HDFC Retirement Savings Fund Equity Plan Direct Growth SWP Calculator
Calculate Your Systematic Withdrawal Plan
Your SWP Results
Total Investment
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Total Withdrawal
₹0
Total Interest Earned
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Final Remaining Amount
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Year-by-Year Breakdown
| Year | Opening Balance | Total Withdrawal | Interest Earned | Closing Balance |
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What is HDFC Retirement Savings Fund Equity Plan Direct Growth?
HDFC Retirement Savings Fund - Equity Plan Direct Growth is an equity-oriented flexi cap mutual fund scheme specifically designed for retirement planning. This fund is managed by HDFC Mutual Fund and aims to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments.
Fund Type
Equity - Flexi Cap
NAV (Nov 2025)
₹58.62
Expense Ratio
0.71%
AUM
₹6,968.96 Cr
Risk Level
Very High
Lock-in Period
5 Years
Historical Returns
1 Year Return
3.91%
3 Year Return (CAGR)
19.27%
5 Year Return (CAGR)
24.98%
Note: Past performance is not indicative of future returns. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
What is Systematic Withdrawal Plan (SWP)?
Systematic Withdrawal Plan (SWP) is a mutual fund facility that allows investors to withdraw a fixed or variable amount from their mutual fund investments at regular intervals - monthly, quarterly, or annually. It is the opposite of a Systematic Investment Plan (SIP).
SWP is particularly beneficial for retirees or individuals seeking regular income from their investments. Instead of redeeming your entire investment at once, SWP enables you to withdraw systematically while the remaining corpus continues to grow based on market performance.
How SWP Works for Retirement Planning
When you set up an SWP in HDFC Retirement Savings Fund Equity Plan Direct Growth:
- Initial Investment: You invest a lump sum amount in the fund (after completing the mandatory 5-year lock-in period).
- Regular Withdrawals: You specify the amount and frequency of withdrawals (e.g., ₹50,000 per month).
- Unit Redemption: The fund house redeems the required number of units at the current NAV to pay your withdrawal amount.
- Continued Growth: The remaining units continue to grow based on the fund's performance.
- Flexibility: You can modify, pause, or stop the SWP at any time without penalties.
How to Use This HDFC SWP Calculator
Our comprehensive SWP calculator helps you plan your retirement income systematically. Follow these simple steps:
1
Enter Total Investment Amount: Input the lump sum amount you plan to invest or have already invested in HDFC Retirement Savings Fund Equity Plan Direct Growth. For example, ₹50,00,000 (50 lakhs).
2
Specify Monthly Withdrawal: Enter the amount you want to withdraw every month for your expenses. A common recommendation is 0.5% to 1% of your total corpus per month. For ₹50 lakhs, this would be ₹25,000 to ₹50,000 monthly.
3
Set Expected Annual Return Rate: Input the expected annual return rate. For equity funds like HDFC Retirement Savings Fund, historical long-term returns have been 10-15%. The calculator defaults to 12%, but you can adjust based on your expectations.
4
Choose Withdrawal Tenure: Specify how many years you want the withdrawals to continue. For retirement planning, this could be 15-25 years or more.
5
Add Annual Step-Up (Optional): To account for inflation, you can set an annual step-up percentage. For example, with a 5% step-up, your withdrawal amount increases by 5% each year to maintain purchasing power.
6
Click Calculate: Press the "Calculate SWP" button to see detailed results including total withdrawals, interest earned, remaining balance, and a year-by-year breakdown.
Example Calculation
Scenario:
- • Initial Investment: ₹50,00,000
- • Monthly Withdrawal: ₹50,000
- • Expected Return: 12% per annum
- • Tenure: 15 years
- • Step-Up: 5% annually
Result: The calculator will show you whether your corpus will last 15 years, how much total interest you'll earn, and the remaining balance (if any) at the end.
SWP Calculation Formula & Mathematics
Understanding the mathematics behind SWP calculations helps you make informed retirement planning decisions. The systematic withdrawal plan involves monthly calculations where withdrawals are deducted and interest is earned on the remaining balance.
Core SWP Formula
The general formula for SWP future value calculation:
A = PMT × ((1 + r/n)nt - 1) / (r/n)
Where:
- A = Future value of the investment/corpus
- PMT = Payment amount per period (monthly withdrawal amount)
- r = Expected annual rate of return (as decimal, e.g., 0.12 for 12%)
- n = Number of compounding periods per year (12 for monthly)
- t = Investment tenure in years
Monthly Calculation Method
Our calculator uses a month-by-month iterative approach for accuracy:
For each month:
Monthly Interest Rate = Annual Rate / 12
Interest Earned = Opening Balance × (Monthly Rate / 100)
Closing Balance = Opening Balance + Interest Earned - Withdrawal
For Step-Up Calculations:
Year N Withdrawal = Previous Year Withdrawal × (1 + Step-Up% / 100)
Worked Example with Numbers
Given:
- Initial Investment: ₹10,00,000
- Monthly Withdrawal: ₹10,000
- Annual Return Rate: 12%
- Tenure: 1 year (for demonstration)
- No Step-Up
Calculation:
Monthly Interest Rate = 12% / 12 = 1% per month
Month 1:
- Opening Balance = ₹10,00,000
- Interest Earned = ₹10,00,000 × (1/100) = ₹10,000
- Withdrawal = ₹10,000
- Closing Balance = ₹10,00,000 + ₹10,000 - ₹10,000 = ₹10,00,000
Month 2:
- Opening Balance = ₹10,00,000
- Interest Earned = ₹10,00,000 × (1/100) = ₹10,000
- Withdrawal = ₹10,000
- Closing Balance = ₹10,00,000 + ₹10,000 - ₹10,000 = ₹10,00,000
Result after 12 months: In this example, the corpus remains stable because the monthly interest earned (1%) equals the monthly withdrawal rate (1% of corpus). This demonstrates the power of SWP - your corpus can sustain indefinitely if withdrawal rate ≤ return rate.
Benefits of SWP for Retirement Planning
- Regular Income Stream: SWP provides a predictable monthly income, similar to a salary, helping you manage retirement expenses systematically without market timing concerns.
- Tax Efficiency: Unlike fixed deposits where entire interest is taxable as per your income slab, in SWP only the capital gains portion is taxed. For equity funds held over 12 months, LTCG tax is just 12.5% on gains above ₹1.25 lakh per year.
- Continued Corpus Growth: The remaining invested amount continues to benefit from market appreciation. Your money works for you even while you're withdrawing, potentially growing faster than inflation.
- Flexibility and Control: You can modify withdrawal amounts, pause SWP temporarily, or stop it entirely without penalties. This flexibility is crucial for managing unexpected expenses or market downturns.
- Inflation Protection with Step-Up: The step-up SWP option allows you to increase withdrawal amounts annually by a fixed percentage, ensuring your purchasing power is maintained as living costs rise.
- Disciplined Withdrawal Approach: SWP enforces financial discipline by preventing impulsive large withdrawals that could deplete your retirement corpus prematurely.
- Better Than Lump-Sum Redemption: During market volatility, redeeming units gradually through SWP is smarter than exiting completely. You benefit from rupee-cost averaging in reverse.
- No TDS Deduction: Unlike bank fixed deposits where TDS is deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens), mutual fund SWP does not have TDS, improving cash flow.
- Estate Planning Advantage: Any remaining corpus after your lifetime passes to your nominees, unlike annuities where the insurance company keeps the corpus.
Tax Implications of SWP in Equity Funds
Understanding taxation is crucial for effective retirement planning. The tax treatment of SWP withdrawals from equity mutual funds like HDFC Retirement Savings Fund Equity Plan Direct Growth is governed by capital gains tax rules.
Capital Gains Taxation for Equity Funds
Short-Term Capital Gains (STCG):
- Holding Period: Less than 12 months
- Tax Rate: 20% on gains
- Applicability: If you withdraw from units held for less than one year
Long-Term Capital Gains (LTCG):
- Holding Period: More than 12 months
- Tax Rate: 12.5% on gains exceeding ₹1.25 lakh per financial year
- Exemption: First ₹1.25 lakh of LTCG in a financial year is tax-free
Important Note: Only the capital gains portion of your withdrawal is taxed, NOT the entire withdrawal amount. The principal amount you originally invested is not taxed.
How Taxation Works in SWP
Each SWP withdrawal involves redemption of mutual fund units. The taxation is calculated as follows:
Step 1: Calculate Capital Gain per Unit
Capital Gain per Unit = Redemption NAV - Purchase NAV
Step 2: Determine Total Capital Gain
Total Capital Gain = Capital Gain per Unit × Number of Units Redeemed
Step 3: Apply Tax Rate
- • If units held < 12 months: Tax = Capital Gain × 20%
- • If units held > 12 months: Tax = (Total Annual LTCG - ₹1.25 lakh) × 12.5%
Tax Efficiency Example
Scenario: You invested ₹50 lakhs in HDFC Retirement Savings Fund. After 5 years, the value grows to ₹80 lakhs. You start SWP of ₹50,000 per month.
Taxation Analysis:
- Your cost basis percentage: ₹50L / ₹80L = 62.5%
- Of each ₹50,000 withdrawal:
- ₹31,250 is principal (return of capital) - Not Taxed
- ₹18,750 is capital gain - Potentially Taxed
- Annual capital gain from SWP: ₹18,750 × 12 = ₹2,25,000
- Tax-free portion: ₹1,25,000
- Taxable LTCG: ₹2,25,000 - ₹1,25,000 = ₹1,00,000
- Tax payable: ₹1,00,000 × 12.5% = ₹12,500 per year
Comparison with Fixed Deposit: If the same ₹6 lakh annual withdrawal came from FD interest at 30% tax bracket, you'd pay ₹1,80,000 tax - 14.4 times more!
Tax Planning Tips for SWP
- Time Your SWP Start: Begin SWP after holding units for at least 12 months to qualify for favorable LTCG rates.
- Utilize Annual Exemption: Structure withdrawals to keep annual LTCG under ₹1.25 lakh if possible, paying zero tax.
- FIFO Method: Mutual funds use First-In-First-Out method, so older units (likely with more gains) are redeemed first. Plan accordingly.
- Split Between Family Members: Consider investing in names of multiple family members to multiply the ₹1.25 lakh exemption benefit.
- Track Your Cost Basis: Maintain records of purchase NAV and dates for accurate tax calculation during SWP.
Frequently Asked Questions (FAQs)
Q1. What is HDFC Retirement Savings Fund Equity Plan Direct Growth?
HDFC Retirement Savings Fund Equity Plan Direct Growth is an equity-oriented flexi cap mutual fund scheme from HDFC Mutual Fund specifically designed for retirement planning. It has a mandatory 5-year lock-in period and invests predominantly in equity and equity-related instruments across market capitalizations to provide long-term capital appreciation. The direct plan has a lower expense ratio (0.71%) compared to regular plans, making it more cost-effective for investors.
Q2. What is SWP (Systematic Withdrawal Plan) in mutual funds?
Systematic Withdrawal Plan (SWP) is a facility offered by mutual funds that allows you to withdraw a fixed or variable amount from your mutual fund investments at regular intervals - monthly, quarterly, or annually. It provides a steady income stream while keeping the remaining corpus invested and growing. SWP is particularly useful for retirees who need regular income but want their money to continue working in the market. It's essentially the opposite of SIP (Systematic Investment Plan).
Q3. How is SWP calculated in this calculator?
Our SWP calculator uses a month-by-month calculation method for accuracy. Each month, it calculates the interest earned on the opening balance based on the monthly interest rate (annual rate ÷ 12), then deducts the withdrawal amount to arrive at the closing balance. The formula used involves: Monthly Interest = Opening Balance × (Annual Rate / 12 / 100), and Closing Balance = Opening Balance + Monthly Interest - Withdrawal Amount. For step-up calculations, the withdrawal amount increases by the specified percentage each year. The calculator iterates through all months across the specified tenure to provide total withdrawals, interest earned, and remaining corpus.
Q4. What is the expected return rate for HDFC Retirement Savings Fund?
HDFC Retirement Savings Fund Equity Plan Direct Growth has delivered returns of 3.91% in 1 year, 19.27% CAGR in 3 years, and 24.98% CAGR in 5 years as of November 2025. However, past performance is not indicative of future returns. Since it's an equity fund with very high risk, returns can be volatile in the short term. For long-term retirement planning (15+ years), equity funds typically are expected to deliver 10-15% annualized returns. Conservative planners often use 10-12% for calculations, while optimistic scenarios might use 12-15%.
Q5. How is SWP taxed for equity mutual funds like HDFC Retirement Fund?
SWP taxation for equity funds is based on capital gains tax rules. Short-Term Capital Gains (units held less than 12 months) are taxed at 20%. Long-Term Capital Gains (units held more than 12 months) are taxed at 12.5% only on gains exceeding ₹1.25 lakh per financial year. Importantly, only the capital gains portion of your withdrawal is taxed, not the principal amount. For example, if you withdraw ₹50,000 and ₹30,000 is your original investment (principal) and ₹20,000 is gains, only the ₹20,000 gain is subject to tax. This makes SWP much more tax-efficient than fixed deposits where entire interest is taxed as per your income tax slab.
Q6. What is step-up SWP and how does it help with inflation?
Step-up SWP allows you to automatically increase your withdrawal amount by a fixed percentage every year to combat inflation and maintain your purchasing power. For example, if you set up SWP of ₹50,000 per month with a 5% annual step-up, your withdrawal increases to ₹52,500 in year 2, ₹55,125 in year 3, and so on. This ensures that as the cost of living rises (typically 5-7% annually in India), your income also increases proportionately. Step-up SWP is particularly important for long-term retirement planning spanning 20-30 years, as inflation can significantly erode the value of a fixed withdrawal amount over time.
Q7. Can I change or stop my SWP amount after starting?
Yes, mutual fund SWP plans offer complete flexibility. You can increase your withdrawal amount, decrease it, pause the SWP temporarily, or stop it entirely at any time without any penalties or exit loads (subject to the fund's general exit load rules based on holding period). For HDFC Retirement Savings Fund, remember the 5-year lock-in period - you cannot start SWP or redeem units before completing 5 years from investment. After that, you have full flexibility. You can make changes by contacting HDFC Mutual Fund customer service, through their website/app, or via your distributor.
Q8. Is SWP better than fixed deposits for retirement income?
SWP from equity funds like HDFC Retirement Savings Fund can be superior to fixed deposits in several ways: (1) Tax Efficiency - Only capital gains are taxed at 12.5% (LTCG) versus entire FD interest taxed at your slab rate (potentially 30%); (2) Higher Potential Returns - Equity funds historically deliver 10-15% versus FD's 6-7%; (3) Inflation Protection - Your corpus continues to grow with markets while FD returns are fixed; (4) Flexibility - You can adjust SWP amounts anytime, unlike fixed FD lock-ins. However, FDs offer guaranteed returns with zero risk, while equity SWP returns fluctuate with markets. The ideal retirement strategy often combines both - FDs for stability and emergency needs, equity SWP for higher growth and tax-efficient income.
Q9. What is the minimum amount to start SWP in HDFC Retirement Fund?
The minimum SWP amount varies by fund house and specific scheme. For HDFC Mutual Fund schemes, you can typically start SWP with as low as ₹500 to ₹1,000 per month, though this may vary. More importantly, you need to have sufficient investment balance to sustain your chosen SWP amount over your desired tenure. As a thumb rule, your monthly SWP should not exceed 0.75-1% of your total corpus to ensure sustainability. For specific details on HDFC Retirement Savings Fund, check with HDFC Mutual Fund directly or refer to the scheme's offer document. Remember, this fund has a mandatory 5-year lock-in, so plan accordingly.
Q10. How long will my investment last with SWP?
The duration your investment lasts depends on three key factors: (1) Your initial corpus size; (2) Monthly withdrawal amount; and (3) Expected rate of return. Use our calculator above to model different scenarios. As a general guideline: If your withdrawal rate (annual withdrawal as % of corpus) equals your return rate, the corpus sustains indefinitely. If withdrawal rate < return rate, your corpus grows even while withdrawing. If withdrawal rate > return rate, your corpus depletes over time. For sustainable retirement income for 25-30 years, aim for monthly withdrawals of 0.5-0.75% of initial corpus, assuming 10-12% equity returns. Always build in a buffer for market volatility and unexpected expenses.
Q11. What happens if my investment runs out before my planned tenure?
If your withdrawals are too high relative to the returns earned, your corpus can deplete before your planned retirement tenure ends. This is a critical risk in retirement planning. To mitigate this: (1) Use conservative return assumptions (10% instead of 15%) when planning; (2) Limit monthly withdrawals to 0.5-1% of corpus; (3) Monitor your portfolio annually and adjust withdrawal amounts if markets underperform; (4) Maintain an emergency fund separately equal to 2-3 years of expenses; (5) Consider a hybrid approach combining equity and debt SWPs; (6) Build flexibility to reduce withdrawals temporarily during market downturns. Our calculator helps you model scenarios to see if your corpus will last the intended period under different return assumptions.
Q12. Can I use SWP for regular monthly expenses and retirement income?
Absolutely! SWP is ideally suited for generating regular monthly income to meet living expenses, especially post-retirement. Many retirees successfully use SWP from balanced or equity funds to supplement their pension and create a steady cash flow for monthly needs like groceries, utilities, healthcare, and lifestyle expenses. The key advantages are: predictable monthly income like a salary, tax-efficient compared to other income sources, flexibility to adjust amounts based on needs, and your capital continues to grow with markets. For best results, combine SWP from equity funds (for growth and inflation protection) with debt funds (for stability), and maintain 6-12 months of expenses in liquid funds as a buffer. This three-bucket strategy ensures you never run out of money while maximizing returns.
Official Source & More Information
For detailed information about HDFC Retirement Savings Fund Equity Plan Direct Growth, scheme documents, and to invest, visit the official HDFC Mutual Fund website:
Visit HDFC Mutual Fund Official WebsiteMutual Fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.