Generating income using MIP

Here we will discuss an idea to generate some monthly income using MIP.
I will use the "HDFC MIP LTP (Monthly dividend)" for the same.

As per http://www.moneycontrol.com/india/mutualfunds/mfinfo/dividend_history/MHD042
one can see that this MIP fund has given a monthly dividend of 0.07 (avg) for quite some time.
The dividend has been increasing with time.

It does invest in Equity and hence the returns can get affected in a bear market scenario.
Reverse is also true -- in bull market the return will go up.

How much return one can get via dividend?
If one compounds it monthly, the return is close to 6-7%
Pretty average isn't it?
However, a 1 Rs increase in NAV makes the return shoot up.

Whats the suggestion?

One can start with an initial investment (plus SIP) into this fund in Dividend reinvestment mode.

e.g
If one invests 3L in this fund, the monthly dividend is:

No. of units: 300000/14.5 = 20689 units.
Dividend per month: 20689 * 0.07 = 1448 Rs
If reinvested: 1448/14.5 = 99 units.
If you do a simple excel calculation, you shall realize that 20689 units in Dividend Reinvestment option (kept untouched) will grow to 37052 units in 10 years.

So in 10 years, 37052-20689 = 16363 units (if cost of NAV is still 14.5 Rs, then the amount is 16363 * 14.5 = 237263).

Here, I have assumed:
- Dividend will remain at 0.07 Rs (which is not true. It can go up or down).
- NAV remains at 14.5 (which is not true. It can go up or down).

However, its another way to generate some monthly income.

Thoughts?