Ready to invest in the month

Ready to invest in the month; Here are 2 plans to invest Rs 5,000 per month

Ready to invest in the month; Here are 2 plans to invest Rs 5,000 per month, Recurring investment comes in debit investment. The investor will get interest on the invested amount along with full guarantee. Recurring investment will also have fixed period. It works in a similar way but invests in mutual funds through SIP. The investment can continue as long as the interest of the investor. Instead of a lump sum investment, both investments require a fixed amount to be paid at regular intervals. Let’s see what the two investments have in common.

Two investments

* Both investments work based on regular investment method with monthly or quarterly payouts.

* It is possible to invest from small amount through Recurring Investment and SIP.

* Can stop deposit and withdraw money at any time. This will incur a charge.

* If the investment is not done regularly, the investment will be terminated.


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Recurring investments are investments that give guaranteed returns. The return is determined by the pre-determined interest rate on the risk-free investment. Thus, the amount received during the period can be calculated in advance. Both debit and equity investments can be chosen for SIP. Equity funds have higher risk of loss and higher returns.


Long-term investment through SIP gives huge returns. As mutual fund investment through SIP is linked to the stock market, returns may rise or fall depending on market volatility. Even though it is a liquid investment, a penalty is charged if the recurring investment is withdrawn before the maturity date. Income from recurring investment will be charged as per the tax slab. There is a lock-in period of 3 years for those who invest in Equity Linked Savings Scheme.

Which is better

Which is better

Recurring deposits generally earn 5.8 percent to 7 percent interest for 5 years. Depending on the fund chosen, SIP investors are likely to get a return of 12 percent. If the market is favourable, you will get a return of 15-18%. Long-term investors can expect huge returns.

A person who invests Rs 5,000 per month for five years in a recurring investment earning 7% interest will get Rs 3,59,663. If you invest Rs 3 lakh, you get Rs 59,663 as interest. If the same amount is invested in an equity mutual fund and earns 12% return, the return will be Rs.1,12,432 from Rs.3 lakh. A total of Rs 4,12,432 will be received.

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