What happens in MIP Mutual fund(monthly income)?

hi ppl, i ve invested in many mutual funds and gained good profit..but wat is this monthly income plan mutual funds?do v get some money out of it every month??

A monthly income plan

A monthly income plan (MIP) works on the same premise as a balanced fund. The fund manager has the flexibility to invest a portion of assets (between 5-25% of assets in most cases) in equities. An MIP works well when debt markets are witnessing a subdued phase, like now for instance. When debt markets are in turmoil, the fund manager has the flexibility to shift assets in equities (provided equity markets are robust) to generate that extra growth. Again, since MIPs are a relatively recent phenomenon, investors can consider the short-term performance (at least 1-Yr) before selecting a good MIP. If you are looking for a regular income stream, choose the quarterly option as opposed to a monthly option, to allow the fund manager to declare a dividend in volatile equity markets.

http://www.moneycontrol.com/india/mutual...

You have a choice, you can be paid the monthly income distribution, or you can have it re-invested in more shares

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