What are the tax implications of an SWP in mutual funds?

I have switched my earlier funds to a single new hybrid fund in SBI for SWP. What will be the tax implication if I start SWP in the next month itself? Is the entire amount of SWP taxable? Is it TDS? - Anonymous Mutual funds are subject to tax (capital gains tax) upon redemption, and the taxation of mutual funds depends on the holding period and the type of fund, whether it's an equity or non-equity fund. With a systematic withdrawal plan (SWP), you can gradually redeem (or withdraw from) your mutual fund investment in a phased manner. It is the opposite of systematic investment plan (SIP) where you invest a fixed amount of money in a mutual fund scheme regularly. SWP reduces the risk of exiting your entire equity investments when the market is down. It averages the redemption price, similar t

This article was originally published on March 13, 2023.