Investment Plans For Monthly Returns

The monthly income scheme takes a debt-heavy approach, with about 70%–80% of its funds invested in debt funds and the rest in stock options.

This is done with the goal of earning consistent returns and capitalising on the investment whenever possible by exposing it to the stock market.An MIP scheme is a viable investment choice for retirees with a restricted source of consistent income due to the ideal balance of risk and profit. Aside from providing them with a monthly stream of income, such a plan would also allow retirees to budget for unexpected needs. Investors who are risk averse and prefer to invest conservatively can also put their money in the Monthly Investment Scheme.

Individuals in higher tax brackets should select MIPs for greater tax efficiency, whilst those in lower tax brackets who want to increase their earning potential should consider the growth-oriented alternative of these schemes. It will enable them to earn larger returns while also lowering their tax burden.

Investment Plans For Monthly Returns

Here are a few investment options you can invest in for monthly returns:

1. Monthly Income Plans (MIPs)

Monthly income plans (MIPs) are mutual funds that invest primarily in fixed income while also holding a small amount of equity and equity-related securities. On a regular basis, the fund companies give a steady income to their investors. This amount is determined by the fund's performance and is not set in stone. Because mutual fund performance has an impact on returns, it cannot be guaranteed. Negative returns are also possible. As a result, before deciding to invest in a monthly income plan, you should evaluate your risk profile. Growth and dividends are two different types of monthly income schemes. The MIP, on the other hand, declares dividends only if profits are made.

2. Senior Citizen Savings Scheme

If you're over 65, a senior citizen savings plan (SCSS) is an excellent investing alternative. It is funded by the government and is only open to senior executives (over the age of 60). This programme is only offered at specific bank and post office locations. You must enrol in the plan within one month of retiring. SCSS offers a 7.4% annual interest rate, which is paid out weekly. It's a five-year agreement. You can put up a maximum of Rs 15 lakh under the SCSS. The interest you make from the programme, on the other hand, is added to your taxable income and taxed at your current marginal rate.

There are many possibilities for monthly income investments, but the ones described above are among the best. Selecting policies that are suited for your degree of risk will be advantageous.

3. Post Office Monthly Income Scheme (POMIS)

If you didn't know, post offices in our country provide a variety of financial services and products, like Post Office Monthly Schemes. With this investment strategy, you can receive a consistent monthly income at a rate of 7.3 percent. Isn't it decent? You can put up to 4.5 lakhs in an individual account and up to 9 lakhs in a combined account in a POMIS.

In addition, with a 5-year investment period, it is a very low-risk investment. At maturity, you will receive not only your capital but also a 5% bonus.

4. Government Bonds (Long-Term)

Another safe way to receive a consistent income is to invest in long-term government bonds. Government bonds typically pay an annual return of 8% twice a year, despite their extended maturity period (15-20 years). half-yearly. As a result, you can combine them with your other investments to generate income year-round. You also get your entire principal back when the term ends.

Another advantage of a long-term government bond is that it can be sold whenever you want because it is traded on the secondary market.

Conclusion

Before investing in the schemes mentioned, individuals should consider the current market conditions. When the rate of interest is high, most seasoned investors opt for the Monthly Income Scheme.

Because there are so many Monthly Income Plans available these days, people need to exercise caution before deciding on one. Individuals considering investing in a MIP should first assess their needs and expectations as an investor's requirements

Do read - Where To Invest Your Income For Higher Returns On Investments?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.