In India, you will find various options when it comes to monthly income from an investment plan. From high-risk monthly income plans to safe investment options, you will find an array of options to choose from. Some investment plans come with guaranteed returns while some offer regular returns, which again are not guaranteed. No matter which one you choose, each option has its advantages and disadvantages. It is necessary to study carefully before investing as you will be depending on it for your monthly income.
Why would you need these options?
There are many reasons pertaining to which a person may think about investing in plans for monthly income. Many investors want to make more money apart from their salary or business income by investing a lump sum amount. Also, regular income becomes a must in after-retirement life as at that stage, there is no fixed salary you receive that makes meeting the daily expenses a task for many. At such a point, you must be on a lookout for a steady income to rely on. At such times investing in a plan with monthly income makes the best option.
Here are some investment options that you must consider for regular monthly income.
- Post office monthly income scheme (POMIS) – If you have a low-risk appetite and want to invest in a safe scheme to get a regular income, this scheme is for you. Post office monthly income scheme offers a rate of interest of 7.8% for a period of 5 years. You can withdraw the amount before 5 years, although on withdrawal of money between 3-5 years will deduct 1% of the total amount. However, there is no deduction on withdrawal after the initial year of deposit in POMIS.
- Corporate fixed deposits – Corporate fixed deposits is a facility that is offered by various housing finance companies and Non-Banking Financing Companies (NBFCs). This scheme lets you deposit in fixed deposits at a high interest rate and added flexibility. To avoid risks and get guaranteed income every month consider diversifying funds in different companies. Make sure you check the financial strength and credibility of the company you deposit in with regards to CRISIL standards.
- Government bond -This is the safest option of all investment plan to get a guaranteed flow of monthly income and is a great option for long term periods from 15 to 20 years. No matter which scheme you choose out of this list, you must consider investing some part of your fund in a government bond.
- Senior citizen savings scheme – For senior citizens that are individuals above 60 years of age, investing in Senior citizen savings scheme (SCSS) is a great option to make money. It is an option that comes with low risk and high returns. It is an effective saving option that provides all the features and security which are offered by government savings and investment schemes. SCSS schemes are offered by different banks and post offices across India. You need to avail this scheme within the very first month after receiving a retirement benefit. The deposit in SCSS cannot be more than the amount of your retirement benefit.
- MIP – MIP is a monthly income mutual fund plan, in this, the company assesses the performance of a particular fund, and based on it, pays income to its investors and shareholders on a monthly basis. It means that the monthly income you will receive under this scheme depends largely on the profit that particular fund makes. This scheme is very similar to the monthly income scheme (MIS) and is considered to be an alternative option for bank deposits.
There is no investment plan that will meet all your expectations and financial goals. Hence study all the options and invest in different schemes that suit you well to get you guaranteed monthly income. Learn how to form a Nonprofit organization in any U.S. State
