10 Best Investment to get regular monthly income

Regular Income

My friend is businessman and does not earn regular income. He wants to invest money to get regular monthly income.

Who don’t like regular income? I know you also want to have regular income by investing money in financial product. To help you we have evaluated various investment option and we are herewith 10 best investment option to get regular monthly income in India.

10 Best Investment to get regular monthly income

(1)    Post office MIS

MIS broadly known as Monthly Income Scheme as name suggests one can get assured monthly return from investment under this scheme. Rate of return under this scheme is fixed 8%. Investment period under this scheme is 5 years. One will get back his principal amount along with a 5% bonus at the end. One can invest only up to 4.5 lacs for an individual account and 9 lacs in a joint account.

MIS Example – Suppose Mr X invests 3 lacs in MIS. Monthly returns in this case will be 2000 Rs/- per month and Mr.X will get 15000 Rs/- additional bonus at the end of six year on maturity.

Interest Income from MIS should be added to your income and necessary tax to be paid.

Also Read – 10 Passive Income Generation Ideas

(2)   Fix Deposit

Fixed Deposit (FD) is a low risk financial instrument where an investment is made for a fixed period of time resulting in a fixed rate of returns. This is best suited for investors with a low risk appetite and who wants to invest a fix sum of money to earn a fixed rate of interest.

Fix deposit is most popular investment option which can offer monthly, quarterly, yearly return. The interest rate will depends on the tenure for which you open fixed deposit. Bank FD would offer 8-9% return per annum.

FD Example – Suppose Mr X invests 1 lac in FD for 1 year with 9% return per annum. Yearly interest under this case will be 9000 Rs/- with monthly income of 750 Rs/-

Interest amount from FD is taxable and if your income is not in taxable range you need to submit form 15G/15H.

Also Read – Download 15G/15H Form

(3)   Senior citizen saving scheme

Senior citizen saving scheme is special scheme only for senior citizens. Investment in this scheme can be made only by people of 60 years of age or above.

The Senior Citizen’s Savings Scheme has a maturity of 5 years, which is extendable by 3 years. Rate of return offered in this scheme is 9 % per annum. Interest income will be paid every 3 months.

(4)   Monthly Income Plan of mutual funds

Certain mutual funds have inbuilt structure of providing regular income which is called as MIP (monthly income plans). Like MIS, FD or SCSS return in MIP is not guaranteed it will fluctuate and are in range of 8-9% .

Amount paid by MIP is called as dividends. The dividends are tax-free in hands of investors.

Also Read –  10 Ways to convert Black Money to White

(5)   SWP from mutual funds

Mutual fund is most popular investment option in India. If you have invested in equity or debt mutual funds you can generate regular monthly income from mutual funds by selecting SWP (systematic withdrawal plan).

SWP is reverse of SIP; It is withdrawal of fixed number of mutual funds unit and selling it in market. This is slight risky way to generate monthly income and not advisable for those who are looking for fix kind of return.

(6)   Dividend from Mutual funds

Certain Mutual funds have option of dividend payout. If you don’t want to invest in equity directly you can opt for mutual funds with dividend payout.

This mutual funds provide dividend on yearly basis & not monthly, but if you have diversified and invested in multiple mutual funds like this you can get regular dividend income.

Also Read :- 10 Best safe Investment Option

(7)   Dividend from Equity

Equity investments are risky in nature. But if you have knowledge and skill you can make very good money in stock market.

Apart from appreciation in stock value you can take benefit of dividend. Dividend payout from equity is on yearly basis. If you diversify your stock investment in 10-12 good stock you can defiantly generate regular income.

(8)   Rent from Real Estate

Real estate is another good way to generate regular income. Real estate investment is high risk high return affair. You can generate income by renting property purchased by you.

There are risks involved in this option risk like not getting tenants or right tenants or fall in property rates.

Also Read:- Before buying property for investment

(9)   Long term Government Bond

Long term government bond is one of the safest options to get regular income.  Government bond usually offers 8% return half-yearly. These bonds are long term bonds and at the end of the tenure you will get back your principal amount.

These bonds are also tradable in secondary market, so you can also sell them if you want to get rid of them.

(10)  Annuity from Insurance companies

Annuity from Insurance plan is also one option to generate regular monthly income. But this option will take time to generate income. Returns on these plans will depend on pension tenure and which option you have taken while buying the product.

As per me this is last option and not advisable, if you are not capable of doing anything else with your money you can opt for this option.

10 Best Investment to get regular monthly income

Also Read:- Best Investment Option in India

What do you think about these investment options? Which one of these is your favorite? Please share your views in comment section.

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 850+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

Subscribe to Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

25 Comments

  1. R Purshothaman says:

    consider balanced funds with monthly dividend. I find 3 funds icici balanced advantage. Lt prudence tata balanced fund. 3 funds give monthly tax free dividend with excellent capital growth.

  2. mathan says:

    HI
    I am ready to invest ten lakh.i need a monthly income of one lakh per month.suggest some of t best options..

    • Balvinder singh says:

      Sir go for UTI MIS advantage fund . Last 3 yrs return 12% . & since 5 yrs return are too good compare wid bank FDRs.
      All payout monthly dividends . Total tax free. I suggest go for this . You will get 1 lakh monthly and even tax free.

    • munish verman says:

      If u really need to invest your money I suggest you to invest your money in share market its best option for you to invest and for best return suppose if you invest 10lack in share market you will earn 2 lack per month in safer hand .
      If u want to know more better options please contact at +91-9953279623 Mr. Munish Verman ( financial counseling department )

    • nagamani says:

      u can give to intrest rate for local persons @ rate Rs.10 automatically u get to 100000 Rs.

  3. syed j ahmed says:

    good and simple details, nicely explained easy to understand , cheers 🙂

  4. Annapurna says:

    Undoubtedly, PO MIS is the best among these when it comes to risk adjusted returns. MIPs of MFs cannot be depended on for stable regular income, as during periods of secular downtrend in the stock markets, they may not pay dividends or income for long periods.

  5. Shilpi Dutta says:

    Are the post office schemes safe? I have never invested in them, but want to.dont know how much return they give

    • Money Excel says:

      Yes Post office schemes are absolutely safe.Return on Post office MIS is 8%.

      • Kalpana says:

        Investment in Post Office may be good … but the Post Office staff are so devoid of common sense and totally against customers. Believe me I have been investing in POs and seen Post Offices across the country. They don’t know their own rules. They make you run around so much that at the end of the day you will be worried thinking “How will I get my money out of the post office?”

        Ask me…. I have several terrible experiences to share. The Post Office staff are not able to handle the computers. They do not know how to use them.

        They are most unhelpful. At a Post Office in Bangalore where I had invested TWO Term Deposits they made me visit the office every day for 10 days…. I wanted to withdraw my amount and they were not able to find the papers/forms which i has filled when I has opened the account! Height of heights is they file all papers in any order, so cannot find ANY papers! I shoted and then they looked at the entry in the computer (I had given them my pass book) and I had a tough time getting my money back !!

        BEWARE of Post Offices ! I have other instances from other cities as well since my job ensures I travel a lot.

        Better to put in FD in banks and take whatever interest you get.

        Post Offices are pathetic and a big NO NO !!

        • Vinit Kumar says:

          I do agree with Kalpna Madam, In April this year 2016, I visited Post Office for MIS joint account. Firstly, they were not sure about minors, then old form was given, when everything completed, they changed the form. One postmaster had different view than the other post master. After I lost my control, finally joint account was opened in July. The person sitting in the window was fighting with everyone.

          This is the state of affairs of our post office. Now I have a doubt whether to open the account or not .

Leave a Reply

Your email address will not be published. Required fields are marked *