Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.
My mom will soon be receiving a lumpsum (around Rs 300,000). How do I invest this lumpsum in her name in order to generate some monthly income? I’ve heard about Monthly Income Plans (MIP). Are they a good option?
Yes. Monthly Income Plans are the way to go — but I’d recommend that you opt for a Monthly Income Scheme from the neighboring Post Office (PO MIS; fixed and guaranteed monthly income) as opposed to a Monthly Income Plan from a Mutual Fund (variable and non-guaranteed monthly income).
For Rs 300,000, the income from the PO MIS works out to Rs 2,000 each month. Capital preservation plus a guaranteed monthly income. You can’t go wrong with the PO MIS.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.