Need steady income ? Think of Mutual Funds Monthly income plans

Monthly Income Plan invests in government securities, corporate debt and money market instruments as well as a small portion in equity. The equity portion is invested across market stocks.

Key Benefit

Monthly Income Plan fits in nicely between a bond fund and a balanced fund. It has the advantage of choosing among sovereign, corporate and money market instruments while the flexibility to invest upto 15% to 25% of the portfolio in equity.

Tax Efficiency

• Choosing a SWP on MIP with growth option is a tax efficient way of enjoying the benefits of the investment. Dividend income from MIP is subject to dividend distribution tax at 28. 84% (for individuals/HUF). However investors opting for SWP from growth option are subjected to pay short term capital gains tax or long term capital gains tax depending on the period of their investments. One of the efficient strategies is to start SWP after 3 years from the investment date. This ensures that the withdrawals are only subjected to long term capital gains tax. Long term capital gains on debt funds are taxed much lower at 20% with indexation benefit.
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This product is suitable for investors who are seeking*:

Long term capital appreciation and current income Investment in equity and equity related instruments as well as fixed income securities (debt and money market securities).

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

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