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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
A monthly investment plan differs from a one-time investment plan and allows you to invest smaller, regular contributions. The mode of investment is mostly preferred by salaried investors who earn a monthly income.
Here is a list of a few popular monthly investment plans in India.
Systematic Investment Plan (SIP): SIP is an investment plan where you can invest a fixed amount in a mutual fund scheme at fixed intervals. Under this scheme, the instalment amount could be as small as ₹500 per month. It is similar to a recurring deposit, where you deposit a small/fixed amount every month. It is a very convenient method of investing without the hassle of having to write out a cheque each time.
Recurring Deposits (RD): Recurring Deposits (RD) provide a methodical approach for people to consistently save money while earning interest. Through consistent monthly deposits into an RD account, you can gradually accumulate a sizable corpus. You can start an RD with a minimum of ₹500 and in multiples of ₹100 thereafter.
Public Provident Fund (PPF): PPF is a popular long-term investment option that offers tax benefits and attractive returns on investments. Introduced in 1968 by the National Savings Organisation, this government-backed savings scheme allows you to claim Income Tax benefits under section 80C. It is an ideal option for investors looking for security, stability and financial growth.
ULIPs: A Unit-Linked Insurance Plan, or ULIP, offers the benefit of both an investment and a life cover where you can invest based on your risk appetite and financial objectives. It provides a variety of benefits of market-linked funds, like equity and debt. It has a minimum lock-in period of five years and provides tax benefits. Under ULIPs, you can claim a deduction of up to ₹ 1.5 lakh per annum under Section 80C.
Senior Citizen Saving Scheme (SCSS): Designed for senior citizens, it is a government-sponsored savings option, which can be opened with a post office or a bank. This low-risk savings option has a tenure of five years for people over the age of 60 years. Under the scheme, you can make a minimum investment of ₹ 1,000 and a maximum investment of ₹ 30 lakh per year.
Factors to Consider While Choosing Investment Plans:
Before deciding on an investment strategy, you should first assess your long-term and short-term financial objectives. These financial goals vary from marriage and college to overseas holidays and new cell phones, and keeping them in mind helps make informed decisions.
When purchasing an investment plan, most people fail to consider their financial dependence. However, doing so is critical because you must have an investment or savings pool large enough to meet your dependents’ financial needs.
Another vital step is to determine your planned future expenses to give you a better understanding of how much you need to invest to generate sufficient returns later. Additionally, evaluating your current expenses is also important while looking for the best investment scheme.
Benefits of Monthly Investment Plans:
– It allows you to begin investing with smaller and regular contributions, making them accessible to those with a limited budget. You can progressively increase your donations as your finances improve.
– It offers the benefit of compounding, which allows your returns to earn more returns, thus accelerating your long-term wealth accumulation.
– It provides a convenient and automated way to invest, eliminating the need to actively manage your portfolio. Moreover, some MIPs may provide flexibility in terms of raising or pausing payments, giving you some control over your investment plan.
– By opting for MIPs, you can buy units at various price points which can benefit in volatile markets, reducing the impact of buying at high points and missing out on lower prices.
– Setting up automatic monthly contributions promotes financial discipline and helps you remain on track with your investing goals by reducing the need to recall individual investments.
– It is offered in a wide range of options like equity-focused, debt-focused, and balanced which allows you to choose a plan based on your risk tolerance and financial goals.
