For those looking for a consistent income post-retirement or as a supplemental source of funds, a Systematic Withdrawal Plan (SWP) can be a smart strategy. Within the mutual fund universe, flexi-cap funds stand out for SWP due to their balanced approach to risk and reward. By investing across large, mid, and small-cap companies, flexi-cap funds provide a well-diversified portfolio that can help cushion against market volatility while delivering steady returns.
Here’s a curated list of top-performing flexi-cap funds with a strong 5-year XIRR, as of November 2024, that are ideal for SWP.
These funds have been selected based on their robust 5-year XIRR, demonstrating resilience and growth potential in the flexi-cap category. The following list can guide investors seeking balanced and steady returns through SWP.
Scheme Name | AUM (in Rs crore) as of 31-10-2024 | NAV (in Rs) | Return XIRR % |
---|---|---|---|
Quant Flexi Cap | 7,531.85 | 97.80 | 32.23 |
Parag Parikh Flexi Cap | 81,918.72 | 80.44 | 25.07 |
PGIM India Flexi Cap | 6,337.68 | 34.41 | 22.2 |
Franklin India Flexi Cap | 17,449.65 | 1586.99 | 20.71 |
HDFC Flexi Cap | 64,928.56 | 1862.19 | 18.71 |
Note: These funds have been selected based on their strong performance over the past 5 years. In the flexi-cap category. NAV is on November 12, 2024.
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Flexi-cap mutual funds are known for their adaptability, investing across the entire market spectrum—large, mid, and small-cap stocks. This diversification allows fund managers to adjust holdings based on market conditions, offering both growth potential and downside protection. The flexibility to shift between companies and sectors ensures that flexi-cap funds can optimise returns while managing risks effectively. Such adaptability makes them particularly suitable for SWP, especially during market downturns when steady returns are valued.
A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount at regular intervals from their mutual fund investments. This plan is ideal for those seeking a predictable income flow, whether monthly, quarterly, or annually, without entirely liquidating their holdings. With each withdrawal, a portion of the mutual fund units is sold, ensuring that the remaining investment can continue to grow. Unlike a lump-sum withdrawal, where a large portion is withdrawn at once, SWP offers regular payouts, ensuring sustained returns over time.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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