Do Intelligent cby Investing Money in Monthly Income Schemes

We frequently search for a consistent source of income regularly to maintain a financially solid lifestyle. Furthermore, those who are retired or planning their retirement seek such a source of income. The best course of action for an investor in this circumstance is to invest in monthly income schemes.

Monthly income schemes are an investment option in which an investor makes a one-time investment and receives recurring returns on that investment. The monthly income plan includes monthly income fixed deposits, SCSS, POMIS, and SWP mutual funds, among others. All of these investment alternatives have one thing in common: a regular income. In terms of risk, features, terms, and conditions, each investment is unique.

Best Monthly income plan

If you have a significant amount of disposable income, investing it in schemes that provide regular monthly income is a great idea. The question here is where to invest?

Your idle money will start paying dividends or earning profits if you choose a Monthly Income plan.

1. Post office Monthly Income Scheme 

Post Office Monthly Income Scheme (POMIS) is a type of investment in India. Because it is backed by the government, it is an ideal investment choice for risk-averse individuals searching for a steady stream of income. The POMIS is now giving monthly interest at a rate of 6.6 percent per annum. The deposit period for this plan is five years. Individual accounts can invest up to Rs 4,50,000, while joint accounts can contribute up to Rs 9,00,000. This plan allows you to start investing as little as Rs 1,500. When the POMIS investment matures, it can be re-invested for a second five-year period.

2. Corporate Deposits

Corporate deposits are available from a variety of non-banking financial firms (NBFCs) and housing finance businesses (HFCs). These are comparable to bank deposits, with the exception that you invest with a corporation, which is less safe than a bank deposit. Corporate deposits pay a high-interest rate and provide additional flexibility not available with bank accounts. You should evaluate the NBFC’s financial health and reliability before investing in corporate deposits. You may utilize the CRISIL ratings to help you with this.

3. Government Bond

For risk-averse investors, government bonds are a great low-risk investing alternative. These relationships might last anywhere from five to forty years. Government bonds pay monthly interest or give coupon payments that are determined by the Indian government. Bonds issued by the government have a set maturity date. The primary goal of government bond issuance is to raise funds for government spending.

4. Senior Citizen Savings Scheme

A senior citizen savings scheme (SCSS) is an excellent investment choice if you are a senior citizen. It is backed by the government, and only senior people (over the age of 60) are permitted to invest. This service is available at notified bank branches and post offices. You must enroll in the plan within one month after retiring. SCSS is offering an annual interest rate of 7.4 percent, payable weekly. It is for five years. The SCSS allows you to invest a maximum of Rs 15 lakh. The interest from the program, on the other hand, is added to your taxable income and taxed according to your tax rate.

5. Monthly Income Plan

Monthly income plans (MIPs) are mutual funds that invest primarily in fixed income and a minor percentage of their assets in equity and equity-related securities. The fund firms pay out a consistent income to their investors regularly. This sum is not set in stone and is determined by the fund’s performance. It is not assured because mutual fund performance influences the returns. There is also the possibility of negative returns. As a result, you must assess your risk profile before electing to invest in a monthly income plan. Monthly income plans come in two flavors: growth and dividends. The MIP, on the other hand, only declares dividends if there are profits.


A steady monthly income gives not just security and discretionary spending power, but also independence. You must choose the best investment plan based on your current and projected monthly needs. Also should plan wisely about where to invest. The optimal investment choice for you will be determined by your investment goal, the investment option’s interest rate, duration, and risk.

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abdul waheed

Abdul Waheed is a seasoned business blogger, specializing in entrepreneurship and small business management. With over 10 years of experience, he offers invaluable insights and practical guidance to aspiring entrepreneurs, helping them navigate the challenges of starting and growing a successful business.

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