In general, if you have a substantial amount in your hands, it is always better to invest it so that it could provide you a good return. Now, consider investing on monthly income schemes. You will surely get a fixed income. That could definitely help even if you lose your main source of income. Let’s talk about some of the top investment options for monthly income.
SWP MUTUAL FUNDS
SWP(Systematic Withdrawal Plan) is one of the best options for a regular monthly income from mutual funds. In this, you can set a specific amount that you want as the monthly income. Accordingly, every month on the selected date, that amount will be reduced from you investment while the remaining amount continues to being invested. This option assures that you will get a regular income, independent of the profits of the fund.
MUTUAL FUNDS MIP
MIP(Monthly Income Plans) is a debt-oriented mutual fund scheme. In this, most of the investment is in debt and money market instruments. Consequently, it is a moderate-risk plan. However, MIPs does not provide a fixed income. Payment is based on the profit of the investment.
Government bonds are another exceptional option for a regular income. It is a low-risk investment scheme. It pays 8% return half-yearly, while the duration of the bond is about 5-40 years. Along with other investment options, you can earn a better amount through this over a year. You can sell these off whenever you want as these are traded in secondary markets. Also, you will get the entire primary amount over maturity.
POST OFFICE MONTHLY INCOME SCHEMES
POMIS is an investment plan hosted by Post Offices in India. It is a low-risk investment plan as it has Government support. This offers a 6.6% interest rate per year. In this plan, you can invest up to ₹4.5 lakhs for an individual account and ₹9 lakhs for joint accounts. This scheme has a maturity of 5 years and its starting amount is as low as ₹1500.
Various housing finance companies and NBFCs(Non-Banking Financial Companies) offer corporate deposits. These provide high interest rates and are more flexible than a regular bank deposit. You should always be careful before investing this deposits. Always remember to check the CRISIL(Credit Rating Information Services of India Limited) ratings of the company.
SENIOR CITIZEN SAVINGS SCHEME
SCSS is an investment plan for senior citizens above the age of 60 years. You should utilize it within one month after the retirement. It is available at Post Offices and Banks in the country. It provides an interest rate of 7.4% per year and has a time period of 5 years. ₹15 lakhs is the maximum amount to invest in SCSS.
A lot of monthly income schemes are available in market nowadays. We have listed the best of them. Therefore, you can select the suitable ones according to your risk factors and intentions. However, you must do your own research in order to get the best investment plans.