Are you wondering how you’ll manage expenses after retirement or supplement your current income? A Systematic Withdrawal Plan (SWP) might be the answer. Unlike traditional dividends, SWP allows you to withdraw a fixed amount from your mutual fund investments at regular intervals, regardless of the market’s performance. This feature makes it an ideal choice for those seeking a reliable income, whether retired or looking to start a new venture.
In this article, we discuss top SWP mutual funds in the large-cap category based on 5-yr XIRR.
Here’s a list of top large-cap mutual funds with a strong 5-year XIRR that could be ideal for a Systematic Withdrawal Plan:
Scheme Name | AUM (in Rs Crore) as of 31-10-2024 | NAV (in Rs) | Return XIRR % |
Nippon India Large Cap Fund | 34,105.04 | 86.0075 | 18.66 |
ICICI Pru BlueChip | 63,669.82 | 104.5 | 18.48 |
Canara Robeco BlueChip Equity | 14,580.92 | 60.17 | 17.62 |
JM Large Cap | 458.66 | 155.295 | 17.51 |
Invesco India Large Cap | 1,255.06 | 66.43 | 17.16 |
Note: These funds have been selected based on their strong performance over the past 5 years. Let’s dive into why these particular funds are suitable for SWP investors. NAV is on November 12, 2024.
With an AUM of Rs. 34,105.04 crore, Nippon India Large Cap Fund offers a solid XIRR of 18.66%.
ICICI Pru BlueChip, with an AUM of Rs. 63,669.82 crore, has an XIRR of 18.48%.
Canara Robeco Bluechip Equity stands out with its XIRR of 17.62% and an AUM of Rs. 14,580.92 crore.
With a smaller AUM of Rs. 458.66 crore, JM Large Cap offers a competitive XIRR of 17.51%.
Invesco India’s Large Cap, with an AUM of Rs. 1,255.06 crore has generated a 17.16% XIRR return.
SWP is essentially the opposite of a Systematic Investment Plan (SIP). In a SIP, you invest a fixed amount at regular intervals, whereas, with SWP, you withdraw a fixed amount. Here’s how it works:
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.
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