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Monthly Income Plan

A Monthly Income Plan is an investment instrument primarily designed for risk-averse investors. Monthly Income Plans fall under the category of Hybrid Funds, where the majority of your investment goes into debts and money market instruments.

A Monthly income plan is preferred by conservative investors looking to create an alternate source of steady income. The investors have the luxury of liquidity aside from the regular dividends. However, the critical factor to note here is that the monthly income from MIPs is not fixed. Like all market-related investments, the dividends vary with profits.

Types of Monthly Income Scheme

Dividend-oriented monthly investment

The earnings generated through this plan is in the form of dividends. The dividends paid out to the individuals are tax-free.

Growth-Oriented monthly income plan

With this plan, earnings from the capital are accrued to the investment. Since the profit gets accumulated, your corpus grows.

Who should Invest in Monthly Income Plans?


Conservative Investors who are looking for better returns

Instead of parking your money in fixed deposits at an interest rate of 6-8%, you can easily switch to a MIP. The returns for MIP are usually in the range of 10-12%.


Investors who are looking for an alternative source of income

If you are a retired person looking for an additional income source aside from your pension, MIPs are your best bet as they provide periodic payouts.


Safeguard your future

We never know what the future has in store for us. It is essential to cultivate investment as a habit to not suffer from any financial crisis in our later years. MIPs helps you create a better corpus for your future.

Features and Benefits of Monthly Income Plans

MIP is an open-ended scheme. Investors need not pay any processing fee to join the scheme.
The returns offered by MIP are much better than what you obtain in fixed deposits and post office MIS Schemes.
It comes with the advantage of liquidity. There is no lock-in period for it, and investors can withdraw their funds anytime.
MIPs are handled by fund managers who have a thorough understanding of capital markets.
In the MIP, since your money is invested in low-risk securities like fixed income instruments, it is ideal for conservative investors.
The exit load on Monthly Investment Plans cannot exceed 1%.
There is no upper limit on the investment option. There is complete flexibility.

The Fincover Advantage

  • At Fincover, you can find a large selection of SIPs from multiple fund houses
  • Fill in a few details and compare SIPs from various financial institutions
  • Choose the one that fits your requirement and start investing

Things to Consider before choosing a Monthly Income Plan

  • Your Financial goals
  • The time horizon of the investment
  • The risk appetite of the investor
  • Potential wealth generation of the scheme
  • Tax benefits offered by the scheme