What are Monthly Income Plans?

An MIP is a debt oriented mutual fund which gives you income, in the form of dividends. As MIPs are debt oriented mutual funds, they invest heavily in debt instruments like debentures, corporate bonds, government securities etc. It generally has 75-80% of its money in debt and rest in equity and cash. The income you can get from MIP is not limited to the monthly option. You can also choose to receive income quarterly, half-yearly or annually.

Mutual Funds - Monthly Income Plan (MIP)

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Who should invest in MIPs ?

1. Investors looking for regular income

If you are retired / semi-retired or just looking to generate some regular income can look at MIPs as an option.

2. Conservative investors looking for better returns

Are you a conservative investor but still looking for better returns than pure debt options like fixed deposits or Insurance policies? Well, you cant get 100% safety with MIPs, but there are very good change that you would be getting better than FD returns with MIPs

3. Investors who want to park a big sum of money

A lot of people have questions like Where to park my lump sum money for medium term with lower risk ? If your horizon is very less like 6 months or a year, MIPs might not be the best option, but if you want to park it for 2-3 yrs with low risk, MIPs with growth option can be a suitable instrument.

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