How to Choose the Best Monthly Investment Plan with a Low Budget?

Monthly investments plans are the ideal way to create a habit of disciplined savings for earning individuals. Rather than keeping the money in a savings account, investing in these schemes will be more beneficial owing to a higher rate of interest.

Monthly investments plans are the ideal way to create a habit of disciplined savings for earning individuals. Rather than keeping the money in a savings account, investing in these schemes will be more beneficial owing to a higher rate of interest.

The government and private/public financial institutions offer several such plans. These help individuals save both for short-term goals like purchasing a high-value product and long-term objectives like retirement.   

Any investors looking for the best monthly investment plan needs to learn of the few basic features which are generally offered with these. It is essential to compare these features offered on such policies to choose the ideal option while also checking if they meet the financial habits of the investor.

Vital features which should accompany a periodic investment policy are discussed below in detail.

  • Free of market risk

A major concern on any investment is that of market risks associated with it. Any investment option which is subject to such risk cannot guarantee returns. Consequently, investors looking for guaranteed return should consider savings tools like Systematic Deposit Plans, which also offer a high return.

Investors should consider using convenient online tools like systematic deposit calculator to estimate the return they can expect on their deposit. However, it is important to note, only Systematic Deposit Plans offer this option since equity and other types of schemes are subject to market fluctuations

  • High assured return

It is important to check the returns that can be expected from a scheme, especially if an individual has specific financial goals in their sight. 

For instance, with the current interest rate beginning at 7.6% per annum, Systematic Deposit Plans can help individuals in planning their financial aims and invest accordingly.

  • Low deposition amount 

Several savings options require a high-value periodic deposition, an issue which can be difficult for potential investors. Understandably, it is vital to look for savings options with high returns that allow individuals with low disposable cash to begin their savings. 

Beginning with a low deposit sum of Rs.5,000, even new earners can begin investing in Systematic Deposit Plans. Investors can also choose the number of deposits under this plan. While the minimum number of deposits must be 6, the maximum number stretches up to 48.

  • Choice of tenor

It is important for the best monthly investment plans to also offer the choice of tenor. While most options have fixed tenors, Systematic Deposit Plans offer a range to choose from. The minimum maturity tenor must be 12 months and can extend up to 60 months, allowing investors to choose according to their financial goals.

These plans also allow customers to choose the date of deposition according to their convenience. The options offered are 3rd, 7th and 12th of a month, though once fixed it cannot be changed before completion of the maturity tenor.

  • Minimal requirements

Checking the different requirements associated with a scheme is essential to ensure a smooth application and maintenance procedure. While numerous requirements are necessary for most options, any adult Indian citizen can apply for the Systematic Deposit Plan offered by reputed NBFC, Bajaj Finance. 

It has the following requirements -

  • KYC documents.

  • Recent coloured photograph.

  • Account payee cheque for the 1st deposit.

  • NACH mandate and related documents.

  • Hassle-free payments

Payments can be a major hassle with most savings options, especially since individuals must remember to complete their deposition on the due date. 

Systematic Deposit Plan can be regarded as the best monthly investment plan as it offers automatic deposition. This removes all the hassles for investors.

  • Option for withdrawal

Most options have strict policies regarding premature withdrawal, which includes penalty charges. 

Interestingly, in case of Systematic Deposit Plans, investors can withdraw any number of deposits to meet their sudden financial necessities. The deposits only have to complete 3 months of their maturity tenor. The other deposits will keep on generating revenue.

  • Additional benefits

While selecting the best monthly investment plan, additional benefits should be checked and compared. 

For example, as savings tools with high returns, a Systematic Deposit Plan offers investors the option to avail loans in case they have to meet any sudden financial demand. Using the deposit as collateral ensures lower rates of interest being applied to these loans.

Even though it is important to check and compare the numerous options provided by different financial institutions, Systematic Deposit Plan stands out as one of the most convenient options available. Regardless, investors should look up the features mentioned above while selecting the best monthly investment plan for them.

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