Another advantage of the SWP is tax efficient returns. Let's assume Mr. A invests Rs.15,00,000 in a Monthly Income Plan (MIP) of the Mutual Funds with SWP and Mr. B invests the same amount in a bond/deposit scheme with 8% interest. Only for calculation purpose, we assume that SWP amount is kept at Rs.10,000 per month or Rs.1,20,000 per year or 8% of the investment amount. Also, let’s assume a return 8% in MIP for calculation purpose. Both Mr. A & Mr. B are in 30% tax slab and continue to get SWP and interest income for 10 years respectively.