Retirement and beyond: Where to invest money to get monthly income?

written by Bella Palmer

Where to invest money to get monthly income - Plan your retirement with a monthly income scheme

To begin with, you should be clear what exactly a monthly scheme is and how it works. A monthly income plan is not a financial entity in itself, but a part of mutual fund. A monthly income scheme is an investment for those who want to invest money to get monthly income on a regular basis.

Under such monthly income plan, investment is made chiefly in debt securities and reserves which ranges from ten to twenty per cent of total assets for investment in equity instruments. The ROI on such investment market-driven and depends on the performance of the market. Although, mutual fund provides monthly dividend to shareholders, it is not legally obliged to do so. Investing in mutual funds always involves has risk factors associated with it, as it is tied to the market for returning dividends. It is in opposition to fixed deposits which are not directly dependent on market conditions. The monthly income schemes are much more liquid than other types of mutual funds.

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