What about my principal investment if I do SWP from debt funds

Thanks for the kind words. Please note that over a period of time the NAV keep increasing and that compensates for the redeemed units through SWP. While NAV keeps increasing, the units gets reduced as you are redeeming it in order to get the monthly / quarterly withdrawals.

But, is it sustainable in the long run is the question you are asking. Lets us understand this through an example -

For example - I have presumed you have invested Rs. 100,000 in ICICI Prudential Income Fund approx 11 years back, say on 1st January 2006 and started withdrawing Rs. 700 per month through SWP after one year from the date of investment (assuming 8.40% return).

You were allotted 4916.3411 units @ NAV of Rs. 20.3411 against your investment of Rs. 100,000 on 1st Jan. 2006.

Please check this link https://www.advisorkhoj.com/mutual-funds-research... - You will see as on today, though the number of units have reduced to 2297.8613 but the NAV has gone up to Rs. 53,2434 (almost 2.50 times from the date of investment). The current value of your original investment of Rs. 100,000 is now Rs. 122,246. During this 10 years you have withdrawn Rs. 84,000 and the fund has given annualized return of 8.94%.

Hope the above answers your query.

Thanks for writing to Advisorkhoj.