Best Monthly Income Funds (MIPs) to Invest in 2024

Making a smart investment is a crucial step of financial planning. Whether you want to invest for the long-term or short-term, choosing the right investment plan always seems to be a herculean task. Nowadays, you can get many options for long-term investments available in the market. However, if you want to invest with an objective of regular returns then monthly income plans are the best option of investment.

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7.7 Crore

Registered Consumer

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4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Monthly income plans are an investment option in which the investors receive a specific sum of return per month. The returns are generated after having invested for a few years. These plans are debt oriented schemes, wherein the investment is made in the mix of debt and equity instruments. The major objective of monthly income plans is to provide an increased regular return to the low-risk investors by investing a small amount in equity instruments.

In MIPs the major investments are done in debt instruments such as government securities, treasury bills, commercial paper, etc. The debt portion of investment ensures safety, consistency and stability and the equity portion boosts the return.

To help you know more about MIPs, here we have shown in detail some of the best monthly income plans you can consider to invest in 2023.

Funds Name	Returns(%)
	1 Year (%)	3 Years (%)	5 Years (%)
Aditya Birla Sun Life Regular Savings Fund	-1.5	2.9	5.5
Baroda Pioneer Conservative Hybrid Fund	10.5	7.5	6.7
DSP Balckrock Regular Savings Fund	2.3	2.5	4.5
HDFC Hybrid Debt Fund	-2.04	2.85	5.06
ICICI Prudential MIP 25	4.7	7.6	7.7
ICICI Prudential Monthly Income Plan	5.5	7.6	9.1
Invesco India Regular Savings Fund	5.7	7.4	6.9
Reliance Hybrid Bond Fund	-16.49	-1.56	1.65
UTI Regular Savings Fund	-8.68	1.47	4

Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Aditya Birla Sun Life Regular Savings Fund

This is another hybrid debt-oriented fund, which is considered as one of the best monthly income plans for regular returns. In the last 5 years, Aditya Birla Sun Life Regular Savings Fund has generated a return of 10.99% with an average of 9.55% since its inception. The investors can easily invest in this scheme with a minimum investment of Rs.500 either in lump-sum or through SIP.

The fund majorly invests in debt and money market instruments with an objective to create a safe and regular return on investment. Moreover, a small portion of the money is also invested in equities in order to generate capital appreciation. This fund is best suitable for investors who have moderate to low-risk investment appetite and who want to gain the benefit of capital appreciation and regular ROI.

Baroda Pioneer Conservative Hybrid Fund

Launched on 8^th September 2004, Baroda Pioneer Conservative fund is a hybrid debt fund, which has given a return of 6.3% since its inception. The main objective of the scheme is to generate a safe and regular return by investing in debt and money market instruments such as corporate bonds, government securities, treasury bills, etc. The fund also aims to generate long-term capital growth by investing a small portion in equity and equity relates securities. The fund offers a moderately high risk on investment and is a lucrative option of investment for investors who wants to have a regular flow of income along with the benefit of wealth creation.

People Also Read: SIP Calculator

DSP Blackrock Regular Savings Fund

Another option of best monthly income scheme, DSP Blackrock Regular Savings Fund is a hybrid debt fund that was launched in the year 11^th June 2004. The fund aims to generate a safe and regular return on investment by making the investment is quality debt securities. The fund also makes a small portion of investment in equity securities with an objective to create long-term capital growth. DSP Blackrock Regular Savings Fund is a moderately high-risk investment option, which has offered a return of 8.5% since its launch.

HDFC Hybrid Debt Fund

This hybrid debt fund is considered as one of the best monthly income plans available in the market. In the last 5 years, the fund has given an average return of 9.76% and has given 10.44% of average return since its launch in the year 2003. The investors can start investing in HDFC hybrid debt fund with a minimum lump-sum investment of Rs.5000 and Rs.500 through SIP.

The scheme majorly invests in debt instruments such as government securities and corporate bonds of companies like ICICI Bank, SBI, Infosys, L&T, etc. The major objective of the scheme is to provide regular returns on investment along with the benefit of long-term capital growth. The fund is best suitable for investors who have a moderate risk appetite and who want to gain regular flow of income along with the advantage of long-term capital growth.

ICICI Prudential MIP 25

As one of the best monthly income plans, this scheme aims to generate regular income by investing majorly in debt and money market instruments. Along with the investment in a debt instrument, the scheme also invests a small portion in equity and equity-related instrument with an objective to gain long-term capital appreciation. The fund offers a moderately high risk on investment and has given a return of 9.8% since its launch. This fund is best suitable for investors who have a moderate risk appetite and who want to gain a regular return on investment along with the benefit of capital appreciation.

ICICI Prudential Monthly Income Plan

As one of the best monthly income schemes, ICICI Prudential Monthly Income plan is a hybrid debt fund, which majorly invests in debt instruments. The major objective of this scheme is to generate regular returns along with the benefit of capital appreciation. This fund is best suitable for investors who have a low-risk appetite and who wants to have a regular flow of income.

Invesco India Regular Savings Fund

Launched on 1^st June 2010, Invesco India Regular Savings Fund is another hybrid debt fund, which is considered as one of the best monthly income plans. The major objective if the scheme is to generate regular income by investing in the portfolio of fixed income securities such as Gold ETF, equity and equity-related instruments. The fund offers a moderately high risk of investment and has given a return of 6.9% since its launch. This fund is best suited for individuals who have a moderate or low-risk appetite and who want to gain a regular return on investment.

Reliance Hybrid Bond Fund

This is another hybrid debt-oriented fund, which is considered as one of the best monthly income plans for regular returns. In the last 5 years, Reliance Hybrid Bond Fund has generated a return of 9.84%. The investors can easily invest in this scheme with a minimum investment of Rs.5000 r in lump-sum and Rs.500 through SIP.

UTI Regular Savings Fund

Since the inception of the policy, UTI Regular Savings Fund has offered a return of 9.72%. The investors can make an investment in this scheme with a minimum lump-sum of Rs.5000 and Rs.500 through SIP. In the last 5 years, the fund has offered a return of 10.18% whereas the average return of the fund has been 8.44% in the last 3 years. This monthly income plan falls under the category of the debt-oriented fund in which the money is majorly invested in debt instruments such as government securities, corporate bonds, etc. As a lucrative option investment, this fund is best suited for individuals who have a moderately high-risk appetite and who want to gain a regular return on investment along with the benefit of capital growth.

Wrapping It Up!

Apart from these mutual funds monthly income plans, there are other investment options such as fixed maturity plan, post-office monthly income plan, etc. are also a profitable option of investment. However, if you are looking for better returns then mutual fund monthly income plans are worth considering.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).