Wednesday, December 28, 2005

Mutual Funds- Monthly Income Plans

Monthly Income Plans (MIP's) are mutual funds that try to give regular dividends to investors who have bought units of these types of mutual funds.

Though returns are not guaranteed and are subject to market risk, they are an ideal choice for investors with a moderate risk appetite seeking some form of income.

Investors who do not want to invest in diversified equity funds or even balanced funds (funds that invest in both equity(Stock market) and debenturs) can consider making investments in MIPs.

These funds invest more in debt (fixed return investments) than in equity (Stock markets). Hence they are safer than equity funds and balanced funds. Moreoever, the average one year return of 9.52% is higher than what you will get on a conventional fixed deposit.

Here are the Some of the best MIPs:
1)Birla MIP
2)DSPML Savings Plus Moderate
3)Franklin Templeton India MIP
4)HDFC MIP Long-term
5)Prudential ICICI MIP