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If you have a considerable disposable sum in your hands, then investing it in schemes that offer regular monthly plans is a great idea. This ensures that your idle money starts paying out dividends or profits. We have covered the following in this article:

1.Post Office Monthly Income Scheme

Post Office Monthly Income Scheme (POMIS) is an investment offered by India Post. This is an excellent option for risk-averse investors who are looking for a constant regular income. The POMIS is currently offering interest at the rate of 7.6%. This scheme comes with a deposit tenure of five years. An individual can invest a maximum of Rs 4,50,000, and this limit is doubled for joint accounts. You can start investing as low as Rs 1,500 in this scheme. Once the POMIS investments mature, the same can be reinvested for another set of five years to obtain a double benefit.

2.Government Bond

Government bonds are an excellent low-risk investment option for risk-averse investors. The duration of these bonds ranges between 15 years and 20 years. Government bonds payout regular interest or offer coupon payments as fixed by the Government of India. Government bonds come with a predefined maturity date. The main intention of issuing government bonds is to raise capital for government expenses.

3.Corporate Deposits

Numerous non-banking financial companies (NBFCs) and housing finance companies (HFCs) offer corporate deposits. These are similar to bank deposits, but the only difference is that you invest with a corporate entity, which is not as secure as a bank. Corporate deposits offer high-interest rate and come with an added flexibility, which the bank deposits don’t provide. Before making investments in corporate deposits, you must check for the financial strength and credibility of the NBFC. For this, you can make use of CRISIL ratings for this.

4.Monthly Income Plan

Monthly income plans (MIPs) are mutual fund plans. The fund houses payout their investors with an amount monthly. This amount is not fixed and varies as per the performance of the fund. Since the performance drives the returns, therefore, it is never guaranteed. Also, there are possibilities of negative returns as well. Hence, before deciding to invest in a monthly income plan, you must consider your profile. If not, then you might burn your hands with these.

5.Senior Citizen Savings Scheme

If you are a senior citizen, then senior citizen savings scheme (SCSS) is a great investment option. This can be considered an absolutely risk-free scheme and only senior citizens (above the age of 60 years) are eligible to invest in this. You can avail this scheme at notified banks and post offices. You must subscribe to the scheme within one month after retiring.

There may be several investment options that offer monthly income, but the ones mentioned above are the best. It will help if you choose plans that suit your risk profile and requirements.

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