logging in or signing up Monthly_Income_Plan_(MIP) shivkumarkalra Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 27 Category: Education License: Some Rights Reserved Like it (0) Dislike it (0) Added: October 17, 2011 This Presentation is Public Favorites: 0 Presentation Description Monthly Income Plan (MIP) Comments Posting comment... Premium member Presentation Transcript Slide 1: Monthly Income Plans (MIPs) www.freemutualfunds.comSlide 2: Meet Mr. Lal Mr. Lal has saved money for his son's education His son will go abroad for his higher studies after 3 years Where should Mr. Lal invest his money?? www.freemutualfunds.comSlide 3: Meet Mr. Sharma Mr. Sharma is looking forward to buying a house after 3 years He has already saved a considerable amount for buying the house Where should Mr. Sharma invest this money for 3 years?? www.freemutualfunds.comSlide 4: Medium Term Investment Where to invest the money for 2-3 year Period? Equities are too risky for short term Debt is going to give me very low post tax returns www.freemutualfunds.comSlide 5: MIP If you want to invest for 2-3 years, take lower risk and get higher return than debt, the solution is MIP www.freemutualfunds.comSlide 6: What is MIP? Monthly Income Plans or MIPs are hybrid category of mutual fund schemes MIP invest 70%-90% of money in Debt and 10-30% in Equities MIP is right product for having stable returns with an Equity kicker MIP is the product for investor looking forward to invest for 18- 36 months AMC may declare regular dividends in MIP on a monthly or quarterly basis, but they are not obliged to do the same www.freemutualfunds.comSlide 7: MIP - Unique Features MIP is a better investment option than FD Suitable for conservative investors Beats inflation over a longer duration due to equity exposure Less Volatile than Equity Funds Higher frequency of dividend payouts on monthly/quarterly basis Suitable for senior citizens (AMC does not guarantee a regular dividend flow) www.freemutualfunds.comSlide 8: MIP - Taxation MIP treated as Debt in MF Taxation Short Term Capital Gains are taxed as per Investor's Income slab Long Term Capital Gains are taxed at 10% without indexation benefit or at 20% with indexation benefit. Dividends Paid under MIPs are TAX-FREE in the hands of the investors, however the AMC have to pay Dividend Distribution Tax (DDT) at 13.8% www.freemutualfunds.comSlide 9: MIP - What Returns Can I Expect? Based on various Market Scenarios, following returns can be expected in MIP Debt:Equity Ratio of MIP 90:10 80:20 70:30 Equity Returns Returns Expected 20.00% 8.30 9.60 10.90 15.00% 7.80 8.60 9.40 10.00% 7.30 7.60 7.90 5.00% 6.80 6.60 6.40 0.00% 6.30 5.60 4.90 -5.00% 5.80 4.60 3.40 -10.00% 5.30 3.60 1.90 Assuming returns of Debt at 7% www.freemutualfunds.comSlide 10: Performance of Select MIPs Scheme Name 180 Days 1 Year 2 Years 3 Years 5 Years Birla Sun Life MIP - Gr 5.33 9.86 13.26 8.01 8.81 Birla Sun Life Monthly Income - Gr 4.95 10.63 13.79 9.69 10.13 Canara Robeco Monthly Income Plan - Gr 6.39 10.12 14.35 10.5 13.19 ICICI Prudential MIP 25 Gr 6.09 9.86 12.89 8.32 9.84 Principal MIP Gr-Accumulation 3.3 6.39 9.7 9.69 8.51 Reliance MIP Gr 6.67 13.78 20.85 15.46 12.64 #Performance as on Aug 20, 2010. www.freemutualfunds.comSlide 11: Calender Year-wise Performance of Select MIPs #Performance as on May 31, 2010. www.freemutualfunds.comSlide 12: MIP Ideal for Medium Term Investors for 2-3 years Investors who want to take low risk on their investment Retired people looking for regular income flow Investors whose goals are approaching near Investors looking forward to making additional return than bank FD www.freemutualfunds.comSlide 13: Thank You www.freemutualfunds.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Monthly_Income_Plan_(MIP) shivkumarkalra Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 27 Category: Education License: Some Rights Reserved Like it (0) Dislike it (0) Added: October 17, 2011 This Presentation is Public Favorites: 0 Presentation Description Monthly Income Plan (MIP) Comments Posting comment... Premium member Presentation Transcript Slide 1: Monthly Income Plans (MIPs) www.freemutualfunds.comSlide 2: Meet Mr. Lal Mr. Lal has saved money for his son's education His son will go abroad for his higher studies after 3 years Where should Mr. Lal invest his money?? www.freemutualfunds.comSlide 3: Meet Mr. Sharma Mr. Sharma is looking forward to buying a house after 3 years He has already saved a considerable amount for buying the house Where should Mr. Sharma invest this money for 3 years?? www.freemutualfunds.comSlide 4: Medium Term Investment Where to invest the money for 2-3 year Period? Equities are too risky for short term Debt is going to give me very low post tax returns www.freemutualfunds.comSlide 5: MIP If you want to invest for 2-3 years, take lower risk and get higher return than debt, the solution is MIP www.freemutualfunds.comSlide 6: What is MIP? Monthly Income Plans or MIPs are hybrid category of mutual fund schemes MIP invest 70%-90% of money in Debt and 10-30% in Equities MIP is right product for having stable returns with an Equity kicker MIP is the product for investor looking forward to invest for 18- 36 months AMC may declare regular dividends in MIP on a monthly or quarterly basis, but they are not obliged to do the same www.freemutualfunds.comSlide 7: MIP - Unique Features MIP is a better investment option than FD Suitable for conservative investors Beats inflation over a longer duration due to equity exposure Less Volatile than Equity Funds Higher frequency of dividend payouts on monthly/quarterly basis Suitable for senior citizens (AMC does not guarantee a regular dividend flow) www.freemutualfunds.comSlide 8: MIP - Taxation MIP treated as Debt in MF Taxation Short Term Capital Gains are taxed as per Investor's Income slab Long Term Capital Gains are taxed at 10% without indexation benefit or at 20% with indexation benefit. Dividends Paid under MIPs are TAX-FREE in the hands of the investors, however the AMC have to pay Dividend Distribution Tax (DDT) at 13.8% www.freemutualfunds.comSlide 9: MIP - What Returns Can I Expect? Based on various Market Scenarios, following returns can be expected in MIP Debt:Equity Ratio of MIP 90:10 80:20 70:30 Equity Returns Returns Expected 20.00% 8.30 9.60 10.90 15.00% 7.80 8.60 9.40 10.00% 7.30 7.60 7.90 5.00% 6.80 6.60 6.40 0.00% 6.30 5.60 4.90 -5.00% 5.80 4.60 3.40 -10.00% 5.30 3.60 1.90 Assuming returns of Debt at 7% www.freemutualfunds.comSlide 10: Performance of Select MIPs Scheme Name 180 Days 1 Year 2 Years 3 Years 5 Years Birla Sun Life MIP - Gr 5.33 9.86 13.26 8.01 8.81 Birla Sun Life Monthly Income - Gr 4.95 10.63 13.79 9.69 10.13 Canara Robeco Monthly Income Plan - Gr 6.39 10.12 14.35 10.5 13.19 ICICI Prudential MIP 25 Gr 6.09 9.86 12.89 8.32 9.84 Principal MIP Gr-Accumulation 3.3 6.39 9.7 9.69 8.51 Reliance MIP Gr 6.67 13.78 20.85 15.46 12.64 #Performance as on Aug 20, 2010. www.freemutualfunds.comSlide 11: Calender Year-wise Performance of Select MIPs #Performance as on May 31, 2010. www.freemutualfunds.comSlide 12: MIP Ideal for Medium Term Investors for 2-3 years Investors who want to take low risk on their investment Retired people looking for regular income flow Investors whose goals are approaching near Investors looking forward to making additional return than bank FD www.freemutualfunds.comSlide 13: Thank You www.freemutualfunds.com