How to Get Monthly Income from Investment in India?

Making a smart investment planning is very important to create wealth for the future and to achieve the financial objectives of life. The money invested in different financial schemes is done to generate returns and to earn a regular flow of income. Before planning any investments, it is very important to know the benefits associated with the various investments schemes.

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7.7 Crore

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

There are wide ranges of investment plans which are specifically designed to cater to the various financial requirements of the investors. While investing, the investors need to focus on monthly returns to meet their short term financial needs along with the capital growth in the long-term.

In order to help you choose the best investment options, here we have discussed the best monthly income plans to invest in India.

Mutual Funds with Monthly Income Plans (MIP’s)

In monthly income mutual funds, the investments are majorly made in debt instruments and the accumulated interest is distributed among investors periodically. As compared to equity investment, the monthly income plans tend to be less risky and is best suitable for investors who want to have a regular flow of income and who want to accumulate a fund for a short-term period.

Monthly Income Fixed Deposits Schemes

Fixed deposit monthly income plan is an ideal option investment option for investors who want to earn fixed and regular income with the benefit of guaranteed returns at a specific rate of interest every month. Depending on the banks and scheme, the duration of these deposits can go up to 10 years. The investors can make premature withdrawals before maturity. The interest in these schemes is generally paid at a discounted rate for monthly pay-out fixed deposits.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

This scheme is specifically designed for senior citizens to provide them with financial security after retirement. The Pradhan Mantri Vaya Vandana Yojana provides stable income to the senior citizens and offers fixed interest rates of 8%-8.30% per annum. This plan comes with a policy term of 10 years and as per the payment mode is chosen by the pensioner, the annuity is paid on monthly, quarterly, half-yearly and yearly basis at the end of the policy term.

Post Office Senior Citizen Savings Scheme (SCSS)

This is a deposit scheme, which can be availed by individuals who have achieved the age of 60 years. Individuals with 55 years of age can also avail SCSS, provided they are retiring under any voluntary retirement scheme or superannuation. The Senior Citizen Savings Scheme offers a current interest rate of 8.7%, which is payable quarterly at the end of each quarter. One can start investing in the Post Office Senior Citizen Savings Scheme with a minimum investment of Rs.1000 and can invest up to maximum Rs.15 lakh. The investments made towards POSCSS are eligible for tax exemption under section 80C of IT Act.

Stocks That Pays Dividend

Investment in stocks is a great investment option of monthly income. The main objective of the investors should be to invest in stocks, which pays regular returns over a period of time. However before investing, one should look for stocks that have paid regular dividends in the past. The dividends are paid as monthly income to the investors.

These are some of the investment options of monthly income that the investors can consider investing in. However, before making an investment decision, let’s take a look at the importance of the monthly income-generating scheme.

Importance of Monthly Income-Generating Schemes

Before investing, it is very important to understand the benefits related to different investment options. A monthly income-generating scheme is the preferred choice of investment for investors who are reaching their retirement age or have already retired. With the help of monthly income scheme, a person can have a regular flow of income and can be financially secured even after the retirement. The individuals should make the investment decision based on their financial goals and risk appetite.

Wrapping it up!

Despite the fact, that different individual has different financial requirements and has different investment making capacity; everyone wants to have a regular income generating option. Thus, it is very important to choose the right investment plan after considering one’s risk appetite and financial objectives in order to gain regular returns on investment.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-12-2024

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).