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Best SWP Mutual Fund in India 2022

08 June 2022

SWP mutual funds are one of the most popular types of mutual fund schemes. The name stands for Systematic Withdrawal Plan, which means that you can withdraw money from your account at any time without incurring any penalty or tax burden.

This makes them a great choice for investors who want to make regular investments over time, but need to be able to access their money when they need it.

SWP funds are also known as systematic savings plans (SSPs). They are an excellent way to invest small amounts regularly and let compound interest do its thing over time.

Best SWP Plans 2022

Below we have listed the top 5 SWP Mutual Funds based on their overall performance and growth, that you can consider investing in:

S.No.

Scheme Name

AMC Name

1.

SBI Equity Hybrid Regular Growth Plan 

SBIMF

2.

ICICI Pru Equity & Debt Growth Plan

ICICIMF

3.

Quant Absolute Fund Growth Plan

QuantMF

4.

Franklin India Equity Hybrid Growth Plan

FranklinMF

5.

Canara Robeco Equity Hybrid Regular Growth Plan

CanaraMF

Factors To Consider Before Investing In the Best SWP Mutual Fund in India 2022

Before choosing the best swp plan and investing in an SWP mutual fund plan, there are a few factors to consider. First, you'll want to make sure that the mutual fund company is reputable and has been in business for several years.

Second, you'll want to look at the risk-adjusted returns for the fund as well as its asset allocation strategy. Third, you should also consider whether or not there are any fees associated with investing in this particular mutual fund strategy.

  • Regular Income

Opt for an SWP only if you are looking for regular income from your mutual fund. If you don't require money to come in regular intervals, you can opt for the lump-sum withdrawal. Monthly SWP is a popular form of SWP. You can decide how much amount you want to receive monthly.

  • Pension

You can also use the best SWP mutual fund to steer a retirement plan for yourself. For regular income post-retirement, you can chalk out a list of mutual funds of your choice and start an SWP from it post-retirement. If well planned, SWP can be an excellent support for regular income after retirement.

The reason is, that there is an absence of regular income. Even if you have enough and more funds, some people may be used to the idea of receiving money regularly. This is where SWP comes in handy.

  • Tax Implications

Taxation is an important aspect of every form of income, especially if you are using the best SWP for monthly income.

Every withdrawal will be subjected to the capital gains tax of the fund you are invested in. Hence, the capital gains tax of the fund you are invested in matters.

For example, in equity mutual funds, short-term capital gains (less than 12 months) are taxed at 15% and long-term (more than 12 months) capital gains are taxed at 10% if gains are more than 10%.

  • Market Situation

It is important to consider the market situation before investing in an SWP mutual fund plan in India. If the market is doing well, it may be a good time to invest because your investment will increase in value and you can sell it at a higher price than what you initially paid for it.

However, if the market is not doing well or there is a recession, then it may not be a good time to invest because your investment will decrease in value and you may not be able to sell it at all. 

  • Your Financial Needs

Your financial needs are important when you are going to invest for determining how much money you need for retirement or other purposes like buying a house or car etcetera (purchasing). If you have more money than what you need for your day-to-day expenses then investing in an SWP mutual fund plan may not be suitable for you because these plans do not guarantee any returns at all.

Best SWP Mutual Funds: Performance Overview

1) SBI Equity Hybrid Regular Growth Plan 

SBI Equity Hybrid Regular Growth Plan is an aggressive hybrid scheme under the SBI Mutual Fund House. The fund was launched on Dec 31, 1995, and it invests in equity and debt. It has a moderate risk profile and is suitable for investors who are looking for long-term capital appreciation. 

The scheme seeks to provide investors with long-term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high-growth companies and balance the risk by investing the rest in fixed-income securities.

2) ICICI Pru Equity & Debt Growth Plan

ICICI Pru Equity & Debt Growth Plan is a hybrid mutual fund scheme launched by ICICI Prudential Mutual Fund. The scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market instruments. 

3) Quant Absolute Fund Growth Plan

The Quant Absolute Fund Direct-Growth is a hybrid mutual fund scheme that seeks to provide long-term capital appreciation and current income with a mix of fixed income securities and equity instruments. 

4) Franklin India Equity Hybrid Growth Plan

The Franklin India Equity Hybrid Growth Plan has been designed to allow investors to invest in equities, which are considered one of the most attractive asset classes for long-term investment. The scheme seeks to achieve long-term capital appreciation with the stability of investment and current income from a balanced portfolio of high quality.

5) Canara Robeco Equity Hybrid Regular Growth Plan

The Canara Robeco Equity Hybrid Regular Growth Plan scheme is a hybrid mutual fund scheme that seeks to build a balanced portfolio, which would provide a combination of high annual return and capital appreciation. The scheme seeks to build a balanced portfolio, which would provide a combination of high annual returns and capital appreciation. The scheme was made open-ended from March 2000. 

Conclusion

Mutual fund investments offer various options to make investments easy for all of us. Some features are useful for new professionals, millennials, retired persons, high and low-risk appetites, and more. 

The best SWP for monthly income caters to a requirement wherein you can withdraw money from your mutual funds in installments. This gives a regular income flavor to your mutual fund investments and might be extremely helpful for many. 

You can apply for the best swp plan 2022 from high-risk mutual funds, low-risk mutual funds, or something that falls in the middle. The pivotal point here is that you should know if you need an SWP or not. The best SWP plans for 2022 India will be a source of regular income from a mutual fund of your choice. You can also use SWP Calculator Groww to calculate your returns.

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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