Systematic Withdrawal Plan (SWP) allows you to withdraw a certain amount of money at regular intervals from your investment. SWP plans is like getting regular income. If one opts for SWP in an equity fund for Rs 5,000 every month on the 5th of every month. Every month, on that date, that amount of money will be credited to his/her bank account. They are assured of guaranteed cash flow. Upwardly presents the best SWP plans for 2019-20.
Principal Hybrid Equity fund has been the best performing balanced fund in the last 3 years. The manager invests in companies that are undervalued. It buys stocks with a long term investment perspective. The fund has outperformed its category by 2-5 percentage points and its benchmark by 2-3 percentage points in 3 and 5-year returns. The fund gave 11.24% p.a. returns since its inception in 2000. Also, a SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.11 lakh now.
With assets of ₹27,000 crore, ICICI Prudential Equity is the second largest equity oriented mutual fund in India. Earlier known as ICICI Prudential Balanced Fund, it is managed by ICICI Pru CIO S. Naren with others. The fund follows a rather conservative investment strategy in both equity and debt. On the equity side, the fund predominantly invests in large-cap stocks following value investing style. The fund is very conservative about taking on credit risks. Hence, the fund maintains a low profile with the debt portion. The fund has outperformed its category by 2-3 percentage points and its benchmark by 1-4 percentage points in 3 and 5-year returns. The fund gave 14.29% p.a. returns since its inception in 1999. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.02 lakh now.
HDFC Balanced Advantage Fund falls under the Hybrid Aggressive funds’ category. The technical difference is that while Hybrid Aggressive funds have their equity allocation above 65% – 80% at all times, the equity-debt percentage split in a BAF/DAA fund can swing substantially either side based on market conditions. Different asset classes exhibit different risk-return profile and relatively low correlation to each other as compared to investments within the same asset class. The debt-equity mix at any point of time will be a function of interest rates, equity valuations, medium to long term outlook of the asset classes and risk management, etc. The fund gave 18.60% return since inception in 1994. The fund’s 3-year and 5-year returns are 5 percentage points higher when compared to its category returns and 1-3 percentage points higher than its benchmark. A SIP of ₹5,000 p.m. in this fund since its launch is worth ₹4.12 lakhs now.
ICICI Prudential Balanced Advantage Fund is a Hybrid mutual fund belonging to the Balanced Advantage Fund / Dynamic Asset Allocation category. This is one of the largest mutual funds in India with Assets Under Management or AUM of ₹25,663 crore. Also known as ICICI BAF, the fund invests in a mix of stocks and bonds. The fund uses the price to book value ratio or P/B ratio of the market to decide its equity allocation.
The net equity exposure of the fund can range from 30% to 80% with debt making up the rest. The fund invests in equity arbitrage opportunities to ensure that the total equity investment is higher than 65%. It gave 10.82% p.a. returns since its launch in December 2006. ICICI Prudential CIO S. Naren along with Rajat Chandak, Manish Banthia, Ihab Dalwai manage this fund. The funds 3 and 5-year returns are 2 percentage points ahead of its category average. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹3.84 lakh now.
It’s an open-ended scheme investing in equity, arbitrage, and debt. The fund invests across major industries, economic sectors, and market capitalization. To generate income from arbitrage opportunities the fund might invest in Index/Stock Spot vs Index/Stock Futures or Index Futures vs Stock Futures or Future of same stock with different expiry months, etc. The fund gave 9.33% return since its inception in 2004. The fund has outperformed its category by 3 percentage points and its benchmark by 2 percentage points in 3-year returns. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹3.80 lakh now.
It’s an open-ended fund that seeks to generate regular income through investments in fixed income securities, arbitrage, and other derivative strategies. The fund gave 7.63% return since its inception in 2014. The fund has outperformed its category by 3 percentage points and its benchmark by 2 percentage points in 3-year returns. A SIP of ₹5,000 p.m. in this fund started at its inception is worth ₹3.14 lakh now (Rs 2.65 lakhs investment).
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