Top 7 SWP Mutual Fund: Rs 50 lakh investment, Rs 70K monthly pension, and Rs 42.30 lakh balance value; know more details

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Top 7 SWP Mutual Funds: A systematic investment plan (SIP) is a popular way of mutual fund investment. As per the Association of Mutual Funds in India (AMF), more investors are investing in mutual funds through the SIP route than the lump sum option. While an SIP is an investment option with a fixed amount every deposit cycle, a systematic withdrawal plan (SWP) is a withdrawal option where one withdraws a fixed amount every withdrawal cycle. 

How does SWP work?

An investor invests a lump sum amount in a mutual fund. While the fund grows, the fund house sells the investor’s net asset values (NAVs) every month to provide them with a monthly income.

If the rate of withdrawal is lower compared to the growth of the fund, one can get the monthly income for many decades.

E.g., if the fund is growing at a 10 per cent annual rate and their rate of withdrawal is five per cent, not only will one get the monthly income for decades, but their fund will also keep growing. 

Like SIP, SWP also provides the benefit of rupee cost averaging.

As a result, when the NAV rate rises, the fund house sells fewer units every month; when the NAV rate dips, the fund house sells more units.

Other than that, SWP also provides compound growth.

So, if one sticks to their investment for a long time, their investments are more likely to grow faster. 

Here’s a list of seven SWP mutual funds that have given at least Rs 70,000 in monthly income in the last 10 years on a Rs 50 lakh lump sum investment and where, after withdrawing 120 instalments, the top fund still has a Rs 42.30 lakh balance in it.

(All the funds given here are aggressive hybrid funds, which are a popular option among SWP plan holders).

Quant Absolute Fund- Growth option- regular plan

The fund at the top has given a 17.52 per cent return in the 10 years.

After withdrawing a total of Rs 84 lakh through Rs 70,000 in monthly income in 120 instalments, the investor still has a Rs 42.30 lakh balance in their corpus. 

The fund has asset under management (AUM) of Rs 2,024.53 crore, while its NAV is worth Rs 402.344.

The fund has given a 17.30 per cent CAGR since its inception.

The fund that was launched in March 2001 has CRISIL Hybrid 35+65 Aggressive Index as its benchmark.

The minimum investment in the fund is Rs 5,000. Its expense ratio is 2.05 per cent. 
 

ICICI Prudential Equity & Debt Fund

The fund’s return in the 10 years is 16.37%.

After withdrawing 120 instalments of Rs 70,000, the investor in the fund still has Rs 31,18,325 in their account.

The fund, launched in November 1999, has given a 15.46 per cent CAGR since its inception.

Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, it has an AUM of Rs 34,733.09 crore, while its NAV is worth Rs 340.17.

The minimum investment in the fund is Rs 5,000, while the minimum topup is Rs 1,000. The expense ratio is 1.62 per cent.

DSP Equity & Bond Fund- Regular Plan- growth  

The fund has given a 15.83% return in the 10 years.

After withdrawing Rs 70,000 for 120 months, the one who invested Rs 50 lakh in the fund 10 years ago still has Rs 26,48,192 in their account. 

The fund that was launched in May 1999 has has a CAGR of 14.57 per cent since its inception.

The fund size is Rs 9,044.39 crore, while the NAV rate is Rs 298.574.

The fund’s benchmark is CRISIL Hybrid 35+65 Aggressive TRI. One can have a minimum investment of Rs 100 in the fund. 

Canara Robeco Equity Hybrid Fund- Regular Plan – Growth option

The fund from Canara Robeco has given a 15.68 per cent annual return in the 10-year period.

On a Rs 50 lakh investment, after 120 instalments of Rs 70,000 each, the investor still has a balance of Rs 25,18,738. 

One of the oldest private mutual funds in India, the fund was launched in early 1993.

Ever since, Canara Robeco Equity Hybrid Fund has given an annual return of 12.76 per cent.

Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has an AUM of Rs 10,077.44 crore, while the value of its NAV is Rs 312.02.

The minimum investment in the fund is Rs 1,000, while the expense ratio is 1.74 per cent.

HDFC Hybrid Equity Fund

The fund from HDFC Mutual Fund has given annualised returns of 15.53 per cent in the last 10 years.

After withdrawing 120 instalments of Rs 70,000 each, one still has Rs 23,94,128 in balance after a lump sum investment of Rs 50 lakh 10 years ago.

The fund, which started in April 2005, has given a 15.46 per cent return since its inception.

Benchmarked against NIFTY 50 Hybrid Composite Debt 65:35, the fund invites a minimum investment of Rs 100.

The fund’s AUM is Rs 23,113.38 crore, while its NAV is 104.76. It has an expense ratio of 1.70 per cent.   

SBI Equity Hybrid Fund- Regular Plan- Growth

The fund from SBI Mutual Fund has given an annualised return of 15.28 per cent in the 10-year period.

An investor has Rs 21,84,539 in balance after making a Rs 50 lakh lump sum investment 10 years ago and withdrawing a Rs 70,000 monthly pension for 10 years. 

Launched in December 1995, the fund has a CAGR of 14.05 per cent ever since.

The fund, which has Rs 68,409.82 crore in AUM, is benchmarked against CRISIL Hybrid 35+65 Aggressive TRI.

The open-ended scheme that has Rs 1,000 as its minimum investment has an expense ratio of 1.42 per cent.     

HSBC Aggressive Hybrid Fund

The fund has given 14.99 per cent annualised returns in the 10 years.

A Rs 50 lakh investment in the fund has given 120 monthly instalments of Rs 70,000 each and Rs 19,59,450 in balance. 

The fund that was launched in January 2013 has given a CAGR of 12.63% in the 10-year period.

The fund’s AUM is Rs 5,367.33 crore, while its NAV is worth Rs 48.5391.

The fund that has NIFTY 50 Hybrid Composite Debt 65:35 as its benchmark has Rs 5,000 as its minimum investment.

The fund’s expense ratio is 1.89 per cent.