4. Dog Stocks

Usually, there is an increase in buying of stocks of companies paying high

However, such stocks must be chosen wisely as the dividend yield could be higher because of a fall in the stock price.

 This could be an indicator of market’s lack of confidence in the company and may be a red flag. As a result, it is better to opt for stocks with a consistently high dividend-yield. They are called dog stocks.

5. Mutual Fund monthly income plans

There are various mutual funds that invest in both equity as well as fixed-income instruments like bonds and corporate debentures. There are also schemes which invest only in debt instruments.

These funds are designed to provide regular source of income. These funds are less risky than equity schemes. However, they also have a lower capacity for capital appreciation.