Top 5 SWP Mutual Funds: All of them have provided at least Rs 70,000 monthly income for 10 years on Rs 50 lakh investment
Top SWP Plans for Monthly Income: In a SWP plan, the mutual fund house sells the investor's net asset value (NAV) units to provide monthly income. SWP provides rupee cost averaging, so, if the NAV rate is low, the fund house sells more units, if the NAV rate is high, it sells less units. Senior citizens often make SWP as an investment option for their retirement planning.
Top 5 SWP Mutual Funds: When one has a large lump sum amount and wants to invest in an equity mutual fund for a long duration, they may have one fear in their mind. They may think about what will happen if the equity market is going through a poor phase at the time they withdraw their money. However good a phase a market is going through, a global slowdown of the economy may turn your investment negative, as happened during the 2008 global financial crisis and the 2020 coronavirus pandemic. To negate that effect, people opt for a Systematic Withdrawal Plan (SWP). It is a method through which one can withdraw their money from a mutual scheme in a systematic manner, mostly in the form of monthly income. Here, the mutual fund house sells your net asset value (NAV) to provide you with a monthly income. E.g., if you invest Rs 50 lakh in a mutual fund scheme for 10 years, where you also get 10 per cent annual growth, the withdrawal amount at the end of the duration can be much higher than the initial investment. So, one can get a monthly income, and a balance at the end of the withdrawal duration. Since equity funds are volatile, investors mostly prefer funds with high debt exposure to SWP plans. In this write-up, we are telling you about five such plans, which have given at least Rs 70,000 in monthly income for 10 years (120 months) on an investment of Rs 50,000.00.
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DSP Equity Bond Fund Regular Plan Growth
The fund has had a CAGR of 13.33 per cent in the 10-year period. The mutual fund has an asset base of Rs 9,697.89 crore, while its net asset value (NAV) is worth Rs 334.934. Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has given a 14.98 per cent return since its inception in May 1999. The hybrid aggressive mutual fund has an expense ratio of 1.77 per cent. The fund has 71.53 per cent of its investments in equity and 25.41 per cent in debt. Of equity, 42.55 per cent is in large-cap stocks and 17.24 per cent in mid-cap.
The main stocks in its portfolio are HDFC Bank, Bajaj Finance Limited, ICICI Bank, and Samvardhana Motherson International Limited.
On an investment of Rs 50 lakh made 10 years ago, the fund has provided a Rs 70,000 monthly pension (Rs 84 lakh withdrawal) overall for 10 years. After withdrawing that amount in instalments, the remaining amount in the investor's portfolio would be Rs 7,24,598.
ICICI Prudential Equity Debt Fund Growth
The fund has given 13.24 per cent returns in 10 years. It has assets under management (AUM) of Rs 37,028.63 crore, while its NAV is Rs 369.04. Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund had an expense ratio of 1.60 per cent. It has given a 15.71 per cent annual return since its inception in November 1999. The fund has 70.91 per cent of its investment in equity, of which 60.74 per cent is in large-cap stocks. The fund has 18.82 per cent investments in debt, 7.24 per cent in cash and cash equivalents, and 1.98 per cent in infrastructure trusts.
The main stocks in its portfolio are TREPS, NTPC Ltd, ICICI Bank Ltd, HDFC Bank, and Maruti Suzuki.
It has provided Rs 70,000 in monthly income for 10 years on a Rs 50 lakh investment, and the remaining amount is Rs 6,68,342.
SBI Equity Hybrid Fund Regular Plan Growth
The fund from SBI Mutual Fund has had a CAGR of 12.75 per cent in 10 years. The fund has a large asset base of Rs 71,500.57 crore, while its NAV price is Rs 279.2156. Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has given a 14.32 per cent return since its inception in December 1995. It has 74.86 per cent of its investments in equity, of which 54.18 per cent is in large-cap stocks and 18.75 per cent in mid-cap stocks. The fund's 21.7 per cent investments are in debt instruments. The fund has Reliance Industries (RIL), ICICI Bank, State Bank of India, and Bharti Airtel as its main investments.
The fund has provided a Rs 70,000 monthly pension for 10 years on a Rs 70 lakh investment, and the remaining amount after withdrawing that amount is Rs 3,58,328.
Canara Robeco Equity Hybrid Fund Regular Plan Growth Option
The fund has had a 12.61 per cent CAGR in the 10-year time frame. The fund has an asset base of Rs 10,630.59 crore, while its NAV is worth Rs 345.65. Benchmarked against Benchmark: CRISIL Hybrid 35+65 Aggressive TRI, the fund has given a 13.29 per cent return since its inception in February 1993. It has 74.57 per cent of its investments in equity, of which 52.50 per cent are in large-cap stocks and 15.5 per cent in mid-cap stocks. Its 21.34 per cent investments are in debt and 3.68 per cent in cash and cash equivalents.
The main stocks in its portfolio are HDFC Bank, RIL, ICICI Bank, TREPS, and Infosys.
A Rs 50 lakh investment in the fund has fetched a Rs 70,000 monthly income for 10 years and Rs 2,74,837 in balance.
Franklin India Equity Hybrid Fund Growth Plan
The fund has provided a 12.5 per cent annual return in the last decade. The fund has an AUM of Rs 1,901.46 crore, while its NAV rate is Rs 260.9645. Benchmarked against Benchmark: CRISIL Hybrid 35+65 Aggressive TRI, the fund has given a 14.17 per cent return since its inception in December 1999. The fund has 68.64 per cent of its investments in equity, of which 49.57 per cent are in large-cap stocks. Its 25.97 per cent funds are in equity.
HDFC Bank, ICICI Bank, NABARD, Infosys, and Larsen & Toubro are the main holdings in its portfolio. On a Rs 50 lakh investment made 10 years ago, the fund has provided Rs 70,000 in monthly income for 10 years and Rs 2,13,078 in balance.