Top 8 Monthly Income Plans (MIP) – best dividend Mutual funds


Best monthly Income Plan - MIP - best dividend mutual funds

Monthly Income Plan (MIP) in Mutual funds

Monthly income plans (MIP) in mutual funds are alternatives to fixed deposits and post office Monthly income scheme (MIS). These mutual funds provide monthly income by way of dividends based on the performance of the mutual fund. Hence identifying best dividend mutual funds is key for the success of this investment option.

About Monthly Income Plan (MIP) in mutual funds

These are dividend mutual funds which invest largely in bank fixed deposits, bonds, NCD’s, Govt securities etc which provides fixed income. A portfolio mix of 0% to 30% would be invested in equity market thereby getting exposure to stock market. However unlike Bank Fixed deposit or Post office MIS, these MIP mutual funds does not guarantee a fixed return on investment per month. The returns would vary based on the stock market fluctuations and fund’s performance.

Types of Monthly Income Plan (MIP) in mutual funds

There are two types of MIP’s in mutual funds.

  1. Aggressive MIP Mutual fund: They invest 15% to 30% of the fund amount in equity markets.
  2. Conservative MIP Mutual fund: They invests from 0% to 15% of the fund amount in equity markets

To whom these MIP’s suit best

These dividend mutual funds suits best who are new to investing and want to take small exposure to equity markets and maximize the returns for their investment. However the returns on MIP’s would attract dividend distribution tax (approx 14% on returns). Investor should look them as a long term investments which provides opportunity for maximizing the returns.


Liquidity

Since these are like any other mutual funds, an investor can liquidate by paying the exit load (most of the MIP’s charge 1% exit load) on mutual fund investment.

Top 8 Monthly Income Plan (MIP) mutual funds in India

There are several mutual funds in India and the best and top dividend mutual fund schemes are enclosed below.

Best monthly Income Plan - MIP - best dividend mutual funds

Conclusion Remarks: These MIP dividend mutual funds provide higher returns comparing to bank fixed deposits (which ranges between 8% to 9.5%) and post office MIS scheme (which provides 8.5% returns). However look these MIP’s as long term investments of 3 to 5 years so that the returns are maximized.

Readers, what is your opinion on these MIP best dividend mutual funds? Do you see there are any other better monthly income plans which provide higher returns?

If you found this article as useful, share the link in Twitter/Face book. The links are provided at the top and bottom of the post.

Suresh

Myinvestmentideas.com


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

44 Comments

  1. NBK says:

    Hi Suresh,

    I have got below mail, can i trust this

    Dear Friends,

    Greetings from MRDT India Ltd!!!

    Forget about market risks,

    Just enjoy Constant and Genuine Returns with 100% Guarantee with no risk,

    no MLM, no referrals,

    no targets.

    Yes. It is true with three investment plans that i have for you

    Plan 1 :

    Minimum Investment is Rs 3,000(Rupees Three Thousand Only).

    Rate of one Share Rs.100.00

    Shares issued 30

    One time Investment Rs.3000.00

    Duration – 2 1/2 years (30 Months)

    Dividend Issued for 30months – 200*30 (Every Month)
    Grouth of Divided Rs. 6000.00

    *Will be issued under the Submission of the Share Certificate.

    TOTAL : Rs.6000

    Plan 2 :

    Minimum Investment is Rs 15000/-(Rupees Fifteen Thousand Only).

    Rate of one Share Rs.100.00

    Shares issued – 150

    One time Investment Rs.15000.00

    Duration – 25 Months

    Dividend Issued for 25 months – 1200*25 (Every Month)

    Grouth of Divided Rs. 30000.00

    *Will be issued under the Submission of the Share Certificate.

    TOTAL : Rs.30000

    Plan 3 :

    Minimum Investment is Rs 25,000/-(Rupees Twenty Five Thousand Only).

    Rate of one Share Rs.100.00

    Shares issued – 250

    One time Investment Rs.25000.00

    Duration – 3 Years (36 Months)

    Dividend Issued for 3 Year’s – Rs. 2000 (Every Month)- 36 Months

    Grouth of Divided Rs. 72000.00

    *Will be issued under the Submission of the Share Certificate.

    TOTAL : Rs.72000

  2. vicky says:

    is investment in mrdt india advisable?

  3. KLM says:

    Dear Sureshji,

    Can you tell me the yield on Templeton Ultra Short term Bond Fund – Direct Plan (daily dividend)

    klmahadevan@gmail.com

     

     

     

     

     

     

     

     

    • Suresh KP says:

      Hi KLM, This is ultra short term fund where valueresearchonline rates it as 4 star. Currently this is suspended for sales. If you are investing in this, you can continue to stay invested, but this is short term fund only.

  4. kalingarajan says:

    Hi, I want to know the MRDT will give 3000 monthly for 25000 for 3 years.How is it posible this,

    This side is http://www.mrdtindia.com/mrdt/index.php

    Please give advice for this company can we trust this company?

    Thanks in advance

    Kalingarajan

  5. Rajesh says:

    Hi,

    I am planning to take GMIP from Max Life Insurance. Please let me know whether it is a trustable one. The plan looks good with a fixed monthly income after 11 yrs of premium payment.

    • Suresh says:

      Rajesh, What is your objective? All these life insurance monthly income plans or investment products provide returns of 4.5% to 5.5%. If you objective is life insurance, please take term insurance and invest balance in zero risk investment like bank FD, you would get more. I am not discouraging you, just do the workings and let me know whether my suggestion is right or wrong. 

  6. ebe says:

    MRDT india ltd is giving 8k per month for 1lakh and they are giving Bond [ like as LIC ];

    Can u explain how this is possible for them ? and this is tax free bond!!!

     

    • Suresh says:

      Hi Ebe, Please provide the link where you have seen this. If they are promising 8K per month means you would get Rs 84,000 per annum which is 84% return. It is incorrect. 

    • ebe says:

      In this 8K , 3000 is principal amount , 2000 is bonus and 3000 is dividend.

      So total 8000

      It is a close end company

       

  7. sandhya says:

    Dear Sureshji,

    I had invested my mother's money in HDFC MIP LTP and Reliance MIP. But last 2/3 weeks i have seen the entire profit being eroded completely. Now it is started going negative. Please give your valuable suggestion.

    should i redeem and avoid furthur loss.

    or should i divert them to some good MF like ICICI focussed blue-chip or HDFC Top 200. since anyways when the market comes up these Equity MF would be the first to gain higher. If i keep the money in MIPs even if the market comes up, these might not gain higher. Please show some way.

    Thanks and best regards

     

    • Suresh says:

      Hi Sandhya, If you see FII’s have been removing their money and debt or MIP funds returns have been eroded. Y’day there was news that liquid funds and MIP funds are being recovered. This is only temporary phenomon. You can wait for some more time before taking any decision .For any fresh invesments, yes you can invest in the other funds which you indicated.

  8. Nikhilesh Bhattacharya says:

    I am retiring soon, I would like to invest around Rs. 20,00,000.00 ( Twenty Lakhs ), under the Regular Monthly Income scheme. I would like to spend the rest of my life in a rented house at Kolkata with my wife by the interest / dividend. I am very clam and quite, I donot want to take risk as these are the only capital I have. Please advise me the right path.

    • Suresh says:

      Nikhilesh, You have couple of options like 1) buying annuity with insurance companies like LIC, HDFC etc., You would get pension amount which is risk free 2) Investing in senior citizens saving schemes with any bank which earns more than 9.5% returns p.a. which is also risk free 3) You can invest in Post office MIS scheme which gives monthly returns. Returns are 8.5%. However all these are taxable income. You may need to pay some tax on these returns which would be over and above your income tax limit of Rs 2 Lakhs.

  9. amit says:

    Mt monthlt income is Rs 28000/-. i save/invest my money 10000/- per month. i am intrest in monthly income plan. so can you suggest me.

    • Suresh says:

      Amit, Not sure whether you meant investing monthly or investing in monthly returns plans. If you are looking for monthly returns, you can invest in these MIP mutual funds. However the returns are not guaranteed. Alternative options is to invest in Post office MIS Scheme or bank FD (you may take quarterly interest)

      However if you are looking to invest your month every month, you can invest in variety of options like Stocks, Mutual funds, Bank FD or Post office schemes. What is your investment horizon and risk appetite. If would depend based on that.

  10. hp says:

    i want to deposit 400000rs in monthly income scheme…..where i get the maximum income….can i get 6000 rs……

    • Suresh says:

      Hi HP, If you want regular income there are 3 ways 1) Invest in Bank FD and you can get quarterly interest and returns are 9%+ per annum. 2) You can invest in Post office MIS scheme where you get monthly returns. Returns are 8.5% per annum 3) Invest in monthly income plan (MIP) mutual funds. These mutual funds provide regular income and does not mean they would do it every month. But you can expect good returns between 9% to 11% per annum. So to get 6K per month on Rs 40,000, you need to get 18% returns per annum which is very tough to get it unless you take risk and invest in sector based mutual funds where you can expect 18% to 20% returns. However they are high risk investments. You can still try. 

    • Justus Defnil says:

      Hi Suresh, I am a gulf returnee.  I have a Rs.300000 which mutual fund would be give me maximum return monthly.  Kindly advice. Aproximately how much i can get every month. Thanks-Justus

       

      • Suresh says:

        Justus, MIP mutual funds aims to provide regular income (may not be exactly monthly). They would provide approx return so 8% to 10% per annum. So if you invest Rs 3 Lakhs, you would expect Rs 2,500 per month. 

  11. Ahay says:

    Mr Suresh.  Could you kindly guide me for best utilisation of my retirement benefits. I am a govt servant, retiring in Jan 2014.  Looking forward to invest INR 15L.  Preferably in MIS plans as it will be an add-on to my pension. Can you suggest the best MIS plans with high cash liquidity because I would be requiring to withdraw that money at any point of time. Thanking u.

  12. Vivek says:

    Hello, My name is Vivek. I have about 14 Lac INR idling in my Savings Bank account. I wish to make good use of it by investing it in the very best and safe options – because I need this money to pay for my flat which is under construction. Which are the best mutual funds can you suggest – some options which are either best for "Monthly income" or best for "high annualized return". Thanks, Vivek 

    • Suresh says:

      Vivek, If you have to use the money for flat, do not take any risk, invest in bank FD. With some risk, you can invest in debt mutual funds. In case you want monthly income, you can invest i MIP’s I have provided in this article. 

  13. Tushar says:

    Hi Suresh,
    I need to invest INR 40 lacs in such a way that I can get monthly income up to 40K. I am cognizant that I might have to invest in multiple instruments….could you advise broad strategy?
    Thanks,
    Tushar

    • Suresh says:

      Tushar, There are several investment options. However to get 40K per month from Rs 40 Lakhs, you need to invest in opportunities where it generates 12% annualised return. Since none of the low risk investment options generates this percentage of return, you can try in multiple options and it would fetch you as following: 1) Invest in Bank FD-30K (9% return) 2) Post office MIS scheme-28K-(8.5% return) 3) Invest in debt mutual funds-low risk-40K. However in debt mutual funds, you can opt for Systematic Withdrawal plan of 40K. Means your Rs 40lakhs would earn returns between 10% to 12% p.a. and you would redeem/withdraw monthly 40K. This way you would more or less achieve your target.

  14. lisa says:

    My monthly salary is 20000rs. I can invest/save around 14000rs. Can you advise me a mix of conservative and aggressive inveatments

  15. Hi suresh, i am working in abroad soon i am going to retrun back to my home town what i need that how can get monthly income 30-40k per month kindly advice me on this (my investment is up to 20Lac)

    • Suresh says:

      Hi Lakshman, If you want monthly fixed income on your investment of Rs 20L, you can invest in FD (9%) which would give you Rs 15K per month, invest in post office MIS scheme which would give you Rs 12.5K per month. Alternatively, if you can take some risk, invest in monthly income plans of mutual funds and you can get more than Rs 15K per month. If you are high risk investor, invest in company FD’s like Mahindra FD schemes or Unitech FD’s which would provide 12% to 15% returns p.a. You would get Rs 20K to Rs 25K per month (paid Quarterly).

      • Lakshman says:

        Hi Suresh, thank you very much for your suggestions on my request here i would like to clear from you that is there any tax i have to pay on my investment (returns on monthly)

         

        • Suresh says:

          Lakshman, All these are pre-tax returns. You should pay tax depending upon the investment option you have selected and depending upon the tax computations for such products. e.g. FD interest, banks would deduct TDS, but you should pay tax as per your income tax bracket. If excess deducted you can claim for IT refund, if less paid, you should pay balance tax seperately. Hence it depends on investment products you select.

  16. ks says:

    Hi Suresh, I want rs2000 every month from my investment. How much do I need to invest. Where should i invest .thanks for your advise.

    • Suresh says:

      Hi KS, It depend on which option you are chosing. As indicated in my article, these MIP’s do not guarantee monthly returns, however assuming they are delivering 10% to 11% per annum, you should invest Rs 2.50 Lakhs to get Rs 2K per month (approx)

      • ks says:

        Hi Suresh thanks for your reply I live in USA and want to help some one by paying 2000 every month just curious if there is any investment plan where I can invest and get guaranteed monthly income if you kmow any of the plans or banks please advise me. Thanks

        • Suresh says:

          Hi KS, I can suggest couple of methods 1) Invest in Bank FD through NRE account. You can invest Rs 250,000 and you can achie this goal 2) Invest in Post office MIS scheme for Rs 280,000 and you would get Rs 2,000 per month. However as an NRI, you cannot open post office account directly. If you have spouse or parents in India, you can open joint account or they can open the account in their name. Both are guaranteed return options. 

  17. Taseer says:

    Hi Suresh,

    HDFC MIP LTP (G) is the best. Currently holding around16,000 units. The nice part of this MF I like is the monthly dividend. HDFC goes on depositing Rs. 0.06 per unit.

    After reading your article, thinking on investing in Reliance MIP.

    Good research.

  18. kumar says:

    Kindly adivse monthly income of Rs.50,000 plan with not paying any tax and how much I have to invest

    • Suresh says:

      Kumar, I could not understand your question. Are you looking at monthly income plan where you get 50K without any tax? There are no mutual fund options where TDS/Tax would not get deducted. Also monthly income plans does not guarantee monthly fixed income.  You can try tax free bonds where returns are not taxable. These are generally issued during Dec to Mar period

Leave a Reply

Your email address will not be published. Required fields are marked *