Individuals other than salaried, most of the time bother about expenses and how to tackle them when their income is not regular. Such persons find it difficult to manage their finances.
Even salaried individuals also at some point face a financial crunch if financial planning is not done.
With most individuals having private jobs and younger generation believing in switching jobs for better. Between all these many individuals fail to contribute towards retirement or towards their savings.
Here are 8 investment avenues which can generate safe and regular monthly income:
Mutual funds MIP
There are monthly income plans from mutual funds specially for investors who are looking for regular income. There are a variety of plans depending on the returns and safety such as hybrid funds, debt funds etc.
Senior Citizen Saving Scheme
This is a specialized scheme for senior citizens offered by post office and few banks. The maturity period is 5 years and interest rates is applicable at 8.6% per annum. A depositor may operate more than one account in individual capacity or jointly with spouse.
Bank Fixed Deposits
Individuals with low risk can consider investing in high-interest rates fixed deposit and can opt for monthly interest payout option. One can also choose from monthly, quarterly or reinvesting.
Systematic Withdrawal Plans from Mutual Funds
In Mutual funds, Systematic Withdrawal Plan will allow an investor to withdraw a fixed or variable amount from his scheme. One can opt for withdrawal every month, quarterly or annually depending on the requirement.
Mutual funds Dividends
One can invest in mutual funds which are known for delivering regular dividends. There are many equity dividends funds which provide regular dividends but on a yearly basis.
Individuals who are looking for high returns can consider investing in equities directly but this can be a risky bet.
Equity dividends are paid out on a yearly basis, so should make sure that you diversify stocks such that you receive dividends on a regular basis.
If you have additional space or land one can consider renting it out. This can generate regular income as the person will you regular rent on the space used. One can also collect security option from the tenant and invest the same in fixed deposit.
Post Office MIS
An individual can invest maximum Rs 4.5 lakh in Monthly Income Scheme (MIS) including his share in joint accounts. The interest rate is applicable at 7.80 per cent per annum payable monthly.