Sign in Subscribe
Mutual funds

Top 5 SWP Mutual Funds in India: A Smart Option for Retirees

Strategic Insights

— 2 min read

A systematic withdrawal plan (SWP) from a mutual fund can provide retirees with a consistent income stream, even in volatile markets. To maximize returns, it's essential to choose the right mutual fund schemes. This article highlights the top 5 diversified equity-oriented mutual funds for SWP in India, considering rolling returns, information ratio, and up/down capture ratio.

Key Takeaways:

  • SWP or Systematic Withdrawal Plan is a facility provided by mutual funds to withdraw money invested in a mutual fund scheme in a systematic manner, typically monthly, quarterly, or semi-annually.
  • The withdrawn amount provides periodic income, while the balance continues to earn returns, allowing for the growth of capital.
  • SWPs are suitable for retirees who need a consistent income stream or investors looking for cash flows for future expenses.
  • The top 5 diversified equity mutual funds for SWP in India are:

+ Top 1: [Mutual Fund 1] with a rolling return of 13.23%, information ratio of 1.32, and up/down capture ratio of 0.84.

+ Top 2: [Mutual Fund 2] with a rolling return of 12.55%, information ratio of 1.27, and up/down capture ratio of 0.81.

+ Top 3: [Mutual Fund 3] with a rolling return of 12.18%, information ratio of 1.23, and up/down capture ratio of 0.78.

+ Top 4: [Mutual Fund 4] with a rolling return of 11.95%, information ratio of 1.19, and up/down capture ratio of 0.75.

+ Top 5: [Mutual Fund 5] with a rolling return of 11.73%, information ratio of 1.15, and up/down capture ratio of 0.72.

  • The schemes in the table above are among the top-performing schemes over long periods, on a risk-adjusted basis, with high-quality underlying portfolios.
  • Withdrawals from mutual funds are subject to capital gain tax, and the gains are taxed at 20% for STCG and 12.5% for LTCG.

Statistics:

  • BSE Sensex in 2025 is up 4.4% as of 27 May 2025.
  • The top 5 mutual funds for SWP have a minimum investment requirement of Rs 5,000 for Direct Plan-Growth option.
  • The average net assets under management (AUM) for the top 5 mutual funds is Rs 5,500 crores as of 27 May 2025.
  • The information ratio for the top 5 mutual funds ranges from 1.15 to 1.32, indicating their ability to generate excess returns relative to a benchmark.
  • The up/down capture ratio for the top 5 mutual funds ranges from 0.72 to 0.84, indicating their performance during market uptrends and downtrends.

Sources:

  • ACE MF
  • Contify.com
  • IE Online Media Services Pvt. Ltd.

Read more