Best MIP Mutual Fund Monthly Income Plan in 2019

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Monthly Income Plan is a kind of mutual fund which is oriented with debt and it provides a steady income in the form of regular dividend pay-out. As because the investor get an option of getting a monthly income in a dividend’s form, this has been termed as MIP or Monthly Income Plan. 70-80% of the money of these monthly income plans is invested in the instruments of debt such as government securities, corporate bonds etc. and the MIP invests the last remaining 20-25% of the total money in the equity market. If you want to invest through SIP then you can take idea for return using our SIP Calculator Online.

Types of MIP/ Monthly Income Plan

There are two variants available in MIP- one is Aggressive MIP Mutual Fund and the other one is Conservative MIP Mutual Funds.

  1. Aggressive MIP Mutual Funds:-By the Aggressive MIP, maximum 30% of the amount invested in the equity and the rest of the 70% of the amount is invested in the debt instruments. The nature of this aggressive MIP is high return and high risk. The investors get a better return with aggressive MIP.
  2. Conservative MIP Mutual Funds:-Up to 20% is invested by the Conservative MIP in the equity and the rest of the 80% amount is invested in the debt instruments. For the investors who do not like take high risk, conservative MIP is suitable for them. In comparison with the aggressive MIP mutual funds, less return is given by the conservative MIP.

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Options for the Monthly Income Plan

Investors get two options in monthly income plan- one is Monthly Income Plan with the dividend option and the other one is Monthly Income Plan with the Growth option.

  • MIP with Dividend Option:-You will get income in the form of dividend regularly with the MIP with dividend options. You can select the frequency of the dividend pay-out- quarterly, annually, monthly or half-yearly when you are starting with this investment. If you are in search of regular income, this kind of MIP is ideal for you.
  • MIP with Growth Option:-You will be given capital appreciation with the MIP with Growth options. If you choose the growth option, the capital investment will be growing. When these funds are redeemed in anytime in the future, the benefits of this appreciation will be provided to you. If you are no looking out for a regular steady income, then you can go for this growth option.

Why Invest in MIP:

If you are looking for a steady regular additional income or some extra returns above your regular earning then you can consider investing in MIP. Here are the reasons why to invest in MIP:-

  • Better returns are delivered than fixed deposits or POMIS.
  • There is no fixed investment limit.
  • There is no requirement of paying any entry load.
  • There is no lock-in tenure.
  • There is an exit load but it is not more than 1% ever.
  • The liquidity is comparatively higher.

How to Choose the Best MIP Mutual Fund:

  • Investment objective:-Everyone invest with an exact objective at it helps a lot in selecting the best MIP mutual fund. The time period varies according to the aim and the objective such as saving up for the car’s down payment is regarded as a short term goal whereas working out the finances for the education of your children or their marriage is always a long term goal.
  • Knowing the Fund house:-While you are investing in a fund, you are giving a mandate to the chosen fund house of managing your invested money on your behalf. So, you should make sure the fund house is capable of managing the investments properly. If the fund house fails to do so, you may lose all your hard earned money.
  • Performance of the Fund;The main concern of any investment is getting good returns. So you must consider the returns provided by the funds at different points of time and then compare them as well to get the best MIP mutual fund.
  • The expenses of Recurring:-Some of the costs may seem to be small but they have a huge impact on the returns in the long run. The recurring cost is the expense ratio in the mutual funds and even a little different in that can make big difference in the long term investments. Generally, if the size of the fund is big, the recurring cost will be less.
  • Knowing the Fund Manager:-It is vital to know thoroughly about the fund manager as well. This is possible by analysing the funds managed by the manager and the performance of those funds especially hen the market may have gone through a difficult time.

Check out Some Popular MIP Mutual Fund suggested by Value research Online

Some of the Best MIP Mutual Funds:-


HDFC Equity Saving Fund-Direct Plan

This is a popular and one of the best MIP mutual funds. This one is an aggressive MIP mutual fund. Its annualised returns are 25.30% in the first year, 11.30% in the second year and 13.10% in the third year.

HDFC Equity Saving Fund

This one is a popular aggressive MIP mutual fund. 23.70%, 10.10%, and 12.20% are the annualised return returns of this mutual fund on the first, second and third year consecutively.

Birla SL MIP II- Wealth 25

This one is also an aggressive best MIP mutual fund. The annualised return rates are 21.10%, 9.20% and 16.30% consecutively on the first, second and third year.

ICICI Pru Multiple Yield Series 2

This mutual fund is known as an aggressive MIP mutual fund, the rates of annualised returns of this fund are respectively 23.40%, 18.00% and 16.30% on the first, second and third years.

ICICI Prudential MIP 25

The rates of the annualised returns of this aggressive MIP are 16.50%, 8.20 % and 14.10% on the first, second and third year respectively.

SBI Magnum MIP Direct

This MIP mutual fund is a conservative MIP mutual fund. 15.40%, 10.40%, and 14.20% are the rates of the annualised returns on the first, second and third year respectively.

ICICI Pru MIP Direct

this mutual fund is a popular conservative MIP mutual fund. On the first, second and third year, the rates of annualised returns are 14.60%, 8%, 12.80%.

Tata Regular Saving Equity Fund-Direct

This is also a conservative MIP mutual fund whose annualised return rates on the first, second and third year are 13.70%, 5.5%, 10.10% respectively.

UTI Monthly Income Scheme Direct

This well-known Monthly Income plan mutual fund is included in the list of conservative mutual funds. The rates of the annualised return are 12.70%, 7.60% and 11.30% on the first, second and third year respectively.

Birla SL MIP II Savings 5

This mutual fund is a conservative MIP mutual fund. The rates of the annualised returns on this mutual fund are 13.10% in the first year, 8.10% in the second year and 12.00% in the third year.



Like everything else, MIP also comes with its own share of advantages and disadvantages. But MIP is still one of the best and most reliable investment options undoubtedly which will help you to generate a regular and steady income and to fulfil all the regular expenses.

If you have a plan to invest you’re hard earned money in the fixed deposits you can consider the MIPS first and then only take the decision regarding investment. So set your financial goal, determine your objectives and then select your scheme of MIP mutual fund.


Written by

Namdev Verma

Namdev Verma is the man behind Currently I am live in UK and worked as Investment Consultant. if you have any query related to SIP or Mutual Fund then ping me or msg me.

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