Best MIPs To Invest In 2021
Published On Nov 30, 2021
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The Monthly Income Plan is a closed-end mutual fund that invests primarily in fixed-income securities. A monthly income plan is often made up of a mix of debt and equity assets, with fixed income yielding instruments accounting for more than 65 percent of the assets. The monthly income scheme's remaining assets, on the other hand, are invested in equity-linked instruments such as shares and stocks, which generate market-linked returns.
MIPs invest primarily in debt instruments such as government securities, Treasury bills, commercial paper, and other similar instruments. The debt half of the investment assures safety, consistency, and stability, while the equity portion of the investment increases the return.
If you wish to invest in a monthly income plan, a list of the top monthly income plans given by various Mutual Fund firms should be considered.
Best Performing Monthly Income Mutual Funds
Following is the list of best performing monthly income producing Mutual Funds.
1. Invesco India Regular Savings Fund
Invesco India Regular Savings Fund, which was launched on June 1, 2010, is another hybrid debt fund that is regarded as one of the top monthly income plans. The scheme's main goal is to generate consistent income by investing in a portfolio of fixed income assets including Gold ETFs, as well as equity and equity-related instruments. Since its inception, the fund has returned 6.9% and has a moderately high risk of investing. Individuals with a moderate or low risk appetite who desire a consistent return on investing might choose this fund.
2. UTI Regular Savings Fund
The UTI Regular Savings Fund has provided a 9.72 percent return since its inception. Investors can participate in this scheme with a minimum lump-sum of Rs.5000 and a minimum SIP of Rs.500. The fund has returned 10.18 percent over the last five years, while the average return over the last three years has been 8.44 percent. This monthly income plan is classified as a debt-oriented fund, which invests primarily in debt instruments such as government securities, corporate bonds, and so on. As a profitable option investment, this fund is best suited for those with a relatively high risk appetite and a desire to earn a consistent return on investment while also benefiting from capital growth.
3. Reliance Hybrid Bond Fund
This is another debt-oriented hybrid fund that is regarded as one of the top monthly income plans for consistent returns. Reliance Hybrid Bond Fund has returned 9.84 percent over the previous five years. Investors can easily enrol in this plan with a minimum lump-sum investment of Rs.5000 and a SIP investment of Rs.500.
With the goal of generating a safe and consistent return on investment, the fund primarily invests in debt and money market securities. Additionally, a small amount of the funds is put in equities to produce capital appreciation. This fund is best suited for investors with a moderate to low risk appetite who want to profit from capital appreciation and consistent returns.
4. ICICI Prudential Regular Income Fund
The ICICI Prudential Regular Income Fund is a well-balanced, cautious debt-oriented vehicle. The majority of this fund's assets are invested in debt-oriented securities. Axis Bank, Larsen and Toubro, Reliance Industries, and Tata Steel are among the companies in which the ICICI Prudential Regular Income Fund invests. This plan is gaining popularity among investors with a low risk appetite, despite the fact that it does not generate high profits.
Apart from mutual funds monthly income plans, other investment options such as fixed maturity plans, post-office monthly income plans, and so on can also be profitable. If you want to get a larger return, though, mutual fund monthly income plans are a good option.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.