+91-22-489139096 Best Monthly Income Plan (MIP) 2026
The Monthly Income Plan is an open-ended mutual fund that predominantly invests its assets in fixed income instruments.
Typically, monthly income plan is a combination of debt and equity assets, in which more 65% of the assets are invested in fixed income yielding instruments. However, the remaining assets of the monthly income scheme are invested in equity-linked instruments, like shares and stocks, that provide market-linked returns.
The basic objective of the monthly income plan is to provide regular income to people. Also, a MIP Mutual fund offers an option of monthly as well as quarterly income, that people can choose according to their convenience.
Investing in MIPs is easy and hassle-free. Investors can buy and sell MIP units like any other mutual fund scheme. You can invest either through a lump sum or through a systematic Investment plan (SIP), where a fixed amount is invested at regular intervals. If you want to invest in monthly income plan, it is advised to consider a list of best monthly income plan offered by various mutual fund companies.
MIP Returns
The returns from MIPs are primarily in the form of dividends, which are declared by the mutual fund company at regular intervals, typically on a monthly or quarterly basis. The dividends received from MIPs are tax-free in the hands of the investors. In addition to providing regular income, MIPs also offer the benefit of capital appreciation. The equity portion of the fund allows investors to participate in the growth potential of the stock market, while the debt component ensures that the downside risk is limited.
MIPs are managed by professional fund managers who make investment decisions on behalf of the investors. The fund managers have a wealth of experience and expertise in managing investments and are responsible for allocating the assets of the fund in a manner that generates the best possible returns.
MIPs come in different variants, such as conservative, moderate, and aggressive. Conservative MIPs invest a larger portion of their assets in debt instruments, while aggressive MIPs have a higher allocation to equities. The investment objective of each variant is different, and investors can choose the one that best suits their risk appetite.
Who Should Invest in Monthly Income Plan (MIP)?
Any moderate risk-averse investor who is looking for some exposure to equity markets along with a fixed income can invest in a monthly income plan. Apart from providing fixed income, monthly income scheme offers market linked returns. Moreover, a monthly income plan is suitable for senior citizens as well, those who are nearing retirement.
Fund Selection Methodology used to find 6 funds
6 Best Performing Monthly Income Mutual Funds in India FY 26 - 27
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Since launch (%) ICICI Prudential MIP 25 Growth ₹77.311
↓ -0.25 ₹3,359 -0.1 1.7 7.2 9.9 8.8 7.9 9.8 DSP Regular Savings Fund Growth ₹59.7337
↓ -0.12 ₹184 0.5 1.3 6.8 9.6 8 7.2 8.6 Baroda Pioneer Conservative Hybrid Fund Growth ₹30.2092
↑ 0.02 ₹33 -1.7 -1.2 3.3 9.1 7.8 6.5 Aditya Birla Sun Life Regular Savings Fund Growth ₹68.187
↓ -0.24 ₹1,541 -0.4 1.4 7.5 8.9 8.5 7.1 9.3 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Jan 26 Research Highlights & Commentary of 4 Funds showcased
Commentary ICICI Prudential MIP 25 DSP Regular Savings Fund Baroda Pioneer Conservative Hybrid Fund Aditya Birla Sun Life Regular Savings Fund Point 1 Highest AUM (₹3,359 Cr). Lower mid AUM (₹184 Cr). Bottom quartile AUM (₹33 Cr). Upper mid AUM (₹1,541 Cr). Point 2 Oldest track record among peers (21 yrs). Established history (21+ yrs). Established history (21+ yrs). Established history (21+ yrs). Point 3 Top rated. Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 5★ (upper mid). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderate. Risk profile: Moderately High. Point 5 5Y return: 8.78% (top quartile). 5Y return: 7.99% (lower mid). 5Y return: 7.83% (bottom quartile). 5Y return: 8.52% (upper mid). Point 6 3Y return: 9.86% (top quartile). 3Y return: 9.62% (upper mid). 3Y return: 9.05% (lower mid). 3Y return: 8.86% (bottom quartile). Point 7 1Y return: 7.24% (upper mid). 1Y return: 6.78% (lower mid). 1Y return: 3.31% (bottom quartile). 1Y return: 7.48% (top quartile). Point 8 1M return: -0.40% (lower mid). 1M return: -0.16% (top quartile). 1M return: -1.08% (bottom quartile). 1M return: -0.29% (upper mid). Point 9 Alpha: 0.00 (lower mid). Alpha: 0.01 (upper mid). Alpha: 0.25 (top quartile). Alpha: -0.05 (bottom quartile). Point 10 Sharpe: 0.57 (upper mid). Sharpe: 0.33 (lower mid). Sharpe: 0.85 (top quartile). Sharpe: 0.29 (bottom quartile). ICICI Prudential MIP 25
DSP Regular Savings Fund
Baroda Pioneer Conservative Hybrid Fund
Aditya Birla Sun Life Regular Savings Fund
*Above is the list of best performing monthy income providing Mutual Funds managing assets over 3 years.
The Scheme seeks to generate regular income through investments primarily in debt and money market instruments. As a secondary objective, the Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the Scheme. However, there can be no assurance that the investment objectives of the Scheme will be realized. Research Highlights for ICICI Prudential MIP 25 Below is the key information for ICICI Prudential MIP 25 Returns up to 1 year are on (Erstwhile DSP BlackRock MIP Fund) The scheme is seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates by market capitalisation, listed in India. Research Highlights for DSP Regular Savings Fund Below is the key information for DSP Regular Savings Fund Returns up to 1 year are on (Erstwhile Baroda Pioneer MIP Fund) To generate regular income through investment in debt and money market instruments and also to generate long term capital appreciation by investing a portion in equity and equity related instruments. Research Highlights for Baroda Pioneer Conservative Hybrid Fund Below is the key information for Baroda Pioneer Conservative Hybrid Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life MIP II - Wealth 25 Plan) An Open-ended income scheme with the objective to generate regular income so as to make monthly payment or distribution to unit holders with the secondary objective being growth of capital. Monthly Income is not assured and is subject to availability of distributable surplus. Research Highlights for Aditya Birla Sun Life Regular Savings Fund Below is the key information for Aditya Birla Sun Life Regular Savings Fund Returns up to 1 year are on 1. ICICI Prudential MIP 25
ICICI Prudential MIP 25
Growth Launch Date 30 Mar 04 NAV (20 Jan 26) ₹77.311 ↓ -0.25 (-0.32 %) Net Assets (Cr) ₹3,359 on 31 Dec 25 Category Hybrid - Hybrid Debt AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.67 Sharpe Ratio 0.57 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,990 31 Dec 22 ₹11,553 31 Dec 23 ₹12,867 31 Dec 24 ₹14,331 31 Dec 25 ₹15,467 Returns for ICICI Prudential MIP 25
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month -0.4% 3 Month -0.1% 6 Month 1.7% 1 Year 7.2% 3 Year 9.9% 5 Year 8.8% 10 Year 15 Year Since launch 9.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.9% 2023 11.4% 2022 11.4% 2021 5.1% 2020 9.9% 2019 10.9% 2018 9.6% 2017 5.1% 2016 12.9% 2015 10.9% Fund Manager information for ICICI Prudential MIP 25
Name Since Tenure Manish Banthia 19 Sep 13 12.29 Yr. Akhil Kakkar 22 Jan 24 1.95 Yr. Roshan Chutkey 2 May 22 3.67 Yr. Sharmila D’mello 31 Jul 22 3.42 Yr. Data below for ICICI Prudential MIP 25 as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 14.8% Equity 24.12% Debt 60.79% Other 0.29% Equity Sector Allocation
Sector Value Financial Services 6.88% Consumer Cyclical 3.17% Health Care 2.24% Technology 2.14% Communication Services 2.05% Real Estate 1.63% Consumer Defensive 1.6% Energy 1.56% Utility 1.1% Industrials 1.05% Basic Materials 0.67% Debt Sector Allocation
Sector Value Corporate 48.28% Government 18.38% Cash Equivalent 8.93% Credit Quality
Rating Value A 7.37% AA 42.78% AAA 49.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.9% Govt Stock 2065
Sovereign Bonds | -4% ₹142 Cr 15,000,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹101 Cr 10,000 Manappuram Finance Limited
Debentures | -3% ₹100 Cr 10,000
↑ 10,000 Adani Enterprises Limited
Debentures | -3% ₹99 Cr 10,000 L&T Metro Rail (Hyderabad) Limited
Debentures | -2% ₹80 Cr 800 6.54% Govt Stock 2034
Sovereign Bonds | -2% ₹75 Cr 7,409,560 360 One Prime Limited
Debentures | -2% ₹75 Cr 7,500 7.1% Govt Stock 2034
Sovereign Bonds | -2% ₹75 Cr 7,275,880 Yes Bank Limited
Debentures | -2% ₹65 Cr 650 Godrej Properties Limited
Debentures | -2% ₹51 Cr 5,000 2. DSP Regular Savings Fund
DSP Regular Savings Fund
Growth Launch Date 11 Jun 04 NAV (20 Jan 26) ₹59.7337 ↓ -0.12 (-0.19 %) Net Assets (Cr) ₹184 on 31 Dec 25 Category Hybrid - Hybrid Debt AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderately High Expense Ratio 1.12 Sharpe Ratio 0.33 Information Ratio 0.67 Alpha Ratio 0.01 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,780 31 Dec 22 ₹11,158 31 Dec 23 ₹12,496 31 Dec 24 ₹13,865 31 Dec 25 ₹14,867 Returns for DSP Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month -0.2% 3 Month 0.5% 6 Month 1.3% 1 Year 6.8% 3 Year 9.6% 5 Year 8% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.2% 2023 11% 2022 12% 2021 3.5% 2020 7.8% 2019 9.3% 2018 6.9% 2017 -5.3% 2016 11% 2015 10.7% Fund Manager information for DSP Regular Savings Fund
Name Since Tenure Abhishek Singh 31 May 21 4.59 Yr. Shantanu Godambe 1 Aug 24 1.42 Yr. Data below for DSP Regular Savings Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 15.38% Equity 18.78% Debt 64.72% Other 1.13% Equity Sector Allocation
Sector Value Financial Services 8.87% Health Care 2.44% Consumer Cyclical 1.64% Technology 1.21% Utility 1.1% Consumer Defensive 1.04% Energy 0.87% Basic Materials 0.74% Industrials 0.52% Communication Services 0.35% Debt Sector Allocation
Sector Value Government 60.61% Cash Equivalent 15.38% Corporate 4.1% Credit Quality
Rating Value AA 5.55% AAA 94.45% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.33% Govt Stock 2035
Sovereign Bonds | -13% ₹25 Cr 2,500,000 6.82% Govt Stock 2033
Sovereign Bonds | -11% ₹21 Cr 2,000,000 7.32% Govt Stock 2030
Sovereign Bonds | -11% ₹21 Cr 2,000,000 7.06% Govt Stock 2028
Sovereign Bonds | -6% ₹10 Cr 1,000,000 Muthoot Finance Limited
Debentures | -4% ₹8 Cr 750 National Bank For Agriculture And Rural Development
Debentures | -3% ₹5 Cr 50 7.37% Govt Stock 2028
Sovereign Bonds | -3% ₹5 Cr 500,000 7.1% Govt Stock 2029
Sovereign Bonds | -3% ₹5 Cr 500,000 7.1% Govt Stock 2034
Sovereign Bonds | -3% ₹5 Cr 500,000 7.02% Govt Stock 2031
Sovereign Bonds | -3% ₹5 Cr 500,000 3. Baroda Pioneer Conservative Hybrid Fund
Baroda Pioneer Conservative Hybrid Fund
Growth Launch Date 8 Sep 04 NAV (11 Mar 22) ₹30.2092 ↑ 0.02 (0.06 %) Net Assets (Cr) ₹33 on 31 Jan 22 Category Hybrid - Hybrid Debt AMC Baroda Pioneer Asset Management Co. Ltd. Rating ☆☆ Risk Moderate Expense Ratio 2.08 Sharpe Ratio 0.85 Information Ratio -0.38 Alpha Ratio 0.25 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,552 Returns for Baroda Pioneer Conservative Hybrid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month -1.1% 3 Month -1.7% 6 Month -1.2% 1 Year 3.3% 3 Year 9.1% 5 Year 7.8% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Fund Manager information for Baroda Pioneer Conservative Hybrid Fund
Name Since Tenure Data below for Baroda Pioneer Conservative Hybrid Fund as on 31 Jan 22
Asset Allocation
Asset Class Value Equity Sector Allocation
Sector Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. Aditya Birla Sun Life Regular Savings Fund
Aditya Birla Sun Life Regular Savings Fund
Growth Launch Date 22 May 04 NAV (20 Jan 26) ₹68.187 ↓ -0.24 (-0.34 %) Net Assets (Cr) ₹1,541 on 31 Dec 25 Category Hybrid - Hybrid Debt AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.91 Sharpe Ratio 0.29 Information Ratio 0.05 Alpha Ratio -0.05 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹11,336 31 Dec 22 ₹11,940 31 Dec 23 ₹13,089 31 Dec 24 ₹14,459 31 Dec 25 ₹15,490 Returns for Aditya Birla Sun Life Regular Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Jan 26 Duration Returns 1 Month -0.3% 3 Month -0.4% 6 Month 1.4% 1 Year 7.5% 3 Year 8.9% 5 Year 8.5% 10 Year 15 Year Since launch 9.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.1% 2023 10.5% 2022 9.6% 2021 5.3% 2020 13.4% 2019 9.2% 2018 5.8% 2017 -2.2% 2016 15.5% 2015 13.1% Fund Manager information for Aditya Birla Sun Life Regular Savings Fund
Name Since Tenure Mohit Sharma 31 Oct 24 1.17 Yr. Harshil Suvarnkar 22 Mar 21 4.78 Yr. Data below for Aditya Birla Sun Life Regular Savings Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 5.79% Equity 22.08% Debt 71.82% Other 0.32% Equity Sector Allocation
Sector Value Financial Services 7.44% Health Care 2.57% Technology 2.5% Consumer Cyclical 2.22% Basic Materials 1.87% Industrials 1.49% Communication Services 1.23% Consumer Defensive 0.95% Real Estate 0.86% Energy 0.76% Utility 0.19% Debt Sector Allocation
Sector Value Corporate 39.88% Government 31.94% Cash Equivalent 5.79% Credit Quality
Rating Value A 2.22% AA 19.91% AAA 77.86% Top Securities Holdings / Portfolio
Name Holding Value Quantity Power Grid Corporation Of India Limited
Debentures | -5% ₹79 Cr 8,000 Cholamandalam Investment And Finance Company Limited
Debentures | -4% ₹56 Cr 5,500 Bharti Telecom Limited
Debentures | -3% ₹50 Cr 5,000
↑ 5,000 Jtpm Metal TRaders Limited
Debentures | -3% ₹45 Cr 4,316 Bajaj Housing Finance Limited
Debentures | -2% ₹31 Cr 300 Nuvama Wealth Finance Limited
Debentures | -2% ₹30 Cr 3,000 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Sep 17 | HDFCBANK2% ₹30 Cr 300,000 7.1% Govt Stock 2034
Sovereign Bonds | -2% ₹29 Cr 2,800,000
↑ 1,500,000 Jubilant Bevco Limited
Debentures | -2% ₹27 Cr 2,500 Rural Electrification Corporation Limited
Debentures | -2% ₹26 Cr 250
Risks in MIP Mutual Fund Scheme
Before investing in any of the above mentioned best monthly income plans, you must know the risks of a monthly income scheme.
No fixed assurance
It is a common belief that monthly income plan provides fixed income monthly. But, there is no guarantee of assured returns in such Mutual Funds. As this scheme also invests in equities, the returns depend on the fund performance and the market status.
Talk to our investment specialist
Dividends are declared through profits and not capital
Dividends for Monthly Income Scheme can be paid only from the additional income and not from the capital investment. For instance, if the Net Asset Value (NAV) of the fund increases from INR 10 to INR 13, the scheme can declare only out of INR 3 it has earned in capital appreciation. Therefore, if the scheme's NAV rises slowly or falls due to market moves, it may not declare dividends at all.
DDT is charged
If you opt for MIP with dividend option, the income that you earn periodically in the form of dividends is charged a Dividend Distribution Tax (DDT). So, the returns are not totally tax-free.
Taxation & Exit Load on MIP
The lock-in period of certain Monthly Income Schemes are as high as three years, so if the scheme is sold before the maturity period a certain exit load is applicable. Also, the MIPs invest most of their assets in debt instruments, so the taxation on them as per debt investment.
How to Invest in Monthly Income Plans Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
You Might Also Like
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2026 Shepard Technologies Private Limited. All Rights Reserved
You clarified nicely that MIP is not about regular monthly income as its returns works like regular mutual fund schemes. But is this MIP having risk with the capital too. Do we lose capital in case market performance is poor ie same as MFs
Best information is given for investment
Please advise for investment regards
Excellent understand ing