How to Invest & Withdraw
Retirement Planning with Mutual Funds
Accumulate with SIPs, then draw income with SWP.
Updated 27 September 2026 · SEBI rules as of 2026
Accumulation
Index / flexi cap / hybrid SIPs
How to Invest & WithdrawOverview
Mutual funds can be used for both phases of retirement: accumulation (equity-heavy SIPs) and distribution (SWP from hybrid/debt funds). Combine with EPF, PPF and NPS for a complete plan.
| Particular | Details |
|---|---|
| Accumulation | Index / flexi cap / hybrid SIPs |
| Transition | Shift gradually to hybrid and debt 5 years before |
| Distribution | SWP + bucket strategy |
Bucket strategy
| Bucket | Covers | Funds |
|---|---|---|
| Bucket 1 | 0–2 years expenses | Liquid / money market |
| Bucket 2 | 3–7 years | Short duration / conservative hybrid / BAF |
| Bucket 3 | 8+ years | Equity funds |
Plan your investment
Frequently asked questions
Is NPS better than mutual funds for retirement?
NPS has extra tax benefits and low costs but restricted liquidity; many use both.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.