Best Investment Plan for Monthly Income in India

Introduction

Everyone dreams of having a steady income stream — one that provides financial stability, covers regular expenses, and still allows you to save for the future. Whether you’re a retiree looking for consistent returns or a working professional wanting to build passive income, finding the best investment plan for monthly income is key to financial peace of mind.

Thankfully, today’s investment landscape offers several options that blend stability, liquidity, and returns. In this article, we’ll explore the top monthly income investment plans in India and how you can choose what suits your financial goals best.

1. Monthly Income Schemes (MIS) by Post Office

The Post Office Monthly Income Scheme (POMIS) is one of the most reliable investment plans for steady income. It’s backed by the Government of India, making it low-risk and highly secure.

Key Features:

• Fixed interest payout every month
• Tenure: 5 years
• Minimum investment: ₹1,000
• Maximum limit: ₹9 lakh (individual), ₹15 lakh (joint)
• Interest rate: Around 7.4% per annum (as per current rates)

This is a great choice for conservative investors seeking assured monthly income without market risk.

2. Senior Citizen Savings Scheme (SCSS)

Designed exclusively for individuals above 60 years, the Senior Citizen Savings Scheme offers quarterly interest payouts, which can effectively serve as a monthly income stream when managed smartly.

Highlights:

• Backed by Government of India
• Interest rate: Around 8.2% p.a. (subject to change quarterly)
• Lock-in period: 5 years (extendable by 3 years)
• Tax benefits under Section 80C

If you’re nearing retirement, SCSS ensures regular income and capital safety — a perfect blend for financial comfort.

3. Monthly Income Plans (MIPs) in Mutual Funds

A modern and flexible approach, Monthly Income Plans (MIPs) offered by mutual funds invest primarily in debt instruments with a small portion in equity.

These aren’t “fixed return” products — returns may fluctuate based on market conditions, but they generally outperform traditional fixed-income options over the long run.

Why MIPs Work:

• Potentially higher returns than FDs
• Option to receive monthly dividends or withdraw via SWP (Systematic Withdrawal Plan)
• Great for long-term wealth creation with regular cash flow

👉 You can explore top-performing MIPs and SWP options easily through JM Financial Services, which provides expert research and investment tools for smarter planning.

4. Systematic Withdrawal Plan (SWP) – Custom Monthly Income

If you already invest in mutual funds, an SWP (Systematic Withdrawal Plan) can turn your investment into a monthly income source.

Here’s how it works:
You invest a lump sum in a mutual fund, and every month, a fixed amount is withdrawn and credited to your account.

Benefits:

• Flexible withdrawal amount
• Potential for capital appreciation
• Tax-efficient compared to traditional deposits

For instance, if you invest ₹10 lakh in a balanced mutual fund and set a withdrawal of ₹8,000 per month, you’ll enjoy both regular income and market-linked growth.

5. Corporate and Government Bonds

If you prefer predictable interest payouts, bonds are among the best investment options for monthly income.

You can invest in:

• Corporate Bonds – offer higher returns (8–10%)
• Government Bonds – safer, but slightly lower returns (6–7%)

Some bonds pay interest monthly or quarterly, offering steady income without market volatility.

👉 You can discover premium-grade corporate and government bonds on Bondskart (powered by JM Financial Services) — a seamless platform that helps you invest securely in fixed-income instruments.

6. Dividend-Paying Stocks

For those open to equity exposure, dividend-paying stocks are a great way to earn regular income alongside potential capital appreciation.

Look for companies with:

• A consistent track record of paying dividends
• Stable earnings
• Strong fundamentals

While dividends aren’t guaranteed every month, well-chosen stocks can deliver steady income over time, especially in sectors like utilities, FMCG, and banking.

7. Annuity Plans

An annuity plan, usually purchased from an insurance company, provides a guaranteed monthly payout for life. You make a one-time investment, and the insurer pays you a fixed amount every month.

Best suited for: Retirees or individuals seeking lifelong income assurance.

However, returns are typically lower than market-linked instruments and are taxable.

Choosing the Right Monthly Income Plan

Before deciding where to invest, ask yourself:
✅ What is your monthly income requirement?
✅ How much risk are you comfortable taking?
✅ Do you prefer fixed returns or market-linked growth?
✅ How long do you want to stay invested?

A diversified portfolio — combining fixed-income (like bonds, POMIS) with growth options (like MIPs or SWPs) — can help achieve both security and better returns.

👉 With JM Financial Services, you can access expert recommendations, research insights, and digital investment platforms to find the perfect balance between risk and reward.

FAQs

Q1. Which investment gives the best monthly income?
Mutual fund SWPs, post office MIS, and government bonds are some of the best options for steady monthly income.

Q2. Is monthly income from mutual funds guaranteed?
No, mutual fund returns are market-linked. However, with the right asset mix and regular SWP, you can create a stable income stream.

Q3. What is the safest monthly income plan?
Post Office MIS, SCSS, and government bonds are among the safest options with guaranteed payouts.

Q4. Can I invest monthly for regular income later?
Yes, you can invest through SIPs now and later convert the corpus into SWP or annuity plans for regular income.

Q5. How can I start investing for monthly income?
You can open an investment account with JM Financial Services and start exploring monthly income plans like bonds, MIPs, and SWPs.