Best SWP Mutual Funds in India

Best SWP Mutual Funds in India
Best SWP Mutual Funds in India

by Tanushree Jaiswal Last Updated: Jul 19, 2023 - 04:48 pm 2.2k Views

A growing trend in India is using Systematic Withdrawal Plans (SWP) for earning consistent income, even though mutual funds give investors the potential to increase their wealth. SWP enables investors to benefit from future capital growth while receiving regular dividends from mutual fund investments. In this article, focusing on the Indian market, we examine the idea, advantages, and risks of the best SWP mutual funds. A curated list of India's best SWP mutual funds is also provided, enabling investors to make wise choices and ensure a steady income stream in today's dynamic investment environment.

5 Best Performing SWP Mutual Funds in India 2023

Here are the top 5 SWP mutual funds:

Fund Name

1-Year Return (%)

3-Year Return (%)

5-Year Return (%)

Expense Ratio (%)

HDFC Hybrid Equity Fund





ICICI Prudential Balanced Fund





SBI Magnum Balanced Fund





Aditya Birla Sun Life Balanced Advantage Fund





DSP BlackRock Equity and Bond Fund






● HDFC Hybrid Equity Fund

One of the top 5 SWP mutual funds in India is HDFC Hybrid Equity Fund, which HDFC Asset Management Company runs. It uses a hybrid investment strategy that combines equity and debt securities to give clients a well-balanced portfolio. The equity part of the HDFC Hybrid Equity Fund seeks long-term capital growth through assets in various fundamentally strong companies. Fund managers do extensive research and analysis to find businesses with development potential across various industries. The fund's goal is to take advantage of expanding the Indian equities market by carefully choosing these stocks.

The fund's debt portion prioritizes stability and consistent income. It makes investments in premium fixed-income products like corporate and government bonds. As a result, the total portfolio is stabilized, and risk is reduced. Through interest payments and coupon rates, debt investments can help investors to produce consistent income. HDFC Hybrid Equity Fund uses a disciplined investment strategy, which constantly monitors the market and modifies the portfolio's allocation to maximize returns. Fund managers can dynamically alter the stock and debt allocations based on market conditions and their perspective.

● ICICI Prudential Balanced Fund

A well-known mutual fund in India is the ICICI Prudential Balanced Fund, run by the ICICI Prudential Asset Management Company. This best SWP mutual fund belongs to the hybrid investment category since it combines equity and debt holdings to give investors a well-balanced portfolio. The equity portion of the ICICI Prudential Balanced Fund invests in a diverse portfolio of fundamentally sound businesses with the goal of capital appreciation. Fund managers use in-depth investigation and analysis to find stocks with development potential across various industries. This strategy aims to take advantage of the growth potential provided by the Indian equities market.

The fund's debt portion strives to create stability and the best SWP for monthly income. It makes investments in various fixed-income assets, including corporate and government bonds. These investments reduce risk and generate a consistent revenue stream through interest payments. Because it combines the stability of debt investments with the growth potential of equities, investing in ICICI Prudential Balanced Fund has the benefit of diversity.

● SBI Magnum Balanced Fund

One of the best SWP mutual funds in India is SBI Magnum Balanced Fund, administered by SBI Mutual Fund. As part of a balanced investment strategy, the fund invests in various debt and equity assets. By investing in fundamentally sound businesses across various industries, the equity component seeks to provide capital appreciation. The debt component seeks stability and dependable income through investments in fixed-income instruments. The SBI Magnum Balanced Fund has an active asset allocation strategy, allowing for changes in the proportion of equity to debt depending on the state of the market. 

Investing in the SBI Magnum Balanced Fund offers diversification and the chance to exploit the equity market's growth potential while retaining stability through debt investments. The knowledgeable managers of the fund perform extensive studies to find appealing investment opportunities. SBI Magnum Balanced Fund seeks to provide steady returns over the long term by carefully selecting stocks and debt instruments.

● Aditya Birla Sun Life Balanced Advantage Fund

Another best SWP mutual fund in India is Aditya Birla Sun Life Balanced Advantage Fund, which Aditya Birla Sun Life Mutual Fund runs. It uses a distinctive investment technique that blends loan and equity instruments to provide the best returns. The fund uses a dynamic asset allocation strategy, allowing the fund manager to change the allocation of stock and debt in response to market conditions. The fund may increase its stock exposure in a bull market to exploit growth possibilities. At the same time, it may decrease its equity exposure in a bear market to maintain stability. While the loan component invests in premium fixed-income instruments, the equity component prioritizes investments in fundamentally sound businesses across all industries. 

Aditya Birla Sun Life Balanced Advantage Fund combines the stability of debt instruments with the growth potential of stocks and provides benefits of asset class diversification. The knowledgeable fund management team conducts in-depth research to find appealing investment options. This best SWP mutual fund actively manages the portfolio's asset allocation to produce steady returns. Before making any investment decisions, however, investors should carefully examine their investment objectives, risk tolerance, and advice from financial professionals.

● DSP BlackRock Equity and Bond Fund

The DSP BlackRock, Equity and Bond Fund is one of the best mutual funds for SWP in India, run by DSP Investment Managers Pvt. Ltd. The fund invests in a mix of equities and debt assets as part of its hybrid investment strategy. By investing in a diverse stock portfolio, the equity portion of the DSP BlackRock Equity and Bond Fund focuses on capital appreciation. Fund managers extensively research and analyze to find fundamentally sound businesses across various industries. The fund wants to take advantage of the Indian equities market's growth potential by investing in these businesses.

On the other hand, the debt portion of the fund attempts to offer stability and produce consistent revenue. It makes investments in fixed-income securities like corporate bonds and government securities. These best SWP mutual funds investments reduce risk and generate a consistent revenue stream through interest payments. Using an active asset allocation strategy, the fund managers of DSP BlackRock equities and Bond Fund can change the distribution of assets between equities and debt depending on the state of the market and their view. With this flexibility, they can efficiently manage risk while maximizing rewards.

How Do Systematic Withdrawal Plans (SWP) Work?

Mutual fund companies that provide the best systematic withdrawal plans (SWP) allow investors to take a set amount of money out of their investment every month. Here are some guidelines showing how best systematic withdrawal plans function:

1. Investment Selection: Investors must first select a mutual fund plan with SWP as a potential investment option. Depending on their investment objectives, time horizon, and level of risk tolerance, they can choose from various fund kinds.
2. Lump Sum Investment: Typically, investors begin the best SWP mutual fund by making a lump sum investment in the mutual fund scheme of their choice- the corpus from which the regular withdrawals will be made in this initial deposit.
3. Withdrawal Frequency and Amount: Investors can choose the frequency of their withdrawals (monthly, quarterly, or annually), as well as the amount they want to take out. Depending on their demands for income and financial objectives, the decided amount may be either a fixed sum or a variable amount.
4. Crediting of Withdrawal: The investor's selected bank account is then credited with the withdrawal amount. As a result, the investor receives a consistent income stream to meet their needs while maintaining their best SWP mutual funds investment.
5. Customization and Flexibility: SWPs give investors options. The SWP may be changed or terminated at any moment. Investors can also choose an exact withdrawal window or an endless SWP.
6. Capital Appreciation: One of the prominent advantages of the best SWP mutual funds is that investors can continue to profit from future market expansion. They can benefit from capital gains and generate returns on their remaining investment by continuing to invest in the mutual fund.

Factors to Consider Before Investing in the Best SWP Mutual Fund in India 2023

The best mutual funds for SWP in India should be chosen after carefully weighing several variables. Before making an investment decision, consider the following significant factors:

● Investment Objective: Clearly state your investment goals, whether capital growth, consistent income, or a combination of both. Align your investing goal with the fund's mission, as best SWP mutual funds may cater to various objectives.
● Fund Performance: Evaluate the mutual fund's past performance. Look at how consistently it has produced profits during several market cycles. To determine the effectiveness of the fund, compare its performance to relevant benchmarks and comparable funds.
● Asset Allocation: Recognize the best fund for the SWP approach to asset allocation. Analyze the equity and debt instrument mix of the fund. A balanced allocation may offer stability and room for development depending on your risk appetite and investment objectives.
● Fund Manager Expertise: Assess the knowledge and performance history of the fund manager overseeing the best fund for SWP. The knowledge and investment philosophies of the fund manager greatly influence the fund's performance. Find a manager with a track record of success and a consistent approach to investing.
● Risk and Volatility: Consider the best SWP mutual fund risk and volatility. To determine how sensitive the fund is to market changes, consider its beta and standard deviation. 
Expense Ratio: Consider the best SWP mutual fund expense ratio. It indicates the annual fees deducted from the fund's assets. Long-term investment gains can be maximized with a lower expense ratio.
● Investment Horizon: Choose your investment horizon or when you plan to hold your best SWP mutual fund investment. The investing horizons and tactics of various funds may differ. Match your investing time horizon to the investment stance of the fund.
● Liquidity and Fund Size: Consider the size and liquidity of the mutual fund. More considerable funds typically have better liquidity and may incur less transactional expenses when purchasing or selling units.
● Exit Load and Expenses: Consider the best SWP mutual fund's exit load structure and any additional costs. Exit loads are fees assessed when your units are redeemed within a predetermined time frame. Make sure the fund's expenses are fair and in line with your investment goals.
● Tax Implications: Recognize how investing in the SWP mutual fund will affect your taxes. Depending on asset allocation and investment techniques, certain funds may have different tax treatments. To determine how tax-efficient the fund is, speak with a tax advisor.
● Regulatory and Compliance Factors: Consider the best fund for SWP for the house's standing and adherence to rules and standards for investor protection. Take into account the fund's track record of compliance, as well as its dedication to transparency and investor services.

Who Should Invest in SWP Mutual Funds?

SWP mutual funds are appropriate for investors who want to keep the possibility of growth while still generating a consistent income stream from their investments. Best SWP mutual funds might be helpful for retirees or anyone with financial objectives that call for steady cash flow. The best SWP in mutual funds could appeal to investors who want to avoid making lump sum withdrawals and want to withdraw money gradually. To ascertain whether the best SWP mutual funds meet their particular investment needs, investors should carefully consider their financial objectives, risk tolerance, and advice from a financial advisor.


Investing in India's top SWP funds can offer investors a well-rounded strategy for generating income and pursuing potential development. These funds provide a practical option to continue investing in the market while receiving the best SWP for monthly income withdrawals. Before making an investment decision, it's essential to consider several aspects, including fund performance, asset allocation, risk profile, and expense ratios. Investors should match the best SWP in mutual funds for investment objectives, risk tolerance, and time horizon. By carefully weighing these variables and consulting with financial consultants, investors can benefit from the consistent income and growth potential provided by India's top SWP funds.

Frequently Asked Questions

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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