What are the best mutual funds for generating monthly income?

I want to invest in mutual funds to generate monthly income. Without taking much risk - can you suggest me the funds for monthly returns?

Mridul Agrawal

In order to generate monthly income (regular intervals) one may opt for Systematic Withdrawal Plan or SWP. SWP allows you to withdraw a fixed amount of money from a mutual fund at a fixed interval.

SWP is somewhat the reverse of SIP. If you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw.

SWPs help you reduce your exposure to risk. Every investment has its share of risks. SIP takes advantage of averaging to help you reduce exposure to risk. SWP does the same. If you’ve invested in a mutual fund in a lump sum manner, by withdrawing a fixed amount regularly, you ensure your returns are averaged and you are protected from any volatile market movements.

Given that you want low risk, you may invest in Large cap equity funds or Debt funds to minimize the risk while obtaining good returns.

Few suggestions are-

  1. Mirae Asset India Opportunities Fun
  2. Reliance Top 200 Fund
  3. Quantum Long Term Equity Fund Growth

Pijush Kanti Biswas

For getting monthly income invest with low risk appetite, Monthly Income Plans(MIPs) is the best option.

These are the best mutual funds for generating monthly income :

·      SBI Magnum Monthly Income Plan

·      ICICI Prudential MIP 25

·      Aditya Birla Sun Life MIP II - Wealth 25

Happy Investing!

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