The Best SWP Plan: Top Mutual Funds for 2023

In the ever-evolving financial landscape, creating a robust investment strategy for steady growth and wealth creation is essential. While multiple investment options are available to investors, Structured Withdrawal Plans (SWPs) remain a popular choice among those seeking steady income while maintaining a diversified portfolio.

With SWPs, you can withdraw a fixed amount from your mutual fund at regular intervals without any penalty. Also called Systematic Savings Plans (SSPs), these plans enable you to continue investing in the fund while also enjoying a fixed-income inflow. If you're looking to start investing in SWP mutual funds, you can select from a wide range of options. To make it easier, we've curated a list of the best SWP plans for 2023 that you must consider.

Top SWP mutual funds in 2023

1. SBI Equity Hybrid Regular Growth Plan

Launched in December 1995 under SBI Mutual Fund, the SBI Equity Hybrid Regular Growth Plan is an equity hybrid scheme. The fund majorly invests in equity and debt instruments with an objective to generate long-term capital appreciation along with high liquidity.

It has Rs. 60,591 crores worth of assets under management with an expense ratio of 1.46%. The fund's minimum investment amount is Rs. 500 for SIP and Rs. 1,000 for lump sum investment.

2. Mirae Asset Cash Management Fund

Mirae Asset Cash Management Fund is a low-risk debt liquid fund. Launched in January 2009, the scheme aims to generate consistent returns while maintaining high liquidity. It has a balanced portfolio with money market and debt instruments and has generated CAGR returns of 6.2% since its launch.

The open-ended fund has Rs. 10,335 worth of assets under management with an expense ratio of 0.19%. The fund's minimum investment amount is Rs. 1,000 for SIP and Rs. 5,000 for lump sum investment.

3. LIC MF Liquid Fund

Another low-risk debt-liquid scheme, the LIC MF Liquid Fund was launched in March 2002. It aims to generate reasonable returns while maintaining high liquidity and has a judicious portfolio comprising debt and money market instruments. The LIC MF Liquid Fund has generated CAGR returns of 6.9% since its launch.

It has Rs. 8,562 crores worth of assets under management with an expense ratio of 0.27%. The fund's minimum investment amount is Rs. 1,000 for SIP and Rs. 5,000 for lump sum investment.

4. ICICI Prudential Equity and Debt Growth Plan

Launched in October 1993 by ICICI Prudential Mutual Fund, the ICICI Prudential Equity and Debt Growth Plan is a hybrid scheme. It primarily invests in equities, equity-related securities, money market, and fixed-income instruments to generate long-term capital appreciation and current income.

It has Rs. 26,324 crores worth of assets under management with an expense ratio of 1.11%. The fund's minimum investment amount is Rs. 100 for SIP and Rs. 5,000 for lump sum investment.

5. Quant Absolute Fund Direct-Growth Plan

Launched in April 1996 by Quant Mutual Fund, the Quant Absolute Fund Direct-Growth Plan is a hybrid MF scheme. With an objective to generate long-term capital appreciation and current income, the fund has a portfolio comprising fixed-income securities and equity instruments.

It has Rs. 1,378 crores worth of assets under management with an expense ratio of 0.75%. The fund's minimum investment amount is Rs. 1,000 for SIP and Rs. 5,000 for lump sum investment.

Factors to consider to select the best SWP plan

To select the most suitable Structured Withdrawal Plan (SWP), you must consider some critical factors to ensure that the selected mutual plan aligns with your financial goals and risk tolerance. These include:

1. Investment horizon and risk tolerance

The market is dynamic with unpredictable fluctuations. So, before evaluating your options, it's important to assess the risk you are willing to take and for how long you wish to stay invested. Opt for a plan that balances consistent income generation and wealth preservation according to your investment style.

2. Fund performance and historical record

Different funds have different objectives and performance histories. Carefully examine their past performances and track records to make an informed decision. Analyse factors like their:

-Consistency in generating returns

-Performance during market fluctuations

-Ability to meet investment objectives

3. Expense ratio and exit load

Check the expense ratio and exit load associated with the SWP plan. Select a fund with a competitive expense ratio and minimal exit load/additional fees to reduce their impact on your overall returns.

4. Asset allocation

Carefully review the fund's portfolio to assess its asset allocation and diversification strategy. This will help you determine if it aligns with your risk profile and investment objectives. A balanced portfolio can help mitigate market risks and enhance the stability of your income flow.

5. Fund manager expertise

Another important factor to consider before selecting a SWP mutual fund is the fund manager's expertise and track record. An experienced and skilled manager with a successful track record can positively influence the fund's performance and the overall success of the SWP plan.

6. Tax implications

Different funds might have different tax implications depending on investment techniques and asset allocation. Therefore, make sure to consider how taxes can impact your overall investment returns. Select a plan that offers tax benefits and aligns with your tax planning strategies.

Invest in the best SWP plan of 2023 with Tata Capital

Investing in a SWP mutual fund is an excellent way to earn consistent income while safeguarding your investment portfolio. However, it's important to analyse factors such as your wrist tolerance, investment horizon, fund performance, diversification, and fund manager's experience to make an informed decision.

Visit the Tata Capital Moneyfy website to know more or download the Moneyfy App to start your SVP mutual fund investment today. You can also avail of expert guidance from our experienced advisors to select a plan that best fits your investment goals.