Can I start an SWP in a mutual fund to pay my EMI?

Can I invest Rs 10 lakh in a mutual fund and set up an SWP to pay my EMI for a housing loan? Please advise.
–Martin Fernandez

If you have surplus cash, you can set up a Systematic Withdrawal Plan or SWP in a debt scheme and take money out every month to pay the loan EMI. The basic idea is to earn marginally higher returns without exposing the money to unwanted risk and volatility. However, if you are thinking of investing in equity mutual funds to make extra returns, you should not go ahead with the plan. Equity schemes are extremely risky and volatile. That means your corpus might get hit during a highly volatile or bear phase in the market. This can upset your repayment plans. The basic idea behind setting up an SWP in relatively safe debt funds is to make marginally higher returns than a savings bank account.