{"id":7785,"date":"2025-07-15T07:36:11","date_gmt":"2025-07-15T07:36:11","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7785"},"modified":"2025-07-15T07:36:15","modified_gmt":"2025-07-15T07:36:15","slug":"monthly-income-plans-mips","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/monthly-income-plans-mips\/","title":{"rendered":"Monthly Income Plans (MIPs)"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/monthly-income-plans-mips\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Monthly Income Plans (MIPs)<\/a>, also called <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/monthly-income-schemes-mis\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Monthly Income Schemes (MIS)<\/a>, are investment options that pay you a steady income every month. They work like a safety net:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stable core<\/strong>: Most of your money goes into low-risk debt (like <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bonds<\/a>).<\/li>\n\n\n\n<li><strong>Growth potential<\/strong>: A small part is in <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>equity<\/a> to boost returns.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"types-of-monthly-income-plans\" class=\"wp-block-heading\">Types of Monthly Income Plans<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/post-office-monthly-income-scheme-pomis\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Post Office Monthly Income Scheme (POMIS)<\/a><\/strong>\n<ul class=\"wp-block-list\">\n<li>Govt-backed with ~7.4% annual return, paid monthly.<\/li>\n\n\n\n<li>5-year lock-in, &#x20B9;1,500 minimum, up to &#x20B9;9 lakh (joint) or &#x20B9;4.5 lakh (single).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/fixed-deposit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Fixed Deposit<\/a> Monthly Schemes<\/strong>\n<ul class=\"wp-block-list\">\n<li>Offered by banks and NBFCs; interest paid monthly.<\/li>\n\n\n\n<li><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/yield\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Yield<\/a>s vary 6&ndash;9%, flexible durations.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/senior-citizen-savings-scheme-scss\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Senior Citizen Savings Scheme (SCSS)<\/a><\/strong>\n<ul class=\"wp-block-list\">\n<li>For retirees (60+), ~8% annual rate, quarterly payouts.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Monthly Income <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Mutual Fund<\/a>s (MIPs)<\/strong>\n<ul class=\"wp-block-list\">\n<li>Hybrid mutual funds: 70&#x2013;80% in debt, 20&#x2013;30% in equity.<\/li>\n\n\n\n<li>Income via monthly <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">dividend<\/a> or SWP; returns market-linked.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Annuity Plans &amp; Government Pension Plans<\/strong>\n<ul class=\"wp-block-list\">\n<li>E.g., Atal Pension Yojana, NPS annuity options&#x2014;guaranteed monthly pension.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 id=\"key-features\" class=\"wp-block-heading\">Key Features<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regular payouts<\/strong>: Monthly income for living <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a>.<\/li>\n\n\n\n<li><strong>Low to moderate risk<\/strong>: Mostly debt investments; MIPs include some equity.<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/liquidity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Liquidity<\/a><\/strong>: Varies&#x2014;POMIS has 5-year lock-in; mutual funds are more flexible.<\/li>\n\n\n\n<li><strong>Professional management<\/strong>: Fund managers handle debt\/equity mix.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"benefits-of-monthly-income-plans\" class=\"wp-block-heading\">Benefits of Monthly Income Plans<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Steady <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/cash-flow\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">cash flow<\/a><\/strong>: Helps retirees and co<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>nse<\/a>rvative investors.<\/li>\n\n\n\n<li><strong>Capital preservation<\/strong>: Most money in low-risk instruments.<\/li>\n\n\n\n<li><strong>Potential better returns<\/strong>: POMIS, SCSS often beat regular FDs.<\/li>\n\n\n\n<li><strong>Flexibility<\/strong>: Choose schemes based on risk, returns, and payout needs.<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> advantages<\/strong>: Some plans like SCSS, annuities offer tax benefits; mutual funds taxed based on holding period.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"quick-comparison\" class=\"wp-block-heading\">Quick Comparison<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Scheme<\/th><th>Risk<\/th><th>Payout<\/th><th>Liquidity<\/th><th>Tax Implication<\/th><\/tr><\/thead><tbody><tr><td>POMIS<\/td><td>Low<\/td><td>Monthly<\/td><td>5-year lock-in<\/td><td>Interest taxable<\/td><\/tr><tr><td>FD MIS<\/td><td>Low<\/td><td>Monthly<\/td><td>Pre-withdrawal penalty<\/td><td>Interest taxable<\/td><\/tr><tr><td>SCSS<\/td><td>Low<\/td><td>Quarterly<\/td><td>5-year lock-in<\/td><td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-80c\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 80C<\/a> deduction<\/td><\/tr><tr><td>MIP Mutual Funds<\/td><td>Moderate<\/td><td>Monthly\/SWP<\/td><td>High<\/td><td>STCG\/LTCG rules<\/td><\/tr><tr><td>Annuity Plans<\/td><td>Low<\/td><td>Monthly Pension<\/td><td>Locked life term<\/td><td>Depends on plan<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\">\n\n\n\n<h2 id=\"example-&#x20B9;9-lakh-in-pomis\" class=\"wp-block-heading\">Example: &#x20B9;9 Lakh in POMIS<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Invest &#x20B9;9 lakh at ~7.4% annual interest &#x2192; &#x20B9;5,550\/month income.<\/li>\n\n\n\n<li>Guaranteed, low risk&#x2014;but interest is taxable.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"is-an-mip-right-for-you\" class=\"wp-block-heading\">Is an MIP Right for You?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Choose based on <strong>age<\/strong>: Retirees may prefer SCSS\/POMIS.<\/li>\n\n\n\n<li>Choose based on <strong>risk appetite<\/strong>: MIPs offer moderate growth.<\/li>\n\n\n\n<li>Choose based on <strong>liquidity needs<\/strong>: Some schemes lock money in.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Monthly Income Plans (MIPs), also called Monthly Income Schemes (MIS), are investment options that pay you a steady income every month. They work like a safety net: Types of Monthly Income Plans Key Features Benefits of Monthly Income Plans Quick Comparison Scheme Risk Payout Liquidity Tax Implication POMIS Low Monthly 5-year lock-in Interest taxable FD [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7785","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7785\/revisions"}],"predecessor-version":[{"id":7786,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7785\/revisions\/7786"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}