We all dream of having a steady, reliable income, especially after years of hard work. Whether you're planning for retirement or just want extra money coming in regularly, it’s not always easy to figure out how to make your savings last. The fear of running out of money can be stressful. That’s where the best SWP plan in India can help—offering a smart way to get regular payouts from your investments while letting the rest of your money continue to grow.
In this blog, we’ll walk you through the Systematic Withdrawal Plan and how they work and share a list of India’s best SWP mutual funds for 2025. These funds are designed to give you a steady income while keeping your investments safe.
SWP stands for Systematic Withdrawal Plan, which lets you withdraw a fixed amount of money from your mutual fund investment at regular intervals—monthly, quarterly, or annually. It's designed for those who want a steady income from their investments without having to sell everything at once. It is especially useful for retirees or investors seeking passive income while keeping their capital invested for growth.
In simple terms, the SWP meaning in mutual funds is about getting a regular income from your investments while letting the remaining amount continue to earn returns. This plan differs from a lump sum withdrawal, where you take out a large portion all at once, and from SIP (Systematic Investment Plan), where you invest small amounts regularly. With a SWP plan, you’re withdrawing systematically, benefiting you from regular payouts and long-term growth.
After you invest a lump sum in a mutual fund, you can set up a systematic withdrawal plan to withdraw a specific amount at regular intervals—this can be monthly, quarterly, or even annually, depending on your financial needs. Each time you withdraw, the mutual fund sells a portion of your units to generate the payout. The remaining investment continues to grow or earn returns.
For example, let’s say you invest ₹50 lakh in one of India’s best SWP mutual funds with an average annual return of 15%. If you set a plan to withdraw ₹50,000 every month, you’ll receive a total of ₹90,00,000 over a period of 15 years. Despite these regular withdrawals, thanks to the power of compounding and market growth, your remaining investment would still be worth approximately ₹1,02,23,882 at the end of 15 years.
When choosing the Top SWP mutual fund in India, it’s important to consider funds with a history of delivering consistent returns over time. Below, we’ve compiled a list of top-performing mutual funds that are ideal for setting up a withdrawal plan based on their fund type and 3-year returns.
| 10 Best SWP Plans in India 2025 | Fund Type | 3-Year Returns (%) |
|---|---|---|
| Motilal Oswal Large & Midcap Dir Gr | Large & Midcap | 98 |
| SBI Long Term Equity Fund Dir Gr | ELSS | 95.5 |
| Bandhan Core Equity Dir Gr | Large & Midcap | 93 |
| Motilal Oswal ELSS Tax Saver Dir Gr | ELSS | 91.2 |
| Bank of India Flexi Cap Fund | Flexi Cap | 72.4 |
| Parag Parikh Flexi Cap Fund | Flexi Cap | 72.3 |
| ICICI Pru Bluechip Dir Gr | Bluechip Equity | 66.6 |
| Canara Robeco Bluechip Equity Fund | Bluechip Equity | 58.5 |
| HDFC Hybrid Equity Fund | Hybrid Equity | 47.7 |
| SBI Equity Hybrid Fund | Hybrid Equity | 45.7 |
In this section, we’ll walk you through the 10 Best SWP mutual funds in India that investors can consider for a reliable source of income. We'll give detailed information for each fund, such as expense ratios, market caps, NAV, and returns.
Motilal Oswal Large & Midcap Fund invests in both large-cap and mid-cap stocks. This dual approach gives the fund stability of large-cap stocks and growth of mid-cap stocks. A good option for SWP investors looking for a balance between risk and return.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10.8 | 98 | 289.7 |
Motilal Oswal ELSS Tax Saver Fund offers wealth creation and tax savings under Section 80C. This ELSS invests in high quality stocks across sectors, a good option for long term investors.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 6 | 91.2 | 249.1 |
SBI Long Term Equity Fund is a tax-saving ELSS with a focus on long-term wealth creation. With 3-year lock-in, it invests in high-quality stocks with strong fundamentals. A good option for investors looking to combine long-term growth with SWP.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 7.7 | 95.5 | 276.8 |
The Bandhan Core Equity Fund aims for steady growth through a diversified portfolio that invests across large-cap, mid-cap, and small-cap companies. Its flexible investment strategy allows it to adapt to changing market conditions, making it suitable for SWP investors who prioritize consistent performance over the long term.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 10 | 93 | 284.6 |
Bank of India Flexi Cap Fund offers flexible investment strategies, allowing exposure to large, mid, and small-cap stocks. It is an all-weather option that provides good potential for capital appreciation along with regular SWP income.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -0.1 | 72.4 | 241.8 |
ICICI Prudential Bluechip Fund is a large-cap fund with a good performance record. It invests in blue-chip companies with strong financials and consistent performance. So, it’s a low-risk option for SWP investors who want stability and regular income over growth.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 8.8 | 66.6 | 219.6 |
Parag Parikh Flexi Cap Fund is a flexible mutual fund that invests across market caps and international equities. This diversification ensures that it balances risk and return, making it an excellent choice for SWP mutual fund investors seeking long-term growth.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 13.6 | 72.3 | 250.3 |
Canara Robeco Bluechip Equity Fund invests in high-quality large cap stocks. The portfolio is designed to give stability with moderate growth and is a popular choice for conservative investors. The fund’s diversified portfolio and risk-averse strategy make it a good option for SWP investors who want consistent payouts without too much volatility.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 11.6 | 58.5 | 182.5 |
This hybrid fund provides a mix of equity and debt exposure. It is designed to give investors a balance of growth and steady income, making it an ideal fund for those looking for regular SWP withdrawals while benefiting from market growth.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 8.4 | 47.7 | 164.2 |
One of India's most popular hybrid funds, SBI Equity Hybrid Fund invests in a mix of equity and debt. This balanced approach gives growth potential and income stability. This fund gives regular payouts for systematic withdrawal plan investors and minimises the risk associated with market volatility.
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 12.5 | 45.7 | 141.3 |
When choosing a Plan, understanding India's top and best-performing swp mutual funds in the last 10 years can give investors valuable insight into long-term reliability and returns. These funds have consistently demonstrated strong performance, making them ideal choices for investors
| Top 5 SWP Mutual Funds (Monthly) | Fund Type | 10-Year Returns (%) |
|---|---|---|
| 1. Parag Parikh Flexi Cap Fund | Flexi Cap | 774.1% |
| 2. ICICI Pru Bluechip Dir Gr | Bluechip Equity | 517.6% |
| 3. Canara Robeco Bluechip Equity Fund | Bluechip Equity | 474.7% |
| 4. UTI NIFTY 50 Index Mutual Fund | Index Fund | 455.6% |
| 5. SBI Equity Hybrid Fund | Hybrid Fund | 428.3% |
Whether you’re planning for retirement or managing recurring expenses, here are the key benefits of investing in SWP mutual funds in India:
This combination of consistent income, flexibility, and potential growth makes SWP mutual funds a great choice for anyone looking to balance income needs with long-term wealth building.
While SWP mutual funds offer steady income, it’s crucial to understand the potential risks. Knowing these SWP investment risks helps you plan better and choose the best SWP plan for long-term stability.
Investors can reduce the downsides by knowing these risks and choosing the best SWP Plan with long-term performance.
Before diving into a SWP mutual fund, it's important to consider several factors to ensure your investment aligns with your financial goals and risk tolerance. Here are a few key points to keep in mind:
Systematic withdrawal plan (SWP) mutual funds are ideal for investors seeking a reliable income stream while keeping their capital invested. Here's who can benefit most:
In short, systematic withdrawal plan mutual funds are for anyone who wants to withdraw regularly from their investments and still focus on long term capital appreciation.
Eager to get started? Investing in the top SWP mutual funds is straightforward. Here’s how:
Choosing the best SWP mutual fund involves evaluating performance, cost, and stability. Here's what you should consider when selecting a systematic withdrawal plan:
Investing in SWP mutual funds can be a smart way to generate a steady income stream while allowing your investments to continue growing. Whether you’re a retiree looking for regular payouts or an investor planning for long-term financial goals, choosing the best SWP Plan is key to ensuring stable returns. Considering factors like market conditions, tax implications, and capital preservation is important before diving into a systematic withdrawal plan.
The best SWP mutual funds include HDFC Hybrid Equity Fund, ICICI Prudential Bluechip Fund, and SBI Equity Hybrid Fund. However, it depends on your financial goals and risk appetite.
SWP stands for Systematic Withdrawal Plan, which allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals, providing a steady income while the rest of the investment continues to grow.
Withdrawals from SWP mutual funds are treated as capital gains. Short-term gains (under 12 months) are taxed at 20%, while long-term gains (over 12 months) are taxed at 12.5%. Debt funds have different tax rules, so consulting with a tax advisor is important.
While you can start an SWP immediately, letting your investment grow for a few years is often recommended before beginning withdrawals. This allows your capital to appreciate, making the plan more tax-efficient and potentially preserving your principal longer.
Yes, SWP is an excellent option for retirees seeking a steady income stream. Retirees can ensure regular payouts by choosing top-performing SWP mutual funds while still growing their investments over time.
Capital erosion can occur if your withdrawal amount is higher than the fund's growth rate. Over time, this can reduce your investment's value, especially if market performance is poor. Choosing funds with strong long-term performance and managing withdrawal rates carefully can help mitigate this risk.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Always conduct your research and consider consulting with a financial advisor before making any investment decisions.
