₹10 lakh invested, ₹12 lakh withdrawn, still ₹1 crore left: How SWPs created wealth over 20 years

A systematic withdrawal plan (SWP) is widely used by retirees and investors seeking a regular income from their mutual fund investments. While the strategy is primarily designed to generate steady cash flows, a new 20-year analysis suggests that it can also help preserve and even grow wealth over the long term if backed by disciplined investing and the right fund selection.

The study, based on data as of July 16, 2026, analysed the performance of major hybrid and asset allocation mutual funds over a 20-year period. It assumed a lump sum investment of ₹10 lakh, with investors starting a monthly withdrawal of ₹5,000 from August 1, 2006. Over the next two decades, they withdrew ₹12 lakh through 240 monthly instalments. Despite withdrawing more than the initial investment, the top-performing fund still ended with a corpus of more than ₹1.04 crore.

Multi-asset funds lead the pack

Among all categories, ICICI Prudential Multi Asset Fund delivered the strongest outcome. After paying out ₹12 lakh through monthly SWPs, the investment grew to ₹1,04,75,390, translating into a 15.28% compound annual growth rate (CAGR).

Other multi-asset funds also posted healthy returns. Quant Multi Asset Allocation Fund delivered a CAGR of 12.13%, while HDFC Multi Asset Fund and SBI Multi Asset Allocation Fund generated 10.03% and 9.09%, respectively.

The results suggest that exposure to multiple asset classes such as equity, debt and gold helped these funds navigate market volatility while supporting long-term capital appreciation alongside regular withdrawals.

Hybrid funds also delivered solid returns

The aggressive hybrid category also produced encouraging outcomes.

ICICI Prudential Equity & Debt Fund emerged as the category leader, leaving investors with ₹75.15 lakh after 20 years of monthly withdrawals. The fund delivered a 13.71% CAGR over the study period.

Other aggressive hybrid funds, including HDFC Hybrid Equity Fund, DSP Aggressive Hybrid Fund, Tata Aggressive Hybrid Fund and Aditya Birla Sun Life Equity Hybrid '95 Fund, also generated annualised returns of around 13%, enabling investors to continue drawing monthly income while retaining a sizeable investment corpus.

In the dynamic asset allocation category, HDFC Balanced Advantage Fund stood out with a 15% CAGR, leaving behind a corpus of ₹98.81 lakh despite the regular withdrawals.

Category	Top Fund	Current Value (₹)	CAGR (%)
Multi Asset Allocation	ICICI Prudential Multi Asset Fund	1,04,75,390.92	15.28
Dynamic Asset Allocation	HDFC Balanced Advantage Fund	98,81,102.95	15.00
Aggressive Hybrid	ICICI Prudential Equity & Debt Fund	75,15,137.27	13.71
Fund of Funds	Kotak Multi Asset Omni FoF	67,23,188.72	13.20

SWPs allow money to keep compounding

Unlike redeeming a large amount in one go, an SWP allows investors to withdraw a fixed sum periodically while the remaining investment continues to stay invested. This enables the corpus to participate in market growth, helping offset the impact of withdrawals over time.

The study demonstrates that when returns consistently exceed the withdrawal rate, investors can generate regular income without necessarily depleting their capital. Instead, the remaining corpus continues to compound over the long term.

Parameter	Details
Initial investment	₹10,00,000 (Lump sum)
SWP amount	₹5,000 per month
SWP period	August 1, 2006 – July 16, 2026
Total monthly withdrawals	240
Total amount withdrawn	₹12,00,000
Data as on	July 16, 2026

Fund selection remains crucial

The analysis also highlights that not all mutual funds delivered similar outcomes.

While the top-performing funds generated double-digit annualised returns and preserved a substantial corpus, some schemes posted significantly lower returns, resulting in much smaller balances after two decades of withdrawals. For instance, a few funds in the hybrid and dynamic asset allocation categories delivered single-digit CAGRs, underscoring the importance of choosing the right scheme rather than relying solely on the SWP strategy.

Although the analysis is based on historical data and past performance is not indicative of future returns, it reinforces a key lesson for long-term investors: disciplined investing, appropriate asset allocation and staying invested across market cycles can help create a reliable income stream while allowing wealth to continue growing over time.