If you want monthly income then choose Dividend Option in Mutual Fund. In this you get regular income, although the value of your investment in this scheme increases relatively little.
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Investment Tips: If you are salaried then it is your endeavor to invest in some such places from where regular monthly income comes. This income is very useful for you. Most of the investors are looking for such investments. In this article, we are going to tell you about four different schemes, in which there is regular monthly earning. This also gives diversification to your portfolio, due to which the risk is reduced.
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Post Office MIS: A lump sum amount has to be deposited in the Post Office Monthly Income Scheme Account (Post Office MIS). It gives an annual return of 6.6 percent. Minimum 1000 rupees can be deposited and maximum 4.5 lakh can be deposited. A minor above the age of 10 years can also open this account in his own name. In the name of a minor younger than him, the proposer will be his parent or guardian. Monthly income comes under this scheme. The maturity of this scheme is of 5 years. After maturity, the entire money is returned.
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SBI Annuity Deposit Scheme: Under this scheme also one has to deposit lump sum money and get the benefit of interest every month. The special thing about this scheme is that the bank gives you some part every month even from the lump sum amount. The EMI from the bank comprises a part of the principal plus interest on the diminishing principal amount, compounded at quarterly intervals and discounted on the monthly value. At least 25 thousand rupees will have to be deposited in this scheme. SBI Annuity Deposit Scheme is available with maturity options of 3 years, 5 years, 7 years and 10 years. SBI offers 5.40% interest rate on deposits maturing in five to 10 years. For FDs maturing in less than three to five years, SBI offers an interest rate of 5.30%.
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Systematic withdrawal plan: Under the systematic withdrawal plan, investors get back a fixed amount from the mutual fund scheme. Investors themselves choose the option of how much money to withdraw in how much time. They can do this work on a monthly or quarterly basis. By the way, the monthly option is more popular. If the investor wants to withdraw only a certain amount or if he wants, he can withdraw the capital gains on the investment.
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Dividend Option: Dividend option is also a method of return on mutual fund investment. Under this, the income earned under the scheme is not reinvested in the fund but is returned to the investors on quarterly, half-yearly and yearly basis. It is available as regular income. Mutual fund investors get the option of both growth fund and dividend fund. In dividend option, the mutual fund company pays dividends to the investor from time to time. Debt, equity or hybrid all schemes pay dividend to their investors. Debt mutual funds with dividend option are suitable for elderly people who require regular income.
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