Top 7 Small Cap SWP Mutual Funds with Rs 1 Lakh Monthly Pension: Investors use the systematic withdrawal plan (SWP) option in mutual funds to withdraw monthly income. Senior citizens use them to get monthly income after retirement. One can set up the SWP option in an equity, hybrid or debt mutual fund based on risk tolerance and financial goals. Since equity investment fluctuates during market volatility, many investors prefer debt and hybrid mutual funds to withdraw monthly income.
How does SWP work?
Here, you make a lump sum investment in a mutual fund scheme.
Tells the mutual fund to withdraw a predetermined amount each month.
The mutual fund house sells NAV to provide that amount.
Won’t your funds run out if you withdraw money every month?
They will, but the trick to counteracting that effect is to withdraw less money than the growth of your investments.
This way, the value of your investment can increase even if you withdraw money over years.
Here, we guide you through the top 7 small-cap mutual funds that have delivered at least Rs 1 lakh in monthly income for 10 years (at least 120 monthly installments) on an investment of Rs 65 lakh.
SBI Small Cap Fund – Regular Plan – Growth
The fund has posted a CAGR of 23.42 per cent over 10 years. The fund has assets under management (AUM) of Rs 32,761.17 crore, while its net asset value (NAV) is Rs 182.3351 crore.
Compared to the BSE 250 SmallCap Index, the fund has delivered an annualised return of 21.39 per cent since its launch in September 2009.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 1,189,4142.
Nippon India Small Cap Fund: Growth plan, growth option
The fund has earned an annualised return of 19.84 per cent over a 10-year period. It has an asset base of Rs 60,372.55 crore, while its net asset value is Rs 178.5471 crore.
Compared to the NIFTY Smallcap 250 TRI, the fund has generated a CAGR of 22.93 per cent since inception in September 2010.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 55,950,111.
DSP Small Cap Fund – Regular – Growth
The fund has earned an annualised return of 19.24 per cent over the 10-year period. Its assets under management stand at Rs 16,084.62 crore, while its net asset value is Rs 201,545 crore.
Compared to the BSE 250 SmallCap Index, the fund has delivered an annualised return of 19.06 per cent since its inception in June 2007.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 47,44,335.
HSBC Small Cap Fund – Regular Growth
The fund has earned an annualised return of 18.03 per cent over the past 10 years. It has an asset base of Rs 16,905.18 crore, while its net asset value is Rs 87.3832 crore.
Compared to the BSE 250 SmallCap Index, the fund has delivered an annualised return of 23.41 per cent since its inception in May 2014.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 31,63,609.
Kotak-Small Cap Fund – Growth
The fund has earned an annualised return of 16.56 per cent over the 10-year period. It has an asset base of Rs 17,507.11 crore, while its net asset value is Rs 278.3 crore.
Compared to the NIFTY Smallcap 250 TRI, the fund has delivered an annualised return of 18.58 per cent since its inception in February 2005.
With an overall investment of Rs 650,000, the fund has generated a monthly income of Rs 100,000 for 10 years. After withdrawing 120 instalments of Rs 100,000 each, the fund still has a balance of Rs 15,040,019.
Axis Small Cap Fund – Regular Plan – Growth
The fund has earned an annualised return of 16.50 per cent over the 10-year period. It has an asset base of Rs 23,395.04 crore, while its net asset value is Rs 105.2 crore.
Compared to the NIFTY Smallcap 250 TRI, the fund has delivered an annualised return of 24.43 per cent since its launch in November 2013.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 14,37,464.
HDFC Small Cap Fund: Growth Option
The fund has earned an annualised return of 15.09 per cent over the 10-year period. Its assets under management stand at Rs 33,181.88 crore, while its net asset value stands at Rs 140,612 crore.
As benchmarked against the BSE 250 SmallCap Index, the fund has achieved a compound annual growth rate (CAGR) of 17.47 per cent since inception in April 2008.
With an overall investment of Rs 65 lakh, the fund has generated a monthly income of Rs 1 lakh for 10 years. After withdrawing 120 installments of Rs 1 lakh each, the fund still has a balance of Rs 81,534.
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