Monthly Income Plan – Alternative to Bank Fixed Deposits?

monthly income plan investment

Query:

I was looking at a Monthly Income Plan (MIP) both conservative and aggressive as an alternative to FDs. Is that also a good option?

My goal is to distribute my Debt portfolio from Bank FDs. Debt funds are as good as FD but with TAX benefit.

I believe because of the small equity component ( 0% to 30%) in Aggresive MIPs they can offer a good return in debt portfolio with low risk which makes it better than Balanced Equity Funds and Debt Funds on either side of investments.

Hence I believe along with Bank FDs, Debt Mutual Funds a person should also diversify and invest in Aggressive MIPs as one of the debt instruments.

What is your thought on this?

Investor

Here’s my response:

To begin with, let’s do an overview of a Monthly Income Plan or MIP.

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