Grow Your Monthly Savings With Systematic Deposit Plan

When it comes to dividend-paying stocks, you can schedule the dividend dates so that you receive a monthly income from them, or you can simply choose dividend-paying stocks that pay a monthly dividend, or you can sell options and receive regular premiums on your Systematic deposit plan. In addition, you can choose from various investment avenues that offer monthly returns in India. 

A systematic investment plan or a recurring deposit?

Your investment period entirely determines your return. As long as the investment horizon is less than 12-18 months, RD would be a good choice since you might not want to invest in equity funds which usually generate returns of close to 12% (in generalised terms). On the other hand, you can earn close to RD interest by investing in debt funds for a period of 12-18 months or even less. 

The best investment option, however, is a mutual fund Systematic deposit plan if you can stay invested for longer. Then, due to the principle of compounding, your money will grow manifolds, and there won’t be much tax burden.

You should keep a part of your savings in RD/FDs (minimum in a savings account) as they give you better returns and can be withdrawn immediately in an emergency. In order to generate wealth, your maximum monthly savings should be invested in mutual funds using a systematic investment plan (SIP).


  • In 15 years, SIPs in MFs will yield much higher returns than PPFs
  • One can invest in any amount
  • It is possible to start/discontinue a SIP at any time
  • Investors can pick and choose from a wide variety of MF schemes based on their financial needs.

The following are some popular methods of earning a monthly income:

Post office monthly income scheme: 

Your investment in the post office monthly income scheme will generate stable returns in the long run. This is because you can get monthly income from them through low-risk investments.

Senior Citizen Saving Scheme (SCSS): 

In addition to offering great returns, the SCSS is designed specifically to encourage post-retirement savings. This systematic deposit plan aims to protect senior citizens’ golden years.

Government bonds: 

You can earn good returns by investing in government bonds because they are low-risk options. In return for your investment, you receive interest payments from government bonds.

Mutual fund plans with SIP investments: 

A monthly income mutual fund plan allows you to invest systematically and earn market-linked returns. Additionally, you can choose a particular investment per your risk profile and investment tenure preferences.

Government Bond

For risk-averse investors, these are excellent low-risk investment options. These bonds have a duration of 5 to 40 years. A government bond pays out regular interest or offers coupon payments as determined by the Government of India. The maturity date of government bonds is predetermined. A government bond is primarily issued to raise funds for government expenditures.

Monthly Income Plan

In this type of mutual fund, the majority of high-return investments are made in fixed income, with only a small portion invested in equity and equity-related securities. Regularly, fund houses pay their investors a steady income. Fund performance determines this amount. Returns are not guaranteed since mutual fund performance determines them. In addition, negative returns can occur as well. Thus, you must consider your risk profile when deciding whether to invest in a monthly income plan. Monthly income plans come in growth or dividend options. MIPs declare dividends only if there are profits.

Recurring Deposit (RD)

When it comes to RD schemes, you don’t really have many choices. With recurring deposits, you deposit money into a bank account. There’s nothing complicated about it. It is a low-risk investment option to invest in RDs. RDs are a safe, high return investment choice if you are searching for a safe investment.

Investments in RDs are made every month. Before you choose an investment option, consider this. There is a fixed rate of interest on recurring deposits. This will be known to you beforehand so that you can make an informed decision.


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