Systematic Withdrawal Plans (SWPs) are increasingly popular among investors who want to maintain a steady income from their mutual fund investments. Let’s dive into the best SWP mutual funds in India for 2024, which offer a balanced approach between growth and regular income.
What is an SWP Mutual Fund?
A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount of money from their mutual fund investments at regular intervals. The best SWP mutual fund enables investors to generate regular income while ensuring their remaining investment continues to grow. If you’re wondering which are the best funds to consider, look no further.
Why Invest in the Best SWP Mutual Fund?
Investing in the best SWP mutual fund has several advantages:
- Steady Income: Withdrawing a fixed amount regularly from the best SWP mutual fund ensures a reliable income stream, perfect for retirees.
- Tax Efficiency: In some cases, the capital gains from an SWP are taxed at a lower rate, making it more tax-efficient.
- Capital Preservation: Even as you withdraw money, the remaining investment in the best SWP mutual fund continues to grow.
- Flexibility: You can adjust the withdrawal frequency or amount as per your needs.
List of Best SWP Mutual Funds in India 2024
Here’s a list of the top-performing best SWP mutual funds in India for 2024:
| Fund Name | Type | AUM | CAGR (3Y) | Expense Ratio |
|---|---|---|---|---|
| ICICI Prudential Equity & Debt Fund | Aggressive Hybrid Fund | ₹34,733.08 crores | 25.01% | 1.02% |
| Quant Absolute Fund | Aggressive Hybrid Fund | ₹2,114.18 crores | 22.34% | 0.75% |
| Franklin India Equity Hybrid Fund | Aggressive Hybrid Fund | ₹1,806.96 crores | 16.76% | 1.08% |
| Canara Robeco Equity Hybrid Fund | Open-Ended Hybrid Fund | ₹10,152.64 crores | 15.67% | 0.58% |
| SBI Equity Hybrid Fund | Aggressive Hybrid Fund | ₹68,409.82 crores | 14.42% | 0.74% |
Each of these best SWP mutual funds offers a mix of equity and debt, balancing risk and returns to provide consistent performance.
Detailed Overview of the Best SWP Mutual Fund Options
1. ICICI Prudential Equity & Debt Fund
- AUM: ₹34,733.08 crores
- CAGR (3Y): 25.01%
- Expense Ratio: 1.02%
- Why it’s the Best: Launched in 1999, this fund focuses on long-term capital appreciation by investing in 65-80% equity and 20-35% debt. The steady performance and balance between growth and safety make it one of the best SWP mutual funds.
2. Quant Absolute Fund
- AUM: ₹2,114.18 crores
- CAGR (3Y): 22.34%
- Expense Ratio: 0.75%
- Why it’s the Best: Established in 1996, this fund maintains a balanced portfolio of equity and debt. With its impressive track record, it stands out as one of the best SWP mutual funds for 2024.
3. Franklin India Equity Hybrid Fund
- AUM: ₹1,806.96 crores
- CAGR (3Y): 16.76%
- Expense Ratio: 1.08%
- Why it’s the Best: This fund invests in a diversified portfolio, making it one of the top choices for conservative investors looking for the best SWP mutual fund.
4. Canara Robeco Equity Hybrid Fund
- AUM: ₹10,152.64 crores
- CAGR (3Y): 15.67%
- Expense Ratio: 0.58%
- Why it’s the Best: The low expense ratio and stable returns make this fund one of the best SWP mutual funds for those seeking low-cost, consistent performance.
5. SBI Equity Hybrid Fund
- AUM: ₹68,409.82 crores
- CAGR (3Y): 14.42%
- Expense Ratio: 0.74%
- Why it’s the Best: With a high AUM and a moderate risk profile, this fund remains one of the top contenders for the best SWP mutual fund in India.
Important Factors When Choosing the Best SWP Mutual Fund
When selecting the best SWP mutual fund, consider the following:
- Risk Profile: Assess the risk tolerance of each fund. The best SWP mutual funds typically balance equity and debt for long-term stability.
- Investment Horizon: Ensure the fund aligns with your financial goals. The best SWP mutual fund should support both growth and regular income.
- Expense Ratio: The cost of managing the fund plays a key role in long-term returns. A lower expense ratio, like the 0.58% for Canara Robeco Equity Hybrid Fund, makes a difference over time.
- Withdrawal Strategy: Ensure that your withdrawal rate aligns with market conditions. A 4% withdrawal rate is a general rule to maintain the longevity of your investment.
Latest Update on Best SWP Mutual Funds for 2024
The following funds are emerging as some of the best SWP mutual funds based on recent market performance:
- HDFC Hybrid Equity Fund: Focused on balanced exposure to equity and debt.
- ICICI Prudential Bluechip Fund: Specializes in large-cap stocks for stable growth.
- SBI Equity Hybrid Fund: Provides moderate risk with steady returns, making it a top choice.
Conclusion: How to Choose the Best SWP Mutual Fund
Selecting the best SWP mutual fund requires careful consideration of your financial goals, risk tolerance, and market conditions. The funds listed above provide a solid foundation for investors looking to generate regular income while maintaining the potential for capital growth.
For those ready to start their investment journey, take the next step by creating your Demat account today!
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