Best investments with regular returns

July 30, 2016 Finance Talk Valli Sarvani No comments

People who do not have regular salary income often worry about their expenses. It is difficult for them to manage their expenses without regular income. Furthermore, they cannot contribute to their future benefits like retirement. Here are some of the best investments that provide regular returns.

Mutual funds monthly income plans are suitable for investors who are looking for regular income. Various types of funds based on risk and returns are available. These include hybrid funds, debt funds etc.

Senior citizen saving scheme is a dedicated scheme for senior citizens. This scheme is offered by post offices and some banks. The maturity period for this scheme is 5 years. Interest on this is 8.6 per cent per annum.

Bank fixed deposits are low risk investments. If large amount is invested in these deposits you can opt for monthly interest payout. You can also reinvest the money.

Systematic withdrawal plan enables you to withdraw a fixed or variable amount from this scheme. Based on your requirement you can choose monthly withdrawal, quarterly or annual.

Mutual funds dividends are another regular source of income. Some mutual funds offer regular dividends and if you choose such funds you can get regular dividends each year.

Investing in equities is another option that offers regular income with equity dividends. Yet, investing in equities is somewhat of a risk. You should carefully choose the companies while investing in this stock. Also, diversifying funds not only helps reduce the risk but also facilitates getting dividends on regular basis.

Investing in real estate is a good bet but you need more funds comparatively than other investments. Letting your house or land will fetch you rent on regular basis. Furthermore, you can get security deposit from your tenant which can be deposited in bank and get interest on it.

Post Office monthly income scheme is another good option for individual. One can invest as much as Rs.4.5 lakh in this scheme. Interest is7.80 per cent per annum on this monthly income scheme which can be paid monthly.

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