Best Investment Plans for Regular Monthly Income | Passive Income Schemes | Get Monthly Fixed Income

Summary

This video script introduces various investment ideas for generating regular income alongside long-term wealth creation. It highlights Systematic Withdrawal Plans (SWP) from mutual funds offering 10-12% returns, the Post Office's Monthly Income Scheme with 6.6% annual returns, and long-term government bonds with monthly interest payments. Additionally, it covers annuity plans for retirement security, and the Senior Citizens Savings Scheme, which provides a higher interest rate of 8.2% with tax benefits and a maturity period of 5 years, extendable by another 3 years.

Takeaways

• 💼 Investing in the long term can create a substantial corpus and provide good returns, contrary to the common belief that only salaries or businesses can provide regular income.
• 📈 Systematic Withdrawal Plan (SWP) is an investment strategy that allows investors to earn regular income from their investments for a fixed period.
• 🏦 Mutual fund houses like Tata, SBI, ICICI, and Canara offer SWP services with average returns of 10-12%, making them a viable option for regular income.
• 🏣 Post Office's Monthly Income Scheme (MIS) is a government-backed investment option that provides a fixed 6.6% annual return paid monthly, suitable for risk-averse investors.
• 💳 Long Term Government Bonds are another low-risk investment option that offers regular income through monthly interest payments based on the government's coupon rate.
• 🔖 Annuity Plans, offered by insurance companies, provide a constant income at low risk, with options for deferred or immediate income streams post-lumpsum investment.
• 👵 Senior Citizens Savings Scheme is a Post Office scheme designed for individuals aged 60 or above, offering a higher interest rate and tax benefits under section 80C.
• 💰 The Senior Citizens Savings Scheme allows for a maximum investment of Rs 30 lakhs, with a maturity period of 5 years and an option to extend for another 3 years.
• 📊 After 5 years, a Rs 30 lakh investment in the Senior Citizens Savings Scheme at 8.2% interest rate can grow to Rs 42.3 lakhs, providing a quarterly interest of Rs 61,500.
• 🌐 The video encourages viewers to consider these investment ideas for long-term wealth creation and regular income, and to explore further if they are already investing in similar options.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is various investment ideas that can provide both long-term wealth creation and regular income.

What is SWP and how does it work?

SWP stands for Systematic Withdrawal Plan. It is an investment plan where an investor's investment provides regular income for a fixed time. Mutual fund houses like Tata, SBI, ICICI, and Canara offer SWP services with average returns of 10-12%.

What are the benefits of investing in SWP funds from mutual fund houses?

Investing in SWP funds from mutual fund houses can create a good income source with regular income from investments, along with the potential for returns of 10-12% on average.

What is the Post Office's Monthly Income Scheme (MIS) and what are its features?

The Post Office's Monthly Income Scheme (MIS) is a government-backed scheme that provides regular income to investors. It offers fixed annual returns of 6.6%, paid monthly, with a maturity period of 5 years. The maximum individual investment limit is Rs 4.5 lakh, and up to Rs 9 lakh in a joint account.

Why are government bonds a good option for regular income with less risk?

Government bonds are a good option for regular income with less risk because they are backed by the government, ensuring stability. They pay interest on a monthly basis and are available for various investment durations, allowing investors to choose based on their convenience.

What are Annuity Plans and how do they provide regular income?

Annuity Plans are offered by insurance companies in India and provide constant income at very low risk. Investors make a lumpsum investment, and the plan continues to give regular income at regular intervals. There are two types: Deferred Annuity, where the investor chooses when to start receiving income, and Immediate Annuity, which starts providing income immediately after investment.

What is the Senior Citizens Savings Scheme and who is it designed for?

The Senior Citizens Savings Scheme is a prominent scheme by the Post Office designed for individuals aged 60 years or more. It aims to provide regular monthly income post-retirement with a higher interest rate than other government schemes, currently at 8.2%, and a maturity period of 5 years, extendable by another 3 years.

What are the tax implications of investing in Annuity Plans?

In Annuity Plans, there are no tax benefits, and the plans are taxable. This means that the income received from these plans is subject to income tax as per the investor's tax bracket.

What is the minimum and maximum investment limit for the Senior Citizens Savings Scheme?

The minimum investment in the Senior Citizens Savings Scheme can be as low as Rs 1000. For a joint account, the maximum investment limit is Rs 30 lakh, while for an individual account, it is capped at Rs 15 lakh.

How does the Senior Citizens Savings Scheme benefit from Section 80C of the Income Tax Act?

The Senior Citizens Savings Scheme benefits from Section 80C as it allows for tax-free investment up to Rs 1.5 lakh. This means that the investment amount of Rs 1.5 lakh can be deducted from the investor's total taxable income.

What is the potential growth of an investment of Rs 30 lakh in the Senior Citizens Savings Scheme over 5 years?

If an individual invests Rs 30 lakh in the Senior Citizens Savings Scheme at an 8.2% interest rate for a maturity period of 5 years, their investment would grow to approximately Rs 42 lakh 30 thousand. They would also receive quarterly interest of Rs 61,500, which equates to Rs 20,500 per month.