10 Mutual Fund Investment Plans for Steady Income

Best Mutual Funds to get regular and steady fixed incomeMutual Fund Investment Plans for Steady Income

Are you looking for regular and steady income through mutual funds? Many of us keep investing in mutual funds for medium to long term. However, there are several investors who might look for steady income through mutual funds. While liquid funds are low risk, some of the debt funds have become high risk. Many readers keep asking me which mutual fund is best for steady income? There is nothing like guaranteed returns in mutual funds. But picking up consistent performing funds could be the best choice. Which are the Mutual Fund Investment Plans for Steady Income? Are there any mutual fund investment plans in India which can provide regular fixed income?

Also Read: Best Debt Mutual Funds to invest in 2020

What are Steady Income Funds?

There is no separate classification of steady income funds from SEBI. Steady income funds are those which help to provide growth in mutual funds by investing in fixed income options. One can invest in such income funds and opt for dividend option or do systematic withdrawal plan (SWP), to get a regular fixed income.

We have considered funds from Equity Savings + Conservative Hybrid category here.

What are Equity Savings Funds?

Equity Savings Funds would invest in equity, debt and arbitrage opportunities. Majority of the equity savings funds invest 35% in equity and balance in debt and arbitrage category. Such diversification would help to maximize the returns by removing volatility in the fund performance.

What are conservative Hybrid Funds?

Conservative hybrid funds invest majorly in debt instruments and a small portion in equity. Generally, these funds invest in low risk investment options to provide higher returns compared to an average inflation rate. These would invest in a mix of bonds, debt and money market instruments. It also invests in equity, but in small portions.

How we filtered Steady Income Mutual Funds?

We have used following criteria:

1) We have filtered funds from the conservative hybrid category which invests majorly in bonds and debt segment and a small portion in equity.

2) We have added some funds from an equity savings funds category that invests in equity, debt and arbitrage segments.

3) We have considered funds that have provided highest rolling returns compared to its benchmark and its peers.

4) We have also given weightage for 5 star and 4 star rated funds from ValueResearch.

5) Funds that have > Rs 100 Crores AUM are considered.

10 Mutual Fund Investment Plans for Steady Income

Here are the top 10 steady income mutual fund investment plans to invest in India now.

List of Equity Savings Funds

Fund Name Star Rating (VR) 1 Yr
3 Yr
5 Yr
SBI Equity Savings Fund 3 Star 13.8% 7.3% 9.4%
Edelweiss Equity Savings Fund 5 Star 14.0% 8.1% 9.5%
Axis Equity Saver Fund 4 Star 11.9% 8.5% 9.3%
Principal Equity Savings Fund 4 Star 12.3% 7.6% 9.2%
Kotak Equity Savings Fund 4 Star 11.3% 7.9% 9.0%

List of Conservative Hybrid Funds

Fund Name Star Rating (VR) 1 Yr
3 Yr
5 Yr
ICICI Prudential Regular Savings Fund 5 Star 11.2% 8.6% 10.4%
Kotak Debt Hybrid Fund 4 Star 15.0% 8.5% 10.2%
Canara Robeco Conservative Hybrid Fund 4 Star 13.7% 9.2% 9.2%
SBI Debt Hybrid Fund 4 Star 14.2% 7.4% 8.9%
BNP Paribas Conservative Hybrid Fund 3 Star 9.3% 6.8% 8.4%

FAQs – Mutual Fund Investment Plans for Steady Income

Do these funds provide guaranteed fixed returns?

No. None of the mutual funds offer guaranteed returns. The performance indicated here is past and may or may not repeat in future. However, such performance can help you to assess how such fund has performed in various market cycles and you can pick-up the right fund suitable to you.

Can I get monthly income from these mutual funds?

None of the mutual funds provide monthly income. You can either opt for dividend option where you can get regular income or use systematic withdrawal plan (SWP) where you can get fixed income on a periodic basis.

Which are the SBI Fixed Income Mutual Funds to get steady income?

Here are the list of mutual fund investment plans in India from SBI where one can expect steady income.

1) SBI Debt Hybrid Fund – Conservative Hybrid fund category

2) SBI Equity Savings Fund – Equity Savings category

Which are the best fixed income mutual funds as per ValueResearch?

Here are the 5 star rated steady income funds from Valueresearch.

1) Kotak Asset Allocator Fund

2) ICICI Pru Thematic advantage fund (FoF)

3) SBI Magnum Children’s Benefit Fund5

4) ICICI Prudential Regular Savings Fund

5) Edelweiss Equity Savings

6) Indiabulls Savings Income Fund

Can Fixed Income Funds lose money?

These income mutual funds would invest in equity, debt, arbitrage opportunities and money market instruments. While these funds can provide regular income, there are chances that your investment may go down due to fall in stock markets / downgrade of debt papers where such fund would have invested. However the risk is low compared to regular equity funds.

Also Read: Top Banking and PSU Debt Funds to invest in 2020

Who can invest in mutual fund investments plans for steady income?

This mutual fund portfolio is for moderate to conservative risk investors. If you are low to moderate risk investor, looking for low volatility funds and expect returns that are higher than bank fixed deposits, you can consider investing in such steady income mutual funds. If you are high risk investor or investor looking for growth in funds and don’t need money for next 8-10 years, you may not need to invest in such funds.

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Suresh KP


  1. We have invested in IDFC G-sec investment plan in Nov 2020. In the year passed it is showing returns of less than 3%. Since it is debt fund and earlier it provided returns ranging 11 to 12 % we thought it wise here. Can we exit it and invest in some flexicap or multicap funds What is the advice?

    1. GILT Funds provide low returns in short term. In medium to long term these can provide higher returns compared to all other debt funds. If you are short to medium term investor, exit, else continue to invest

  2. Dear Suresh,

    Hope you are doing great in these different times. I regularly follow your website and the first email in my inbox daily is from Myinvestmentideas.

    I have a query :
    1. I have redeemed 146,000 INR from Franklin fund and invested in Axis Liquid and done STP of 14,000 monthly to Axis Bluechip Fund till 10 months. But it has taken automatically 14,000 x 3 STP(42,000 INR) on the same day in a month. It’s happening from Oct last year. When I see the XIRR Bluechip Fund ha 52.04 and Liquid Fund XIRR is 3.02. Could you please advise what to do in this case. Should I should I retain the money which went as extra in the Bluechip Fund as it has good XIRR. Looking forward to your expert opinion.
    Umesh Kumar

    1. Hello Umesh, Good to hear about you. Regd first question, I suspect somehwere you would have chosen “weekly STP” instead of monthly STP, hence it would have deducted 3 times in a month. Next time check this aspect

      Regd second question, liquid funds always provide low returns as it is used only to park money for short term. Now we are seeing bull run, hence all mutual funds are having high returns. But this might not continue in short term. We are already seeing correction now. Since you have already invested, no point in redeeming and investing again through STP. If you objective is to invest for long term, don’t worry, just retain it. But if you thought you would get good returns in 2021 alone and want to exit in 1-2 years, then you might rethink and redeem some of your mutual funds.

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