Investment schemes involve several options that allow people to enhance their income to a great extent. But it would be best to evaluate them with a lot of attention before investing money. If you want a guaranteed income, you need to select a plan that features zero or minimizes risks. This, in turn, will give you different ways to avoid losses and other problems to a great extent and ensure that you have Peace of Mind.
Monthly income is one of the most important things we need, but if you have a considerable amount of money to spare cash, putting it in programs that provide constant monthly income is a great option. This guarantees that your ideal cash will start paying you dividends and help you make better earnings. If you are wondering how to get monthly income from the investment option, you need to look no further, as you can get the top ten investment options available for monthly income here.
1) Fixed deposit for monthly income
Fixed deposit is one of the best income plans in the low-risk category. The scheme is for citizens who want to take only a few risks, and you can also invest a specific amount of money in this scheme for some time. When you are investing money, you will be able to earn more interest. The rate of interest will depend on different factors. Most banks offer 5 to 6% of the interest unfixed deposits.
The tenure will impact the interest rate, and the depositor will be nominated for a facility that will benefit the families even if they die.
2) Government bonds for monthly income
The government issues the government bond, and the term ranges from five years to 40 years, but shared interests are paid to the investors so investors can get the security of fixed income. Some government bonds include cash management bills, fixed bonds, and zero-coupon bonds for fixed income. Being an investor, you can sell or purchase government bonds just like your equity instruments.
A stable interest rate would be offered to the investors. It shows that it is an excellent way of creating a guaranteed monthly return plan. But before you put the money in government bonds, you need to know the market risks involved in the bonds.
3) LIC monthly income plans
One of the best investment plans for monthly income is the LIC income plan offered by LIC, one of the biggest public insurance companies. It is a grand scheme, especially for people falling into senior age groups. It is perfect for people who want to invest their hard-earned money in a monthly income plan.
The best part is that you can invest a lump sum amount of 1.5 lakhs INR if you are looking forward to buying this plan, and you would be required to select the investment type and the mode of payment.
4) Senior citizen saving scheme for monthly income
The senior citizen monthly savings scheme falls under the post office savings category, and the government backs it. The plan has several benefits; you can invest even a thousand rupees as a minimum while the maximum amount goes up to 15,00,000. Being a senior citizen, you can easily invest in this scheme by opening an account in private or public banks, depending on your choice.
It is one of the best investments for monthly income because it helps you earn a great return of 7.5%. Besides this, the plan also allows you to ensure financial protection after you retire. The plan’s tenure is five years, but you can extend the same after maturity.
5) Systematic withdrawal plan mutual funds for monthly income
The plan is covered under mutual funds. You can earn great returns by putting your money into this plan. You can expect a steady monthly income by investing in this mutual fund. You can get the returns constantly.
At the same time, being an investor, you should know all the terms and conditions before you decide to put your money in this fund. To understand the total returns, you can even use a calculator and check the future value expected.
6) Post office monthly income scheme
The post office also offers a monthly income plan which is the right plan for people who look forward to investing their money in a zero-risk investment plan currently; the plan provides an interest of 6.6.
People can invest a maximum amount of 15,00,000, while the minimum is INR 1500. The interest rate changes yearly, and you should be aware of this. At the same time, the lock-in term is for five years, so you must wait to withdraw the money.
7) Monthly income plan
It is a type of mutual fund that invests primarily in fixed income, and a small amount is invested in equity or equity-related security. This is your best bet if you are looking for a monthly payment.
The fund will pay you regularly, and the amount depends on how the fund is performing. The returns are not guaranteed as the mutual fund performance will drive them.
8) Pradhan mantri Vaya Vandana yojana
This scheme is specially designed for senior citizens to give them financial security after they retire.
You can get a stable income featuring a fixed interest rate ranging from 8% to 8.30%. The annuity is paid monthly or quarterly, and the tenure is around ten years.
9) Corporate deposits
Several non-banking financial companies and housing finance companies offer different types of corporate deposits. Even though they are similar to bank deposits, customers need to invest the money with the corporate entity.
The deposit would cover a high-interest rate and come with extra flexibility. Additionally, they provide different interest rates for senior citizens to ensure perfect returns.
Insurance companies offer annuity plans to investors. It provides a regular income stream with minimum risk and can be a great retirement strategy. You can make a lump sum investment and earn income through monthly or quarterly payments. The size of the annuity depends on different factors like the payment duration, and they have been classified under two options: the deferred annuity plan and the immediate annuity plan.
All the options mentioned above come along with their advantages and disadvantages. You should choose the option that suits your risk-taking appetite the best and aligns with your financial objectives.