Want to invest a lump sum amount and I am looking for higher than debt returns over a year. I am also willing to taking on some risk (a max 10% capital erosion). Would monthly income plans (MIP - growth options) serve my purpose? If not, can you suggest some alternatives?
- Mark Lobo
MIPs are conservatively positioned funds which invest about 10-20 per cent of their portfolio in equities. Their equity portion helps them better the performance of pure debt funds in rising equity markets. Considering your willingness to earn more than debt funds, and preparedness to accept some amount of capital erosion, you can consider investing in MIPs, however, do not park your money in one go, invest via systematic route. You may choose any from our choice set below.
Alternatively you also can have a look in arbitrage funds since they are by nature give returns like debt but are more tax efficient than both MIP or debt funds.
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This article was originally published on April 09, 2010.
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