December 15, 2010 2:59 pm
Which is the Best Monthly Income Plan in Mutual Funds ?
I agree with MoneySavingsHelp. I have been investing in HDFC and Reliance MIP for over 15 months and have earned 12% returns.
I am very much satisfied with the performance of these 2 funds.
I would recommend HDFC MIP and Reliance MIP.
Hope it will help you.
But if you compair with Post office MIP, Is still HDFC & Reliance is the best ? and why ?
Both the funds have given consistent returns – around 12% p.a. average from last several years. In some particular year like 2008, when sensex crashes, it gave negative returns in some months, but in 2009, it gave double digit returns.
Post office MIS can give you fixed return of around 8.5% (including maturity bonus).
So, if your requirement is monthly income without any fail, like if you’re retiree or any other reason, you should opt for post office MIS and compromised with little less return. But if you can take little risk and can face months without monthly income for some months, mutual funds MIP will give you more returns in long term.
I would like to know about tax that I have to pay on the income/return I get from any mutual fund MIP scheme ?
If you sell the fund units before a year and there is a gain, short-term capital gains (STCG) tax is applicable – the net gain will be added to current taxable income and tax will be levied as per your personal income tax slab. If you sell units after a year and there is a gain, a long-term capital gains (LTCG) tax is applicable – 10 % tax will be levied (without indexation benefit) or 20 %tax with indexation benefit, whichever is lower.
However, if you take dividend option, they are tax-free.
But tell me one thing. I hav 40,000. Can I invest Lumpsum or via SIP.
what is ur suggestion for that
There is no point of SIP in MIP. Go for lumpsum in it.
I dont invest in MIPs and hence cannot recommend one.
I would recommend you to visit http://www.valueresearchonline.com for more details.
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