What is SWP | Top 15 funds for SWP

What is SWP?

An SWP (Systematic Withdrawal Plan) enables one to withdraw a fixed amount of money from a mutual fund. It means one can redeem their investment from a mutual fund scheme in a systematic way. It also allows a planned and steady flow of income. An SWP can be extremely beneficial mainly in the time of financial needs such as unemployment. A great investment option for withdrawal plan usually good for retirement.

Though mutual fund returns are not assured and an SWP can consume your fund balance fully before the withdrawal period end or expires. An SWP can be set up from any types of mutual funds – equity mutual fund, debt funds or hybrid funds.

Many investors demand a regular income from their mutual fund investments. Also, ask for a salary or pension. A better option to go with is a Systematic Withdrawal Plan (SWP).

Benefits of SWP 

1. Disciplined Withdrawal Habit
2. Fixed Income Flow
3. Substitute for Pension

Read About: How to Take Benefit of SWP & SWP Calculator

Top 15 funds for SWP

• Indiabulls Liquid Fund

1. This liquid fund that can be simply transformed into cash. That too in a working day or 2 days.
2. Liquid mutual funds spend in extremely high liquid money market securities. That is Commercial Paper, Treasury Bills and Certificate of Deposit.
3. These funds invest in the instruments with a maturity period of 91 days.
4. Between all debt mutual funds, liquid funds give the most steady returns.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

• Kotak Banking and PSU Debt Fund

1. They are short-term debt funds introduced on February 3, 2014.
2. It’s a debt fund as well with the least amount of risk and has provided 8.83% since its launch.
3. The purpose of this scheme is to create risk-free returns by investments in sovereign securities.
4. The savings plan directly will give regular dividend payouts.
5. A part of the fund will be invested in the interbank money market. In a way to reach the liquidity demand.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Kotak Banking and PSU Debt Fund :

• Aditya Birla Sun Life Floating Rate Fund

1. This fund invests in short-term debt securities with a few small parts of long-term securities.
2. The returns in this section are related to the returns offered by short-term funds.
3. The purpose of this scheme is to give regular income. By investing in a portfolio including heavily floating of debt/money market instruments rates.
4. It may further invest a part of its net assets in fixed rate debt securities or money market instruments.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

• HDFC Short Term Debt Fund

1.  If one wants to invest for a shorter term, say for example 3 months or more than that- This is one of the best debt funds for one to invest in.
2. These funds do invest in papers like Certificate of Deposit and Commercial Paper.
3. The fund essentially relies on short-term corporate debt for returns, with supreme exposures at 10-12% in the earlier 1 year.
4. Still, it manages a very stable portfolio, both on credit quality and time span. The fund’s asset size at ₹ 7955.71 Cr crore addresses it 1 of the greatest in the class.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the HDFC Short Term Debt Fund :

• UTI Banking & Financial Services

1. This fund was launched on April 07 in  2004.
2. The sectoral-oriented portfolio is accessible in this fund.
3. This fund mostly invests in stocks of companies involved in insurance, financial services and banking that connects to the activities of the Indian economy.
4. The Fund attempts to invest over the prevailing and evolving sub-sectors in the space.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the UTI Banking & Financial Services :

• Franklin India Ultra-Short Bond Fund

1. This fund was launched on 18 December 2007.
2. Even, it gives a blend of regular income and great liquidity by investing principally in short term debt funds and money market instruments.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Franklin India Ultrashort Bond Fund :

• SBI Short Term Debt Fund

1. This fund was launched on 27 July 2007.
2. The scheme will invest based on a constant evaluation of macro-economic parts, market dynamics and debt-issuer specific parts.
3. The scheme will invest its corpus in the complete range of debt and money market securities in series with the investment purpose.
4. To render engaging risk-adjusted returns to its investors by active management of credit risk and interest rate risk in its portfolio.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the SBI Short Term Debt Fund:

• HDFC Corporate Bond Fund

1. This fund was launched on 29 June 2010.
2. In the debt instruments like government securities and corporate debentures, the investors invest their money.
3. The Fund will invest a least of 80% in such bonds. It shall strive to grow a well-diversified portfolio of debt including securitised debt and other instruments.
4. Investment in debt securities will be overseen by credit quality, liquidity, interest rates and their outlook.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the HDFC Corporate Bond Fund :

• Indiabulls Ultra Short Term

1. This fund was launched on 6 January  2012.
2. The Fund is handled according to the Investment Objective – to create returns commensurate with the low risk of the portfolio.
3. This fund invests in short-term debt securities with some little part of long-term securities.
4. The returns in this section are alike to the returns proposed by short-term funds.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Indiabulls Ultra Short Fund :

• Principal Cash Management Fund

1. This fund was launched on 31 August  2004.
2. To give investors with as high a level of income accessible from short term investments as is estimated consonant. It has the security of capital and preservation of liquidity, by spending in a portfolio of money market and investment mixture debt instruments.
3. This fund intends to give liquidity with optimal returns.
4. This fund is suitable for investment in Debt and Money Market Instruments, with a maturity not beating 91 days.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Principal Cash Management Fund :

• DHFL Pramerica Short Maturity Fund

1. The purpose of this scheme is to create a constant return with low to average market risk by investing in a portfolio of short-medium term debt and money market securities.
2. This fund was launched on January 21st 2003.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the DHFL Pramercia Short Maturity Fund :

• Aditya Birla Sun Life Corporate Bond Fund

1. This fund was launched in Mach in 1997 and the assets are 15,575 Cr.
2. The investment objective of the scheme is to create optimal returns with great liquidity by active management of the portfolio. The investing is in High-Quality Debt and Money Market Instruments.
3. Income with capital extension beyond the short term of time.
4. The investments are in money market instruments and debt.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Aditya Birla Sun Life Corporate Bond Fund :

• Indiabulls Short Term Fund

1. The Scheme will produce steady returns over the short term. Having a low-risk strategy while maintaining liquidity by a portfolio having debt and money market instruments.
2. The Indian debt market is in a period of fast change with liquidity and investment chances arising in many debt segments along with the initiation of new instruments.
3. The fund manager will attempt to designate assets of the scheme within many fixed income securities with the aim of reaching optimal risk-adjusted returns.
4. The all-over portfolio construction will attempt to work out the shape of the yield curve of distinctive issuer classes. At the prevailing juncture, it would invest in a short time span section to profit from “high carry” and lower volatility.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Indiabulls Short Term Fund :

• Tata Large Cap Fund

1. This fund was launched on 7 May  1998.
2. The TATA funds focus on investing fundamentally stable.
3. The Fund utilises a mix of a top-down and bottom-up strategy to stock choice with a preference towards a bottom-up approach.
4. Have a long term investment horizon watching to diversify across market capitalization.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

The short description of the Tata Large cap Fund :

• BOI AXA Ultra Short Duration Fund

1. This fund was launched on 16 July 2008.
2. The Scheme attempts to deliver flexible market-related returns. Also, lower risk and greater liquidity by a portfolio of debt and money market instruments.

Let us look at the performance of returns provided by this fund in 2nd, 3rd and 5th year.

Conclusion 

By spending in a SIP, One can save their corpus and take out whatever one requires at intervals. But, SWP can turn out to be an outstanding investment option. With high returns if one invest the right amount and in the right funds. It can turn out to be a very great monthly income plan if one takes intelligent decisions.

We at WealthBucket will assist you to save by your extra money into various types of mutual fund schemes. It can be equity mutual funds, debt mutual funds, short-term mutual funds or in small-cap mutual funds. For more services related to mutual fund investments, you can ring at  +91 9999379929 or mail us at contact@wealthbucket.in.

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