Top 7 SWP mutual funds that have given at least Rs 1 lakh monthly income for 10 years on Rs 65 lakh investment; No. 1 fund still has Rs 1.19 crore in balance
Top 7 Small Cap SWP mutual funds with Rs 1 lakh monthly income: In a SWP mutual fund plan, you make a lump sum investment in a mutual fund scheme. You tell the mutual fund to withdraw a predecided amount every month. The mutual fund house sells NAVs to provide that amount.
Top 7 Small Cap SWP mutual funds with Rs 1 lakh monthly pension: Investors use the systematic withdrawal plan (SWP) option in mutual funds to withdraw monthly income. Senior citizens use them to get monthly income post retirement. One can set the SWP option in an equity, hybrid, or debt mutual fund based on their risk appetite and financial goals. Since equity investment fluctuates during market volatility, a lot of investors prefer debt and hybrid mutual funds to withdraw monthly income.
How does SWP work?
Here, you make a lump sum investment in a mutual fund scheme.
You tell the mutual fund to withdraw a predecided amount every month.
The mutual fund house sells NAVs to provide that amount.
Won't your funds deplete if you withdraw money every month?
They will, but the trick to neutralise that effect is to withdraw less money than your growth in investments.
In this way, the value of your investment can increase even if you are withdrawing money for years.
Here, we take you through the top 7 small cap mutual funds that have given at least Rs 1 lakh monthly income for 10 years (at least 120 monthly installments) on an investment of Rs 65 lakh.
SBI Small Cap Fund - Regular Plan - Growth
The fund has had annualised returns (CAGR) of 23.42 per cent in 10 years. The fund has assets under management (AUM) of Rs 32,761.17 crore, while its net asset value (NAV) is Rs 182.3351.
Benchmarked against BSE 250 SmallCap Index, the fund has given 21.39 per cent annualised returns since its launch in September 2009.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 1,18,94,142 in balance.
Nippon India Small Cap Fund - Growth Plan - Growth Option
The fund has given 19.84 per cent annualised returns in the 10-year time frame. It has an asset base of Rs 60,372.55 crore, while its NAV is Rs 178.5471.
Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 22.93 per cent CAGR since its inception in September 2010.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 55,95,011 in balance.
DSP Small Cap Fund - Regular - Growth
The fund has given 19.24 per cent annualised returns in the 10-year period. Its AUM is Rs 16,084.62 crore, while its NAV is Rs 201.545.
Benchmarked against BSE 250 SmallCap Index, the fund has given 19.06 per cent annualised returns since its inception in June 2007.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 47,44,335 in balance.
HSBC Small Cap Fund - Regular Growth
The fund has given 18.03 per cent annualised returns in the 10 years. It has an asset base of Rs 16,905.18 crore, while its NAV is Rs 87.3832.
Benchmarked against BSE 250 SmallCap Index, the fund has given 23.41 per cent annualised returns since its inception in May 2014.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 31,63,609 in balance.
Kotak-Small Cap Fund - Growth
The fund has given 16.56 per cent annualised returns in the 10-year period. It has an asset base of Rs 17,507.11 crore, while its NAV is Rs 278.3.
Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 18.58 per cent annualised returns since its inception in February 2005.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 15,04,019 in balance.
Axis Small Cap Fund - Regular Plan - Growth
The fund has given 16.50 per cent annualised return in the 10-year time frame. It has an asset base of Rs 23,395.04 crore, while its NAV is Rs 105.2.
Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 24.43 per cent annualised returns since its launch in November 2013.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 14,37,464 in balance.
HDFC Small Cap Fund - Growth Option
The fund has given 15.09 per cent annualised returns in the 10-year time frame. Its AUM is Rs 33,181.88 crore, while its NAV is Rs 140.612.
Benchmark against BSE 250 SmallCap Index, the fund has given 17.47 per cent CAGR since its inception in April 2008.
On a Rs 65 lakh lump sum investment, the fund has given Rs 1 lakh monthly income for 10 years. After withdrawing 120 instalments of Rs 1 lakh each, the fund still has Rs 81,534 in balance.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.