8 Best Investments to get Monthly Income

8 Best Investments to get Monthly Income

There are range of investments options available for an investor if he/she is looking for fixed monthly income. The exact type of investment will depend on return/risk tolerance for the investor. 

Listing down some of the most widely available investments options. and their pros and cons.

My own recommendations are provided below:

1. Are you looking for very safe short to medium term investment with flexibility: Opt for Bank FDs but avoid Cooperative banks. You can play even more safer by having 5L deposit per account

2. Are you looking for very safe investment with medium term horizon but ok with lock in: Opt for Govt plans like SCSS, POMIS etc

3. Are you looking for reasonable safe investment but slightly higher returns: Opt for Private companies FDs but invest small amounts and diversify

4. Are you looking for higher return but has some level of risk appetite: Check out Private bonds but from AAA rated companies and diversify

5. Are you looking for safe investment plan but are in high tax bracket: Opt for Tax free bonds

6. Avoid annuities since they provide largely low returns. Even with added insurance benefit, the returns are lower than FDs

7. Avoid real estate (Rental or Reverse Mortgage) unless you expect high appreciation and are ok with large amount of paper-work.