio grows. |
Capital | Principal stays at ₹30 lakh. No growth. | Market value can rise over time, and can also fall. |
Safety | Government-backed, with assured interest. | Market-linked. No assured returns. |
Liquidity | Locked in for about three more years; 1% penalty to exit early. | Can be redeemed any time; an exit load may apply. |
Tax | Interest is taxable at the investor's slab rate. | Only the capital-gains part of each withdrawal is taxed, as per the fund's tax category. |
For this family, a one-time cost of ₹30,000 was worth paying for income that could grow, and for capital with room to grow over the years ahead. A fixed payout also buys a little less every year as prices rise.
This step is also a large part of why the family's SWP could be raised over time: ₹29.5 lakh moved from a fixed payout into a portfolio whose withdrawals can be stepped up as it grows.
A word of caution: This plan was built around this family's needs, timeline and risk profile, so it is not right for every senior citizen to copy it directly. Please speak to a SEBI-registered investment adviser or an AMFI-registered mutual fund distributor before making any change to your investments.
That said, there is one risk we would ask every senior citizen to think about, because it is the easiest to miss: inflation. A fixed deposit pays a fixed amount and gives back the same principal, while the cost of living keeps rising every year. Over a long retirement, money that does not grow quietly loses its buying power. In our view, that makes relying only on FDs one of the biggest risks a retiree can take.
The SWP grew with the money
The family's monthly income did not start at ₹59,000. It started small, at ₹14,300 a month in July 2024, and was raised only when new capital had arrived to support it. That way, withdrawals always stayed in line with the money behind them, rather than racing ahead of it.
When | Monthly SWP | What changed |
Jul 2024 | ₹14,300 | SWP starts on the first two funds |
Oct 2024 | ₹17,000 | Raised as more money moved in |
Nov 2024 | ₹17,500 | Raised again |
Dec 2024 | ₹32,250 | SWP added on the second multi-asset fund |
Apr 2025 | ₹39,150 | SWP added on the third multi-asset fund |
Dec 2025 | ₹44,200 | Raised after the 2025 top-ups |
Now | ₹59,000 | Current monthly SWP |
The SWP was raised each time new money came in, so withdrawals stayed in line with the capital behind them. Today, ₹59,000 reaches the family every month.
Where the family stands today
Despite a weak equity market, the ₹1.05 crore the family invested is now a portfolio worth ₹1.12 crore, after ₹9.62 lakh has already been paid out through SWP. That is about ₹14.3 lakh more than the cost of the current holdings. The SWP started at ₹14,300 a month in July 2024 and was stepped up each time new money came in. At today's ₹59,000 a month, it pays the family ₹7.08 lakh a year.
One income-generating mutual fund portfolio held by three related family members. Source: transaction statement as on 19 October 2026.
The backdrop: a market that went nowhere
To judge any result fairly, you have to look at what the market was doing at the same time. Over the same two years, Indian equities fell, bond yields rose (which pulls bond prices down), and gold and silver had an exceptional run.
Point-to-point CAGR, 18 Oct 2024 to 18 Oct 2026:
Asset | 2-yr return | CAGR |
Nifty 50 Index: 24,854 → 23,146 | −6.87% | −3.51% |
BSE Sensex Index: 81,225 → 74,729 | −8.00% | −4.09% |
Gold 24K ₹77,410 → ₹1,46,426 per 10 g | +89.16% | +37.65% |
Silver 999 ₹92,283 → ₹2,10,918 per kg | +128.56% | +51.35% |
10-yr G-Sec* Yield: 6.81% → 7.38% | ≈ +10.8% | ≈ 5.3% |
AAA corporate bond, 10-yr* Yield: 7.23% → 8.04% | ≈ +10.6% | ≈ 5.2% |
Bank FD, SBI 2–3 yr** Card rate: 7.00% → 6.40% | +14.89% | 7.19% |
Portfolio benchmark*** Blended scheme benchmarks | ≈ +15.0% | ≈ 7.24% |
This portfolio XIRR on actual cash flows | — | 8.50% |
*Estimated return on a 10-yr bond bought on 18 Oct 2024 and held two years (coupon + price change as yields rose); AAA yield end date 14 Oct 2026. **FD booked Oct 2024 at the 7.00% p.a. card rate, compounded quarterly, pre-tax; today's rate is 6.40%. ***Weighted blend of each scheme's official benchmark, 30 Sep 2024 – 30 Sep 2026. CAGR = (end value ÷ start value)^(1/years) − 1.
Sources: NSE/BSE closes; gold & silver: Tata MF Daily Market Monitor (start), IBJA PM rate (end); yields: CRISIL, Reuters, ABSL MF fixed income tracker; SBI.
We didn't speculate. We diversified.
It would be easy to look at an 8.50% XIRR in a falling market and assume something clever was done. It wasn't. What mattered just as much was everything we chose not to do.
A few honest observations
AGAINST EQUITIES
The portfolio's 8.50% XIRR compares with −3.51% CAGR a year for the Nifty 50 over the two-year window, while also paying a monthly SWP. The hybrid and multi-asset funds held debt, gold and silver alongside equity, which cushioned the fall.
AGAINST FIXED INCOME
It is above the 7.00% CAGR FD offered in Oct 2024 and the estimated ~5.3% CAGR from a 10-year G-Sec as yields rose. But FDs and G-Secs carry lower risk, and this portfolio carries market risk.
AGAINST GOLD AND SILVER
Gold (+37.7% CAGR) and silver (+51.4% CAGR) were the clear winners of this period, and we would not pretend otherwise. Their run came from central bank buying and global uncertainty; they pay no income and can be volatile. They work best as a portion of a portfolio, as in the multi-asset funds here, not the whole of it.
What made this SWP work
WHAT WORKED
Diversification across asset types. No single falling market drags the whole portfolio down.
Income planned with care. Withdrawals are set at a level the portfolio may sustain, so capital has room to recover.
Discipline during falls. Stayed invested and kept the SWP running instead of reacting to headlines.
Regular review. Allocation and withdrawal levels are checked and adjusted when needed.
HOW CAN WE HELP
Scheme selection around your goals and risk profile, not whatever is rising this month.
A mix of assets chosen for different market conditions.
Income set up deliberately, so the family is not forced to sell at the bottom.
Support in a market fall, when the market drops 11% in a month and every instinct says sell.
Regular portfolio reviews, so your investments keep pace with your life and the market.
See whether an SWP could work for you
A falling or sideways market is exactly when a poorly planned income strategy gets exposed, and when a well-planned one proves itself. An 8.50% XIRR with ₹59,000 flowing out every month is one example of that.
Every family's situation is different: how much income you need, how much risk you can take, and when your existing investments mature. If you would like to explore whether an SWP could suit your goals, we would be glad to talk.
Talk to Finance Square (ARN-361739) about whether an SWP suits your goals.
Important disclosures
Who we are. Finance Square Private Limited is an AMFI-registered Mutual Fund & SIF Distributor (ARN-361739) and an APMI-registered PMS Distributor (APRN00694). We are not a SEBI-registered Investment Adviser. Information here is educational and incidental to distribution; it is not investment advice or a recommendation to buy or sell any scheme.
Commission. We receive commission from Asset Management Companies on investments made through us in Regular plans. Direct plans, with lower expense ratios, are also available.
Case study. Figures are from an actual client family's transaction statement as on 19 Oct 2026, shown anonymised. They are specific to that portfolio and are not representative of any other investor's experience.
Returns. Past performance may or may not be sustained in future and is not a guarantee of future returns. XIRR uses actual cash-flow dates; asset-class and benchmark returns are point-to-point. Comparisons are indicative, not like-for-like.
SWP. SWP instalments are redemptions of units, not assured income. They reduce the investment and may be taxable as capital gains as per prevailing law. Please consult your tax advisor.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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