MONTHLY INCOME SCHEMES

MONTHLY INCOME SCHEMES

Monthly income schemes are debt oriented schemes with a small dose of equity holdings. These schemes invest a large part of their corpus ranging from around 80 to 95% in debt while the remaining 5 to 20% is in equities. There are a large number of such schemes in the market with different levels of equity.
The average level of equity holdings of these schemes is around 10% but in the last few years several variations with a higher level of equity have entered the market. Investors should know that the higher level of equity can raise the earnings of the scheme above that witnessed in pure debt schemes but it will also raise the risk level whereby even the higher debt constituent will not be able to dictate the overall performance of the scheme