Monthly Income Plan

Posted Date: 30-Dec-2008	Category: Mutual Funds	Rating:
Author: Nilesh Panchal	Member Level: Gold	Points: 2

Monthly Income Plan (MIPs) are debt oriented hybrid funds that invest around 80 percent in debt instruments and the rest in equities. On account of their equity exposure, these are riskier than traditional debt instruments that invest their entire corpus in fixed income instruments. Although MIPs essentially target investors who wish to earn some kind of monthly return, the Securities and Exchange Board of India's Mutual Fund (MF) guidelines ban all MF
schemes from assuring returns. Hence, unlike a typical fixed returns products such as post office monthly income scheme and bank and post office term deposits, MF MIPs do not assure any monthly income. Since their underlying instruments are marked-to-market and also due to their equity exposure, MIPs have the potential to give higher returns than the traditional fixed income options. Some of the good options in this space are HDFC MIP, HSBC MIP, Birla MIP and DSP ML Savings Plus.
Reference www.amfiindia.com

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Responses to "Monthly Income Plan"

Author: soubhagya das 14 Jan 2009

Member Level: Gold Points : 2

i got to knwo that there are some mutual fund products are there who are providing systematic withdrawl plan which mean per month some units the person having will deducted and that amount of cash will be credited to the investors account so it is similar like monthly income plan ,but i think this should be only taken by retiered person and the person who do not want to take atleast 10%risk in their investment or else it is not a good investment option

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