Different Monthly income schemes 

  1. Let Us see  how we can get a fixed amount of money for retirement in every month. Now we are looking at a scheme for that. <iframe width=”360″ height=”215″ src=”https://www.youtube.com/embed/3194Ioyjbgk” frameborder=”0″ allow=”accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture” allowfullscreen></iframe>

Here are some of the different monthly payment options.

          Monthly income schemes are schemes in which you invest a certain amount and earn a fixed  interest every month. The best investment plans in India to invest money to get a monthly income. Monthly income plan is a kind of mutual fund where in the investment is allocated proportionally between the equity and debt markets.

          All options have  their own high or low returns, high or low risks,  advantages or disadvantages, vary liquidity options( option to withdraw money when we need it),  taxability (tax can be more or less ).we compare options which these four things. Here we are comparing 10 options. You can choose which options suits  you best. 

1)post office monthly income scheme

         We can invest upto 4.5 lakhs in single account and upto  9 lakh in joined account as one time investment. We get 7.6 % interest every month. This is an option for the common man. There is no risk. It is  a central government guaranteed investment. The term is 5 years.Let us close as premature 2% of interest payable and closed. This is enough for those who want a safe and accurate amount. 

2)Bank fixed deposits

           It is a   low risk investment. If the bank closed for some reason we get only upto 1 lakh. Interest 7- 8 %. Senior citizen will receive an additional interest rate of 0.5 %. The interest that comes from this,  if it is more than Rs 40000, TDS will be taken from it. To show that we have no taxable income, we should submit the 15G, 15H form to the bank. Be careful to give out the PAN card. If not, TDS will be doubled. Let us close as  premature period.

3)Government Bond or Treasury Investments 

           This would give the higher interest than banks. The duration is longer, duration will last 5 – 15 years. Government Bonds will be locked. Interest is above 8%. Interest is taxable. This will only be refunded at a maturity time.

4) Corporate deposits

             Interest rate is 8-13%.  This category includes deposits by Bank,  investments through bonds of private companies. Invest in a credit rating triple A, double A fund. As the  rating goes down, the interest rate increases. Don’t invest in low rated areas of the investment rate is getting higher. Money can be lost. Try to invest in funds with a  credit rating higher.

5) Senior citizen Saving Scheme

        It is a post office investment scheme.  The interest rate is now 8 %. If the money is required before maturity,  the money will be refundable after deduct 1.5 % interest rate. Taxable, deductible from investment. Senior citizens can invest upto Rs 15 lakhs in one time. Some banks also have senior citizen savings.

6) Insurance companies annuity scheme 

     When we deliver an amounts to insurance company, they will give us  back money growth. As National pension scheme (NPS ), by age 60 you can withdraw 60 % and  the remaining 40 % is invested in a similar annuity scheme which is mandatory. Instead of NPS,  we will be able to invest directly in the Insurance Scheme on an annuity scheme. From it we get the monthly investment. 

7)Dividend from stocks /Mutual Funds

          If our investment is in good stock or a good Mutual Fund, we have a chance to get a divident  from this. Most people choose the growth option. You can choose the divident or growth option as per your interest. Make a big amount in a mutual fund. We can use it as a monthly income,  if we withdraw a systematic amount from mutual fund. We invest as much as we can and then we withdraw in retirement time.

8) Regular saving fund in mutual funds

         It is an open ended scheme,  which aims to generate regular income by making investment predominantly indebt and money market instruments. It  is a hybrid fund. We think that if we invest in this, we will get regular monthly income. But the percentage of income is not fixed. Everyone in a while,  market ‘s fluctuations tends to increase or decrease. It can be withdrawn pre maturity period. 

9)Rental income

         We can use rent from commercial buildings or houses as  monthly income. But we can buy a commercial building or house for must be lack of rupees. It is also very difficult to sell. If you  have the savings,you can use that income. 

10)Pravasi dividend Scheme

          We invest a fixed amount  in pravasi dividend scheme. After 3 years,  we get 10 % interest. The disadvantage of this scheme is  we will not get back the amount in our life time or our spouses  life. The amount we will get 10 % interest till the end of our life. A chance to get increase or decrease the interest rate.

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