6 Best Monthly Income Investments and Important Points to Know

• Monthly Income Plans (MIPs), like Post Office MIS, Senior Citizen Savings Schemes, Fixed Deposits, Annuity Plans, and MIP mutual funds, offer stable income with varying levels of risk.

• Options like POMIS and SCSS are ideal for risk-averse investors and retirees, offering fixed returns and government security.

• Mutual fund Monthly Income Plans and Systematic Withdrawal Plans (SWPs) offer the potential for higher returns through equity exposure.

• Some options, like annuity plans, allow you to choose between immediate or deferred income. 

By selecting some of the best monthly income investments, you can enjoy growth with minimal risk. These schemes offer a steady income stream after maturity. Until then, you invest a certain sum at regular intervals for a specific period, which grows till maturity. 

These recurring income strategies can be a great way to ensure consistent cash flow. The key is to invest in the right plan. Read on to learn about some of the top options you can consider and tips on choosing the right one.

This is a government-backed scheme that is ideal for risk-averse investors. The returns from POMIS are based on the interest rate, which is reviewed quarterly. Currently, the interest rate is 7.4% per annum, calculated annually but paid monthly, making it ideal for stable investment returns. 

You can invest a minimum of ₹1,000 and a maximum of ₹9 lakh in a single account and ₹15 lakh in a joint account. The maximum investment term is 5 years.

MIPs are mutual funds that invest a majority of the funds in debt and a small portion in equity. These are among the best monthly income investments because your equity exposure is minimal, and the returns are better than  other fixed-income options. 

Since it is a market-linked option, the returns are not guaranteed. So, you must assess your risk tolerance before investing.

This is another government-backed scheme ideal for investors above the age of 60. The returns are as per the declared interest rate and it is paid on a quarterly basis. The current interest rate is 8.2% per annum, and the maximum term is 5 years. You can invest a minimum of ₹1,000 or up to ₹30 lakh. 

FDs are a popular investment option for risk-averse investors as the returns are unaffected by market fluctuations. This is also why it is one of the top investment plans in India for monthly income. 

You can choose non-cumulative FD and receive interest monthly. The interest rate varies depending on several factors, including your investment amount and the issuer you choose.

These are investment options offered by insurance companies in India. What makes them one of the best monthly income investments is that they are low-risk, and you can choose when you receive the earnings. 

If you invest at a young age, you can receive the monthly payouts in retirement, which would be a deferred annuity. You can also choose an immediate annuity and receive monthly payouts immediately.

Mutual funds allow you to invest systematically through SIPs, and they also allow you to withdraw systematically through SWPs. By employing this strategy, you can get stable investment returns from your mutual funds. 

To do this, you can mention the amount you want every month and units of equivalent value will be redeemed every month.

Selecting the right investment option is crucial for several reasons, like achieving your financial goals, ensuring the safety of your funds and more. 

Here are some points you should consider while choosing from the top investments with monthly income options in 2025:

• Understand the risk levels of the scheme to choose an option you are comfortable with

• Assess historical returns and projected growth, if available, to ensure you meet your goals

• Analyse the investment terms to select the ones that align with your requirements

• Evaluate the liquidity to choose one as per your needs

• Compare the charges to select the most affordable one and maximise your gains

Ensuring stable investment returns can help you secure financial growth easily. To achieve this, you must invest carefully by choosing the ideal options. Remember to diversify your funds to minimise the risk of market fluctuations and keep your capital protected. You can also consult a financial expert to ensure that your investment strategy is aligned with your goals.

1. Which plan offers the highest monthly return?

The returns from monthly income schemes vary depending on several factors. You can analyse the historical returns of the options to assess the best one for your goals. Some options you can consider are:

• Post Office Monthly Income Scheme (POMIS)

• Annuity Plans

• Senior Citizen Savings Scheme (SCSS)

• Non-Cumulative Fixed Deposits

2. Are these investments safe during economic downturns?

While the best monthly income investments are low risk, some are affected by market movements. So, it is best to diversify your investments, which helps minimise the risk of market fluctuation and keep your capital protected.

3. Can I invest in multiple monthly income plans?

Yes, you can invest in multiple investment options for monthly schemes. However, make sure that your investment is diversified and the options you choose are as per your risk tolerance, goals and horizon.

4. How do I handle taxes on monthly payouts?

The taxation for monthly payout from your investment will depend on the type of investment. For instance, in FDs, TDS is applicable if the annual interest amount exceeds the stipulated amount. You can consult a financial expert to better understand the tax implications of your investment returns.

5. Should I diversify among different monthly income options?

Yes, you can, as different monthly income schemes have different risk levels. For instance, mutual fund MIPs have some exposure to equity, so the returns are market-linked. On the other hand, FDs are not market-linked and offer assured returns at a predetermined rate. So, by investing in such different options, you can minimise your risk.

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