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
Growth-Oriented monthly income plan
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
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