Monthly Income Plans (MIP)

Monthly Income Plans (MIP) ƒ 

An MIP offers investors an option to invest in debt with some participation in equity, ~10-25% of the portfolio. They are suitable for investors who seek higher return from a debt portfolio and are comfortable taking nominal risk. The debt corpus of the portfolio provides regular income while the equity portion of the fund provides alpha. However, returns can also get eroded by a fall in equities ƒ MIPs can be classified into aggressive MIP and conservative MIP based on its equity allocation. Risk averse investors should invest in MIPs with lower equity allocation to avoid capital erosion ƒ The change in taxation announced in the Union Budget 2014, shall be applicable to MIP funds.

Preferred Picks ƒ

Birla Sun Life MIP II - Savings 5 Plan ƒ

ICICI Prudential MIP 25 ƒ

DSPBR MIP Fund

Happy investing

Source:Icicidirect.com