Which is the best investment plan for monthly income?

Short Answer

There are several investment plans such as FD, Post office Monthly Savings Scheme, Government Bonds, Mutual Fund Monthly Income Plans. These can provide you with a very good monthly income.

Detailed Answer

If you are looking for some of the best investment plans which will give you a steady monthly return, then you are in the right place. Here, we are going to pick some of the best investment plans that can give you a very attractive monthly income along with very low risk. So without any further delay, let's get into it.

1. Fixed Deposit (FD)

When it comes to generating a good monthly income with no risk, then Fixed Deposit is considered to be one of the most popular investment plans even now. Fixed Deposit offer higher interest rates than a savings account and it is free from any volatile market conditions. Thus, Fixed Deposit is preferred by all types of investors especially those whose risk appetite is low.

2. Post Office Monthly Income Scheme (Post Office MIS)

Post Office Monthly Income Scheme is an investment plan offered by India Post, that offer higher interest rates than savings or even Fixed Deposit. Post Office MIS scheme is a popular choice for investors with a low-risk profile. Post office monthly income scheme can offer a constant monthly regular income with an interest rate of nearly 7.6 percent.

Even though the interest rate is high, it should be noted that the Post Office MIS Scheme has a tenure or lock-in period of five years. Any individual can invest a maximum of 4.5 lakh INR which gets doubles if the account is a joint account. You can invest from 1500 INR and the amount can be reinvested for another five years to earn double benefits.

3. Mutual Fund Monthly Income Plans

If your risk profile is moderate then you can invest in various monthly income plans, which are essentially are some mutual funds that offer a monthly return to their investor. As the return from these depends on the market performance, so these plans sometimes may give you a negative return as well, if the market condition is very bad. Thus, before investing in it analyze your risk profile thoroughly.

4. Government Bonds

If you are looking for some low-risk investment options, then Government bonds are the one to go for. While investing in these government bonds you need to remember that they have a tenure of 15 to 20 years depending on the duration of the project. The bonds pay regular monthly interest and it comes with a fixed pre matured date.

5. Senior Citizen Savings Scheme

There are multiple ways to secure your future or post-retirement life, There are multiple govt initiatives such as National Pension Scheme, Atal Pension Yojana, and so on which can offer you a very attractive monthly return if you start investing in these plans very early.

One needs to be the age of 18 to start investing in these schemes and the total amount you invest the more return you get after your retirement depending on the condition of the market.

Best Monthly Income Scheme

So these are some of the best investment plans for generative a very good and steady monthly income.

If you have any queries regarding any investment plans mentioned above, then comment down your queries below and we will get back to you.

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Discussion (1)

    There are many places in which you can invest your money. Mutual funds are one place to start and then scale up to other investment opportunities. Then you could choose other tax savings investment opportunities as well to reduce your tax expenses as well.

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