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Systematic Withdrawal Plans (SWPs) have become a popular choice among investors seeking a steady income from their mutual fund investments. SWPs allow investors to withdraw a fixed amount at regular intervals, making them ideal for retirees or anyone looking for regular income. In 2024, several mutual funds stand out as top choices for an SWP strategy. Below is a detailed list of the top 10 SWP mutual funds to consider this year.
1. HDFC Balanced Advantage Fund
- Category: Hybrid
- Fund Size: ₹55,000 crore
- 1-Year Return: 10.5%
- 3-Year Return: 12.8%
- Why Choose: This fund is known for its ability to adjust equity exposure based on market conditions, providing both growth potential and downside protection. The balanced approach makes it ideal for SWP as it ensures regular payouts without exposing the investment to excessive risk.
2. ICICI Prudential Equity & Debt Fund
- Category: Hybrid
- Fund Size: ₹45,000 crore
- 1-Year Return: 9.8%
- 3-Year Return: 11.7%
- Why Choose: With a solid mix of equity and debt, this fund offers consistent returns with lower volatility. It’s perfect for investors who want a reliable income through SWP while still maintaining growth in their investment portfolio.
3. Mirae Asset Hybrid Equity Fund
- Category: Hybrid
- Fund Size: ₹30,000 crore
- 1-Year Return: 11.2%
- 3-Year Return: 13.0%
- Why Choose: Mirae Asset has a reputation for strong fund management, and this hybrid fund is no exception. It offers a balanced mix of equity and debt, making it a stable option for those seeking regular income via SWP.
4. SBI Equity Hybrid Fund
- Category: Hybrid
- Fund Size: ₹60,000 crore
- 1-Year Return: 9.5%
- 3-Year Return: 12.3%
- Why Choose: This fund provides a conservative approach with moderate risk, focusing on blue-chip equities and high-quality debt instruments. It’s suitable for conservative investors looking for steady returns through SWP.
5. Axis Triple Advantage Fund
- Category: Hybrid
- Fund Size: ₹25,000 crore
- 1-Year Return: 10.0%
- 3-Year Return: 11.5%
- Why Choose: Offering diversified exposure across equity, debt, and gold, this fund provides a hedge against market volatility, making it an excellent choice for investors looking to minimize risk while enjoying consistent withdrawals.
6. Aditya Birla Sun Life Equity Hybrid ‘95 Fund
- Category: Hybrid
- Fund Size: ₹50,000 crore
- 1-Year Return: 8.7%
- 3-Year Return: 10.8%
- Why Choose: With a history of stable performance, this fund is designed for investors who seek steady income and long-term growth. It’s particularly favored by those looking to initiate an SWP for retirement income.
7. Tata Balanced Advantage Fund
- Category: Hybrid
- Fund Size: ₹20,000 crore
- 1-Year Return: 9.9%
- 3-Year Return: 12.1%
- Why Choose: This fund dynamically adjusts its equity and debt allocation based on market conditions, ensuring that investors benefit from growth during bull markets while being protected during downturns.
8. Franklin India Balanced Advantage Fund
- Category: Hybrid
- Fund Size: ₹15,000 crore
- 1-Year Return: 8.5%
- 3-Year Return: 10.3%
- Why Choose: Known for its conservative investment strategy, this fund is ideal for risk-averse investors who prioritize capital preservation while still enjoying regular payouts through SWP.
9. Kotak Balanced Advantage Fund
- Category: Hybrid
- Fund Size: ₹28,000 crore
- 1-Year Return: 10.2%
- 3-Year Return: 12.6%
- Why Choose: Kotak’s balanced approach to managing equity and debt exposure makes this fund a solid choice for investors looking to optimize returns while managing risk, particularly in an SWP strategy.
10. L&T Hybrid Equity Fund
- Category: Hybrid
- Fund Size: ₹22,000 crore
- 1-Year Return: 9.1%
- 3-Year Return: 11.4%
- Why Choose: This fund offers a mix of stability and growth, making it a suitable option for those who want to generate a regular income stream through SWP without sacrificing potential capital appreciation.
Conclusion
Selecting the right SWP mutual fund is crucial for achieving your financial goals, especially if you rely on these funds for regular income. The funds listed above offer a balanced approach to growth and stability, ensuring that your withdrawals are consistent and your capital remains secure. Always consider your risk appetite, investment horizon, and financial goals when choosing an SWP mutual fund.
Explore more: Top 10 Best Large-Cap Mutual Funds 2024
