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Six Monthly Income Investment Schemes
By If you’re looking for a steady source of income, six monthly income investment schemes that provide monthly payouts can be a great option. These plans are designed to offer consistent returns, making them perfect for retirees or anyone seeking a regular income stream. Here are Six Monthly Income Investment Schemes:
1. Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is a reliable option. It offers fixed returns, making it a safe bet for conservative investors. Additionally, With a tenure of 5 years, you can invest up to ₹9 lakhs jointly. The current interest rate is around 7.4% per annum, which is paid monthly. One major advantage of this scheme is the government backing, which ensures safety and stability.
2. Senior Citizens Savings Scheme (SCSS)
Specifically designed for senior citizens, the Senior Citizens Savings Scheme (SCSS) offers an attractive interest rate of 8.2% per annum, paid quarterly. This scheme comes with a tenure of 5 years, extendable for another 3 years. One of the best features is the tax-saving benefit under Section 80C, making it a popular choice among retirees to make investment.
3. Monthly Income Plan (MIP) Mutual Funds
Mutual Funds also offer monthly income through their Monthly Income Plans (MIP). These are debt-oriented funds, with a small portion invested in equity to enhance returns. Though the income isn’t guaranteed, many MIP funds offer consistent returns that can be received monthly. The potential for slightly higher returns makes them attractive, especially when compared to fixed-income instruments.
4. Atal Pension Yojana
This pension scheme is for workers in the unorganised sector.Under APY, the government guarantees a minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3000, Rs 4000, or Rs 5,000 per month at the age of 60 years based on the contributions of the subscribers.
Even if returns on an individual’s contributions are not sufficient to provide them with a pension, the government chips in to guarantee them an income.
5. Corporate Fixed Deposits (FDs)
Companies offer Corporate FDs, which provide higher interest rates compared to bank FDs. Some well-rated companies offer FDs with monthly payout options, making them a good source of regular income. However, the risk factor is higher compared to government-backed schemes, so investing in high-rated companies is essential.
6. SIP (Systematic Investment Plan) in Mutual Funds
SIP (Systematic Investment Plan) in mutual funds offers a smart and disciplined way to invest small amounts regularly. It allows investors to contribute a fixed amount at regular intervals, usually monthly, into a mutual fund scheme. SIP helps in averaging the cost of investment, as you buy more units when prices are low and fewer when prices are high. This strategy reduces market volatility risks and fosters long-term wealth creation. SIPs are flexible, allowing you to invest as low as ₹500 per month, making them suitable for beginners and seasoned investors alike. They are ideal for achieving financial goals systematically.
Conclusion
These Monthly Income Investment Schemes provide various options depending on your risk appetite, investment horizon, and financial goals. Whether you prefer government-backed schemes like POMIS and SCSS or market-linked plans like MIPs and SWPs, there’s something for everyone. Make sure to assess your needs before choosing the right scheme.