• ULIPs

  A Unit-Linked Insurance Plan (ULIP) provides the dual benefit of a life cover¹ and investment. These plans offer a wide range of market-linked funds, such as equity, debt and hybrid. You can invest based on your risk appetite and financial goals. This not only helps you grow your wealth but also ensures the financial security of your loved ones in case of an unfortunate event

  ULIPs have a minimum lock-in period of five years. The rate of return depends on your choice of funds. Equity funds have the highest return and risk potential, followed by hybrid and debt funds. You can choose an investment amount according to your financial budget and goals

  It also offers tax^~ benefits under The Income Tax Act, 1961. You can claim a deduction of up to ₹ 1.5 lakh per annum on the premium paid under Section 80C. In case of an unfortunate event, the life cover¹ paid to the nominee is also exempt subject to conditions under Section 10(10D)

• Annuity Plans

  Annuity plans are low-risk retirement plans that offer a regular and steady income, making them one of the best investment plans for monthly income. These plans can be categorised as immediate or deferred

  Annuity plans offer tax^~ benefits under Section 80C. You can claim a deduction of up to ₹ 1.5 lakh per annum on the premium paid. However, the annuity payments are taxable

  Annuity can differ depending on the minimum investment value and period of investment. The rate of return can also vary from plan to plan and insurer to insurer. Therefore, you should go through the plan in detail before investing your money

• Post Office Monthly Income

  The Post Office Monthly Income Plan is a savings plan with a lock-in period of five years. The monthly income investment plan is low-risk and suitable for risk-averse investors. Currently, the scheme offers a rate of return of 7.4% per annum, payable monthly

  You can start an account at your nearest post office with a minimum investment of ₹ 1,000. It allows maximum deposits of ₹ 4.5 lakh. Moreover, you can claim a deduction of ₹ 1.5 lakh in a financial year under Section 80C on the premiums paid

• Senior Citizen Saving Scheme (SCSS)

  If you are looking for monthly investment plans designed for senior citizens, you can consider SCSS. This is a government-sponsored savings option for senior citizens. The scheme has a tenure of five years for people over the age of 60 years. SCSS is a low-risk savings option and can be opened with a post office or a bank

  The plan offers a return of 8.2% per annum. You can join the plan with a minimum investment of ₹ 1,000 and a maximum investment of ₹ 30 lakh in a financial year. Moreover, you can claim deductions on your SCSS investments up to ₹ 1.5 lakh per annum under Section 80C

• Pradhan Mantri Vaya Vandana Yojana (PMVVY)

  PMVVY is a pension scheme introduced by the Government of India. It has been specifically designed for senior citizens aged 60 years of age and above. The policy term for PMVVY is ten years. The maximum investment limit is ₹ 15 lakh per senior citizen

  PMVVY is a low-risk pension scheme. For the financial year 2023-24, the plan provides a guaranteed return of 8.20% per annum, payable monthly. This plan offers tax^~ benefits under Section 80C of the Income Tax Act, 1961

• Systematic Withdrawal Plans^$ (SWPs)

  SWPs allow you to regularly withdraw a fixed amount of money from your mutual fund investments. These plans offer payout options, such as monthly, quarterly, annual. These earnings are taxed under prevailing income tax^~ laws

• Long-Term Government Bonds

  The government issues bonds to raise funds. You can invest in these bonds to earn a steady rate of interest on maturity. These bonds have tenures ranging from two years to as long as 40 years. It does not have any lock-in period

  Long-term government bonds are considered as risk-free investments. These earnings are taxed under prevailing income tax^~ laws

• Mutual Fund Monthly Income Plans

  Monthly Income Plans (MIPs) are mutual funds that offer a mix of debt and equity investments. 70% to 80% of the investments are allocated to debt. MIPs are considered as one of the best monthly investment plans offering a steady income and ensuring financial stability for you and your loved ones

  They carry low risk and these returns are subject to capital gains tax as per the prevailing tax^~ laws

• Equity Share Dividends

  Equity share dividends are announced and paid by companies to their shareholders. These dividends offer an additional source of income on top of any capital appreciation from the stock's value. The value and frequency of the payments depend on the company and can vary from one stock to another

• The Power of Compounding:

  It is said that the power of compounding is the 8th wonder of the world. Since the returns from your investment depend directly on how long you are invested, it is vital to start as soon as possible. Mr. Amit understood the importance of this when he earned 88,000/- more by starting his investment just 2 years earlier than Mr. Balaji.

  For example, Mr. Amit started investing 2,000/- monthly today and 7 years later, his investment grew to 2.44 lakh with the power of compounding. Whereas, Mr. Balaji started investing 2 years later, and his investment grew to only 1.56 lakh. Mr. Balaji could have earned 88,000/- more had he not delayed his investment by 2 years.

• Rupee Cost Averaging:

  It is impossible to time the market for the best time to invest, and that is why most people tend to delay their investments. Monthly investment plans use rupee cost averaging, which does not require the investor to wait for a good time to start investing. Rupee cost averaging, evens out market ups and downs in the long run and allows you to get a better return on the investment over a period of time. By investing a fixed amount of money every month, you buy more units when prices are low and fewer units when prices are high. Therefore your final weighted average cost remains lower than the average unit price.

• Convenience:

  You can send a one-time instruction to their bank to facilitate auto-debit from your savings account, credit card or debit card. You can, thus, make investments without worrying about missing the investment due date. You can even buy monthly investment plans online in the comfort of your home. It would just take about 10 minutes of your time.

• Disciplined Saving:

  Discipline is the most important thing when it comes to making any investment. Many times, people start investing with great enthusiasm but fail to keep pace with time. Instead of investing a lump sum amount, you can invest a smaller amount every month which is easier to do. Since monthly investments happen automatically, you don’t need to interfere regularly. You can continue saving for a long time, and your money can grow a lot faster.

• Tax Planning^~:

  Monthly investment can make your tax^~ saving targets easy to achieve every year. All you need to do is to buy a monthly investment plan, set up auto-debit instructions online, and you are good to go!

When you choose Unit Linked Insurance Plans(ULIPs) as your preferred monthly investment option, you get all this and more!

Below are some key factors that can help you determine the right amount to invest:

• Financial goals

  
  While purchasing an investment plan, it is important to consider the financial goals you want to meet with the returns of your investment. You may have goals such as buying a house, travelling, your child’s education or marriage, financially independent retirement, and more. Identifying your financial goals can help you calculate the amount you would need to invest to meet them.

• Planned expenses

  
  You may have some planned expenses that you would have to meet in the short term. For example, you may have planned to renovate your house, buy a gadget, pay your child’s tuition fees, and more. It is important to calculate the amount you would need to meet these expenses and set that amount aside while choosing the investment amount for your plan.

• Current expenses

  
  Having an understanding of your current expenses can help you calculate your investment amount better. Your current expenses may include your household expenses, EMIs, daily travel expenses, and more. If your current expenses are lower, you can consider investing a larger amount in your plan to meet your financial goals better.

• Financial dependents

  
  While calculating the amount to invest, it is important to consider the number of people in your family that are financially dependent on you. For example, you may have one child, two children, dependent parents or even dependent siblings. The amount you invest in your plan will vary accordingly.

  Keeping the above factors in mind while investing can ensure that you invest the right amount to be able to meet your future financial goals without compromising on your current financial needs.

COMP/DOC/Jul/2022/117/0747

• Affordable premiums:

  With ULIPs, the minimum premium starts from as low as 2,000/- per month.
  

• Fund switches:

  To make the most of your investment you can switch your money between funds at will.
  

• Partial Withdrawal^$:

  Starting from the sixth year, you can withdraw up to 20% of your investments in ULIPs provided monies are not in the Discontinued Policy Fund to meet any future needs and let the remaining investment grow.
  

• Life Cover¹:

  With a life cover¹ in-built in ULIPs, you get much more than just a great investment option. In case of an unfortunate event, your family will be paid a lump sum amount to secure their financial future.