I have around Rs 12 lakh to invest and I am looking for monthly income schemes. I plan to split this corpus between Post Office MIP and HDFC MIP Long-term. Please suggest.
Sridhar K Veena
If regularity of income and safety of capital are your prime concerns and you do not have any other source of income to meet your monthly expenses, then you should invest in a secured avenue that provides stable return. In this case, you may invest in Post Office MIP that is backed by the government. This scheme will enable you to earn a fixed return of 8 per cent per annum. You may even invest in Senior Citizens Savings Scheme (SCSS) that allows you to invest a maximum of Rs15 lakh and earn a higher return of 9 per cent per annum (compounded quarterly).
Alternatively, you may go ahead with your plan to split your corpus between Post Office MIP and HDFC MIP Long-term. HDFC MIP Long-term is a Monthly Income Plan that currently has a 4-star rating from Value Research. The fund aims to generate regular returns through investments primarily in debt and money market instruments (minimum of 75 per cent of its total assets). But remember that a fund such as this involves risk and does not come with a guarantee of either assured returns or capital protection.
This article was originally published on September 14, 2010.
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