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In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
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Ref. No. KLI/22-23/E-BB/492
Looking for a reliable monthly income stream to supplement your earnings or cushion your retirement? Look no further than Monthly Income Schemes (MIS)! These plans offer guaranteed returns every month. The government offers them through the Post Office Department and various banks as Fixed Deposit (FD) schemes. They are beneficial for retirees, pensioners, and those who need a consistent income stream. The monthly payout from such schemes helps you cover day-to-day expenses without having to rely entirely on savings.
A Monthly Income Scheme (MIS) is an investment plan that provides a regular and stable income to investors. It is suitable for individuals who prefer low-risk investments and want a fixed monthly payout. This type of scheme ensures that the investor receives a steady source of income without worrying about market fluctuations or financial instability.
In a Monthly Income Scheme, the investor deposits a lump sum amount, and interest is earned on this deposit. The interest is then distributed as a monthly payout, helping them manage regular expenses. The principal amount remains safe and is returned to the investor at the end of the scheme’s tenure. Since the main objective is to offer financial security, the returns are usually moderate and not as high as riskier investments.
If you are looking for a Monthly Income Scheme in India as a reliable way to earn a steady income, several investment plans can help you.
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that provides investors with a fixed monthly income. It is a safe and low-risk option if you are looking for stable returns.
A Fixed Deposit (FD) is one of the most common ways to earn a steady monthly income through interest payouts. Many banks and financial institutions offer FDs with the option to receive interest every month.
The National Pension System (NPS) is a government-sponsored retirement savings scheme that allows you to build a corpus for retirement and receive regular monthly income after retirement.
The National Savings Certificate (NSC) is a government-backed fixed-income investment that provides safe returns and is popular among risk-averse investors. It has no deposit limit and also offers a loan facility.
Monthly Income Schemes are a treasure of features that enhance financial flexibility and peace of mind. Some of those features are:
Your MIS account effortlessly travels with you in situations like a job relocation or if the market dynamics change. For instance, under the POMIS scheme, you can transfer your account free of charge from one post office to another.
You can open multiple accounts with each post office deposit, allowing you to segregate funds for different goals or beneficiaries. Think emergency fund, child’s education, or diversified income streams – the choice is yours.
With MIS, you can withdraw the entire accrued amount, ensuring a significant financial infusion, or opt for reinvestment to enjoy continued monthly income – the choice is yours, tailored to your evolving needs.
MIS provides the convenience of regular monthly payouts, ensuring a steady income flow. This feature makes it an excellent choice for retirees or individuals looking for passive income.
You can choose the premium amount based on your financial goals. MIS offers flexibility in structuring your deposits, whether you prefer a lump sum investment or staggered contributions.
MIS allows you to tailor your payout options to your financial needs. You can customize how you receive your earnings, such as through direct bank transfers, post office withdrawals, or reinvestment in another scheme.
Monthly Income Plans (MIPs) make investing accessible to all. They are available in two variants so that investors with different risk profiles and preferences can start their financial journey.
This type of MIP pays out earnings in the form of regular dividends to investors. However, these payouts depend on how well the fund performs. There is no guarantee of a fixed monthly income. The main advantage is that you receive periodic cash flow, making it suitable for retirees or those needing extra income. However, since dividends depend on profits, there may be months without any payout.
Unlike dividend-oriented plans, growth-oriented MIPs reinvest earnings back into the fund, helping your money grow over time. Instead of receiving regular payouts, investors benefit from long-term capital appreciation. This option is better for those who do not need immediate income but want their investment to grow and provide larger returns in the future.
MIPs are taxed based on the type of returns you receive, either as dividends or capital gains. Here’s how taxation works for each:
Dividends from MIPs are added to your total income and taxed as per your income tax slab.
This means if you fall under the 30% tax bracket, the dividend income will be taxed at 30%.
When you redeem your investment in a growth-oriented MIP, you earn capital gains. The tax depends on how long you held the investment:
An MIP is ideal for individuals looking for a stable and reliable source of income while keeping some exposure to market growth. It is especially suited for retirees, senior citizens, and those with low-risk appetites who want to supplement their earnings without taking on high volatility. Working professionals or freelancers with irregular income can also benefit from MIPs as they provide a steady cash flow.
While MIPs offer stability, they are not entirely risk-free since they invest partially in equity markets. So, investors should consider their financial goals and risk tolerance before investing. It is also important to meet the chosen scheme’s eligibility criteria and KYC requirements.
It is important to analyze several factors before selecting the best Monthly Income Scheme to ensure it meets your financial needs.
Invest in your future with a Monthly Investment Scheme. It is not just a monthly paycheck but a commitment to long-term financial stability and peace of mind. With low risk, simple access, and potential tax benefits, MIS is the ideal investment for individuals who value predictability and security. Let your hard-earned money work for you, month after month, year after year. Choose MIS and enjoy the freedom that financial independence brings.
1
A Monthly Income Scheme (MIS) is a fixed-income investment plan that provides regular monthly payouts to investors. It is designed for those seeking a steady income.
2
When you invest in an MIS, your principal amount is locked in for a fixed tenure, and you receive interest payouts every month. At the end of the tenure, the principal is returned to you.
3
Anyone, including individuals, senior citizens, and even joint account holders, can invest in an MIS. Some schemes also allow investments from Hindu Undivided Families (HUFs) and minors through guardians.
4
The primary eligibility criteria include being an Indian resident and meeting the minimum age requirement, usually 18 years or older. Some schemes have specific conditions for senior citizens or joint accounts.
5
Different schemes have varying limits. For instance, the maximum limit for the Post Office MIS scheme is ₹4.5 lakh for single accounts, while there is no deposit limit for the National Savings Certificate.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/521
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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