Best SWP Mutual Funds in India 2025: Top Choices for Regular Income

With the ever-changing nature of today's financial landscape, investors are seeking investment avenues that do not only generate long-term wealth but also regular income. While traditional savings instruments such as fixed deposits are stable, their yields hardly keep up with inflation. Here enter mutual funds, specifically through Systematic Withdrawal Plans (SWPs).

An SWP enables one to withdraw a lump sum from their mutual fund investments periodically—every month, quarter, or year—leaving the balance invested. It provides consistent cash flow without interrupting the growth of the invested corpus. SWPs are one of the most sought-after investment tactics for retirees, salaried workers, and those fond of disciplined returns.

If you are looking to create stable returns while keeping your funds market-linked, here are the top SWP mutual funds in India for 2025 you can invest in.

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HDFC Hybrid Equity Fund

The HDFC Hybrid Equity Fund ranks among the most reliable choices for investors opting for SWP. It falls under the aggressive hybrid fund category and offers a balanced exposure to debt and equity. This twin strategy provides growth opportunities from equities and stability from debt instruments. The fund has delivered better-than-average returns in the last 5–10 years. It is a very good option for investors who desire long-term capital appreciation with a relatively moderate level of risk. It is especially suitable for those who desire regular income without sacrificing too much in terms of growth.

SBI Equity Hybrid Fund

Another strong contender is the SBI Equity Hybrid Fund, which ranks among India's biggest hybrid funds. It has a good balance between debt and equity investments, making it perfect for earning steady returns while leveraging growth in equity markets. Its long-term stability and huge asset base add to investors' confidence. It is most suitable for those who want to ride out market volatility and yet seek consistent cash flow through SWP.

ICICI Prudential Equity & Debt Fund

The ICICI Prudential Equity & Debt Fund is an investment of choice in the balanced fund category. It invests across a diversified portfolio of equities and fixed income securities so that investors can enjoy stability as well as growth. Having a long history of long-term performance, it is very much in favor among retirees. For those who desire predictable income as well as the potential for growth through equities, this fund is one of the best choices for systematic withdrawal.

Kotak Flexicap Fund

Flexibility is the distinguishing characteristic of the Kotak Flexicap Fund, wherein investments are made across large-cap, mid-cap, and small-cap stocks. This diversification minimizes concentration risk and enables investors to tap opportunities at all levels in the market. The fund is reputed for generating consistent long-term wealth and hence is best for medium-to-high risk appetite investors. For SWP investors, this fund provides a balance of stable withdrawals and long-term growth.

Axis Bluechip Fund

The Axis Bluechip Fund is a large-cap scheme that invests in fundamentally sound stocks with established credentials. Its strategy guarantees relatively low volatility than mid- or small-cap funds, making it more suitable for risk-averse investors. With its consistent growth and lower-risk profile, the fund suits investors who want capital protection as well as reasonable SWP returns.

Mirae Asset Large Cap Fund

The Mirae Asset Large Cap Fund is another dependable choice from the large-cap fund category. Investing in the top 100 Indian companies, the fund offers stability while continuing to yield strong risk-adjusted returns. Its long-term track record of consistency ranks it as a top choice for investors looking for stable cash flow with exposure to market-leading enterprises. For users of SWP, the fund guarantees a controlled income flow supported by quality investments.

Canara Robeco Equity Hybrid Fund

The Canara Robeco Equity Hybrid Fund blends debt and equity allocation so as to give investors balanced returns. It has a past record of giving inflation plus returns without letting volatility get out of hand. It is thus especially suitable for conservative investors seeking stable withdrawals with minimum risk. Its rigorous management style lends further credibility to it as an SWP-friendly fund.

Franklin India Equity Hybrid Fund

With an equity component of 65–75% and a debt component to give stability, Franklin India Equity Hybrid Fund presents the best of both worlds. The fund is one with a long history and a good reputation for consistent fund management. It is perfect for investors who seek regular income through SWP yet build wealth in the long term. Its twin advantage of equity growth and debt security makes it a reliable option.

UTI Flexi Cap Fund

The UTI Flexi Cap Fund is diversified in large-cap, mid-cap, and small-cap businesses. Its diversified portfolio reduces the risks of downside while allowing participation in growth potential across industries. This consistent performance makes it a viable option for moderate-to-aggressive investors. For those going for SWP, the fund provides steady income without sacrificing too much on wealth generation.

ICICI Prudential Balanced Advantage Fund

The ICICI Prudential Balanced Advantage Fund is among India's most sought-after dynamic asset allocation funds. It makes its equity and debt proportions responsive to changes in the market so that it is able to manage risks well. This flexibility enables it to provide stable returns with volatility contained, which makes it best for retirees and cautious investors looking for safety with consistent yields. Its SWP suitability is that it can protect capital while earning income.

Conclusion

Ultimately, the right choice depends on your financial goals, risk appetite, and income needs. By choosing a well-managed mutual fund for your SWP, you not only safeguard your capital but also create a sustainable income stream that supports your lifestyle. For long-term investors, SWPs can be a powerful tool that balances both financial security and wealth creation.