MIP is a debt oriented fund having a mandate of investing majority into debt instruments (75-85%) and a small part of its assets (generally 15-25%) into equities. It thus combines stability of debt with the power of equities. As the name suggests, MIP is intended to offer monthly income, however it is not mandatory to pay monthly dividends as the same will depend on the availability of distributable surplus in the scheme. Besides monthly option, MIP’s also has quarterly, half yearly, annual dividend options. It also has growth option wherein the investors don’t get dividend payouts, but will get returns in the form of capital appreciation.
MIP should not be confused with balanced fund, because the equity exposure in balanced fund is more than 65% while that in MIP is generally between 15-25%.
DSP Black Rock Savings Plus – Aggressive plan
The fund has 17% exposure in equity, 68% exposure in debt and 15% exposure in cash and cash equivalents. Under equity the fund has high exposure in large caps and some exposure in Nifty. The debt portion is conservatively managed with the fund maintaining a high allocation to floating rate bonds and bonds in the shorter end of the curve.
HDFC MIP – LTP
The fund has 22% exposure in equity, 65% exposure in debt and 13% exposure in cash and cash equivalents. Under equity the fund has a mix of large and mid caps with more focus on mid caps. The debt portion is passively managed through corporate bonds.
DSP Black Rock Savings Plus – Moderate plan
The fund has 11% exposure in equity, 75% exposure in debt and 14% exposure in cash and cash equivalents. Under equity the fund has high exposure in large caps and some exposure in Nifty. The debt portion is conservatively managed with the fund maintaining a high allocation to floating rate bonds and bonds in the shorter end of the curve.
ICICI Prudential MIP
The fund has 14% exposure in equity, 64% exposure in debt and 22% exposure in cash and cash equivalents. Under equity the fund has high exposure in large and some exposure in mid and small caps. The debt portion is conservatively managed through exposure in g-secs, PSU bonds and corporate bonds.
Performance comparison as on 31st March 2009
| Scheme Name |
NAV
|
1
Month |
3
Months |
6
Months |
1
Year |
3
Years |
| DSP BlackRock Savings Manager Fund - Aggressive – Growth |
15.3954
|
15.82
|
5.94
|
1.45
|
4.23
|
6.63
|
| DSP BlackRock Savings Manager Fund – Moderate - Growth |
16.7933
|
11.15
|
5.18
|
2.45
|
4.12
|
5.74
|
| HDFC MIP – LTP – Growth |
16.0084
|
36.58
|
3.58
|
3.46
|
-0.74
|
5.55
|
| ICICI Prudential MIP – Cumulative |
20.6251
|
21.95
|
-10.35
|
8.15
|
0.82
|
5.16
|
| Indices | ||||||
| Crisil MIP Blended Index |
13.11
|
0.65
|
5.99
|
0.50
|
5.63
|
The returns are simple annualized for one year and less than one year and compounded annualized for more than one year. Source: MFI Explorer, ICRA
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