Who needs an MIP?
Before we proceed, we have to point out that this category is badly misnamed. The funds may try but are not obliged to give you a regular monthly income. A typical MIP invests a bulk of its assets in debt, and a small portion in equity to earn that something extra. It is a great option if you are a conservative investor. That means: – You want to earn a marginally better return than had you invested only in debt. – Unwilling to enter the stock markets, either directly or via a diversified equity fund. – You don’t need the hassle of continuously monitoring or being involvement in your investments. The logic is clear. Investors who want to keep their investments simple are normally conservative and prefer to invest where they can get a fixed income. Since fixed income returns have been on the way down over the last few years, such investors will need something else that will let their returns rise at least a few meaningful points above the inflation rate. Hence, they need to consider a s
