If you are looking for monthly income plans, there are a number of options. You have the mutual fund schemes, post office scheme and also company fixed deposits. We have written about options from all these three plans and have given you a few monthly income options below. Pick and choose from the ones you like.
Bajaj Finserv offers you an interest rate of 7.72 per cent on a monthly basis, if you place your investment for 12-35 months. On the other hand if you place your deposits beyond that the firm offers you an interest rate of 7.77 per cent. The deposits are AAA rated, which means they are relatively secure. The deposits over 36 months offer you an interest rate of 7.77 per cent. The rates off interest are much better then bank deposits and you could consider them for the very long term as well. Go for them if you are a retired individual who is looking for regular monthly income.
HDFC Monthly Income Plans
HDFC too offers you interest rates at monthly disbursals. The interest rate on a 15 month deposit is 7.22 per cent, while the 22 month deposit fetches 7.30 per cent and the 30 month deposit fetches 7.25 per cent interest. The deposits are AAA rated and are relatively secure. If you are looking at long term monthly income, these could be very good deposits. The deposits are highly rated and are hence very safe.
Franklin India Monthly Income Plan
This is a debt dedicated mutual fund that can offer you decent returns. Most of the funds of the plan have been invested in government securities. Interestingly, the ones year returns from the plan have been almost 10 per cent, which beats the returns from bank deposits. The fund also has holding in shares of State Ban of India, HDFC Bank and others.
SBI Monthly Income Plan
State Bank of India MIP, monthly income plan is another investment plan that investors can look at. The fund has generated good returns of 13.49 per cent in the last one year. It is likely that the fund would continue to generate good returns. The fund has holdings in shares as well as government dated securities and other debt instruments. The returns have been better then bank deposits in the past and hence you can go for these MIPs.
Monthly Income Plan of Post Office
The interest rates on the post office monthly income scheme is much better then some bank deposits. The interest rate currently offered is 7.70 per cent. Since these deposits are backed by the government, they are also relatively safe. These deposits can be en-cashed earlier, after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit.
DHFL Monthly Fixed Deposits
This has to be the best bet when it comes to fixed deposits. If you place the deposit for a tenure that ranges from 48 to 120 months, you get an interest rate of 8.15 per cent per month. For a 24 and 36 months tenure the interest rate drops to 7.95 per cent. Rating agency CARE has rated the deposits with a AAA rating.