HDFC Mutual Fund has introduced “SWAP Top-Up” feature via offline mode for investors or unitholder. It allows them to opt for an annual increase in their withdrawal amount through SWAP on completion of one
year from the date of registration of SWAP.
The feature is available from December 22, 2025.
A Systematic Withdrawal Plan (SWP) in mutual funds allows investors to withdraw a fixed amount at regular intervals—monthly, quarterly, or annually—from their investment instead of redeeming the entire amount at once. The remaining money stays invested and continues to earn returns, making SWP useful for regular income needs like retirement or expenses.
Key features of this facility are as under: –
1. Initial SWAP Amount/Rate:
As opted by the Investor/Unitholder.
2. Top Up Frequency:
Annual (Any month after completing 12 months from date of SWAP registration and thereafter same month of every following year).
3. Top Up Rate
To be specified by Investor/Unitholder.
4. Top Up Amount
Rs. 100 and in Multiples of Rs. 100 thereof
5. Eligible Schemes
All schemes offering SWAP facility shall be eligible schemes to offer SWAP Top-Up facility.
Understand with an illustration:
If an investor/unitholder opts for a SWAP of Rs 2,000 per month in April 2025 with an annual top-up of 10%. The withdrawal amount will start at Rs 2,000 per month. After completing 12 months from the SWAP registration date, the monthly amount will increase by 10% (i.e. Rs 200) to Rs 2,200, effective from the following April 2026. The next increase will be to Rs 2,420 in April of the subsequent year, and so on – applying a 10% increment each year.
If an investor starts a SWAP of Rs 2,000 per month in May 2025. In December 2025, the investor opts for a standalone annual top-up of 10%. Since the top-up SWAP is eligible after 12 months from the original SWAP registration date, the increase will take effect in
May 2026 (after completing 12 months). From May 2026, the monthly withdrawal amount will rise by 10%, i.e., from Rs 2,000 to Rs 2,200. Each May in the subsequent years, the amount will increase by 10% annually—for example, to Rs 2,420 in the following year, and so on.
