Top Flexi-Cap Mutual Funds for SWP Based on 5-yr XIRR

For those looking for a consistent income post-retirement or as a supplemental source of funds, a Systematic Withdrawal Plan (SWP) can be a smart strategy. Within the mutual fund universe, flexi-cap funds stand out for SWP due to their balanced approach to risk and reward. By investing across large, mid, and small-cap companies, flexi-cap funds provide a well-diversified portfolio that can help cushion against market volatility while delivering steady returns.

Here’s a curated list of top-performing flexi-cap funds with a strong 5-year XIRR, as of November 2024, that are ideal for SWP.

Top Flexi-Cap Mutual Funds for SWP – November 2024

These funds have been selected based on their robust 5-year XIRR, demonstrating resilience and growth potential in the flexi-cap category. The following list can guide investors seeking balanced and steady returns through SWP.

Note: These funds have been selected based on their strong performance over the past 5 years. In the flexi-cap category. NAV is on November 12, 2024.

1. Quant Flexi Cap Fund- Quant Flexi Cap Fund seeks to generate consistent returns by investing in a portfolio of Large Cap, Mid Cap and Small Cap Companies. Launch Date of the fund is October 15, 2008.

Key metrics:

• AUM: 7,531.85 crore 

• Expenses Ratio: 1.76%

• Minimum SIP Amount: Rs 1000

• Minimum Investment: Rs 5000

1. Parag Parikh Flexi Cap Fund – Parag Parikh Flexi Cap Fund aims to achieve long-term capital appreciation by investing primarily in equity and equity-related instruments. Launch Date of the fund is May 28, 2013. 

Key metrics:

• AUM: 81,918.72 crore

• Expenses Ratio: 1.33%

• Minimum SIP Amount: Rs 1000

• Minimum Investment: Rs 1000

1. PGIM India Flexi Cap Fund– PGIM India Flexi Cap Fund seeks to generate income & capital appreciation by predominantly investing in an actively managed diversified portfolio of equity & equity-related instruments including derivatives. Launch Date for the fund is March 04, 2015. 

Key metrics:

• AUM: 6,337.68 crore

• Expenses Ratio: 0.43%

• Minimum SIP Amount: Rs 1000

• Minimum Investment: Rs 5000

1. Franklin India Flexi Cap Fund – Franklin India Flexi Cap Fund aims to provide growth of capital and regular dividends from a portfolio of equity, debt and money market instruments and focuses on wealth-creating companies across all sectors and market cap ranges. Launch Date of the fund is January 01, 2013. 

Key metrics:

• AUM: 17,449.65 crore

• Expenses Ratio: 0.92%

• Minimum SIP Amount: Rs 500

• Minimum Investment: Rs 5000

1. HDFC Flexi Cap Fund – HDFC Flexi Cap Fund seeks to generate capital appreciation/income from a portfolio, predominantly invested in equity & equity-related instruments. Launch Date of the fund is January 01, 2013.  

Key metrics:

• AUM: 64,928.56 crore

• Expenses Ratio: 0.77%

• Minimum SIP Amount: Rs 100

• Minimum Investment: Rs 100

Understanding Flexi-Cap Mutual Funds

Flexi-cap mutual funds are known for their adaptability, investing across the entire market spectrum—large, mid, and small-cap stocks. This diversification allows fund managers to adjust holdings based on market conditions, offering both growth potential and downside protection. The flexibility to shift between companies and sectors ensures that flexi-cap funds can optimise returns while managing risks effectively. Such adaptability makes them particularly suitable for SWP, especially during market downturns when steady returns are valued.

How Does SWP Work?

A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount at regular intervals from their mutual fund investments. This plan is ideal for those seeking a predictable income flow, whether monthly, quarterly, or annually, without entirely liquidating their holdings. With each withdrawal, a portion of the mutual fund units is sold, ensuring that the remaining investment can continue to grow. Unlike a lump-sum withdrawal, where a large portion is withdrawn at once, SWP offers regular payouts, ensuring sustained returns over time.

Why Choose Flexi-Cap Funds for SWP?

1. Diversified Portfolio: Flexi-cap funds provide exposure across different market caps, mitigating risks associated with market volatility.
2. Steady Performance in Bear Markets: These funds have shown resilience even during bearish phases, making them ideal for stable withdrawals.
3. Flexible Fund Allocation: Flexibility in reallocating funds allows managers to capture growth opportunities across sectors, enhancing returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.