Investment is considered one of an important aspect of our life. We are always in search of an investment which will fetch good returns and holds minimum risk. Today, the market is flooded with a number of investment tools, which offer the best results. Well, it is always important to identify the main reason or the purpose of your investment. Some invest to secure their children’s life; some invest to take care of expenses such as wedding and some invest so that the regular flow of income will continue during their retirement period also. Before making any investments, you should be aware of all the risks that come with it.
Analyzing different sources of investment will surely make it easy for you to choose the most suitable option for you. However, you can have a regular income through three reliable ways
It is a low-risk investment made for a certain period of time and offering fixed income at the end of the term. Fixed deposit is for the people who do not wish to take high risks and want to have fixed interest rates on income. It is quite popular with conventional investors as it offers monthly, quarterly, yearly returns. One important thing about fixed deposit is that its interest rates are quite stable so any major change in the market does not affect your income.
Banking & PSU Debt Fund
Banking and PSU debt fund invests in banks, public sector undertakings, public financial institution and generates money. The main objective of this scheme is to generate an optimum return and minimize the interest rate volatility. It is ensured that the fund is invested in high-quality debt instruments in order to keep credit risk low. The fund invested in this scheme will get exposure in state department loans and the government securities as it not only will maintain the liquidity but also maintain an optimum balance of yield. The long-term capital gains will have 20% tax plus indexation if you hold unit for more than three years. For short-term capital gain, when you hold the units for less than three years then it is the same with income tax slab rate. Having said that, banking and PSU debt fund are one of the best options to get regular income.
SWP for mutual funds
The feature SWP also called Systematic Withdrawal Plan is created to provide you regular income. It allows you to enjoy the financial freedom even after your retirement. Here, you can withdraw your money from your existing mutual fund investment as per your wish. SWP is the best facility to meet your living requirements and is also good for tax planning. Thus, this is a great alternative with multiple benefits and is one of the best mutual funds in India that ensures you have a steady flow of regular income.
These three options are considered as suitable ones for the investment which will offer you a steady monthly income with minimum risks involved. So, be smart and prudent about your investment and make a wise choice.