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.
- Aggressive MIP Mutual fund: They invest 15% to 30% of the fund amount in equity markets.
- 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.
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
- 20 Equity Mutual Funds That Delivered Positive Returns Every Year in the Last 10 Years (2015 to 2024) - February 11, 2025
- Best Mutual Funds: 6 Largecap Mutual Funds Gave Over 13% Annualized Returns in 10 Years – Do You Own Any? - February 11, 2025
- How to Achieve Tax-Free Rental Income of ₹20,50,000? - February 10, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.
I am a sr.ctzn & like to have garaunted monthly income @ 5000/-.
Pl suggest me WHERE minimum amount can be invested in F.D ,etc .etc
so as to get garaunted said return.Pl revert.Thanks & Regards.
I am retired person I want quarterly dividend from MF . Pl. Suggest best M F which give me regular dividend and growth in principle amount.
Hi Suresh,
I hv an investment in Birla Sun Life Dynamic Bond Fund – Regular Plan – Dividend (Dividend reinvestment plan) NAV 11.76, Amount-5lakhs approx. Couple of days ago it fell 6% in a day ,what do I do ,shud I book loss & go to another better debt or balanced fund scheme… if so plz suggest which one.
thanks
Hi Nishant, These days dynamic bond funds too become risky as they invest in corporate bonds and govt. securities are being traded based on RBI Repo rate. This fund too, took hit due to recent RBI stance about neutral for Repo rate. You should be willing to invest in this fund for 2-3 years to get good returns.
Thanks for ur reply Suresh, plz tell me a great fund whr i can quickly recover this loss and make prfits too,whether its an equity or balanced fund i dont mind exiting & entering that fund…
thanks again
As a retired person I like to receive Monthly steady income from my deposits such as in Mutual fund etc. Please give me suggestion of such best Mutual fund.
Hi
I have rupees 150000 to invest. I want to invest it in a mip agressive funds. Is it a safe investment or still there is risk. A little risk is acceptable to me since it woud invest 15-30% in equity markets. But i want to know whether my remaining 70-85 % investment would be safe. My aim is to buid a passive income source which would continue providing me income even if it is intermittent.
PLEASE TELL ME TOP PERFORMING MONTHILY DIVIDEND MUTUAL FUNDS .
from what I have observed, two funds are doing really good in dividend payout:
1. DSP Blackrock Balanced Fund (D)- Monthly payout, NAV approx 25.87, 28th Sep 2016 payout: Rs. 0.254/unit.
It means, for Rs. 10,00,000 invested in this fund, you get 10,00,000/25.87 = 38,654 units. Dividend declared for Sep 2016 is Rs. 0.2540/unit, which gives a monthly income of 38,654*0.2540 = Rs. 9818 for Sep.
2. SBI Magnum Balanced Fund (D)- Quarterly payout, NAV 27.61, September payout: Rs. 0.70/unit.
you can do your own calculation if you want to know the returns, except, this is quarterly payout, meaning, monthly payout=quarterly payout/3.
How are the above funds in comparison to HDFC Prudence Monthly Dividend fund.
Dear Suresh,
if I have a corpus of 70 lakhs as my life savings & I need a monthly income from it to live my life with family, what would be the safest yet best instrument(s) to park my money in? kindly give me a detailed guide as to how should I go abt it.
thanks a lot for your valuable advise.
Nishanth
Hi Nishant, It depends on your risk appetite. IF you do not want to take risk, just invest in bank FD or POMIS scheme which can fetch you 7% to 7.5% returns per annum. If you can take some risk, invest in debt mutual funds which can give you 8% to 10% annualised returns.
Thanks for ur reply. But i need a monthly payment. Will the FD give inflation adjusted returns.
I am retired aged 58 years from pvt company pl suggest some good MIP which higher returns
I am looking for regular monthly income without any tax liability on all earnings and the best so far that I have found is HDFC Prudence Fund. It has paid a monthly dividend of 30p per unit and unit NAV is Rs.33.30 as of today. Is there any better fund available – but the condition is that I must get monthly income for the next 5 years.
good . I too am in it. relax .
Balanced Fund – monthly dividend payout one time investment tax free
kindly tell me where I should invest my money for next 5-10 years to get an MIP.
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
whether capital appreciation cone in MIP or not and the monthly return is taxable in the hand of receiver ?
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.
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
good explanation
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
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
Dear Mr.Suresh,
1) i have an amount of rs 2000000/-. can u suggest how can i get Rs 20000/- per month just like an pension. My age is 41 and i am able to do any job because of my health conditions.
2) And also i have 2 kids can i invest some amount for their studies. how amount is required to get an 60000/- P.A for their studies.
Hope u will give good suggestions.
Regards,
Phani raj
hi ,
My mother invested in MRDT 25000/- , and she is getting 2000 rs every month .they told , 2000 for 3 years .
Seems to be really they are giving and is 19 years old company nad has some branches over around 15 branches in India.
Can any one share your experience with MRDT .
Thanks,
Indira
fogot menation that ,
my mom is getting for past 10 months …
when we invest , they willl open new SB account and they will credit teh amount in that . we need to go any MRDT branch and can withdraw from the account.
Thanks,
Indira
Indira, Surprised to see that still people believe that we can get 8% interest every month. Be careful with such companies. None of the investment option would give 100% returns in 1 year.
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
Stay away from such companies. Couple of readers already commented about their bad experiences.
Can you give the readers contact details, who they had bad experiance with MRDT?, please….
can give us the link where we will purchase through on line.
is investment in mrdt india advisable?
Stay away from such benefit funds
Yes its have secured return plans.I benefiting long time as pre they promised
Dear Sureshji,
Can you tell me the yield on Templeton Ultra Short term Bond Fund – Direct Plan (daily dividend)
kl*********@gm***.com
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.
Hi, I want to know the MRDT will give 3000 monthly for 25000 for 3 years.How is it posible this,
This side is
Please give advice for this company can we trust this company?
Thanks in advance
Kalingarajan
Kalingarajan, Stay away from such benefit fund or nidhi companies. These are not trustable.
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.
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.
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!!!
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.
In this 8K , 3000 is principal amount , 2000 is bonus and 3000 is dividend.
So total 8000
It is a close end company
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
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.
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.
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.
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.
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.
i want to deposit 400000rs in monthly income scheme…..where i get the maximum income….can i get 6000 rs……
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.
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
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.
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.
Abhay, Please read this article. There are good ways to invest your retirement money. https://myinvestmentideas.com/2013/05/7-ways-to-invest-retirement-money-in-india/
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
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.
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
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.
My monthly salary is 20000rs. I can invest/save around 14000rs. Can you advise me a mix of conservative and aggressive inveatments
If you are bit aggressive and moderate investor, invest in diversified mutual funds, mid-cap/small-cap mutual funds and small amount in sector based mutual funds. See this link about top-10 mutual funds where some of the top funds from such category is also listed.https://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/
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)
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).
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)
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.
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.
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)
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
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.
Thanks Suresh for your
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.
Kindly adivse monthly income of Rs.50,000 plan with not paying any tax and how much I have to invest
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