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| Have you Assured your Monthly Income? |
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| Dear Kundapur Govardhana Kini, |
 | Sudarshan Kumar*, aged 55 years is a government employee. He is looking to | | | invest the amount he received as arrears in a product that would offer him higher monthly returns with limited risks | | | Ramesh Kriplani* is a senior executive with a multinational. He is looking for an | | | investment option through which he would get tax efficient returns, higher compared to fixed deposits and without having to take much risk | |
| In both the above cases Monthly Income PIans are ideal as an investment avenue. Do you have similar expectations from your investments? Read on to learn more about MIPs ... |
| Monthly Income Plans - What does it mean for you? |
| Monthly Income Plans or MIPs are mutual fund schemes which invest most part of the corpus in debt instruments so as to make good the investment objective of monthly (regular) income to the investors.
To achieve their investment objective of providing monthly income, MIPs have an option to invest some portion of the corpus in equities (5% - 30%) and the balance in debt and money market instruments. |
| | Comparative Return Chart | | | | | Fund Name | 1 year | 3 year | 5 year | | Birla MIP II Savings 5 | 14.69% | 12.62% | 9.75% | | HDFC MIP Long Term | 25.12% | 12.05% | 13.40% | | Data as on September17, 2009 data source value research. | | | |
| Why should you invest in MIPs? |
| | MIPs as an investment option provide stable returns due to higher allocation of | | | corpus in debt instruments along with the opportunity to earn higher returns by partly investing in equities | | | MIPs are more tax efficient in comparison to other instruments like bonds or | | | fixed deposits, as the dividend income earned by you is tax free and the tax incidence on a long term capital appreciation (> 1 year) is nominal** | |
| Our recommended MIPs |
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