Top 5 SWP Plans: A regular monthly income (pension) is a mark of financial freedom that boosts your confidence as you don’t have to fall back on anyone to meet your daily expenses. There are many investment instruments that offer a monthly income after a one-time investment. Some of them are market-linked, while others are non-market-linked. Among market-linked investments, mutual funds are one of the options from which you may get a monthly income after a one-time investment. The method of withdrawing a fixed amount of monthly income from a mutual fund is known as Systematic Withdrawal Plan (SWP).
To avail a SWP plan, you make a one-time investment in a mutual fund and get a return on it, which the mutual fund house gives you back in the form of a monthly income.
The advantage of a SWP mutual fund is that if your rate of withdrawal is much lower than your rate of return, you can get the monthly income for decades, and your fund will still keep growing.
Senior citizens and retirees often opt for SWP plans.
In this write-up, you will learn about the top 5 SWP mutual funds with the highest returns in 10 years.
Also, get to know, on an investment of Rs 1 crore in these funds, what is the remaining amount after withdrawing the 60,000 monthly pension for 10 years (120 installments in total).
Note: All the top-performing funds we have picked here are hybrid aggressive funds. Also, we have chosen Rs 60,000 as the monthly income amount since there is no exit load in most SWP funds if you withdraw less than 10 per cent of the total corpus in the first year.
Quant Absolute Fund – Growth Option – Regular Plan
The fund’s compound annual growth rate (CAGR) has been 16.05 per cent in the 10 years.
On an investment of Rs 1 crore 10 years ago, after withdrawing 120 instalments of Rs 60,000 each, an investor still has Rs 2,78,16,681 in the fund.
Benchmarked against the CRISIL Hybrid 35+65 Aggressive Index, the fund has given a 17.55 per cent return since its inception in March 2001.
The mixed asset fund has an expense ratio of 2.02 per cent.
The minimum investment in the fund is Rs 5000.0.
The fund’s asset under management (AUM) is Rs 2,114.19 crore, while the NAV rate is Rs 432.9312.
The fund has 79.36 per cent of its investment in equities and 16.52 per cent in debt.
The main stocks in its portfolio are Reliance Industries Limited, Jio Financial Services, Adani Power, and HDFC Bank.
ICICI Prudential Equity Debt Fund Growth
The aggressive hybrid fund has given a 15.51 per cent annual return in the 10-year period.
On an investment of Rs 1 crore 10 years ago, after withdrawing 120 instalments of Rs 60,000 each, an investor still has Rs 2,62,57,264 in the fund.
Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has given a 15.65 per cent return since its inception in November 1999.
The fund has an AUM of Rs 35,122.02 crore, while its NAV is worth Rs 361.69.
The fund has an expense ratio of 1.62 per cent, while the minimum investment in the fund is Rs 5,000.
The fund has 72.75 per cent of its investment in equity (62.55 per cent in large caps) and 23.8 per cent in debt.
The main stocks in its portfolio are NTPC Ltd, ICICI Bank, Bharti Airtel, HDFC Bank, and Maruti Suzuki India Ltd.
DSP Equity Bond Fund Regular Plan Growth
The fund has given 13.74 per cent CAGR in the 10-year time frame.
On an investment of Rs 1 crore 10 years ago, after withdrawing 120 instalments of Rs 60,000 each, an investor still has Rs 2,16,47,788 in the fund.
Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has an expense ratio of 1.77 per cent, while the minimum investment in it Rs 100.
The fund has given a 14.96 per cent return since its inception in May 1999.
Its total asset base is Rs 9,131.81 crore, while its size is Rs 331.715.
The fund has 71.28 per cent of its investment in equity with 42.72 per cent in large caps.
The debt portion is 25.86 per cent. HDFC Bank, Bajaj Finance, and ICICI Bank are the main stocks in its portfolio.
Canara Robeco Equity Hybrid Fund Regular Plan Growth Option
The fund has given a 13.24 per cent annualised return in the 10-year period.
On an investment of Rs 1 crore 10 years ago, after withdrawing 120 instalments of Rs 60,000 each, an investor still has Rs 2,04,68,076 in the fund.
Launched in February 1993, the fund has given a 13.25 per cent return since its inception.
Benchmarked against CRISIL Hybrid 35+65 Aggressive TRI, the fund has an expense ratio of 1.73 per cent, while the minimum investment in the fund is Rs 5,000.
The fund has an asset base of Rs 10,152.64 crore, while its NAV rate is Rs 341.99.
The fund has 72.63 per cent of its investment in equity with 51.13 per cent of it in large caps.
It has a 21 per cent investment in debt. HDFC Bank, RIL, ICICI Bank, L&T, and Infosys are the main stocks in its portfolio.
Franklin India Equity Hybrid Fund Growth Plan
The fund has given annualised returns of 13.2 per cent in the 10 years.
On an investment of Rs 1 crore 10 years ago, after withdrawing 120 instalments of Rs 60,000 each, an investor still has Rs 2,03,67,677 in the fund.
Launched in December 1999, the fund has given a 14.13 per cent return since its inception.
CRISIL Hybrid 35+65 Aggressive TRI is the benchmark of the fund, which has an expense ratio of 2.12 per cent, and Rs 5,000.0 as the minimum investment.
The fund has an AUM of Rs 1,806.96 crore, while its NAV is worth Rs 257.7613.
The fund has 69.74 per cent of its investment in equity with 53.68 per cent of them in large caps.
Its 26.05 per cent investments are in debt.
The fund has HDFC Bank, ICICI Bank, L&T, and Infosys as the main holdings in its portfolio.
