Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

How and where to invest to get a guaranteed monthly income?

dateKnowledge Centre Team dateFebruary 01, 2021 views210 Views
How and where to invest to get a guaranteed monthly income?

Regardless of whether you're searching for strategies to enhance your regularly scheduled check, or are meaning to save for retirement, there are a lot of ways by which you can invest your cash and earn a predictable monthly revenue.

One of the effective ways of gaining a monthly income is by investing in instruments that will passively payout regularly. There are various ways to deal with making side earnings. Some require substantial personal equity to start with, and others require more regular degrees of commitment.

Therefore, you must invest in monthly income schemes to get an assured revenue every month.

What are Monthly Income Schemes?

The monthly income scheme approach is term deposit where the interest earned is credited directly to the investors account after a certain duration mostly per month. It provides the option of premature withdrawal, overdraft facility etc.

This is done to earn smooth returns and capitalize on the investment whenever feasible through equity exposure.

What are the key features and benefits of Monthly income through various schemes?

The following characteristics and advantages of the best guaranteed monthly income plan make it a feasible investment alternative for risk-averse investors

  • Safety: Investing your hard-earned excess money in saving schemes will help you conserve it for your future requirements.
  • Long-Term Advantages: The shortest lock-in period of these policies is five years. The utmost it can go until you attain the age of 60 years; the compounding of returns, coupled with long-term savings, will earn you income on interest and end up as an enormous amount of maturity.
  • Open-ended option: Monthly Income is an open-ended scheme. People do not have to pay any processing tolls as an entry load for permeating the scheme. Besides, it comes with an exit-load that is less than 1% of the entire investment amount.
  • Guaranteed income: Investors are guaranteed to earn positive retrievals each month, despite the quantum of the sum fluctuating banking on the financial market.
  • Lower-risk: It is because money is invested in low-risk insurances like preferred shares, fixed-income deposits and dividend stocks.

Given are the best investment options to help you get a regular income

Post Office Monthly Income Scheme:

For those investors with a zero-tolerance for any hazard and desires of earning continuous income, the Post Office Monthly Income Scheme is one of the promising available alternatives. The interest is 7.6 percent annually.

Although the maturity term for this policy is five years, you can revoke earlier if you complete one year of deposit. Here you can invest up to ₹4.5 lakhs in a personal account and up to ₹ 9 lakhs in a combined account.

Withdrawing between 1 to 3 years of deposit leads to a 2% deduction. If you relinquish between 3 years to 5 years, it results in a deduction of 1% of the whole amount deposited. On maturity, you will get back your principal amount along with a 5% gratuity amount.

Stocks, Bonds & ETFs

Exchange-traded Funds (ETFs) pay all kinds of dividends and stand some of the most straightforward ways of fixing investors up with a form of passive income regularly. Dividends are paid every quarter and monthly, and it is wise to invest here due to handsome profits.

Bonds are investments that can be augmented to investor portfolios, and they act like a form of agreement between the issuer and the investor. The lender will generally receive interest back with their investment regularly.

ETFs have grown to become famous among investors who aim to seek out varied portfolios within a particular industry – like healthcare or emerging technologies.

When seeking out value investments, it's worth selecting stocks that are competent in offering up dividends. An interesting fact is that $80 trillion is the global stock market value, and the current stock market has been going on for a record ten years!

The global stock exchanges have a capitalization of USD 85 trillion. This is a tremendous boost of 320% since 2009.

If not comfortable with stock market investing, it could be worth discussing with a financial advisor who can steer the way, using experience and fresh ideas.

Corporate deposits

Corporate deposits are offered by several Non-Banking Financing Companies (NBFCs) as well as lodging finance companies. These firms offer interest either on a monthly, quarterly or a half-yearly basis. The suitable strategy here would be to diversify your undertakings and invest in various high-ranking corporations' funds. Also, they have distinct interest ratios for senior citizens varying between 0.25% and 0.5%.

While corporate deposits are an incredible option, you should always examine the credibility and financial value (as per CRISIL standards) of an organization before capitalizing in it.

Equity Share Dividend:

This alternative enables for investment profits over the long term and the commitment of a regular income, but the risk factor is a bit high. You are required to create a diverse portfolio incorporating multiple stocks to stimulate a high dividend payout ratio. Since you obtain dividends on profits and not on capital, there is a greater-than-average possibility of firms not paying regular dividends.

Annuity:

Indian insurance corporations are known to offer annuity policies that offer low risk and a guaranteed monthly income. You can wield this as a retirement scheme by making a lump sum investment to reap income at predictable intervals. The major method of categorizing annuity plans is founded on the payment period's duration and is split into Deferred annuity and Immediate annuity.

A deferred annuity furnishes cash after a fixed-term period set by you, say a month. In contrast, Immediate annuity includes receiving regular revenue as soon as you earn the lump sum payment. However, remember that there are numerous charges involved in annuity investment, which incorporate commission and surrender fees. It is also taxable and does not result in any tax benefits.

Mutual Fund Monthly Income Plan:

This policy is suitable for beating inflation, provided you are willing to take an intermediate amount of risk. The ratio is usually 20% to 30% investment in equity securities, and 80% to 70% in debt instruments like deposit certificates. A good term for this plan is between 2 to 3 years, and you can earn a monthly revenue by electing a dividend-payout option. However, the equity component makes it hard to obtain regular dividends because dividends are only paid on profits and not capitalized equity.

In this policy, you can select a specific amount you wish as a monthly payment for your investment. So, every month on a designated date, units corresponding to that amount would be compensated. Unlike dividends (that depend on earnings made by funds), this scheme ensures a regular revenue.

Senior Citizen Saving Scheme

The senior citizen saving scheme is formulated for senior citizens that are individuals of 60 years and above can invest.

This is a low-risk and high-return investment policy that can provide outstanding financial support for retired people in their old age. The scheme comes with an interest rate of 9%, and interest income is reimbursed after the 3-month duration throughout the year. The senior citizen saving policy is given both by banks and post offices throughout the nation. However, it must be availed within the first month of obtaining the retirement benefit and also the deposit must not surpass the benefit received. While the policy's maturity term is five years, it can be expanded by another three years.

Monthly Income Plans

Monthly income plans (MIPs) are mutual fund plans; one of the best guaranteed monthly income plans. The fund houses to payout their investors with a sum monthly. This amount is not stabilized and varies as per the performance of the fund in the market. Since the performance drives the retrievals, therefore, it is never assured. Also, there are likelihoods of unfavourable returns as well. Hence, before deciding to capitalize on a monthly income plan, you must dim your profile.

A monthly income scheme's approach is mainly debt-oriented as over 70% – 80% of its fund goes into debt funds, while the remnant goes into stock alternatives.

There are two types of investment choices that can be categorized as the best monthly income schemes. These offer alternatives to earn dividends and expedite guaranteed wealth creation. The two types are –

  • Dividend-oriented monthly investment plan: The revenue produced through such plans are in the form of dividends. No tax is imposed on the dividend reimbursed to the people. Such dividends are paid from the distributable abundance and are paid when the said fund is earning gains from the market.
  • Growth-oriented monthly income plan: Through this plan, revenue accrued on the equity gets augmented to the invested amount. It stimulates wealth production along with corpus expansion.

Given above is a list of some of the best investment and income schemes to earn a guaranteed monthly revenue. Now it's your turn to take charge and start capitalizing in them for a stable and secure future ahead!

Whether you're creating a nest egg for the future or willing to create an additional revenue stream through monthly passive earnings, smart monthly income plans can wholly reward investors for the time they're willing to put into an undertaking with a decent revenue stream that can help them to accomplish their objectives.

Related Articles

Browse by Categories

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns if you invest in this savings plan. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

Who should invest in a Savings Plan?

If you are looking for a guaranteed income plan, then saving plans should be on your list of investments that you are planning to make. Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Saving plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These saving plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income. Choose an income plan based on your financial circumstances to stay afloat.

Read More
What is the difference between saving and investing?

Saving is the money that you keep aside for emergencies or for buying any big-ticket item. Investing means growing or multiplying the wealth that you have by buying savings plan, or any other assets. Buying a savings plan will help you in achieving your investment goals such as retirement, your child’s higher education or marriage, or for buying a new house.

Which savings plan is best for retirement?

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement. Also, Guaranteed Income4Life is also another savings plan that you can consider for building your retirement corpus as it acts as a guaranteed income plan that will provide you maturity benefits to manage your post-retirement expenses.

Which savings plan is best for long-term goals?

Smart Goals Plan is a savings plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals. Canara HSBC Oriental Bank of Commerce Life Insurance offers a wide variety of saving plans that you can invest in as per your risk appetite and investment goal.

Which savings plan is suitable for girl child?

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child. Monthly Income Advantage Plans are also a good option if you are planning to invest in a savings plan for your girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having the best savings cum guaranteed income plan in your portfolio is extremely important. Savings plan ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a monthly income advantage plan?

A monthly income advantage plan ensures that you lead a stress-free life with your loved ones as it provides a life cover along with giving you guaranteed monthly income. In short, it is a life insurance and income plan that will financially secure commitments made to your loved ones. Canara HSBC Oriental Bank of Commerce Life Insurance Guaranteed Income Advantage Plan is a monthly income advantage plan that provides life cover for the entire term while you pay premium only for a limited period.

Read More
What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding in a savings plan. Invest in an income plan as early as possible to build a significant corpus that will later help you in life. Ensure that you buy the best saving plan in India that can be aligned with your investment goals.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. The best saving plan offers a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner. Buy a monthly income advantage plan that will generate a steady source of income for you to take care of both long-term and short-term financial goals.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in an income plan, it always pays well to start early. The earlier you start investing in a savings plan, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested in the best saving scheme for a long time can give substantial returns due to compounding. Buy the best savings plan as soon as you start earning to achieve all your milestones on time.

Read More
How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Buy the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment. Consider investing in a monthly income advantage plan to assist you in fulfilling your financial goals.

Read More
How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits, which makes them a good investment choice for investors looking for income plans.

Read More
Call BackCall Back Pay PremiumPay Premium
Chat
Back to top