Mutual Fund Investment Plan: A Systematic Withdrawal Plan (SWP) is a mutual fund facility allowing investors to withdraw a fixed or variable amount at regular intervals (monthly, quarterly, annually).

It acts as a reverse of a SIP, providing a steady income stream while the remaining investment continues to grow. It is ideal for retirees or those seeking regular cash flow, often offering higher tax efficiency compared to traditional interest-bearing options.

For a secure monthly income, a Systematic Withdrawal Plan (SWP) in conservative hybrid mutual funds can be a suitable option. These funds aim to provide stable annualised returns and potential capital appreciation of up to 11.5 per cent while maintaining relatively low risk.

What are conservative hybrid mutual funds?

A conservative hybrid mutual fund is considered a low-risk investment that primarily invests in fixed-income debt securities (75%-90%) and allocates a smaller portion to equities (10%-25%). It is designed for risk-averse investors seeking steady, regular income with moderate, inflation-beating capital appreciation. This is one of the reasons why conservative hybrid funds are considered better for SWP.

Why are conservative hybrid funds considered better for SWP?

Apart from the above-mentioned points, here is why they are considered better for SWP:

Tax Efficiency: If you withdraw money directly from a mutual fund, you are entitled to pay tax on the profits earned, which means that it is quite beneficial compared to traditional bank FDs (where the entire interest is taxed as per the slab).

Potential for capital growth: Since it has a small equity component, it not only beats inflation but also gradually increases your corpus over the long term.

Read more: HDFC Mutual Funds: 5 schemes delivered over 15% CAGR in 10 years, turned Rs 10,000 monthly SIP into up to Rs 35 lakh - LIST

Mutual Fund Investment Plan: Top 5 funds for SWP

SBI Children's Fund - Savings Plan

The SBI Children's Fund - Savings Plan's latest NAV is Rs 49.1097 (As on 15-May-2026). This fund has generated 24.24% CAGR in past three years. If someone had invested Rs 10 lakh in this fund three years ago, they would have earned Rs 7,500 per month at 9%, and Rs 8,333 per month at 10%. The value of the Rs 10 lakh would have also increased.

SBI Children's Fund details

• Total Assets: Rs 137 crore
• Expense Ratio: 1.25%
• Benchmark: NIFTY 50 Hybrid Composite Debt 15:85 Conservative
• Minimum investment: Rs 5000
• Minimum SIP: Rs 500

ICICI Prudential Retirement Fund - Hybrid Conservative Plan

The current NAV of ICICI Prudential Retirement Fund - Hybrid Conservative Plan is Rs 34.0100 (As on 15-May-2026). This fund had generated an annual return of 23.40% over the past three years. If someone had invested Rs 10 lakh in this fund three years ago, they would have earned Rs 7,500 per month at 9%, or Rs 8,333 per month at 10%. The value of the Rs 10 lakh would have also increased.

ICICI Prudential Retirement Fund details

• Total Assets: Rs 90 crore
• Expense Ratio: 0.93%
• Benchmark: NIFTY 50 Hybrid Composite Debt 15:85 Conservative
• Minimum investment: Rs 5000
• Minimum SIP: Rs 100
• Standard Deviation: 4.54%
• Sharpe Ratio: 1.21

Parag Parikh Conservative Hybrid

The current NAV of Parag Parikh Conservative Hybrid is Rs 15.7464 (As on 15-May-2026). This fund had generated 10.42% CAGR in 3 years. If someone had invested Rs 10 lakh in this fund three years ago, they would have earned Rs 7,500 per month at 9%, or Rs 8,333 per month at 10%. The value of the Rs 10 lakh would have also increased.