Investments are a channel to build a healthy investment portfolio so that we can encash them when needed, especially during retirement. Retirement planning is essential to ensure you get monthly income to meet your expenses. What if we tell you that your investment portfolio can earn you a monthly income if you invest a little time to understand your monthly goals and estimate your monthly requirement? Whether you are planning for retirement or not, these investments will fetch you a handsome monthly income if planned well.
Let’s take a look at some interesting avenues to generate monthly income.
This is a big hit amongst investors who want to generate monthly income and plan ahead of time. The MIPs are invested in debt instruments which are low-risk investment funds as compared to the equities. This also allows you to have monthly income instead of locking your money till its maturity.
If you are planning for retirement, this is for you. You can invest in a fixed deposit if you are looking for a safe haven. This ensures fixed returns month on month, as the rate of interest is predetermined. You can choose the duration of the fixed deposits depending on your monthly income requirement.
This is one of the safest investment avenues that you can opt for if you are looking for monthly income. Post office schemes are best if you are planning for retirement and are interested in guaranteed returns.
As the name suggests, this is exclusively reserved for senior citizens. But did you know that w.e.f 01.04.2020 you can earn 7.4% interest per annum? You can choose to get the monthly income into your savings account through auto credit or ECS. You can begin investing with as low as 1,000 INR and the maximum limit is up to 15,00,000.
If you are interested in the stock market then investing in stocks that pay you dividends will generate incredible returns provided you invest in the right stocks that pay you higher dividends every month. However, it is advised to research well into these stocks before shortlisting them. For instance, you can check out which dividend stocks have been consistently performing in the past.
This is suitable if your sole purpose is to generate monthly income during your retirement phase especially if you are a senior citizen. The Government of India introduced this scheme considering the requirements of the senior citizens. You can expect an interest rate of 7.40% per annum which is paid to you on a monthly basis. It has a minimum age requirement of 60 years (completed) but has no upper limit for the age.
We hope this article helps you in making prudent choices while investing in monthly income-generating plans. If you need any further information, we are just a call away.
