AMFI-registered Mutual Fund Distributor · ARN 321635
Bridgit Second Income™
Build a second income from your mutual funds
A simple, long-term way to turn a monthly SIP into a monthly income. Build for about 10 years, then draw through an SWP while the rest of your savings stays invested.
InvestedSavings while buildingSavings while drawingMonthly income
BuildDraw
SIPs stop
Bridgit Second Income is our way of investing in mutual funds, not a scheme, and income is not guaranteed. Figures are illustrations at a fixed assumed return; actual returns vary and can be negative. Taxes not included. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
What is an SWP (systematic withdrawal plan)?
An SWP is the reverse of a SIP. Instead of putting a fixed amount into a mutual fund every month, you take a fixed amount out. You choose the amount and the date, and the fund sells just enough units to pay you. Whatever you don't withdraw stays invested.
That is what makes it useful for a second income: your savings can keep working for you while they pay you.
Why build for about 10 years first?
A monthly income can only be as large as the savings behind it. Ten years of steady SIPs gives your money time to build a meaningful base, and gives compounding time to do some of the work. Building for longer, or investing a little more each month, both raise the income your savings could support later.
During the building years, your Bridgit expert keeps your mix growth-led. From around year 9, we start rebalancing so that your income can come from the debt part of your portfolio, while equity stays invested for growth.
Years 1–8 · Build
70%20%
Growth-led. Your SIPs go mostly into equity, where long-term growth comes from.
Years 9–10 · Prepare
60%30%
We start moving part of your gains into debt, so 2–3 years of income are set aside before you need them.
Year 11 onwards · Draw
60%30%
Your monthly income is paid from the debt part. Equity stays invested, so your savings can keep growing.
EquityStays invested to grow
Top-up once a year
DebtHolds 2–3 years of income
Monthly SWP, about 3.5% a year
YouA monthly income
Illustrative mix. Your expert sets your actual mix around your goals and risk profile.
Why it works this way: equity is where long-term growth comes from, but it can fall sharply in a bad year. Paying your income from debt means you are never forced to sell equity at a low point just to pay yourself. Once a year, usually after equity has done well, we top the debt part back up from equity, so the next 2–3 years of income are always ready.
What goes into the portfolio?
A typical Bridgit Second Income portfolio starts with about 70% equity, 20% debt and 10% gold and silver. Your expert sets your exact mix around your goals, your income and how much ups and downs you are comfortable with.
Equity (about 70%): a spread of large cap, mid cap and small cap funds. Large caps add stability, while mid and small caps add room to grow over the long run, with bigger swings along the way.
Debt (about 20%): liquid and arbitrage funds. They are steadier, easy to access, and give your portfolio a cushion when equity markets fall.
Gold and silver (about 10%): precious metals often behave differently from shares, which can soften the impact of rough patches in the market.
As you get closer to drawing an income, your expert gradually shifts more into the steadier parts of the mix, so the next couple of years of income are not riding on the stock market.
How do you split the equity part?
No single part of the equity market leads every year. In some years large companies do best; in others, mid-sized or smaller companies take the lead. Over a 10-year goal, that leadership comes and goes in cycles.
So the equity part of your portfolio isn't parked in one place. We decide how much goes into large cap, mid cap and small cap funds based on our assessment of valuations and opportunities in each, and rebalance between them as conditions change. Large caps bring stability; mid and small caps add room to grow, with bigger swings along the way.
Inside the equity part · illustrativeLarge caps look steadier
Large 50%Mid 30%Small 20%
Large capMid capSmall cap
An example of how the split can shift as conditions change, not a forecast. Your expert explains every change, and nothing moves without your yes.
How do you keep it up to date?
Markets move, and so does the mix. When equity has a strong run, it can grow beyond its share of your portfolio and quietly raise your risk. We check in with you every quarter and rebalance once a year to bring the mix back to plan.
We also keep reviewing the funds themselves. Within each category, the strongest funds change over time as fund managers, strategies and costs change. When a better-run fund emerges, we suggest a switch with a clear reason. Nothing changes until you approve, and we flag any exit load or tax before you do.
Why take out about 3.5% a year?
The idea is simple: take out less than your savings are likely to grow over the long run, so what is left can keep growing. When that happens, the same 3.5% of a larger pot means your monthly income can rise over time, even though you stopped investing.
Take out more than your savings grow, and the pot slowly shrinks, along with the income it can pay. You can see both cases in the calculator above. 3.5% is our starting point, not a rule; your expert sets the rate around your needs and reviews it with you.
What happens when markets fall?
This is the main risk with any SWP. Selling units after a fall uses up more of your savings, especially in the early years of drawing. A few things help:
A steadier part of the portfolio. Your expert typically keeps the next couple of years of income in steadier debt funds, so withdrawals don't have to come from equity right after a fall.
Flexing the amount. Taking a little less for a while after a sharp fall can make a big difference over the long run.
A call first. When markets fall, your expert calls you to talk it through before anything changes.
How are SWP withdrawals taxed?
Each withdrawal is partly your own money and partly gains, and only the gains part may be taxed under capital gains rules, which depend on the type of fund and how long you held it. Your expert shows you the likely tax before you start, and before any change. This is general information, not tax advice.
Who is it for?
Salaried professionals who want their savings to pay them one day, alongside or after their salary.
People planning to slow down or retire early who want a steady monthly income.
Anyone with existing mutual fund savings who wants them to start paying a monthly income.
Questions people ask
Is the monthly income from an SWP guaranteed?
No. An SWP pays you from your mutual fund savings, which move with markets. If markets fall, the amount you can comfortably take out may need to come down for a while. Your expert reviews this with you every quarter.
Can I start drawing an income from savings I already have?
Yes. If you already have a sizeable mutual fund portfolio, your expert can look at it, adjust the mix for drawing an income, and set up an SWP without a separate building phase.
Can I change or pause the SWP later?
Yes. You can raise, lower, pause or stop an SWP. Bridgit has no lock-in, though individual schemes may have exit loads or lock-ins that we flag before any change.
How is an SWP different from the IDCW (dividend) option?
With an SWP you choose the amount and date, and units are sold to pay you. With IDCW, the fund house decides whether and how much to pay out. An SWP gives you a steadier, more predictable cash flow, though neither is guaranteed.
Does the 4% rule work in India?
The 4% rule comes from US research by William Bengen in the 1990s. Because India has generally seen higher inflation, many practitioners suggest starting a little lower, around 3 to 3.5% a year. Bridgit starts at 3.5%, and your expert reviews the rate with you every year.
What is the minimum to start building a second income?
You can start a SIP from ₹1,000 a month. The larger and longer you build, the larger the income your savings could support later.
