Once upon a time Sachin Tendulkar was troubled with his ball, today this cricketer is running home by singing in school and bar, know the name

Post Office Monthly Income Scheme: Indian investors keep looking for good options for saving as well as investing. If you are looking for a scheme to provide a fixed income during employment or after retirement, then you must know about the Post Office Monthly Income Scheme.

Like many good investment options, it gives you a guaranteed interest return of 7.4 percent per annum. Besides, your money also remains safe in this scheme. Once you invest money in this scheme, you continue to get a fixed income every month for the next 5 years.

Special features of Post Office Monthly Income Scheme

Post Office Monthly Scheme is also known as National Saving Monthly Income Scheme. This is a small savings scheme of the government. It has been specially designed for retired people. Those who want good returns on their investment without taking any kind of risk. This scheme works just like a fixed deposit. However, in this, investors are given interest amount every month.

You can start this scheme with a minimum amount of Rs 1000. You can deposit a maximum of Rs 9 lakh in a single account and Rs 15 lakh for a joint account. For example, if you deposit Rs 9 lakh in lump sum, then every month Rs 5,550 will come to your account as interest. Also, if you deposit Rs 15 lakh, you will get an income of Rs 9,250 every month.

How to start?

To start the National Saving Monthly Income Scheme, first open a savings account in your nearest post office. After this the form of National Saving Monthly Income Scheme will have to be filled. While submitting the form, you can deposit your amount in the form of cash or cheque.
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5000 Monthly SIP: Everyone wants to accumulate a good amount of money by old age so that life after retirement can be spent comfortably and happily. However, after taking care of family and personal expenses, by the end of the month a person is not able to save enough money to earn crores of rupees in the future. However, if savings are done wisely then what seems impossible can also become possible.

For whom is SIP a better option?

Systematic Investment Plan (SIP) of mutual fund can be a better investment option. Compared to other investment options of mutual funds, investing in SIP is easier and there is a higher possibility of getting returns in it. In such a situation, if you have regular income, then Systematic Investment Plan (SIP) is better for you. By continuously investing small amounts in SIP every month, you end up with a big fund in the long run. Through this, a good amount of money can be raised through continuous investment.

Understand the whole trick in this way

If you start your investment with a SIP of Rs 1000 every month and you get interest at the rate of 12% per annum on the deposited amount, then by 31 years you will have a fund of Rs 1.02 crore. Similarly, if you invest Rs 5000 in SIP every month and increase it at the rate of 10% every year and expect to get interest at the rate of 12% on the annual deposit, then with you for 25 years Rs 2,13,77,730 will be deposited. Of this, Rs 59,00,823 is the amount invested, while Rs 1,54,76,906 is the interest received on it.

At the same time, for 21 years, you will earn a huge income of up to Rs 1.16 crore with a monthly SIP of Rs 5000. Out of these, your total investment of Rs 38.40 lakh and return income is Rs 77.96 lakh. Even if you do a monthly SIP of Rs 2000 instead of Rs 5000, with a step up of 10%, you will accumulate a corpus of Rs 1.10 crore in the next 24 years.

However, the thing to keep in mind is that SIP will benefit you only if you stick with it for a long time. In case of market down, many people stop SIP and end up causing loss to themselves because on one hand, due to this, you are not able to get profit when the market is rising and on the other hand, you are not able to buy cheap units during the fall. Therefore, if you want to take full advantage of SIP, then continue with it till you achieve the target without stopping.

How to start?

• Before starting SIP, you have to decide how much money you want to invest every month and choose your SIP Amount accordingly.
• After this, select mutual funds based on your risk tolerance and financial goals.
• Also think for how long you want to invest the money, whether short-term, medium-term or long-term. After everything is finalized, now complete your KYC with PAN, Aadhaar and bank details.
• After this, auto-debit has to be allowed through e-Mandate so that the SIP money is automatically deducted from the account every month.
• You can choose your plan by visiting Groww, Paytm Money or Zerodha Coin or directly on the website of Mutual Fund House.
• Now you have to fill the SIP Registration Form first. In this you will have to provide many information like SIP Amount, Frequency Specified.
• With this your investment journey with SIP will begin.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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