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6 Best Monthly Income Plan (MIP) Funds to Invest In 2022

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6 Best Monthly Income Plan (MIP) 2022

Updated on August 4, 2022 , 130220 views

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.

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.

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.

So, if you are looking for a monthly income, invest in a best monthly income plan now!

6 Best Performing Monthly Income Mutual Funds in India FY 22 - 23

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2021 (%)Since launch (%)
Aditya Birla Sun Life Regular Savings Fund Growth ₹51.5305
↓ -0.04
₹1,63822.66.39.85.913.49.4
ICICI Prudential MIP 25 Growth ₹56.4717
↓ -0.03
₹3,2042.31.56.29.57.89.99.9
Baroda Pioneer Conservative Hybrid Fund Growth ₹30.2092
↑ 0.02
₹33-1.7-1.23.39.17.8 6.5
DSP BlackRock Regular Savings Fund Growth ₹44.0599
↓ -0.01
₹1981.6-0.51.97.74.37.88.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 5 Aug 22
*Above is the list of best performing monthy income providing Mutual Funds managing assets over 3 years.

1. Aditya Birla Sun Life Regular Savings Fund

(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.

Aditya Birla Sun Life Regular Savings Fund is a Hybrid - Hybrid Debt fund was launched on 22 May 04. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 9.4% since its launch.  Ranked 4 in Hybrid Debt category.  Return for 2021 was 13.4% , 2020 was 9.2% and 2019 was 5.8% .

Below is the key information for Aditya Birla Sun Life Regular Savings Fund

Aditya Birla Sun Life Regular Savings Fund
Growth
Launch Date 22 May 04
NAV (05 Aug 22) ₹51.5305 ↓ -0.04   (-0.08 %)
Net Assets (Cr) ₹1,638 on 30 Jun 22
Category Hybrid - Hybrid Debt
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately High
Expense Ratio 2
Sharpe Ratio 0.17
Information Ratio 0.04
Alpha Ratio 3.2
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.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,139
31 Jul 19₹10,186
31 Jul 20₹10,231
31 Jul 21₹12,550
31 Jul 22₹13,386

Aditya Birla Sun Life Regular Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹349,120.
Net Profit of ₹49,120
Invest Now

Returns for Aditya Birla Sun Life Regular Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 22

DurationReturns
1 Month 3.2%
3 Month 2%
6 Month 2.6%
1 Year 6.3%
3 Year 9.8%
5 Year 5.9%
10 Year
15 Year
Since launch 9.4%
Historical performance (Yearly) on absolute basis
YearReturns
2021 13.4%
2020 9.2%
2019 5.8%
2018 -2.2%
2017 15.5%
2016 13.1%
2015 5.4%
2014 27.7%
2013 6.7%
2012 16.7%
Fund Manager information for Aditya Birla Sun Life Regular Savings Fund
NameSinceTenure
Satyabrata Mohanty18 Jun 0913.13 Yr.
Dhaval Shah14 May 202.21 Yr.
Harshil Suvarnkar22 Mar 211.36 Yr.

Data below for Aditya Birla Sun Life Regular Savings Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash11.5%
Equity24.81%
Debt63.68%
Equity Sector Allocation
SectorValue
Financial Services7.9%
Industrials3.45%
Consumer Cyclical3.32%
Health Care2.51%
Technology2.33%
Basic Materials1.95%
Consumer Defensive1.69%
Energy0.94%
Communication Services0.74%
Debt Sector Allocation
SectorValue
Corporate37.21%
Government29.01%
Cash Equivalent7.41%
Securitized1.57%
Credit Quality
RatingValue
A2.75%
AA11.31%
AAA84.58%
BBB0.88%
Below B0.47%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Tata Motors Finance Limited
Debentures | -
6%₹97 Cr2,000
↑ 2,000
Sikka Ports & Terminals Limited
Debentures | -
4%₹61 Cr600
↑ 50
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | ICICIBANK
2%₹38 Cr507,135
Manappuram Finance Limited
Debentures | -
2%₹35 Cr350
State Bank Of India
Debentures | -
2%₹33 Cr350
5.15% Govt Stock 2025
Sovereign Bonds | -
2%₹33 Cr3,500,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹30 Cr300
5.38% Govt Stock 2034
Sovereign Bonds | -
2%₹29 Cr3,000,000
↓ -1,000,000
U.P. Power Corporation Limited
Debentures | -
2%₹27 Cr352
Rural Electrification Corporation Limited
Debentures | -
2%₹26 Cr250

2. ICICI Prudential MIP 25

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.

ICICI Prudential MIP 25 is a Hybrid - Hybrid Debt fund was launched on 30 Mar 04. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 9.9% since its launch.  Ranked 2 in Hybrid Debt category.  Return for 2021 was 9.9% , 2020 was 10.9% and 2019 was 9.6% .

Below is the key information for ICICI Prudential MIP 25

ICICI Prudential MIP 25
Growth
Launch Date 30 Mar 04
NAV (05 Aug 22) ₹56.4717 ↓ -0.03   (-0.06 %)
Net Assets (Cr) ₹3,204 on 30 Jun 22
Category Hybrid - Hybrid Debt
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderately High
Expense Ratio 1.87
Sharpe Ratio 0.37
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.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,488
31 Jul 19₹11,187
31 Jul 20₹12,098
31 Jul 21₹13,655
31 Jul 22₹14,579

ICICI Prudential MIP 25 SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070
Invest Now

Returns for ICICI Prudential MIP 25

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 22

DurationReturns
1 Month 2.2%
3 Month 2.3%
6 Month 1.5%
1 Year 6.2%
3 Year 9.5%
5 Year 7.8%
10 Year
15 Year
Since launch 9.9%
Historical performance (Yearly) on absolute basis
YearReturns
2021 9.9%
2020 10.9%
2019 9.6%
2018 5.1%
2017 12.9%
2016 10.9%
2015 6.4%
2014 22.5%
2013 5.9%
2012 17.3%
Fund Manager information for ICICI Prudential MIP 25
NameSinceTenure
Manish Banthia19 Sep 138.87 Yr.
Priyanka Khandelwal15 Jun 175.13 Yr.
Roshan Chutkey2 May 220.25 Yr.

Data below for ICICI Prudential MIP 25 as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash18.27%
Equity19.19%
Debt62.54%
Equity Sector Allocation
SectorValue
Financial Services9.64%
Communication Services3.32%
Energy2.15%
Health Care1.65%
Industrials1.19%
Consumer Cyclical0.79%
Utility0.27%
Consumer Defensive0.2%
Debt Sector Allocation
SectorValue
Corporate39.51%
Government23.04%
Cash Equivalent18.27%
Credit Quality
RatingValue
A9.77%
AA44.64%
AAA45.59%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.38% Govt Stock 2034
Sovereign Bonds | -
12%₹390 Cr40,904,750
6.54% Govt Stock 2032
Sovereign Bonds | -
4%₹122 Cr13,000,000
6.67% Govt Stock 2035
Sovereign Bonds | -
3%₹113 Cr12,257,570
Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Nov 20 | BHARTIARTL
3%₹92 Cr1,413,737
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 19 | ICICIBANK
3%₹85 Cr1,137,132
↓ -304,127
L&T Metro Rail (Hyderabad) Limited
Debentures | -
3%₹82 Cr850
Nayara Energy Limited
Debentures | -
2%₹73 Cr750
IDBI Bank Limited
Debentures | -
2%₹70 Cr694
Muthoot Finance Limited
Debentures | -
2%₹65 Cr650,000
Prestige Estates Projects Limited
Debentures | -
2%₹59 Cr600

3. Baroda Pioneer Conservative Hybrid Fund

(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.

Baroda Pioneer Conservative Hybrid Fund is a Hybrid - Hybrid Debt fund was launched on 8 Sep 04. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.5% since its launch.  Ranked 44 in Hybrid Debt category. .

Below is the key information for 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.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,243
31 Jul 19₹11,453
31 Jul 20₹12,583
31 Jul 21₹13,654

Baroda Pioneer Conservative Hybrid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹367,070.
Net Profit of ₹67,070
Invest Now

Returns for Baroda Pioneer Conservative Hybrid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 22

DurationReturns
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
YearReturns
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
Fund Manager information for Baroda Pioneer Conservative Hybrid Fund
NameSinceTenure

Data below for Baroda Pioneer Conservative Hybrid Fund as on 31 Jan 22

Asset Allocation
Asset ClassValue
Equity Sector Allocation
SectorValue
Debt Sector Allocation
SectorValue
Credit Quality
RatingValue
Top Securities Holdings / Portfolio
NameHoldingValueQuantity

4. DSP BlackRock Regular Savings Fund

(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.

DSP BlackRock Regular Savings Fund is a Hybrid - Hybrid Debt fund was launched on 11 Jun 04. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 8.5% since its launch.  Ranked 22 in Hybrid Debt category.  Return for 2021 was 7.8% , 2020 was 9.3% and 2019 was 6.9% .

Below is the key information for DSP BlackRock Regular Savings Fund

DSP BlackRock Regular Savings Fund
Growth
Launch Date 11 Jun 04
NAV (05 Aug 22) ₹44.0599 ↓ -0.01   (-0.02 %)
Net Assets (Cr) ₹198 on 30 Jun 22
Category Hybrid - Hybrid Debt
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderately High
Expense Ratio 2.2
Sharpe Ratio -0.94
Information Ratio -0.43
Alpha Ratio -1.5
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.

DateValue
31 Jul 17₹10,000
31 Jul 18₹10,293
31 Jul 19₹9,985
31 Jul 20₹10,614
31 Jul 21₹12,125
31 Jul 22₹12,354

DSP BlackRock Regular Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹340,450.
Net Profit of ₹40,450
Invest Now

Returns for DSP BlackRock Regular Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 22

DurationReturns
1 Month 2.1%
3 Month 1.6%
6 Month -0.5%
1 Year 1.9%
3 Year 7.7%
5 Year 4.3%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
2021 7.8%
2020 9.3%
2019 6.9%
2018 -5.3%
2017 11%
2016 10.7%
2015 4.8%
2014 18.5%
2013 5.4%
2012 15.3%
Fund Manager information for DSP BlackRock Regular Savings Fund
NameSinceTenure
Vikram Chopra17 Jul 166.04 Yr.
Jay Kothari16 Mar 184.38 Yr.
Abhishek Singh31 May 211.17 Yr.

Data below for DSP BlackRock Regular Savings Fund as on 30 Jun 22

Asset Allocation
Asset ClassValue
Cash9.03%
Equity23.57%
Debt67.41%
Equity Sector Allocation
SectorValue
Financial Services10.65%
Technology3.73%
Basic Materials2.99%
Health Care2.79%
Consumer Cyclical1.84%
Consumer Defensive1.36%
Industrials0.21%
Debt Sector Allocation
SectorValue
Government57.24%
Corporate10.17%
Cash Equivalent9.03%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indian Railway Finance Corporation Limited
Debentures | -
8%₹16 Cr150
7.32% Govt Stock 2024
Sovereign Bonds | -
8%₹16 Cr1,500,000
Power Grid Corporation Of India Limited
Debentures | -
5%₹11 Cr100
National Bank For Agriculture And Rural Development
Debentures | -
5%₹11 Cr100
Power Finance Corporation Ltd.
Debentures | -
5%₹10 Cr100
Rec Limited
Debentures | -
5%₹10 Cr100
Indian Oil Corporation Limited
Debentures | -
5%₹10 Cr100
6.18% Govt Stock 2024
Sovereign Bonds | -
5%₹10 Cr1,000,000
5.63% Govt Stock 2026
Sovereign Bonds | -
5%₹10 Cr1,000,000
Hindustan Petroleum Corporation Limited
Debentures | -
4%₹7 Cr70

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.

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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.

Risks-in-Monthly-Income-Plan

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?

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  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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Disclaimer:
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.
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POST A COMMENT

Sunil, posted on 4 Apr 21 12:07 PM

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

Shirish Samarth, posted on 11 Jan 21 11:52 PM

Best information is given for investment

Prashant, posted on 23 Apr 20 10:39 PM

Please advise for investment regards

Rdc, posted on 19 Apr 20 11:00 PM

Excellent understand ing

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