Google+ Consumer Psyche: What is Monthly Income Plan?


Monday, August 25, 2008

What is Monthly Income Plan?

MIPs or Monthly Income Plan would be suiting for retired people who would need a monthly income plan but they have not opted for assured pension during their working life period for various reasons.

Let us go through more in detail about the Monthly Income Plan

Objective: To generate regular monthly income to investors in the dividend plan

Asset Allocation:
  • Fixed Income Instruments = 80-85%
  • Equity = 15-20%

Assured Return?

  • As with mutual funds , the monthly dividend payout is not assured butthere are certain good funds which has a good track record of givingmonthly dividens without fail

  • For a person in the 30% income tax slab, MIP scores over other debt products by having a Dividend Distribution tax of 19% instead of 30% in bank FDs

Suitable Investors:
  • Those who are nearing retirement or attained retirement
Some of the funds are given below. If you have any more please add to the list.

  • Baroda Pioneer MIP
  • Birla Sun Life MIP
  • Birla Sun Life MIP II
  • Birla Sun Life MIP II
  • Birla Sun Life Monthly Income
  • DBS Chola MIP
  • DSPML Savings Plus Aggressive
  • DSPML Savings Plus Conservative
  • DSPML Savings Plus Moderate
  • DWS MIP Plan A
  • DWS MIP Plan B
  • FT India MIP
  • HDFC MIP Long-term
  • HDFC MIP Short-term
  • HSBC MIP Regular
  • HSBC MIP Savings
  • ICICI Prudential Income Multiplier
  • ICICI Prudential MIP
  • JM MIP
  • Kotak Income Plus
  • LICMF Floater MIP Plan A
  • LICMF Floater MIP Plan B
  • MMIP Floater
  • Magnum Income Plus Inv
  • Magnum MIP
  • Principal MIP
  • Principal MIP Plus
  • Reliance MIP
  • Sundaram BNP Paribas MIP
  • Tata MIP
  • Tata MIP Plus
  • Templeton MIP-DM
  • Templeton MIP-G
  • UTI MIS-Advantage Plan
  • UTI Monthly Income Scheme

1 comment:

MJ said...

Very useful post Tiger.Thanks for the info....