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3 Monthly Investment Plans for Long-Term Growth

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Best Monthly Investment Plans 2024
Cristian Cochintu
Cristian Cochintu
01 April 2024

A monthly investment plan can be an attractive option for retirees, individuals seeking supplemental income, or those looking for a regular payout while preserving their capital. We look at three of the best investment plans for 2024 and one alternative. 

Monthly income plans provide investors with a regular income stream, generating a stable cash flow, while offering potential for capital appreciation. Several banks, insurance companies and financial institutions offer such schemes and plans. However, investors should keep their risk tolerance in mind before investing in a monthly investment plan.

Monthly Investment Plans – Key Takeaways

  • A monthly investment plan is an investment option that provides you with a regular monthly income while offering the potential for capital appreciation.
  • Monthly investment plans usually invest in a combination of fixed-income instruments such as bonds, debts, government securities, and equities.  
  • By diversifying the investment portfolio, the monthly investment plan aims to provide a balance between income generation and capital appreciation.

Understanding Monthly Investment Plans (MIPs)

A monthly income plan is a type of mutual fund. The goal is to invest in a blend of debt and equity assets to preserve capital and provide cash flow. As a result, they offer investors—including retirees—a different, reliable source of income. This is paid out as interest or dividends.  

An MIP's investment mix is typically conservative because its goals are to protect investors' wealth and provide them a source of income. This typically indicates that the fund's equity component is quite modest. Most of the investments are made in debt instruments. This is because they aim for consistent returns while allocating a portion to increasing earnings by investing in stocks. Typically, the ratio is 20% equity to 80% debt, or a comparable amount.  

Despite their name, monthly investment plans do not ensure a monthly income. When the market is doing well, investors can anticipate a consistent flow of income; however, during bear markets, there may show a decline. The volatility of the market has an impact on the equity's exposure. Stock assets often make up a small percentage of the total fund because they are more susceptible to market swings. The net asset values of these funds may also be impacted by changes in interest rates.  

Some of the Best Investment Plans for Monthly Income

Several factors are considered should be considered when seeking for the best monthly investment plan for your needs. Some of the primary factors considered are risk grade and returns, investment horizon and variability in choice (types of investments). Other factors considered include the minimum investment period, investment limits, and unique selling points of each investment instrument.

Long-Term Government Bonds

Long-term government bonds offer fixed interest payments and a fixed coupon rate for ten years or more. They are actively traded in financial markets and backed by the issuing government’s full faith and credit. They are preferred by investors seeking stable, long-term income and capital preservation.

Key Features of the Long-Term Government Bonds:

  • Maturity Period: Long-term government bonds have a maturity period typically exceeding ten years, offering a long-term investment horizon.
  • Fixed Interest Payments: Governments pay regular interest payments to bondholders at a predetermined fixed rate throughout the bond's tenure.
  • Coupon Rate: The coupon rate, also known as the nominal interest rate, is determined at the time of issuance and remains fixed for the bond's duration.
  • Principal Repayment: At the bond's maturity, the government repays the principal amount initially invested by the bondholder.
  • Government Backing: Long-term government bonds are backed by the full faith and credit of the issuing government, providing assurance of repayment.
  • Risk and Return: While they are generally considered safer investments, long-term government bonds may carry some risk associated with interest rate changes and inflation. Higher returns are typically expected compared to shorter-term government bonds.
  • Market Trading: Long-term government bonds are actively traded in the financial markets, allowing investors to buy and sell them before maturity if desired.
  • Fixed Income Investment: Long-term government bonds are often preferred by investors seeking stable, long-term income and preservation of capital.

Investors can purchase fixed-income securities issued by governments or financial institutions that offer regular interest payments along with principal repayment at maturity.

With you can trade US, UK, and EU bonds via CFDs or buy shares in ETFs that invest in long-term government bonds.


Mutual Fund Monthly Investment Plans

A Mutual Fund Monthly Investment Plan provide a steady monthly income through dividends. They invest in a combination of debt and equity instruments to balance income and capital appreciation. They have a moderate risk profile and offer regular dividends on a monthly, quarterly, or annual basis.

Some also offer a systematic withdrawal plan. Fund managers make investment decisions, and you can buy or sell based on your goals and needs. However, Mutual Fund Monthly Investment Plans have an expense ratio to consider when evaluating returns.

Key Features of the Mutual Fund Monthly Income Plans:

  • Regular Income: Mutual Fund Monthly Investment Plans aim to provide you with a steady monthly income through dividend payouts.
  • Asset Allocation: These plans invest in a mix of debt and equity instruments, balancing income generation with potential capital appreciation.
  • Risk-Return Profile: Mutual Fund Monthly Investment Plans have a moderate risk profile, seeking to balance stability and growth opportunities for you.
  • Dividend Payouts: You receive regular dividends on a monthly, quarterly, or annual basis, providing a consistent income stream.
  • Systematic Withdrawal Plan (SWP): Some Mutual Fund Monthly Investment Plans offer the option of a systematic withdrawal plan, allowing you to withdraw a predetermined amount periodically.
  • Professional Management: Mutual Fund Monthly Investment Plans are managed by experienced fund managers who make investment decisions to optimize income generation and capital appreciation.
  • Flexibility and Liquidity: You can enter or exit the scheme based on your financial goals and liquidity needs, subject to the terms and conditions of the mutual fund.
  • Expense Ratio: Mutual Fund Monthly Investment Plans have an expense ratio that covers the fund's operational costs, which you should consider when evaluating overall returns.

Investors can opt for professionally managed investment funds that pool money from numerous investors to invest in a diversified portfolio of stocks, bonds, or other securities.

With you can trade or buy shares in some of the largest and most popular ETFs listed on 10 global stock exchanges.


Equity Share Dividends

Equity Share Dividends refer to the distribution of profits by companies to shareholders who hold equity shares monthly. Companies generate profits through their business operations, and a portion of these profits is shared with shareholders in the form of dividends.

Key Features of the Equity Share Dividends:

  • Monthly Income: Equity Share Dividends provide a monthly income to you as an investor through the regular distribution of profits in the form of dividends.
  • Ownership in Companies: Investors holding equity shares become owners of the company and are eligible to receive a share in the company's profits.
  • Cash Dividends: Dividends are typically paid in cash, providing you with a tangible monthly income stream.
  • Regular Payouts: Companies declare dividends on a regular basis, often on a monthly, quarterly, or annual basis, ensuring consistent income for you.
  • Dividend Yield: You can assess the income potential of equity shares through dividend yield, which represents the dividend payment as a percentage of the stock price.
  • Potential for Capital Appreciation: Along with monthly income, equity share investments offer the opportunity for capital appreciation as the value of shares may increase over time.
  • Taxation Considerations: Dividend income in India is subject to taxation, and you should consider the tax implications based on your individual tax bracket and any applicable exemptions or deductions.
  • Diversification Benefits: By investing in multiple companies, you can diversify your equity share portfolio, reducing the risk associated with individual company performance.
  • Long-term Investment Perspective: Equity share dividends as a monthly income plan are suited for investors with a long-term perspective, as they can benefit from both income generation and potential capital growth.

The best dividend stocks are shares of well-established companies that increase their payouts over time. The average dividend yield of some of the top dividend stocks is 12.69% according to NerdWallet.

With you can trade up to 2,000 CFDs on shares or buy shares in around 5,000 companies listed on 10 global stock exchanges.


In addition to these traditional asset classes, consider exploring alternative investments such as structured notes, which offer customized risk-return profiles tailored to your specific investment goals. You may also want to consider investing in real estate (like rental properties), and real estate investment trusts (REITs).  

Make sure you speak to a financial or investment professional for more information and options that best suit your personal situation.

Things to Consider Before Investing in Monthly Investment Plans

Remember that investments need to be aligned with the investment goals and risk appetite of the investors. Other significant parameters to include in the equation are returns, duration for which an investment is being made and liquidity. Additionally, please note that returns should be assessed before entering the fray.

A summary of these factors is detailed below.

Investment goals

Most of the time the best investments start with setting goals. Making decisions about where to invest money, how much to invest, when to invest it, for how long, and in which mode becomes simple when the aim is clear. For example, Monthly Investment Plans could be a smart choice if you intend to have a steady passive income stream; however, direct stock trading may also be a suitable fit if you are willing to take on a high degree of risk and maximize the potential return of investment.

Risk appetite

Once more, it's essential consideration before choosing your long-term investing strategy or security choice. Monthly Investment Plans represent an attractive alternative for those looking for a consistent source of passive income without taking on a lot of risk. Please be aware that there is risk associated with all market-linked investments. When in doubt or with questions, please consult a professional.  


What level of investment liquidity are you looking for? Your demands and financial obligations usually govern this. Keep in mind that bank deposits (see the best saving rates) have greater liquidity than monthly income plans, even though the latter are less liquid than stock investments.  

Fees and investment horizon

It would be beneficial to evaluate the fees and other associated costs of various monthly investment plans to select one that suits your needs. It's also critical to understand how much and how long you can invest your money. Note that monthly investment plans are more appropriate for investors with longer time horizons as they are not suitable for short-term investments.

Benefits of Monthly Income Plans

Some of the biggest benefits of the best monthly investment plans are the regular income and growth that can accrue over time, professional management of the portfolio and liquidity. A summary of the many benefits that investment in these schemes can lead to is given below:

Professional Management

Experienced fund managers manage the best monthly investment plans. They have the expertise to design a correct mix of assets. This is helpful when it comes to lowering investment risks.


While not as liquid as bank deposits, the best monthly investment plans provide liquidity to investors. However, if sold in a hurry or without proper deliberation, you may not get a decent price for your investments. Selling these units is not hard though.

Monthly Income

As the name suggests, the plans offer regular monthly income to investors. This can work extremely well for those who need a regular stream of earnings to fulfil their living expenditures or other financial responsibilities.

Growth Potential

The best monthly investment plans can offer investors growth options as most invest in a mix of debt and equity securities. However, it’s worth noting here that these are not as risky as equities but also not as rewarding. The returns are lower than well-planned investments in the best stocks for 2024 and beyond.

Alternatives to Monthly Investment Plans

Dollar-cost averaging is one of the best alternatives to monthly investment schemes for those looking to invest equal amounts of money at regular intervals. It can make it easier to deal with uncertain markets by making purchases automatic. It also supports an investor's effort to invest regularly.

The investment strategy of dollar-cost averaging can be used by any investor who wants to take advantage of its benefits, which include a potentially lower average cost, automatic investing over regular intervals of time, and a method that relieves them of the stress of having to make purchase decisions under pressure when the market is volatile.

Dollar-cost averaging may be especially useful to beginning investors who don't yet have the experience or expertise to judge the most opportune moments to buy. It can also be a reliable strategy for long-term investors who are committed to investing regularly but don't have the time or inclination to watch the stock markets and time their orders.

Dollar-cost averaging is one of the best strategies for investors looking to trade ETFs that track the major stock indexes such as the S&P 500, government bonds like 30-Year Treasuries or commodities like gold. 


Note that dollar-cost averaging isn't for everyone. It isn't necessarily appropriate for those investing time periods when prices are trending steadily in one direction or the other. Be sure to consider your outlook for an investment plus the broader market when making the decision to use dollar-cost averaging.

Final words

Monthly investment plans are a popular option for investors to ensure they get a steady income stream, paying investors dividends and interest income by primarily investing in lower-risk assets. A smaller position in equities offsets this.  

As with any other financial venture, it's important to consider whether they fit your needs along with any tax implications that may apply. If you're unsure whether monthly investment plans are right for you, talk to an investment or financial professional.

Free Resources

Before you decide what is the best monthly investment plan for your needs, consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of trading and investing courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to make more-informed investment decisions.  

Our integrated third-party tools can help you choose the best investment in UAE for your needs.

Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.








Cristian Cochintu
Cristian Cochintu

Cristian Cochintu writes about trading and investing for Cristian has more than 15 years of brokerage, freelance, and in-house experience writing for financial institutions and coaching financial writers.