Protection Against Inflation:

Most of the fixed income instruments do not offer inflation beating returns. So, though the principal may be secure, the income might fall short of needs in future. Here again, SWP scores in terms of generating returns to keep up with inflation especially if you opt for an equity fund. The only drawback in the SWP is that it will at some point eat into your capital.

But judicious mix of investment instruments will ensure that your primary goal of income generation will be met without you running out of money in times of need.

Conclusion:

So the conclusion, SWP is a noteworthy strategy to use for generation of regular income in various scenarios.

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