answersLogoWhite

0


Best Answer

Monthly income plans, or MIPs, as they are more popularly known, are a category of mutual funds that invest mainly in debt instruments. Only about 10-20% of the assets are allocated to equity stocks. But the very name - monthly income plan - is a bit misleading, as these funds do not guarantee a monthly income. Like any other mutual fund, the returns of this fund are market-driven. Though many fund houses strive to declare a monthly dividend, they have no such obligation. The fund house may opt to skip a month without a dividend depending on the market performance.

MIPs are launched with the objective of giving a monthly income to investors, but the periodicity depends upon the option chosen by the investor. These are generally monthly, quarterly, half-yearly and annual options. A growth option is also available, where the investors do not receive regular dividends, but gains in the form of capital appreciation.

Suitability

MIPs are suitable for conservative investors who want to earn marginally better returns than a debt-only portfolio. Conservative investors generally remain invested in fixed income instruments, but sometimes they need returns that are above the inflation by a few points. Obviously, equity exposure is the best way to provide this meaningful return over the inflation. A MIP typically invests bulk of its assets in debt, while a small equity exposure is maintained to earn something extra.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Monthly Income Plan objective- MIP
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are some Monthly Income Plans in India?

These are Mutual Funds that invest in Fixed Income (Debt) Instruments and aim at providing a regular income/cash-flow to the investor. Usually a lump-sum investment is received from the investor and dividends are paid out regularly to the investors.Example:a. HDFC Monthly Income Plan - LTPb. Reliance Monthly Income Planc. Birla Sun Life MIP II - Savings 5 Pland. etc


What does Mip mean?

"MIP" can stand for various things depending on the context. Some common meanings are "Mortgage Insurance Premium," "Media Interface Plus," and "Minimum Information Principle." Can you provide more context so I can give a more specific answer?


Is mortgage insurance required on manufactured housing loans through FHA?

MIP (mortgage insurance premium) is required on all 30yr fixed FHA loans. 1.5% MIP funding fee, and the monthly 0.5% MIP payment


Does A Members Investment Plan or MIP contribution qualify for a Michigan income tax credit on form 8880 of the MI 1040?

how the heck should i know I'm only ten gosh


Benefits of monthly income plans and suitability?

Monthly income plans, or MIPs, as they are more popularly known, are a category of mutual funds that invest mainly in debt instruments. Only about 10-20% of the assets are allocated to equity stocks. But the very name - monthly income plan - is a bit misleading, as these funds do not guarantee a monthly income. Like any other mutual fund, the returns of this fund are market-driven. Though many fund houses strive to declare a monthly dividend, they have no such obligation. The fund house may opt to skip a month without a dividend depending on the market performance.MIPs are launched with the objective of giving a monthly income to investors, but the periodicity depends upon the option chosen by the investor. These are generally monthly, quarterly, half-yearly and annual options. A growth option is also available, where the investors do not receive regular dividends, but gains in the form of capital appreciation.SuitabilityMIPs are suitable for conservative investors who want to earn marginally better returns than a debt-only portfolio. Conservative investors generally remain invested in fixed income instruments, but sometimes they need returns that are above the inflation by a few points. Obviously, equity exposure is the best way to provide this meaningful return over the inflation. A MIP typically invests bulk of its assets in debt, while a small equity exposure is maintained to earn something extra.


What are Monthly Income Plans?

Monthly income plans, or MIPs, as they are more popularly known, are a category of mutual funds that invest mainly in debt instruments. Only about 10-20% of the assets are allocated to equity stocks. But the very name - monthly income plan - is a bit misleading, as these funds do not guarantee a monthly income. Like any other mutual fund, the returns of this fund are market-driven. Though many fund houses strive to declare a monthly dividend, they have no such obligation. The fund house may opt to skip a month without a dividend depending on the market performance.MIPs are launched with the objective of giving a monthly income to investors, but the periodicity depends upon the option chosen by the investor. These are generally monthly, quarterly, half-yearly and annual options. A growth option is also available, where the investors do not receive regular dividends, but gains in the form of capital appreciation.SuitabilityMIPs are suitable for conservative investors who want to earn marginally better returns than a debt-only portfolio. Conservative investors generally remain invested in fixed income instruments, but sometimes they need returns that are above the inflation by a few points. Obviously, equity exposure is the best way to provide this meaningful return over the inflation. A MIP typically invests bulk of its assets in debt, while a small equity exposure is maintained to earn something extra.


What is full form of MIP?

Mip


How much is the cost of a Michigan MIP?

The cost of a MIP ticket is $200.


How many mip tickets are given out?

Hard to say exactly how many MIP's are given out, but around each weekend anywhere from 50-200 MIP's can be received.


What is the Statue of Limitations on an MIP in Washington state?

What is the Statue Of Limitations on an MIP in Washington state?


What is the ticker for Fidelity MIP?

The Fidelity MIP does not have a ticker. It is not an equity or mutual fund, so information may be hard to find, because it is not followed on morningstar, google finance, etc. If this investment is in your 401(k) plan, ask your HR department where you can find more information. The Fidelity MIP does not have a ticker. It is not an equity or mutual fund, so information may be hard to find, because it is not followed on morningstar, google finance, etc. If this investment is in your 401(k) plan, ask your HR department where you can find more information.


When was MIP Politecnico di Milano created?

MIP Politecnico di Milano was created in 1979.