Monthly income plans or MIPs as they are popularly known are largely hybrid plans which invest a large amount of money in debt and can offer you fixed monthly income. It serves as good steady income for those seeking regular income. The only concern being that since these funds cannot guarantee you fixed returns like bank deposits. Here are a few Best Monthly Income Plans or MIPs you can invest in.
What we have also done is that we added two company fixed deposits that also offer you monthly income. So, along with MIPs you can also go for these deposits.
Birla Sun Life Monthly Income Plan
The Fund has generated a return of almost 19 per cent in the last one year. Bulk of the assets of the fund is in government dated securities, and the small exposure to shares has ensured that the returns are good. The returns since launch of the fund is closer to 9.5 per cent. One can invest in the fund through the SIP route with a small sum of Rs 1000.
Canara Robeco Monthly Income Plan
Canara Robeco Monthly Income Plan has given a return of almost 20 per cent in the last on year. Bulk of the money of the fund is invested in government securities. The fund's exposure to shares like ICICI Bank and L&T has ensured that it has performed well in the last one year. The last monthly dividend was Rs 0.0726 declared on Dec 26.
Franklin India Monthly Income Plan
Like other peers the fund has invested bulk of the amount in government dated securities, with exposure to equities as well for optimal returns. Franklin India Monthly Income Plan has given returns of 22 per cent in the last one year. A good bet for those looking at regular income. The current NAV of the fund for monthly dividend is around Rs 14.
Reliance Monthly Income Plan
The Fund has performed well in the last one year, giving a yield of 23 per cent. The fund has the largest exposure to government dated securities. Bulk of the assets are invested in them. Reliance Monthly Income Plan also has exposure to shares like Sundaram Clayton, ICICI Bank and HDFC Bank. The fund declared a monthly dividend of Rs 0.0508 on Dec 22.
SBI Magnum Monthly Income Plan - Floater
The one year return of the fund is 17 per cent. The fund has large exposure to certificate of deposits floated by UCO Bank, Oriental Bank of Commerce and Vijaya Bank. It also has exposure to shares of companies like Maruti Suzuki, HPCL and NRB Bearings.
IDFC Monthly Income Plan
The Fund has generated a return of almost 20 per cent in the last one year. Like other peers bulk of the assets under management are deployed in government dated securities. IDFC MIP also has exposure to stocks like State Bank of India, FAG Bearings and Infosys among others.
Bajaj Finserv is a AAA rated fixed deposit that offers you a monthly interest rate of 8.23 per cent on the 12-17 months fixed deposits, while 18-60 month deposit offers you an interest rate of 8.32 per cent.
These are very safe deposits, since they come from the Bajaj stable.
Shriram Transport is yet another AAA rated deposits that gives an interest rate of 7.95 per cent on its monthly income fixed deposits for 12 months and 8.19 per cent for two and three years.
Slightly lower than others, so, you can consider other options if you get a higher interest rate.