Do bond mutual funds pay dividends?

Debt funds have a subset of schemes known as the monthly income schemes (MIP). MIP schemes give dividends on a monthly basis. They invest in bonds that offer fixed returns and hence tend to offer dividends on a regular basis. Having said that, it must be noted that all bond mutual funds don’t necessarily pay dividends regularly. Thus, if you want monthly dividends, you should invest in MIP plans that specifically ensure regular dividends.