Jul 9, 2024
By: Ira Alok Puranik
These mutual funds invest 70-80% in debt assets, alongside putting a small portion in equities. The aim is to generate a consistent monthly payout for investors. However, this amount depends entirely on the fund's performance and is not fixed.
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Similar to fixed deposits offered by banks, corporate deposits are offered by NBFCs, HFCs, and other corporates. They offer higher interest as compared to regular FDs and offer monthly or quarterly payout. They can also be used as collateral for availing a loan.
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This scheme, which offers a monthly payout, has an interest rate of 7.4% p.a. However, you are not allowed to withdraw the deposited amount for up to 5 years. Your maximum investment in this scheme cannot be more than Rs 9,00,000. You need a minimum of Rs 100 to open this account.
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PMVVY is an insurance policy-cum-pension scheme that can be availed by individuals who are aged above 60. The scheme offers a guaranteed payout for 10 years, during which interest at the rate of 7.4% will be paid to the individual monthly. The scheme comes with a death benefit, as well as the choice to get back 98% of the policy's purchase value on premature surrender.
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An annuity plan guarantees fixed payouts to the individual over a predetermined period. Herein, you make payments to the company, and depending on whether you want your payouts deferred or immediately, the company pays you a fixed sum every month or quarter. These plans are generally considered good for retirement planning.
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SCSS can help senior citizens invest for their retirement. If you are aged 60+, you are eligible for the scheme. You can join the scheme within 1 month of retiring from active service. The scheme offers interest of 8.2%, over 5 years. However, you can invest a maximum of Rs 15 lakh here.
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Mutual funds offer systematic withdrawal plans to facilitate investors who want to stagger withdrawals from their investments on a monthly or quarterly basis. This works as an income stream for investors, while staying invested. Under this, a certain number of units are redeemed every month, while also keeping your capital safe.
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These are government-backed debt securities that have a pre-determined maturity date, anywhere between 5-40 years. The investor is given periodic payouts till the time the bond does not reach maturity. Some of these bonds include fixed rate bonds, floating bonds, 7.75% GOI bonds and more.
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