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?

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Suresh

Myinvestmentideas.com

Suresh KP

75 comments

  1. I want to invest 600000 in MIP . please tell me which one is best for me bank, post office , and mutual fund.,.
    Regards
    Amit K Srivastava

  2. My mom just sold a land and now she wants to invest this money somewhere safe and which will provide good returns on monthly basis . the investment would be in the range of 55,00,000 to 60,00,000 . please provide me some comprehensive plan.

    1. Hi Nishi, Since you are looking for safe investment option only, you should invest in Bank FD or Post office MIS Scheme. These are safe investment options

  3. I am planing to invest 500000.00 in monthly income scheme please for a period of 12 months only please provide the highest and safe organisation where I can do invest
    regards
    dipankar

    1. First of all, you should opt Fixed deposit, if it is for one year.. that is the safest one. It is a longterm like more than 3 years go for MIP MF like franklin, Birla SL, HDGF MIP LT funds

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