The Indian Investor's Guide to Monthly Profits: 5 Income-Boosting Strategies

In a world where the economy can be uncertain, it's crucial for people to know why having a steady income is so important. The cost of living keeps going up, and job security isn't always guaranteed. To tackle these challenges, it's smart to have different ways of making money, like making wise investments alongside your regular earnings.

Thinking ahead and understanding how today's money choices affect tomorrow is a big deal. While figuring out exactly how much money you can make is tough, planning now means you can be ready for tough times in the future.

In this blog, we've listed some great ways to make monthly income in 2024.

Best Investment Plans for Monthly Income:

1. Fixed Deposits

Putting your money into Fixed Deposits in Banks and NBFCs is like keeping it in one of the safest investment instruments. Fixed Deposits offer a steady mid to high interest rate on FD savings. The interesting part is, that you can take out the interest regularly, creating a reliable monthly payout for investors.

Fixed Deposits have been a top choice for many people, and for good reasons. They are not only easy to access but also provide a fantastic option for earning income from your investment without stressing about the unpredictable market. Adding to the security, the government guarantees Fixed Deposits up to a certain amount, ensuring your money stays well-protected.

2. Post Office Monthly Income Scheme

India Post's Post Office Monthly Income Scheme (POMIS) is a solid investment plan. It's a good choice if you want to get money every month. Because the government supports it, it's a safe option for people who don't want a lot of risk and want a steady income.

Right now, POMIS gives a 7.4% yearly interest, which you get every month. This investment lasts for five years. You can invest up to Rs 4,50,000 as an individual or up to Rs 9,00,000 in a joint account. You can start with just Rs 1,500. And when your POMIS investment finishes, you can put the money back for another five years.

3. Invest in Government Long Term Bonds/Gold bonds/Securities

Let's talk about putting your money in Government Long Term Bonds. But first, what are they? These bonds are like loans you give to the government to help with things like developing the infrastructure or running operations. The government promises to pay you back with interest over a set period, ranging from a few months to several years.

When the bond matures, you get back the original amount you invested, plus the interest you earned. It's a safe and smart way to invest because the government is a reliable borrower and won't likely fail to pay back its debts. This investment gives you guaranteed returns, and it's considered better than putting your money in fixed deposits at a bank.

Now, let's explore the types of Government Bonds available:

1. Fixed Rate Bonds: These come with a set interest rate.

2. Sovereign Gold Bonds (SGB): Backed by gold, offering an alternative investment option.

3. Inflation-Indexed Bonds: Tied to inflation rates, ensuring your returns keep pace with the changing economic landscape.

4. PSU Bonds: Issued by Public Sector Undertakings.

5. Zero-Coupon Bonds: Sold at a discount without periodic interest payments.

These bonds stand out for their liquidity, with some actively traded on stock exchanges. This means investors have the freedom to buy and sell them in secondary markets.

4. Dividend Stocks

The stock market often performs better than regular fixed deposit rates, physical assets, and inflation. Investing in stocks is a smart way for people to spread out their investment and, in the long run, make more money compared to other financial options. But it's important to know that stocks can go up and down in value.

Making money from stocks doesn't just come from selling them at a higher price. Some companies share a part of their profits with investors every year, and it's called dividends. It's like a bonus for being a shareholder. Investors can consider buying shares from companies that regularly give out dividends and have a strong foundation to make sure they keep doing it. This way, they can get a steady income along with good returns.

5. Corporate Deposits

Corporate deposits come from many non-banking financial firms (NBFCs) and housing finance companies (HFCs). It's like putting your money with a company instead of a bank, and it is considered to be as safe as a bank deposit.

With corporate deposits, you get a higher interest rate and more flexibility compared to bank deposits. But, it's important to check how financially healthy and reputable the NBFCs are before you decide to invest. So, do some research before jumping in!

Closing Thoughts

In the ever-changing landscape of finance, exploring diverse income-boosting strategies is the key to financial well-being. Whether it's the reliability of fixed deposits, the monthly assurance of POMIS, the stability of government bonds, the excitement of dividend stocks, or the flexibility of corporate deposits – each strategy has its unique charm. As an Indian investor in 2024, the power is in your hands to make informed decisions, secure steady monthly profits, and pave the way for a financially sound future. Happy investing!

Author Bio:

Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo, a neobank that offers flexible and customised financial products, along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest of what happens in the banking and fintech industries. She has taken upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.