5 Best Investment to get regular monthly income

Where to invest money for the regular monthly income? It is a simple question always asked by professionals with an irregular monthly income. They explore investment option to get regular monthly income. If you also want to have regular monthly income by investing money in the financial product, here are 5 best investment options to get regular monthly income.

5 Best Investment to get regular monthly income

(1) Fix Deposit

The first best investment option for regular monthly income is Fixed Deposit. Fixed Deposit (FD) is a low-risk financial instrument where an investment is made for a fixed period of time resulting in a fixed rate of returns. Fixed deposit option is best suited for investors with a low-risk appetite and who wants to invest a fixed sum of money to earn a fixed rate of interest.

Fixed deposit offers an option to select monthly, quarterly, yearly return. The interest rate component varies from bank to bank. Generally, it is in the range of 8-9%.

FD Example – Suppose Mr. A invests 1 Lakh in FD for 1 year with 9% return per annum. Yearly interest under this case will be 9000 Rs/- with monthly income of 750 Rs/-

Income earned as interest from FD is taxable. If your income is not in taxable range you need to submit Form 15G or 15H to the bank.

regular monthly income

(2) Monthly Income Plan of mutual funds

The second best investment options for regular monthly income is Mutual funds MIP. Mutual Fund MIP (monthly income plans) does not give guaranteed return. The return offered by MIP is generally in the range of 8-9%. These mutual funds offer regular income.

An additional method for earning income from the mutual fund is SWP (Systematic Withdrawal Plan). SWP is the reverse of SIP. It is a withdrawal of fixed number of mutual funds unit and selling it in the market. This is a slight risky way to generate monthly income and not advisable for those who are looking for fix kind of return.

(3) Dividend from Mutual funds

There are mutual funds that offer option of dividend payout. This dividend amount is tax-free in the hands of the investor. If you don’t want to invest in equity directly you can opt for mutual funds with dividend payout.
These mutual funds provide dividend on yearly basis & not monthly, but if you have diversified and invested in multiple mutual funds like this you can get regular dividend income.

(4) Dividend from Equity

If you can afford risk equity investment is the best investment. However, you require knowledge, skill and time in order to deal in the stock market.

The stock market offers dual benefits. You can take advantage of capital appreciation and dividend. Dividend payment from equity is on yearly basis. If you have invested in good dividend paying stocks you can generate regular yearly income.

(5) Rent from Real Estate

The last best idea for generating monthly income as per me is real estate. The investment in real estate is high-risk high return affair. You can generate regular income by renting a property purchased by you. This option requires a huge investment the risk in this option is not getting tenants and fall in the property rates.

5 Best Investment to get regular monthly income

What do you think about these investment options? Which one of these is your favorite? Please share your views in comment section.

Article by Raviraj

Raviraj is the man behind moneyalpha.com. He is graduate in finance, engaged in blogging since 6 years. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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