The monthly income plan or MIP is a hybrid mutual fund scheme, which combines debt and equity securities. The objective is to have stable returns by investing primarily in fixed income securities and limiting equity exposure to 10-30% (in most cases) for growth.
Slowly but surely, the tide is changing for the Indian economy and corporate earnings, which bodes well for the equity market. At the same time, with the Reserve Bank of India (RBI) reiterating its accommodative stance on interest rates, bond yields are expected to move lower. With both asset classes expected to do well, MIPs could potentially be in a sweet spot.
