The best way to fund your expenses is post-retirement without using any retirement savings. Best investment options for salaried people can help your plan your finance better. Dear Investor we know we think more about the future than today that is why we all invest some lump sum amount everywhere whether doing Fixed deposits, Mutual fund investments, sips, and more.
Today in this context you will learn more about investment banking and after reading this you will learn how to calculate investment.
Here we are going to reveal to you all the topmost secret trips to earn money monthly by regularly depositing some amounts. We always prefer you all to invest in a good place to get good returns, so if you have a considerable amount in your hand then try investing in those schemes that offer regular monthly income isn’t it a great idea?
Top 8 best investment options for salaried person
• Government Bond
• Post Office Monthly Income Scheme
• Monthly Income Plan
• Corporate Deposits
• Senior Citizen Saving Scheme
• Mutual Fund Monthly Income Plan
• Equity Share Dividend
1. Government Bond
Government Bonds are an excellent way to invest money with low risk. It is a low-risk-taking investment for risk-taking investors. This plan has a low-risk option with good returns. It pays interest once or twice a year. More these government bonds’ duration ranges from 5 years to 40 years.
These bonds payout regular interest and offer coupon payments which used to be fixed by the government of India, it’s come with a predefined maturity date. Their main focus and main intention are to issue government bonds and to raise capital for government expenditure.
2. Post Office Monthly Income Scheme (POMIS)
Post Office Monthly Income Scheme (POMIS) is an investment plan which is offered by India Post. For those investors with zero tolerance for risk and hopes of earning continuous income, this is the best option to invest. The interest rate is paid at 7.6% per annum. The maturity period is 5 years for this scheme and you are getting the feature to withdraw earlier if you complete one year of deposit.
But here withdrawing between 1 year to 3 years of deposit results in a 2% deduction of money and in the other case if you withdraw between 3 years to 5 years you may incur a deduction of 1% from the total amount deposited. It’s an excellent monthly income generator plan for risk takers investors who are looking for constant regular income as it enjoys government backing.
This investment plan has currently offered the rate of interest at 6.6% per annum which will be payable monthly. But this scheme comes with a deposit tenure of five years. An individual limit is doubled to Rs 9,00,000 for joint accounts and one can invest a maximum of Rs 4,50,000. You can start to invest as low as Rs 1,500 in this scheme, once this scheme investment matures the amount can be reinvested for another set of five years.
3. Monthly Income Plan
Monthly Income Plan this is the best investment plan and this mutual fund mostly invests in fixed income and a small portion in equity and equity-related instruments. The holders of this mutual fund payout their investors with a steady income regularly. Make sure you read the Mutual Fund instructions this amount is not fixed, totally depends on the performance of the funds. We know mutual funds really give us losses in a high investment plan but the mutual fund performance drives the return and it is not guaranteed.
So the possibility of a Mutual fund is also to give negative returns many times as well. So our suggestion is to check well and decide to invest in a monthly income plan.
4. Corporate Deposits Non-banking financial companies (NBFCs)
Corporate Deposits Non-banking financial companies (NBFCs) are many and housing finance companies (HFCs) offer corporate deposits. These schemes are similar to deposits, but the problem in this scheme is that you have to invest with a corporate entity that is not as secure as bank deposits. This deposit offers a high-interest rate and comes with added flexibility, which bank deposits don’t offer such schemes. Companies provide interest on a quarterly or half-yearly basis and you can also choose to get a return for any four months in a year.
They come with additional interest rates falling between 0.25% and 0.5% for senior citizens. Before investing here you must check the financial strength and credibility of the NBFC. In order to diversify the risk, you can distribute your money into deposits with multiple companies which ensures you receive income for every month of the year.
You can use this plan as a retirement strategy by making a lump sum investment to reach a high investment and also to earn income at fixed intervals. Indian insurance companies are here to invest and to offer annuity plans that offer low risk and a regular income. The best time to classify this plan is based on the duration of the payment period and it is divided into Deferred annuity and Immediate annuity.
The deferred annuity provides money after a fixed tenor period which will be set by you on the other hand immediate annuity involves receiving regular income as soon as you make the lump sum payment. It is taxable and does not yield any tax benefits. Before investing in this plan be sure that there are various charges involved in annuity investment which include commission and surrender fees.
6. Senior Citizen Saving Scheme
If you are a senior citizen then this scheme is for you. The senior citizen savings scheme (SCSS) is a great investment option. It gives backing facilities for senior citizens only above the age of 60 years who are eligible to invest in the scheme. You also can know more about this scheme at nearby notified bank branches and post offices. For all the senior citizens make sure you must apply this scheme within one month after retiring.
This scheme offers an interest rate of 7.4% per year. You can invest a maximum amount of Rs 15 lakh in this scheme and this scheme has a tenure of five years. Now according to the government, this scheme has added to taxable income and is taxed as per your income.
7. Mutual fund monthly income plan
This plan is to beat inflation and gives the strength to take the risk. The ratio of this monthly plan is usually 20-30% investment in equity securities and 80 % – 70% in debt instruments like certificates of deposit. A good period for this plan is between 2 to 3 years, and after that, you can receive a monthly income by selecting a dividend-payout option from this mutual fund.
As dividends are only paid on profits however the equity component makes it difficult to acquire regular dividends. However, there is always a risk-return time that makes the investors invest in a Fixed Deposit. Fixed Deposit always offers a great balance of low-risk and attractive returns.
8. Equity Share Dividend
This plan allows investors to invest and get gains over the long term along with the promise of a regular income. But here the risk factor is very high. Here you are required to build a diverse portfolio including multiple stocks to facilitate a high dividend payout ratio. You receive dividends on profits and not on capital, chances of having a greater than average possibility of companies not paying regular dividends.
We hope we could help you to get the investment plans. These points can help you to plan your finance better.
Top 6 Best investment options for senior citizens
- Senior Citizens Savings Scheme (SCSS)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- Post Office Monthly Income Scheme (POMIS)
- Senior Citizen FD.
- Tax-Free Bond.
- Mutual Funds.
Top 9 Best investment options in India for short term
- Recurring Deposits (RD)
- Fixed Deposits (FD)
- Corporate Deposits (CD)
- Debt Mutual Funds
- SIP in Equity Mutual Funds
- Stock Market
- Savings Account
- National Savings Certificate (NSC)
- Treasury Securities
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