SWP allows investors to withdraw a fixed amount from their mutual fund investments on a regular basis, such as monthly or quarterly. It provides retirees with a steady cash flow from their mutual funds. Under SWP, the withdrawal amount comes from capital appreciation as well as the original investment amount over time, which can potentially erode capital. The tax treatment of SWP withdrawals depends on whether short-term or long-term capital gains taxes apply. Investors can start an SWP by filling out a form specifying the withdrawal details. The main disadvantage is that SWP may eat into an investor's original capital over the long run.