Best Investment Plans For Monthly Income – 14 Option Unlocked

You are also looking for the best investment plans for monthly income to retire early age but have not found what you are looking to invest I am definitely sure that you will get to one of the best choices in these 14 best investment plans for monthly income which any beginner or advance person can invest their money.

Note:- I am providing you with the best options but I am not recommending any one of them It’s totally up to you whether you have to invest or not so kindly research your own before putting money don’t blindly put money without doing research.

Things to do before investing money

  1. Invest in yourself
  2. Have an emergency fund
  3. Get some insurance

You can read more here:- 3 things to do before investing

Disclaimer:- Returns can vary depending on when you are reading this article so I highly suggest checking it once again because these returns vary from month to month and some schemes are related to government and you never know when they change the scheme.

14 Best Investment Plans for Monthly Income

  1. Systematic Withdrawal Plan (SWP)
  2. Post Office Monthly Income Scheme (POMIS)
  3. Long Term Government Bonds
  4. Small Savings Schemes
  5. Equity Share Dividends
  6. Deposits
  7. Annuity Plan
  8. Real Estate
  9. Real Estate Investment Trusts (REITs)
  10. Gold
  11. Sovereign Gold Bond (SGB)
  12. Monthly Income Plan Schemes (MIPS)
  13. National Pension Scheme (NPS)
  14. P2P Lending

1. Systematic Withdrawal Plan (SWP)

SWP is a go-to plan for anyone who is looking to make an investment. Basically one can do a systematic withdrawal plan with the help of a mutual fund every month or every three months. Different mutual funds like equity, debt, hybrid funds, etc. can provide you with systematic withdrawal plans.

It helps to grow your investment and provide regular income based on your comfort zone. But in order to get the benefit of a systematic withdrawal plan one should have sufficient funds in a mutual fund or lump sum investment amounts to get benefits.

2. Post Office Monthly Income Scheme (POMIS)

If you are looking to get a better return compared to FD you can go with the post office monthly income scheme which generally provides a 7.4% annual interest rate which is not bad. If you have an individual account you need to invest a minimum of 1500 Rs and maximum you can invest up to 9 lakhs.

But if you are looking to invest more you can invest up to 15 lakh rupees but for this, you need to have a joint account and the minimum investment amount will be 1500 rs. But you have to see to it that there is a year lock-in period and you don’t have any tax benefit on this. In short, you have to pay tax on interest earned on this scheme.

3. Long Term Government Bonds

Government bonds are basically issued by the government as the name suggests. A government Bond is a low-risk investment and the maturity period can be up to 40 years one can get this regular payment with the help of government interest can be around up to 8%. Here some bonds are tax-free, some are taxable and some are treated like capital gains.

4. Small Savings Schemes

These small saving schemes are generally provided by the government and the best part of SSC is that you get lots of tax benefits. When you look at the small saving schemes there are many schemes such as SCSS which is the Senior Citizen Saving Scheme. An 8.2% return is provided in SCSS.

A person who is above 60 years of age can get the benefit of SCSS then you have another scheme which is PPF. Public Provident Fund one can get up to 7.1% and last but not the list SSY one can get 8% interest if they have a girl child.

5. Equity Share Dividends

If you have proper knowledge of the stock market you can get a good amount of dividends from high-paying stocks. One should have to do a proper analysis that high-paying dividend stock is well-balanced and financially stable. But when you look big company generally they do not give that much dividend because they most of the time look to reinvest profit in their business. We can get a good amount of dividends monthly if you do your homework in the right way.

6. Deposits

When you talk about the deposit many people know about FD. But there are two types of deposits one is FD and the other is corporate deposits.

Fixed Deposit (FD)

Basically, FD is what generally everyone knows. When you do an a fd on the bank you can get up to a 2.5% -7% interest rate. See to it that it is taxable. So your return may go very down after deducting the tax.

Corporate deposits (CD)

Corporate deposits or corporate fixed deposit is provided by companies or NBFCs. NBFC stands for a nonbanking financial company. You get a much higher return on corporate deposits. But there is also a higher risk involved. As you know higher the risk higher the reward you get. One can get around 8%. Which is far better than fd. See to it that if the company fails you may not get a single penny. Bonus tip you can invest in AAA rate corporate deposits and do proper research.

7. Annuity Plan

An annuity plan is provided by the insurance company. Annuity plan is of two types Immediate Plan and Deferred Annuity Plan.

Immediate Annuity Plan

In this plan, one can get regular income once they start making their investment.

Deferred Annuity Plan

But in this plan, one has to wait till the decided period to get regular income from the deferred annuity plan.

8. Real Estate

Real estate is always the favorite go-to option for every investor if they have an amount in bulk. When you look at the return provided by real estate in India in the last 20 years is around 10%. Which is phenomenal. One can get a decent amount of money by providing the house on rent. Which is like the cherry on the cake for the investor.

9. Real Estate Investment Trusts (REITs)

You are disappointed because you don’t have money to invest in real estate. REITs are for you. You can invest in a Real Estate Investment Trust with 500Rs. Yes, it’s true. Now you can also invest in real estate. One can get around 7% which is not bad. One should see that you cannot get the property benefits in real estate people may have.

10. Gold

Gold is a time go-to option for everyone. Because gold has almost beaten inflation every time you look at the past 20 years return. But the problem of theft of gold and making charges on top of that gold is not a good option after calculating and security purposes. Well, it is a good option no question about that but still while looking at every aspect you can look for SGB.

11. Sovereign Gold Bond (SGB)

The Sovereign Gold Bond benefit is that you will get a return on gold return and also government will also provide you with around 2-3%.

This means your actual return you can get in SGB = gold return + government return which may result in up to 12% -13% yes. Shocked but it’s true. Because many people think you can get 12-13% only in stocks.

12. Monthly Income Plan Schemes (MIPS)

Looking to invest in a very safe option. MIPS can work for you. When you look at the monthly income plan schemes they divide mostly your income safe fixed income security and other equity. You may get a return in Monthly Income Plan Schemes regularly but which is not may be fixed.

13. National Pension Scheme (NPS)

National Pension Scheme is a good option if you are looking to get a 12% interest rate which is awesome. When you look at the NPS. Your money will divided into 3 parts equity, alternate assets, and bonds. The best part is that you can get tax benefits from section 80c and also section 80ccd. The only drawback you may find is that the lock-in period is around retirement age. But actually, it is not bad if you may consider for your retirement it will be a good option.

14. P2P Lending

Looking to lend your money? I know you lent your money to your friends or relatives way back but did not get a single penny in return. I am not talking about that. There are lots of genuine P2P Lending options where you can get a good amount of money by lending.

You will be shocked that you can get a 12% return by P2P Lending.

Conclusion

I hope I have covered the options in the 14 best investment plans for monthly income that you were looking for. Do your own analysis before investing anywhere.

FAQ’s

Is it safe to invest in government schemes?

Yeah absolutely safe because it is backed by the government.

What is the best investment for monthly income?

What suits you the best according to your risk appetite and investment goal can be the right choice for your investment.

Are all government schemes tax-free?

Not all but some government schemes are tax-free.

Can I get a fixed return from the stock market?

No, because there are lots of swings in the stock market. One cannot get a fixed return from the stock market every time. It may occur sometimes.

Is it okay to invest in equity if I am a newbie in the stock market?

You can but not recommended might you lose your money without any prior knowledge.

I hope you like the 14 best investment plans for monthly income. Comment below if you have any queries regarding it or if you want a detailed article on a specific topic. Share this article if you found it useful because sharing is caring.

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