Contents
- Overview
- Comparison among different savings schemes
- 7 best Monthly Income Plans
- 1. Aditya Birla Sun Life Regular Savings Fund monthly income plan
- 2. Franklin India Debt Hybrid Fund monthly income plan
- 3. ICICI Prudential Regular Savings Fund monthly income plan
- 4. HDFC Hybrid Debt Fund monthly income plan
- 5. ICICI Prudential Ultra Short Fund
- 6. UTI Regular Savings Fund-Regular monthly income Plan
- 7. Reliance Hybrid Bond Fund monthly income plan
Overview
Those who’re looking for a steady income invest in monthly income plan. MIP or monthly income plan is a scheme of mutual funds where most of the money is invested in debt instruments. Some of the aggressive monthly income plans invest 16-30% in the equity and the rest in debt.
There are majorly 2 types of monthly income plans:
- Aggressive monthly income plan
- Conservative monthly income plan
| Aggressive monthly income plan | 1st annualized return | 3rd annualized return | 5th annualized return | Launch date |
|---|---|---|---|---|
| Birla Sun Life MIP II Wealth 25 | 16.24% | 17.42% | 13.95% | 22nd May 2004 |
| ICICI Pru MIP25-Regular Plan | 11.43% | 14.36% | 12.25% | 30th March 2004 |
| HDFC MIP-Long term Plan | 12.48% | 15.09% | 11.76% | 26th December 2003 |
| Kotak MIP regular plan | 13.75% | 13.81% | 11.60% | 29th December 2003 |
| UTI MIS Adv | 10% | 13.65% | 11.56% | 16th December 2003 |
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| Conservative monthly Income plan | 1st annualized return | 3rd annualized return | 5th annualized return | Launch date |
|---|---|---|---|---|
| SBI Magnum MIP | 12.67% | 13.11% | 11.60% | 24th March 2001 |
| Birla Sun Life MIP II saving 5 | 12.71% | 12.95% | 11.17% | 22nd May 2004 |
| SBI Magnum MIP floater | 10.88% | 12.80% | 11.41% | 21st December 2005 |
| ICICI Pru MIP-regular plan | 9.68% | 12.22% | 10.67% | 10th November 2000 |
| Franklin MIP | 10.48% | 13.57% | 11.60% | 28th September 2000 |
Comparison among different savings schemes
| Criteria | MIP | FD | Post Office monthly scheme | Fixed maturity plan |
|---|---|---|---|---|
| Average return rate | 6-12% | 7-8% | 8% | 9-10% |
| Risk involved | Low risk | No | No | Low risk |
| Assured monthly income | No | Assured | Assured | Not available |
| TDS | No | Yes | No | No |
| Complexity | Moderate | Easy | Easy | Moderate |
| Max limit | No limit | No limit | 4.5 lakh for single and 9 lakh for the joint account | No limit |
| Early withdrawal penalty | 1% | 1% less interest will be paid | 2% before 3 years. 1% after 3 years. | 0-2.5% |
| Tax on return | Before 1 year, as per your slab. After 1 year, 10-20% with indexation | As per your tax slab | As per your tax slab | Before 1 year, as per your slab. After 1 year, 10-20% with indexation |
7 best Monthly Income Plans
1. Aditya Birla Sun Life Regular Savings Fund monthly income plan
Year of inception
This scheme was launched in the year 2004.
Category
Heavily debt oriented monthly income plan. It invests 70-80% of the pool money in debt and the rest is invested in equity and equity related instruments.
Investment plan
Individuals have the option of starting small with an investment worth Rs. 1,000 and consecutive payments of the same amount could be submitted in the SIP plan. Investors have the option to give 6 post-dated cheques for investing in the systematic investment plan.
Returns
This scheme has generated a return of -3.02 percent in the last year. In addition to this, this fund has given returns of almost 11.37 percent in the last five years.
The assets under management are about Rs 2,572 crores.
2. Franklin India Debt Hybrid Fund monthly income plan
Year of inception
This scheme was launched in the year 2000.
Category
Hybrid debt oriented conservative monthly income plan. There is a 1 percent exit load for redemption within 365 days.
Investment plan
Individuals have the option of starting small with an investment worth Rs. 1,000 and consecutive payments of Rs. 500 could be submitted in the SIP plan.
Return
The fund has given an average return of 9.56 percent in the last 5 years. The NAV under the growth plan is Rs 54.09, while the dividend plan has NAV of Rs 12.68.
Portfolio
Stocks like Bharti Airtel, HDFC Bank, Axis Bank, and State Bank of India comes under the portfolio of this scheme.
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3. ICICI Prudential Regular Savings Fund monthly income plan
Year of inception
ICICI Prudential regular savings fund was launched in 2004
Exposure
The savings fund has exposure to 7.61% GOI 2030 and 7.88% government of India security.
Returns
This monthly income plan scheme has given a return of 10.01% since its launch. Previous three-year return of the fund has been close to 8.24%.
Investment plan
Individuals have to option to start investing in the fund with a sum of Rs 5,000.
Portfolio
The portfolio of the fund consists of stocks like Motherson Sumi, Maruti Suzuki, HDFC Bank, TVS Motors.
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4. HDFC Hybrid Debt Fund monthly income plan
Category
Hybrid debt oriented aggressive monthly income plan
Year of inception
This was launched in 2003.
Exposure
There is heavy exposure to government securities and bonds.
Returns
The average return is 10.39% on an average for the last 5 years. This fund was launched by the HDFC in 2003 and has given a return of 10.31% since its inception.
Investment plan
Individuals have the option to start the investment with the amount of Rs. 5,000 and the SIP worth of Rs.500 each.
Portfolio
The investment is done in the stocks like ICICI Bank, L&T, State Bank of India, Infosys, etc.
5. ICICI Prudential Ultra Short Fund
Category
Hybrid debt oriented conservative plan i.e. bulk of the money is invested in debt oriented schemes.
Year of inception
This scheme was launched in the year 2011.
Exposure
The fund also has exposure to 7.61% GOI 2030 and 7.88% government of India security.
Returns
Monthly income plan invested in this scheme has generated a return of 6.46% in the last 5 years. Also, the dividend that is payable every quarterly which investors could opt for, and the net asset value of the same is Rs 10.0
Portfolio
The money is invested in the stocks of Reliance Industries, Larsen and Toubro, Tata Steel and Axis Bank.
6. UTI Regular Savings Fund-Regular monthly income Plan
Year of inception
This scheme was launched in 2003
Exposure
This scheme is a debt oriented conservative and has exposure to the government of India securities.
Returns
This scheme of MIP has given a return of 9.67% since its launch way back in 2003. Last 3 years return of this fund is approximately 7.17%.
Investment plan
Individuals have the option to start investing in the fund with a sum of Rs 5,000.
Portfolio
The money is invested in the stocks of Bajaj Finance, IndusInd Bank, Yes Bank, and Infosys.
7. Reliance Hybrid Bond Fund monthly income plan
Year of inception
This scheme was launched in 2003.
Returns
The money invested in this fund has given a return of 11.21 in the last 10 years. Last three-year returns are approximately 6.48 %.
Investment plan
Individuals have the option to start investing in the fund with a sum of Rs 5,000.
Portfolio
The fund consist of stocks like HDFC Bank, and Reliance Industries.
Exposure
This scheme has a debt exposure like the 8.17% government of India 2044.
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