The flaw in equity-driven withdrawals, and the smarter way to secure steady income.
Systematic Withdrawal Plans (SWPs) are often seen as a convenient way to generate retirement income, with the promise of market-linked growth and inflation adjustment. But equity-driven SWPs come with a hidden risk: market downturns can quickly erode your principal, making long-term income unsustainable. FactorCapro takes a different approach — one that safeguards your corpus while still delivering steady payouts.
Watch the complete deep-dive discussion
FactorCapro's glide path approach balances income with capital preservation—an edge missing from conventional equity-heavy withdrawal plans.
Feature | Systematic Withdrawal Plans (SWP) | Factor Capro Portfolios |
|---|---|---|
Annual Income Target | 9-12% (market-dependent) | ~9% (near steady) |
Risk of Principal Loss | High, especially during bear markets | Near zero due to diversified glide path |
Portfolio Construction | Mostly equity funds | Starts 100% debt, shifts gradually to multi-asset |
Market Crash Impact | Corpus can drop 50%+ quickly | Minimal principal erosion |
Income Sustainability | Poor during prolonged downturns | High, principal protected |
