In a lump-sum withdrawal, an investor withdraws the entire investment portfolio in a single transaction. With SWP, an investor withdraws a fixed amount at regular intervals. SWP helps manage the risk of selling investments during market downturns and provides a regular source of income. Lump-sum withdrawal, on the other hand, can be useful when an investor needs a significant amount of money at once, but it can also lead to a depletion of investment principal if not managed carefully.