Setting up a Monthly Income Plan (MIP) mutual fund is the best way to earn a consistent monthly income. The fund is classified as a debt or hybrid fund. It enables investors to receive monthly dividend payments while lowering their risk exposure. Typically, the fund is more conservative because only a small portion of the assets are invested in stocks, while a larger portion is invested in secure securities. When compared to other financial instruments with similar goals, such as FDs and PPFs, MIP provides more stable returns during inflation. Furthermore, they are subject to lower taxation. MIPs, on the other hand, do not guarantee a consistent fixed monthly income. The fund, like any other portfolio, has drawbacks. For example, if the economy is unstable, your fund may not pay consistent monthly dividends.