Recurring Accounts are collective investments which gather money from different investors to invest in Regular Basis, Long-term money market Investment instruments, bonds and other securities and distribute the proceeds as dividends. The RD are handled by Fund Managers, who has in-depth knowledge about investments. The Reserve Bank of India (RBI) regulates the Investment Funds in India. The Maturity is calculated on the total amount of the Installment, by dividing it with the number of units issued and outstanding units on Monthly basis.
The advantages that Rd offer include professional management, affordability, liquidity and convenience. Besides, they are well regulated, transparent and tax efficient. Having invested in a MF scheme, the investor need not track the Net Asset Value (NAV) or performance on a Monthly basis. Recurring have gained popularity with the investors especially in the last two decades. Following are some of the primary benefits.
| S.No | Tenure (In Years) | Mly Installment | Plan Amount | Meturity Amount |
| 1 | 1 year | 1000 INR/- | 12000 INR/- | 12600 INR/- |
| 2 | 1.5 year | 1000 INR/- | 18000 INR/- | 19350 INR/- |
| 3 | 2 year | 1000 INR/- | 24000 INR/- | 26500 INR/- |
| 4 | 4 year | 1000 INR/- | 48000 INR/- | 59110 INR/- |
| 5 | 5 year | 1000 INR/- | 60000 INR/- | 78430 INR/- |
| 6 | 6 year | 1000 INR/- | 72000 INR/- | 100020 INR/- |
| 7 | 8 year | 1000 INR/- | 96000 INR/- | 150164 INR/- |
| 8 | 10 year | 1000 INR/- | 120000 INR/- | 211537 INR/- |
| 9 | 12 year | 1000 INR/- | 144000 INR/- | 274747 INR/- |
| 10 | 14 year | 1000 INR/- | 168000 INR/- | 360567 INR/- |
| 11 | 16 year | 1000 INR/- | 192000 INR/- | 464481 INR/- |
| 12 | 18 year | 1000 INR/- | 216000 INR/- | 591676 INR/- |
| 13 | 20 year | 1000 INR/- | 240000 INR/- | 745795 INR/- |
| 14 | 22 year | 1000 INR/- | 264000 INR/- | 933129 INR/- |
| 15 | 24 year | 1000 INR/- | 288000 INR/- | 1160834 INR/- |
| S.No | Tenure (In Years) | Mly Installment | Plan Amount | Meturity Amount |
| 1 | 14 year | 1000 INR/- | 168000 INR/- | 360567 INR/- |
| 2 | 15 year | 1000 INR/- | 168000 INR/- | 389773 INR/- |
| 3 | 16 year | 1000 INR/- | 168000 INR/- | 421345 INR/- |
| 4 | 18 year | 1000 INR/- | 168000 INR/- | 492362 INR/- |
| 5 | 20 year | 1000 INR/- | 168000 INR/- | 575361 INR/- |
| 6 | 21 year | 1000 INR/- | 168000 INR/- | 621965 INR/- |
In Monthly Recurring Installment Mode Is Monthly. Monthly Recurring Funds aim to provide capital growth by investing in shares of companies. returns are high but equity funds could be a good investment if you have a long-term perspective and can stay invested for long time.
In Quaterly Recurring Installment Mode Is Quaterly. The aim of debt or income funds is to provide you with a steady income. These funds generally invest in securities such as bonds, corporate debentures, government securities (G-Sec) and money market instruments. Opportunities for capital appreciation are limited.
In Half- Yearly Recurring Installment Mode Is Half- Yearly. Aim of such fund is to provide both growth and regular income as these invest in equities and fixed income securities in the proportion indicated in offer documents. NAVs of such funds are likely to be less volatile as compared to pure equity funds.
In Yearly Recurring Installment Mode Is Yearly. These funds are a safe place to park your money; it is an appealing alternative to bank deposits because they aim to provide liquidity, capital preservation and slightly better return than bank accounts. Return on these funds fluctuates much less compared to other funds as the fund manager invests in Treasury bill (GOI), certificates of deposit (Banks) and commercial paper (Companies).