Top 5 SWP Mutual Funds: These funds have given Rs 1 lakh monthly income for 5 years on Rs 41 lakh investment; know where they have invested
Top 5 SWP Mutual Funds in 5 Years: In a SWP scheme, the mutual fund house sells net asset value (NAV) units every month to deposit the amount to the investor's account. If the rate of withdrawal is lower than the growth of the fund, the investor can withdraw monthly income for years and still, their amount will not deplete to zero. Rather, in the long term, it may surpass the principal. Investors can set up SWP in an equity, hybrid, and debt mutual funds depending on their risk appetite.
Top 5 SWP Mutual Funds: Some investors who invest a large lump sum amount in a mutual fund scheme don't want returns in one go. Rather, they use it as a source to get a monthly income. So, they set up a up a systematic withdrawal plan (SWP) in a mutual fund. SWP is just opposite to a systematic investment plan (SIP), where you withdraw your money in phases. Senior citizens more often use SWP to get a fixed monthly income. In a SWP scheme, the mutual fund house sells net asset value (NAV) units every month to deposit the amount to the investor's account. If the rate of withdrawal is lower than the growth of the fund, the investor can withdraw monthly income for years and still, their amount will not deplete to zero. Rather, in the long term, it may surpass the principal. Investors can set up SWP in an equity, hybrid, and debt mutual funds depending on their risk appetite. A lot of investors find aggressive hybrids funds an attractive option for their SWP plan since the category has 70 per cent of their investments in equity and 30 per cent in debt. Aggressive hybrid funds are the criteria of the fund selection for this story. Know about top 5 SWP mutual funds that have provided at least Rs 1 lakh monthly income for 5 years (total Rs 60 lakh) on Rs 40 lakh investment.
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Bank of India Mid Small Cap equity debt fund regular plan growth
The fund has given 27.3 per cent annualised return (CAGR) in 5 years. The aggressive hybrid fund has assets under management (AUM) of Rs 838.93 crore, while its net asset value (NAV) is Rs 38.77. Benchmarked against CRISIL Short-Term Bond TRI and NIFTY Mid Small Cap 400 TRI, the fund has given 18.22 per cent return since its inception in July 2016. The mixed asset fund has an expense ratio of 2.32 per cent, while its minimum lump sum investment is Rs 5,000.
Bank of India Mid Small Cap equity debt fund regular plan growth
The fund has 79.42 per cent of its allocation in equity, of which 42.66 per cent are in mid-cap stocks and 33.72 per cent in small-cap stocks. Its 19.35 per cent investments are in debt. Jindal Stainless Limited, Oil India Limited, Uno Minda Limited, and Indus Towers Limited are the main stocks in its portfolio.
After withdrawing Rs 100,000 monthly income for 5 years on a Rs 41 lakh investment, the investor still has Rs 22,11,316 left in the fund.
Quant Absolute Fund Growth Option Regular Plan
The mixed asset fund has had a 26.12 per cent annualised return in 5 years. Benchmarked against CRISIL Hybrid 35+65 Aggressive Index, the fund has AUM of Rs 2,207.91 crore, while its NAV price is Rs 445.5574. The fund has given 17.63 per cent return since its inception in March 2003. With an expense ratio of 2.01 per cent, the minimum investment in the fund is Rs 5,000.
Quant Absolute Fund Growth Option Regular Plan
The fund has 74.54 per cent of its allocation in equity, of which 71.07 per cent is in large-cap stocks. The debt ratio in allocation is 26.05 per cent. HDFC Bank, Reliance Industries Limited (RIL), Jio Financial Services, and Adani Power are the main stocks in its portfolio.
On a Rs 41 lakh investment, the investor still has Rs 18,94,214 left in the fund after withdrawing Rs 1 lakh monthly income for 5 years.
JM Aggressive Hybrid Fund Regular Growth Option
The fund has given a 21.06 per cent annualised return in 5 years. The fund has AUM of Rs 380.45 crore, while its NAV rate is Rs 126.6226. Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has given 12.89 per cent annualised returns since its inception in April 1995. With an expense ratio of 2.35 per cent, the fund has Rs 1,000.0 as the minimum investment.
JM Aggressive Hybrid Fund Regular Growth Option
The fund's asset allocations are 76.36 per cent in equity, 19.56 per cent in debt, and 4.08 per cent in cash and cash equivalent. Among equity, it has 28.66 per cent investments in large-cap stocks, 15.09 per cent in mid caps, and 30.65 per cent in small-cap stocks. Government of India Securities 2034, HDFC Bank, 7.18% Government of India Securities 2037, TREPS-Triparty Repo, and Infosys are its main holdings.
A Rs 41 lakh investment in the fund has provided a Rs 1 lakh pension for 5 years. After withdrawal, the investor still has Rs 7,66,115 in their fund.
Mahindra Manulife Aggressive Hybrid Fund Regular Plan Growth
The fund has given 18.6 per cent annualised returns in 5 years. With an asset base of Rs 1,273.76 crore, the fund has NAV of Rs 26.4452. Benchmarked against CRISIL Hybrid 35+65 Aggressive Index, the fund has given 21.33 per cent investment since its inception in July 2019. With an expense ratio of 2.09 per cent, the fund has a minimum lump investment of Rs 1,000.
Mahindra Manulife Aggressive Hybrid Fund Regular Plan Growth
The fund has 78.01 per cent of its allocations in equity, of which 51.53 per cent is in large-cap stocks. Its debt allocation is 18.78 per cent. ICICI Bank, HDFC Bank, Reliance Industries Limited, Infosys, 7.1% Government of India 2034, and 7.18% Government of India 2037.
A Rs 41 lakh investment in the fund has provided a Rs 1 lakh pension for five years. After withdrawal, the investor still has Rs 2,56,040 in their fund.
ICICI Prudential Equity Debt Fund Growth
The fund has had a 18.08 per cent return in 5 years. It has AUM of Rs 37,028.63 crore, while its NAV rate is Rs 376.53. Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has given 15.78 per cent return since its inception in November 1999. At an expense ratio of 1.6 per cent, the fund has Rs 5,000 as the minimum investment.
ICICI Prudential Equity Debt Fund Growth
The fund has 70.91 per cent of its investment in equity, of which 60.74 per cent are in large caps, 18.82 per cent are in debt, 7.24 per cent in cash and cash equivalent, and 1.98 per cent in infrastructure trusts. The main stocks in its portfolio are TREPS, NTPC, ICICI Bank, HDFC Bank, and Maruti Suzuki India.
Investment of Rs 41 lakh in the fund has given Rs 1 lakh monthly income for 5 years. After withdrawing that money, the investor still has Rs 1,28,324 left in the fund.