Top and Best Performing SWP Mutual Funds In India

The SWP also known as the Systematic Withdrawal Plan is the opposite of a SIP. In SWP, people invest in a mutual fund scheme with low risk. Then, they start to take out a set amount of funds, depending on what they need. SWP is ideal for those seeking a steady way to earn money. In this article, you’ll learn about various SWP Mutual Funds in India.

Top SWP Mutual Funds in India

• ICICI Pru Equity Growth Plan

The ICICI Prudential mutual fund is called the ICICI Pru Equity Growth Plan. It aims to increase the value of investments over time. The portfolio has stocks, bonds, and market funds in it.

• Franklin India Equity Growth Plan

It is an assertive hybrid SWP mutual fund in India. It mostly invests in domestic equities and a small amount in mid-cap and small-cap stocks. The goal of this mutual fund plan is future capital growth. Morning Star has granted this fund a 4-star rating. 

• Parag Parikh Flexi Cap Fund 

The Parag Parikh Flexi Cap Fund is a varied equity mutual fund scheme. It is among the best SWP mutual funds in India, with an open-ended investment period. This fund buys stocks from large, mid-sized, and small Indian, and foreign companies. The fund is very committed to the idea of compounding, so it only offers the growth option.

• Canara Robeco Bluechip Equity Fund

Canara Robeco Bluechip Equity Fund is a large-cap equity scheme. Bluechip invests in blue chip companies that have a large market capitalization, a good track record, and the potential to grow. More than 80% of the fund’s value is put into large-cap companies.

• Nippon India Value Fund

It is an open-ended stock fund that uses a strategy called “value investing.” The focus of value investing is to take advantage of investment opportunities in all industries and market sizes. The fund tries to identify companies that are undervalued and have a chance of giving better returns over time. Several factors, such as financial strength, stock price, cash flows, earnings potential, and firm prospects, are used to choose these stocks.

Pros of SWP Mutual Fund

• Flexible Income

People can specify the amount, frequency, and dates at which fund units are automatically paid back. They can also halt or increase their investment to meet their needs. 

• Tax Efficiency

You can reduce your taxable income by not claiming the principal amount invested. So, SWP is a tax-efficient plan for getting cash back. Also, there are no TDS deducted from the SWP amount.

• Regular Income

An SWP can be used as a second source of income when you need it. If the rate of increase in value is greater, you can get a steady income without having to reduce the amount you put in at the beginning. 

• Helps Meet Financial Goals

SWP lets you make a custom cash flow that will help you reach your financial goals. The fund can help you out when the market goes up and down.

Who can Invest in SWP Mutual Funds? 

• People in the high tax bracket can use SWP to save on capital gains tax. Due to indexation benefits, there will also be less tax on gains from debt funds. 

• You can also use SWP to get your funds back from SIP investments (Systematic Investment Plan). If you have been saving for retirement, the best SWP plans can help you get a steady flow of funds every month for a long time. 

• SWPs can be useful for risk-averse investors. They can put their funds in mutual funds with low risks, like arbitrage funds, and only get the capital gains through SWP.

Things to Consider Before Putting Money into SWP Mutual Funds

• Mutual Fund Type

The SWP is how you choose when, how often, and how much to take out of a mutual fund. You will need to do enough research to use the SWP mutual funds in India because the returns will depend on it. Make sure to check if it fits your financial goals, your risk tolerance, the length of time you want to invest, etc. 

• Market Conditions

Changes in the market have a direct effect on investments in mutual funds. When an investor is getting close to a financial goal, they may want to look at how the market is doing. This is to ensure that the returns on the fund don’t decrease if the money isn’t taken out on time. 

• Pension Requirements

The SWP mutual funds in India allow you to build an adequate retirement corpus. You should put the money in an SWP mutual fund in India that fits your level of risk. If you plan well, SWP is a great way to add to your income after you retire. 

• Your Monetary Needs

By using an SWP, you can decide when to make withdrawals based on your financial needs. If you need funds at different times to reach your financial goals, you make sure you get the funds at the right time. 

• Taxes

Any funds you take out using the SWP will be taxed as a capital gain. For equity funds that have been held for less than a year, the STCG (short-term capital gains) tax would be 15%. Above Rs. 1 lakh, the LTCG (long-term value gains) tax rate is 10% for investments held for more than one year.

Final Thoughts

In conclusion, you need to do research and analysis before you invest in any mutual fund. So, before you put funds into any best SWP plan, you should find out about some specific factors. But, choosing the greatest SWP mutual fund in India is the best way to invest for the person who wants to make a steady income from stock funds. The best part is that there is no TDS on gains and they are tax-efficient.

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