Behavioral Determinants and Adoption of Systematic Withdrawal Plans (SWPs) Among Mutual Fund Investors: A Review of Literature

Thakur Gouthami, Dr. Divya Thankom Varghese

Abstract: Systematic Withdrawal Plans (SWPs) have emerged as an increasingly relevant investment tool for investors seeking regular income from mutual fund portfolios. Despite the rising popularity of mutual funds in India, there remains limited academic work specifically examining behavioral factors that shape the adoption of SWPs. This review paper synthesizes available literature on mutual fund investment behavior, behavioral finance theories, and investor psychology to understand the determinants influencing SWP adoption. The paper highlights the role of financial literacy, risk perception, loss aversion, mental accounting, herding tendencies, and technological familiarity in shaping investor decisions. It places special emphasis on the context of metropolitan cities such as Bangalore, where digital penetration and investor sophistication are comparatively higher. The review identifies significant research gaps, including the scarcity of SWP-specific empirical studies and the lack of focus on behavioral determinants within the Indian context. Findings from the literature are discussed, and suggestions for future research and investment practice are offered. The paper concludes that behavioral variables play a decisive role in SWP adoption and that further empirical research is essential to understand these dynamics in detail.

Keywords: Behavioural finance, mutual fund investors, systematic withdrawal plans

How to Cite?: Thakur Gouthami, Dr. Divya Thankom Varghese, "Behavioral Determinants and Adoption of Systematic Withdrawal Plans (SWPs) Among Mutual Fund Investors: A Review of Literature", Volume 14 Issue 11, November 2025, International Journal of Science and Research (IJSR), Pages: 1689-1691, https://www.ijsr.net/getabstract.php?paperid=SR251124155016, DOI: https://dx.doi.org/10.21275/SR251124155016