Investors are always on the lookout for the best monthly income scheme to help secure steady cash flow. While there are several investment avenues to choose from, one must tread carefully and choose the best monthly income scheme that meets their financial goals and appetite for risk.
In India, there are a variety of investment options available, ranging from fixed deposits, mutual funds, bonds, and more. Here, we explore the top four schemes that offer steady cash flow in the form of fixed monthly payouts.
1. Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme is a popular investment option among retirees and individuals aged 60 or above. This scheme is backed by the government and offers a higher rate of interest than fixed deposits, making it a safe and reliable investment option.
Investors can invest up to ₹15 lakh in SCSS, and the tenure of the scheme is five years, which can be extended for an additional three years. The scheme offers an interest rate of 7.4%, which is paid out quarterly.
For example, if an investor invests ₹10 lakh in SCSS, they will receive a quarterly payout of ₹18,500, which amounts to an annual payout of ₹74,000. This makes the Senior Citizen Savings Scheme one of the best monthly income schemes for retirees who require a reliable source of cash flow and senior citizen fixed deposit rates.
2. Government and Corporate Bonds
Government and corporate bonds are another excellent option for investors looking for the best monthly income scheme. In India, both central and state governments issue bonds that offer a fixed rate of return.
Corporate bonds, on the other hand, are issued by companies looking to raise capital. They offer a higher rate of return than government bonds, but they also come with a higher degree of risk.
Investors must consider their risk appetite before investing in corporate bonds. However, corporate bonds issued by blue-chip companies can offer a steady source of monthly income.
3. Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme is another popular investment option among individuals looking for the best monthly income scheme. This scheme is backed by the government and offers a fixed rate of return.
Investors can invest up to ₹4.5 lakh in the Post Office Monthly Income Scheme, and the tenure of the scheme is five years. The scheme offers an interest rate of 6.6%, which is paid out monthly.
For example, if an investor invests ₹2 lakh in POMIS, they will receive a monthly payout of ₹1,100, which amounts to an annual payout of ₹13,200. The Post Office Monthly Income Scheme is an excellent option for individuals looking for a reliable source of monthly income.
4. Mutual Fund Monthly Income Plans (MIPs)
Mutual Fund Monthly Income Plans are investment options that provide investors with a regular source of income through dividends and capital appreciation.
These funds invest in a mix of debt and equity instruments, which offer higher returns than fixed deposits and other safe investment options. Mutual Fund Monthly Income Plans are ideal for investors who are willing to take moderate risks and have a long-term investment horizon.
The monthly payout of Mutual Fund Monthly Income Plans varies depending on the fund’s performance and the market conditions. As such, it is essential to choose a fund that has a track record of providing consistent returns.
Conclusion
Investors must evaluate their financial goals and risk appetite before choosing the best monthly income scheme that meets their needs.
While the above-listed investment options are some of the best monthly income schemes available in India, investors must conduct thorough research and consult with a financial planner before investing their money.
It is important to note that investing in the Indian financial market carries inherent risks, and investors must gauge all the pros and cons of trading before investing.
In conclusion, the best monthly income scheme for an investor may vary depending on their financial goals and risk profile. However, the Senior Citizen Savings Scheme, Government and Corporate Bonds, Post Office Monthly Income Scheme, and Mutual Fund Monthly Income Plans are safe and reliable investment options for steady cash flow.
Summary
Investors in India have several investment options to choose from when looking for the best monthly income scheme. Senior Citizen Savings Scheme, Government and Corporate Bonds, Post Office Saving Schemes and Mutual Fund Monthly Income Plans are some of the safest and reliable investment options to provide a fixed monthly payout.
Investors must evaluate their financial goals and risk appetite before choosing an investment option. It is also essential for investors to conduct thorough research and consult with a financial planner before investing in the Indian financial market.
