Which are the good funds for SWP

Glad to note that you want to know more about SWP and plan to start SWP as you are retiring. Please read the following -

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/post-your-queries...

As you may know, you should select funds for SWP based on your risk taking ability. SWP can be started from any fund but the risk would differ from one category of fund to the other. For example, equity funds can be high risk funds while balanced funds can be moderately high risk funds. Further, Hybrid debt funds (known as MIP) can be slightly lower risky compared to balanced funds.

You must choose funds based on your risk profile as you are retiring.

With regards to your query that you need to have a steady income of Rs 25,000 per month, you can invest around Rs 35 Lakhs in a balanced funds and can draw the fixed amount of Rs 25,000 on a fixed date through SWP. We suggest not to draw more than 8 - 9% annual during the initial years. However, you can increase the monthly withdrawal amount in future based on how your invested funds have performed and so on.

Some of the good performing balanced funds are - ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund and DSP BlackRock Balanced Fund.

As mentioned above, this is just an example of investing in balanced funds and drawing regular income through SWP. But actual funds selection should be based on your risk profile and investment horizon. Please also note that minimum 5 years investment horizon is suggested for balanced funds.

Hope the above helps you. Thanks for writing to Advisorkhoj.