Who looks for an investment plan that gives monthly returns? Generally, people who do not have a regular source of monthly income search for such options. Usually, retired people benefit from monthly returns investment plans because it ensures a stable income source they can rely on every month for their sustenance.
Investors can look for two types of monthly return generating investments. One is the regular interest, annuity, or dividend-paying instrument, and the other is the annuity cum insurance providing investments. We shall look at some examples in all these categories.
Earn Return On Your Investment At Regular Intervals Like Daily, 3 days Or 15 days
- SBI Debt Hybrid Fund – 25% investment in equity and 75% in debt and money market instruments
- ICICI Prudential Regular Savings Fund – 13.92% investment in equity and 77.41% in debt and low-risk securities
- Reliance Hybrid Bond Fund – 12% investment in large and mid-cap stocks and 83% in debt and low-risk securities
Besides mutual funds, you have insurance plans that ensure monthly returns. Generally, these plans are regular insurance products that offer the payment of the insured amount in two optional ways, as a lumpsum payment or as a monthly income.
Usually, the monthly payment starts from the date when the premium payment ends. Here, the policyholders need not invest lump sum amounts as they do in other monthly income-generating plans. On the other hand, they can start investing early in life. Of course, the earlier you start, the lower the premiums. The advantage of these plans is the insurance cover available throughout the term.
Here are some examples of insurance plans offering monthly returns.
|Monthly Income Plans||Entry Age||Maturity Age||Policy Term||Premium Paying Term||Sum Assured|
|Aditya Birla Sun Life Insurance MIP||18 to 55||80||20 to 37 years||10 to 12 years||Minimum Rs 4 lakhs, For entry age between 51 and 55, the minimum sum assured is Rs 6 lakhs.|
|Bajaj Allianz Life Income Assure||0 to 50||74||17, 19, 22, and 24 years||5,7,10, and 12 years||144 times the minimum monthly guaranteed income chosen|
|Max Life Monthly Income Advantage Plan||18 to 55||75||18,22, or 25 years||8,12,or 15 years||
8-year – Rs 2.16 lakhs
12-year – Rs 3.24 lakhs
15-year – Rs 4.05 lakhs
Regular Pension Plans
Regular pension plans are also available where investors can invest either monthly for extended periods or in a lump sum. These pension plans allow the investors to decide on the pension quantum when investing. The investment amount works out accordingly.
For example, the Atal Pension Yojana requires investors to invest the sum in monthly, quarterly, half-yearly, or annual installments. The starting age is 18, and the maximum age for starting the investment is 40. The acquisition continues until the investor attains 60 years. Subsequently, they begin receiving the pre-decided pension amount. This scheme also offers the investor to convert the monthly annuity into one lump sum payment. The pension amount starts from Rs 1000 and increases by Rs 1000 each up to Rs 5000.
In contrast, the Pradhan Mantri Vaya Vandana Yojana seeks a lump sum investment of Rs 1.50 lakhs and a maximum of Rs 15 lakhs for ten years. This investment plan is available for senior citizens alone. Depending on their investment, they get a monthly pension between Rs 1000 and Rs 9250
With Money Club You Can Earn Around 10-20% Return On Your Investment
Bank and Post Office Monthly Income Schemes
Both these schemes are similar in many ways. However, the POMIS has a maximum ceiling of Rs 4.50 lakhs on individual deposits and Rs 9 lakhs on joint deposits. No such ceilings are stipulated for bank FDs. Another difference is in the interest rates. The Post Office interest rate is 6.6% per annum for five years, whereas banks offer 3% to 7%, depending on the investment amount and the tenure.
We have discussed the different types of schemes that can generate monthly returns. Investors can decide on the right investment course after considering their risk appetite, returns, and liquidity. However, the longer you invest, the more attractive the returns.