Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

Can you tell me the meaning of monthly income plans?

Tags: money, education, monthly income
Asked by malti menon, 10 Mar '10 12:21 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (6)

 
1.

Monthly income plans are a variant of balance schemes. But unlike balanced schemes, monthly income plans give periodic payments. The equity component does not exceed more than 30 percent. They declare monthly dividends; if not so they give quarterly dividend payouts.
Answered by prakash mathur, 10 Mar '10 12:21 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Monthly income plans are investments that are expected to give monthly returns i.e. monthly interest or other forms of returns. Im trying to give you a general idea because this is a broad term covering post office monthly income schemes, monthly income from fixed deposits, mutual funds, etc.
Lets restrict our discussion to mutual funds here since you might be familiar with others. Monthly income plans of mutual funds are meant to provide regular returns to investors while protecting their capital. However, once caution - these monthly returns though called as "monthly returns" may not be paid monthly - dividends from these mutual funds are generally expected to be paid monthly - however the fund may decide not to declare dividend for a month or for few months. So teh word 'monthly return' is a bit misleading however regular returns are possible and the amount invested will be safe assuming that the fund has good expousre to safe debt investments.
Answered by NASAman, 10 Mar '10 01:44 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
3.

What is a Monthly Income Plan?

MIPs are hybrid investment avenues that invest a minor portion of their portfolio (around 15 %-25 %) in equities and the balance in debt and money market instruments (i.e. bonds, certificates etc). MIPs provide a monthly income to investors, but the periodicity depends upon the option you choose. These are generally monthly, quarterly, half-yearly and annual options. A growth option is also available, where you do not receive regular dividends, but gains in the form of capital appreciation.

However, like any other fund, the returns are market-driven. Though many fund houses strive to declare a monthly dividend, they have no such obligation.

With the current levels of market volatility, MIPs can be a good option considering their exposure to debt instruments. These will help you maintain a low-risk portfolio and generate regular and stable returns. Stability, rather than quick and high returns, should be the priority for a typical MIP investor.

...more
Answered by apoorv aloke, 10 Mar '10 12:25 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
4.

Monthly Income Plan? What does that mean?
MIPs are

- A class of investments

- Invest majorly in debt instruments (about 75-80%) and only 15-20% into equity

The debt instruments guarantee constancy, steadiness and regularity and safety of capital while element of equity will help in increasing returns. To the extent of equity instruments in the portfolio, MIPs are market linked but since majority of the funds are allocated to debt, it is less volatile.
Source: http://financenmoney.in/monthly-income-planmip-or-bank-fixed-deposit-fd/
Answered by Nitisha, 30 May '11 12:36 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
5.

Join with us rmp infotech pvt. ltd. mlm company. for more detail my email id is asbagban@gmail.com. u can earn 20,63,000/- in year.
Answered by Aijaz, 30 Jun '10 02:01 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
6.

If the tenure of you investment is less than five years the you must invest in MIP mutual funds.
(MIP funds invest 85% money in debt instruments and 15% in Equity instruments) you can expect 8 to 10% retuns in MIP funds.

Recommended funds are
http://www.freemutualfunds.com/best-funds.html

for more information please contact at
http://www.freemutualfunds.com/contact.html
Answered by Shivkumar, 15 Apr '10 12:10 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

To be empowered and independent such that one can make ones own choices...more

Answered by blue ocean