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Which are the Best Mutual Funds for SWP

I am a retired person. I sold one of my property @18 lacs. I want to invest in MF with SwP @Rs 10000/monthly. please suggest scheme's to invest?

Apr 11, 2016 by Ashok Ghugari, Aurangabad  |   Mutual Fund

Very happy to note that you want to invest in Mutual Funds with SWP option. Since, you are a retired person, we at Advisorkhoj believe that SWP from Mutual Fund Balanced Fund or Debt Mutual Funds would be suitable for you. In this connection you should go through our following article to understand the taxation part applicable in case of SWP from Debt Funds and why Debt Funds are superior over fixed deposits –

SWP from Debt Mutual Funds give the most tax efficient income over fixed deposits

For SWP from Balanced Funds, the gain on the withdrawals after one year will be tax free. For example, we have selected 6 Balanced Funds and presumed investment of Rs. 18.00 Lacs in each fund with investment date of 1st January 2010. Presuming again, that the SWP will start after one year (to get the tax efficient returns) we have chosen 5th of every month as the SWP date and chosen the first date as 5th January 2011 and the fixed SWP amount as Rs. 10,000 every month as you wanted. Now let us see the results as on 10/04/2016 –

ICICI Prudential Balanced Fund – Growth option – Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 30,14,986

Reliance Regular Savings Fund – Balanced Option – Growth option - Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 26,85,574

Tata Balanced Fund – Growth Option – Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 29,01,952

Canara Robeco Balanced Fund – Growth option – Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 27,05,004

Birla Sun Life Balanced 95 Fund – Growth option – Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 27,15,625

SBI Balanced Fund – Growth option – Total withdrawn Rs. 10,000 x 64 months = Rs. 640,000. Current value Rs. 25,56,461

The above is not an exhaustive list and therefore you may use this calculator to check SWP returns of respective fund categories and schemes – https://www.advisorkhoj.com/mutual-funds-research/mutual-fund-swp-investment-calculator

Hope the above examples help you in taking a prudent investment decision.

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