Top 10 Ways of investment to Get Fixed Monthly Income

Here are a list of great investment tools for fixed monthly income that can be used by both self-employed and salaried individuals. The best 10 ways of investment to get fixed monthly income has been listed here randomly:

Fixed Deposit

The most advantageous aspect of investing in Fixed Deposit (FD) is the fact that it is a low risk financial instrument. An individual makes an investment for a fixed period of time which leads to a fixed rate of returns. Suited for people who wish to make a low risk investment with a fixed rate of returns in the form of interest. Fix deposits are offered with monthly, quarterly and even yearly return. The interest rate is based on the duration the fixed deposit has been opened. Generally banks offer an interest around 8% return per annum.

Post Office Monthly Income Scheme

A post office Monthly Income Scheme (MIS) pays returns to the holder every month with assurance from their investment. Rate of return is also fixed in the case of Post office MIS and is currently at 8%. There is also a significant tenure for the fixed investment which is 5 years. Hence, at the end of the tenure the individual will get 5% bonus along with the principal amount invested. However there is a restriction of the maximum limit for investment which is Rs. 4.5 lakhs for the account of an individual and Rs.9 lakhs for a joint account.

Senior Citizen Saving Scheme

As the name suggests this is a scheme valid for only senior citizens. Hence, people over the age 0f 60 years can apply for this scheme and avail its benefits. This is has a maturity tenure of 5 years and is extendible up-to 3 years. 9% is the rate of return enjoyed by the account holders and the interest amount is paid out to the account holders every 3 months.

Online Investing with a trusted Investment company

Individuals can invest online expecting a good monthly return with a trusted investment company and can expect return of up-to 10% per month. However, much research is required when investing through these online investment solutions.

Mutual Funds - Monthly Income Plan

There are mutual funds with inbuilt structure that provides regular income also known as MIP (monthly income plans). Similar to other FD, MIS or SCSS, return in mutual funds are not guaranteed and will fluctuate between the ranges of 8 to 9%.

Mutual Funds - Dividend Payouts

Some Mutual funds provide with the option of dividend payout. If the individual is unwilling to invest in stocks directly opting for mutual funds with a guaranteed dividend payout is a good choice. Dividends are provided on yearly basis but not monthly basis. However, if an individual has a diversified investment portfolio and wishes to invest in multiple mutual funds this way does provide regular dividend income.

Long term Government Bond

Long term government bond is said to be one of the safest investment instruments to earn regular income. Government bond generally offers 8% every 6 months. These long term bonds yield you back you the principal amount at the end of the tenure.

Rent From Real Estate

Real estate helps generate regular income, and sometime of our life we have experienced people earning sustainable income from rent. Real estate investment is however a high risk but high return investment option. The main risks are being able to handling tenants who may not pay rents on time. Hence, most cities in India charge a minimum of two month security deposit.

Annuity Insurance

Annuity is also an advantageous option for generating regular monthly income. But this option definitely takes time to create income. Returns on these plans are based on pension tenure and also the option chosen for buying the product. This should be kept as a last resort for fixed monthly income.