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7 top SWP mutual funds: On Rs 50 lakh investment; top fund has given Rs 60K monthly pension for 10 years and Rs 91 lakh balance


Systematic Withdrawal Plan (SWP) is a mutual fund withdrawal method, where you are get a fixed pension every withdrawal cycle. You can get the pension throughout the life if your rate of withdrawal is less than the rate of the growth of your investment in the fund. For a monthly pension through SWP, you invest a lump sum amount in a mutual fund and gets the pension in the form of returns from the fund. The fund house sells net asset value (NAV) units of the fund to give you that pension. Even if your fund’s performance is in negative, you get the fixed pension till you fund depletes. When the market is high, the fund house sells less NAVs, when the market is low, the fund house sells more NAVs. Most of the best performing SWP mutual funds come are from the hybrid fund category’s growth plans. Some of the top performer SWP funds in the last 10 years are from Quant, ICICI Pru, HDFC Mutual Fund and DSP Fund.

In this write-up, know which of the seven SWP plans have been the best performers in the last 10 years, and what Rs 50 lakh lump sum investment 10 years ago has given to investors.

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(Note, on a Rs 50 lakh investment), we have kept Rs 60,000 monthly pension for 10 years (120 months) as the minimum expectation from each of the seven funds.) 

Quant Absolute Fund Growth – Direct Plan

The fund from Quant has XIRR returns of 19.15 per cent in the last 10 years.

The mixed asset hybrid aggressive fund has assets under management (AUM) of Rs 1,787.77 core and its net asset value (NAV) is worth Rs 434.5184.

The minimum investment in the scheme is Rs 5,000.

An investment of Rs 50 lakh in the fund 10 years ago has given a monthly pension of Rs 60,000 (total 120 instalments), and the remaining balance after withdrawing that pension is the fund is Rs 91,03,418.

ICICI Prudential Equity & Debt Fund – Direct Plan – Growth

The fund from ICICI Pru has an XIRR of 18.41 per cent in the last 10 years.

The mixed asset hybrid aggressive fund has AUM of Rs 32,429.17 crore, while its NAV is Rs 373.03.

The minimum investment in the fund is Rs 5,000 and the minimum top up is Rs 1,000.

Its CAGR since inception date of January 1, 2013 is 18.23 per cent against the category average of 12.52 per cent.

The one who had invested Rs 50 lakh in the fund 10 years ago has got a monthly pension of Rs 60,000 ever since, and the remaining balance the investor has is Rs 81,30,756.

Canara Robeco Equity Hybrid Fund – Direct Plan – Growth Option

The mixed asset aggressive fund has given an XIRR of 16.90 per cent in the last 10 years.

The fund has AUM of Rs 9,808.56 crore while its NAV is 348.92.

The fund has a CAGR of 15.03 per cent since its inception on January 1, 2013, against the category average of 12.52 per cent.

An investment of Rs 50 lakh in the fund 10 years ago has given a pension of Rs 60,000 and the remaining after the withdrawal of 120 instalments is Rs 63,66,938.

DSP Equity & Bond Fund – Direct Plan – Growth

The mixed asset hyrbid fund has given an XIRR of 16.87 per cent in the 10 years.

The fund has AUM of Rs 8,804.22 crore and NAV of Rs 327.008.

The fund’s minimum and top-up investment is Rs 100 each.

Its benchmark of the hybrid fund is CRISIL Hybrid 35+65 Aggressive TRI.

A Rs 50 lakh investment in the fund has given Rs 60,000 monthly pension ever since and the balance amount after withdrawing pension is Rs 63,31,853.

SBI Equity Hybrid Fund – Direct Plan – Growth

The hybrid aggressive fund from SBI Mutual Fund has an XIRR of 16.32 per cent in the last 10 years.

The fund’s AUM is 65,073.71 crore, while its NAV is Rs 278.1005.

The minimum investment and the top-up in the scheme is Rs 1,000 each.

The fund is benchmarked against CRISIL Hybrid 35+65 Aggressive TRI.

An investment of Rs 50 lakh has given Rs 60,000 monthly pension for the 10 years and the balance amount is Rs 57,46,142. 

Franklin India Equity Hybrid Fund – Direct – Growth

The fund’s XIRR for the 10 year is 16.17 per cent. Its AUM is Rs 1,701.32 crore while its NAV is Rs 268.0528.

The fund’s minimum investment is Rs 5,000 and the minimum top-up is Rs 1,000.

An investment of Rs 50 lakh in the fund 10 years ago has given 120 monthly instalments of Rs 60,000 each and the remaining amount after withdrawing the pension is Rs 55,90,675.

HSBC Aggressive Hybrid Fund – Direct Growth

The fund’s 10-year XIRR is 16.05 per cent.

It has AUM of Rs 5,139.21 crore, while its NAV is Rs 53.8704.

The fund’s minimum investment is Rs 5,000, while its minimum top-up is Rs 1,000.

A Rs 50 lakh investment in the fund 10 years ago has given 120 instalments of Rs 60,000 each and the remaining balance after withdrawing that pension is Rs 54,72,515.





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