Best SWP Mutual Funds in India 2025

Every investor has a different plan when it comes to savings and investing. Some look for short-term profits while others look for long-term wealth creation. But one thing is common. Everyone wishes to invest in mutual funds that can offer consistent returns with reduced risk.

But the question is, which are the right funds to invest in? This is where the best SWP mutual funds in India can be perfect for you. These allow you to mix the goals of stability and growth together. You not only get regular returns, but also your investment grows over time. This way, you can better manage your financial goals over time. 

So, let us explore the best SWP mutual fund in India 2025. All these plans are carefully selected to offer consistent returns. These are the best mutual funds for SWP for all investors. So, let us get started on your investment journey here. 

What is SWP?

SWP stands for a Systematic Withdrawal Plan. It is a facility offered by mutual funds that enables investors to withdraw a fixed amount from their investment at regular intervals. These withdrawals can be done either monthly, quarterly, or annually.

Through this, you can maintain a steady income while ensuring that your money grows. But the best SWP mutual fund offers you more. They offer you an option to withdraw the profits. By this, you can keep your capital invested. This way, you can earn more without making multiple investments.

The primary features of the best SWP plans  are as follows:

• Regular Income: If you want to get regular income, this is the perfect choice. You can get your profits withdrawn at regular intervals.

• Flexibility: Investors can choose the withdrawal amount, frequency (monthly, quarterly, etc.), and duration based on their financial requirements.

• Continued Growth: The remaining investment continues to earn returns, so your corpus can potentially grow even as you make withdrawals.

• Customization: SWP can be started, modified, or stopped at any time, offering control over your withdrawals.

• Discipline: When you make regular withdrawals, you avoid depleting your funds. Additionally, if necessary, the profits can be reinvested in SIPs or RDs, as desired. This helps you develop a habit of regular savings. 

• Tax Efficiency: Withdrawals are treated as redemptions and may be more tax-efficient than lump-sum withdrawals, depending on the holding period and capital gains tax rules.

Now, that you know this, let us find out the top performing SWP mutual funds that you must look for.

Best SWP Mutual Funds in 2025

Finding the best performing SWP mutual funds in India can be hard. With so many options, making the right choice can be confusing. But do not worry at all! We have listed the top 10 best SWP plans for you here.

Overview of the Best Systematic Withdrawal Plans in India

1. ICICI Pru Equity & Debt Fund

This is a hybrid mutual fund that invests a major portion in equity (65-80%) and a part in debt (20-35%). This is indeed the best SWP plan that follows the CRISIL Hybrid 35+65 - Aggressive Index as benchmark. The fund mainly invests in finance, automobile, and power sectors. The fund balances risk and returns by diversifying across equity and fixed income securities. The primary objective of the fund is to generate wealth and achieve capital appreciation in the long term. 

2. HDFC Hybrid Equity Fund Growth

Surpassing the benchmark returns, this is one of the top 5 SWP mutual funds. It follows the NIFTY 50 Hybrid Composite Debt 65:35 Index and has an expense ratio of 1.08%. Currently, the fund invests around 80% in equity funds while the rest is placed in debt. This is an open-ended fund, which is perfect if you are looking to create a balanced portfolio. There is no entry load or lock-in period, which makes it perfect to meet various financial goals. 

3. Quant Flexi Cap Fund

This is one of the best SWP funds that is available for both growth and regular modules. The portfolio invests in large, mid-cap, and small-cap companies to ensure that investors benefit from both growth and stability. The fund follows NIFTY 500 TRI as a benchmark. This fund is more suited for investors who are looking for a defensive strategy, which means sustainable returns with low risk.  The exit load before 15 days is 1%, and there is no entry load. 

4. HDFC Focused 30 Fund

Offering doable returns as compared to the benchmark returns, this fund has stood as one of the most prominent choices of investors for years. It invests in a maximum of 30 stocks at a time, with proper allocation between small-cap, mid-cap, and large-cap. The fund follows the tracks of the NIFTY 500 Total Returns Index. Though the risk is considered to be very high, its consistent allocation and modification help you to tackle the same. The exit load is nil when the redemption is done after one year. 

5. Nippon India Large Cap Fund (G)

This fund follows BSE 100 TRI as the benchmark. This open-ended fund operates with two major aims. The first is to offer the long-term appreciation of the equity instruments, and the second is to generate consistent returns through debt, money market instruments, and REITs. Though there is no lock-in period, if the funds are withdrawn within 7 days of investment, there is a 1% exit load. Overall, this is a good SWP plan for moderate to low-risk investors. 

6. Motilal Oswal Midcap Fund Growth

If you are looking for quality and growth, then this is the perfect choice for you. Previously known as Motilal Oswal Midcap 30 Fund, this fund enables you to benefit from innovative-infused growth with stability by investing in midcap companies. The fund is based on the Nifty Midcap 150 TRI as a benchmark. The total expense ratio or TER for the fund is 0.64% PA. The major investment goes to the IT and consumer durables, which ensure stable returns even in adverse market conditions.

7. Tata Hybrid Equity Regular Growth

If you are looking for a well-managed fund with stable returns, then this is the best. It follows the CRISIL Hybrid 35+65 Aggressive Index as the benchmark. This fund manages an optimal portfolio of 25-35 stocks at a time based on the market conditions. The idea here is to combine the stock with good potential for future growth, following a bottom-up approach. The cyclical sectors and those that deal in commonities are usually avoided while building this portfolio. 

8. Aditya Birla SL Balanced Advantage Fund

The find is based on the CRISIL Hybrid 50+50 Moderate TRI and follows the same as the benchmark. The fund offers you the upside of the equity investment with low volatility. With the financial sector being the primary contributor, this fund offers higher returns than the rest. So, it would be right to say that this fund is a safer yet aggressive counterpart of the debt funds. 

9. DSP Aggressive Hybrid Fund Reg Growth

This fund matches the performance of the benchmarks CRISIL Hybrid 35+65 - Aggressive Index and NIFTY 50 TRI in the most efficient manner. The fund has a perfect combination of 66% equity and 33% debt. In equity, it invests 69% in large-cap, 14% in mid-cap, and 15% in small-cap stocks. In the debt, it mainly invests in AA+ and A1+ instruments. This offers a balanced approach to wealth creation while minimizing overall risk. 

10. SBI Equity Hybrid Fund

This fund is based on the CRISIL Hybrid 35+65 - Aggressive Index as benchmark and BSE Sensex TRI as the additional index. The fund invests 32% of the money into the financial services, followed by IT, healthcare, and telecommunication. Offering a perfect mix of securities, this fund ensures a stable growth with wealth creation in the long term. To ensure stability, the fund invests 20-35% in debt and money market instruments. This makes it one of the best choices. 

How to Select the Best SWP Fund?

Selecting the right SWP for you is not an easy task. You would need to compare multiple options first to land on the choice that best matches your investment needs the best.

1. Define Your Goal and Withdrawal Needs

Start by understanding why you need an SWP. It can be for regular retirement income, supplementing your salary, or meeting specific expenses. Calculate how much you need to withdraw and how often (monthly, quarterly, etc.).

2. Choose the Right Fund Type

Once you have set your goal, you need to select the fund type that best aligns with it. These can be:

• Equity funds offer higher growth but come with increased risk and volatility, making them suitable for long-term goals.

• Debt funds offer stability and lower risk, making them ideal for those seeking a steady income with minimal fluctuations.

• Hybrid funds strike a balance between the two, making them a suitable middle ground for moderate risk and growth.

3. Check Past Performance and Consistency

Look for funds with a strong and steady track record over 3–5 years. Consistent performers are usually better for SWP, as they help reduce the risk of capital erosion during market downturns.

4. Assess Expense Ratio and Charges

Lower expense ratios mean more of your returns stay with you. Compare costs across similar funds to ensure you’re not overpaying.

5. Review Withdrawal Flexibility and Exit Loads

Ensure the fund allows for systematic withdrawal plans (SWP) and check for any exit loads or lock-in periods that could impact your withdrawals.

6. Understand Tax Implications

Withdrawals from SWP are taxed as capital gains. Tax rules differ for equity and debt funds, so factor this into your planning.

7. Start with a Lump Sum and Let It Grow

While you can begin SWP right away, letting your investment grow for a few years before starting withdrawals can help your capital last longer and make the plan more tax-efficient.

Once you have done this, ensure that you keep a track of your funds regularly. If you see any changes in the market condition or are unsure, then consider seeking expert advice. Also, make changes in your portfolio to ensure that your financial goals are not compromised because of market situations. 

How much can You Withdraw Through SWP?

You can withdraw any fixed amount through an SWP as long as your mutual fund investment corpus can support it. The withdrawal amount and frequency (monthly, quarterly, yearly) are chosen by you when setting up the SWP. Each withdrawal redeems units equivalent to the chosen amount at the prevailing Net Asset Value (NAV), reducing your invested corpus over time.

For example, if you invest Rs.1 lakh in a mutual fund and set an SWP to withdraw Rs.10,000 monthly, the fund will redeem units worth Rs.10,000 each month. The remaining corpus continues to stay invested and earn returns. The withdrawals can continue until the corpus is exhausted or you stop the plan.

The amount you can withdraw depends on factors such as:

• Your initial investment

• Expected returns

• Withdrawal amount

• Duration you want the money to last

Using SWP calculators can help estimate the sustainable withdrawal amount and the remaining corpus over time.

In summary, there is no fixed limit on how much you can withdraw through SWP. You can customize the amount and frequency to suit your financial needs, but higher withdrawals will deplete your corpus more quickly.

How to Start an SWP?

Starting a SWP is similar to SIP. Though there are differences between SIP and SWP, the basic process remains the same. So, once you have selected the best SWP plan for you, just follow the steps here, and you can start your plan in minutes:

1. Log in to Your Rupeezy Account: Open the Rupeezy app or website and sign in using your credentials.

2. Go to Your Mutual Fund Portfolio: Navigate to the section where your mutual fund investments are listed. 

3. Select the Fund for SWP: Choose the mutual fund from which you want to withdraw money regularly. 

4. Find and click on the SWP Option: Look for the SWP options. 

5. Enter Withdrawal Details: Specify the fixed amount you want to withdraw each time. Select the frequency of your withdrawal: monthly, quarterly, or yearly. Select the start date for your withdrawals.

6. Review and Confirm: Double-check all details, then submit your SWP request.

From the chosen date, you will automatically get SWP activated and the amount will be transferred to your linked bank account at the selected frequency.

Conclusion 

Generating wealth and earning consistent returns are what most investors seek. But finding a fund that offers this is not easy. When it comes to setting up an SWP, the challenge becomes even greater. It is because you need to balance regular income with wealth creation.

But worry not! With so many options and the right evaluation, you can land the right SWP plan in no time. Additionally, we have compiled a list of the best SWP mutual funds in India for your reference. And if you need expert advice, connect with Rupeezy for the best outcomes.

FAQs

Q. What is the SWP return rate?

The SWP return rate is based on the fund's performance and its nature. Equity funds have the potential to offer higher returns as compared to debt funds. You can typically expect a return of between 5% and 12%, depending on the nature of the fund.

Q. Can I do SIP and SWP together?

Yes, you can do SIP and SWP together. In fact, this is a great investment strategy. So, you can use SIP for wealth creation and SWP for meeting your regular and short-term financial needs.

Q. Is SWP risk-free?

No, SWP is not risk-free. The fund invests in the market securities and stocks. So, the inherent risk is always there.

Q. What is the best SWP plan for retirees?

For retirees, debt or hybrid mutual funds are the best. These offer stable returns and are less risky than the equity ones. Also, you can go for short-duration funds to gain liquidity and meet immediate needs.

Q. Which fund gives the most tax-efficient SWP returns?

Equity-oriented mutual funds (with over 65% equity exposure) offer more tax-efficient SWP returns due to long-term capital gains taxed at 10% beyond Rs.1 lakh per year. Debt funds have higher tax rates on gains, making equity funds better for tax efficiency if held long-term.