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.