Wondering how to invest 50 lakhs for Monthly income in India? In India, Investing 50 lakh rupees for Monthly income can be a wise financial move that can provide you with a stable source of funds to support your lifestyle, plan for retirement, or achieve your financial goals.
The goal of this blog is to offer a comprehensive how-to guide for investing 50 lakhs to generate a steady monthly income. We will look at different investment options, risks involved, and possible returns.
Investment Options for Investing 50 Lakhs to Get Monthly Income in India
Real Estate Structured Debt
Where can we invest money in India for maximum returns? Structured debt backed by real estate is one of the Best options for Investment in India. It offers fixed-income opportunities through collateralized real estate assets. It is one of the best short-term investments and the best investment plan with high returns in India. Via alternative investment platforms like Assetmonk, the minimum period for investment is 36 months and you can get an assured IRR of 17%.
If you are looking to invest 50 lakhs for Monthly income, Structured debts is the best avenue for you.
Fixed deposits with banks are one of the best investment options in India for generating a steady monthly income. They offer safety, predictable returns, and various tenure options. Although they provide capital protection, their returns may not be as high as those of other investment options. Additionally, the interest income from FDs is taxable.
Post Office Monthly Income Scheme (POMIS)
POMIS is a government-backed investment scheme that pays investors a monthly income. To open a POMIS account, go to any post office and deposit at least INR 1,000. However, the maximum deposit for an individual account is INR 9 lakh and INR 15 lakh for a joint account. The term of the POMIS is set at 5 years, and the current interest rate is 7.40% per annum, with interest payments made monthly.
Real Estate Investment Trusts (REITs)
REITs are an attractive option for generating monthly income. These investment vehicles pool funds from multiple investors to invest in income-generating real estate properties.
REITs typically distribute a significant portion of their rental income as dividends, providing investors with Monthly and potentially tax-efficient monthly income.
REITs offer an appealing opportunity for potential monthly income while also providing the benefit of portfolio diversification. Nonetheless, it’s important to note that the income derived from REITs is subject to taxation.
Systematic Withdrawal Plans (SWPs)
SWPs offer a way to generate consistent monthly income from mutual fund investments. Monthly withdrawals can be set up, providing a steady income stream while allowing flexibility.
Unit-Linked Insurance Plans
Unit Linked Insurance Plans (ULIPs) offer a unique blend of insurance and investment, making them an option for potential monthly income. While primarily designed for long-term goals, some ULIPs offer the flexibility of partial withdrawals after a lock-in period.
If you put Rs. 50 lakhs into a ULIP for monthly income, half of it will go toward a life insurance policy and the other will be invested in market-linked products. Life insurance helps your dependents financially in the event of your untimely death. Making the most of your money is what the investing component will assist you with.
At the end of the investment period, the proceeds from ULIPs can be paid out in monthly installments. By doing this, you can create a steady stream of income that will help you pay your debts.
Debt Mutual Funds
Professionally managed debt mutual funds allocate assets into fixed-income securities like government and corporate bonds. They aim to provide a stable income stream with lower market volatility compared to equity funds. The returns generated by debt mutual funds are subject to fluctuations based on prevailing market conditions.
Monthly Income Plans (MIPs)
MIPs are known for providing stable fixed income investments. These hybrid mutual funds primarily focus on debt securities and offer Monthly monthly distributions to Investors.
Senior Citizen Savings Scheme (SCSS)
For senior citizens aged 60 and above, the Senior Citizen Savings Scheme (SCSS) offers an attractive option. It provides a higher interest rate and Monthly interest payments, making it suitable for retirees seeking a monthly income stream.
Systematic Investment Plans (SIPs)
If you are open to taking a moderate level of risk for potential higher returns, consider Systematic Investment Plans (SIPs) in equity mutual funds. SIPs allow you to invest small amounts Monthly, reducing the impact of market volatility and promoting long-term wealth creation.
Comparison of What Could Be a Better Investment Choice for You?
|Investment Option||Yield||Returns||Tax Implications||Volatility||Security|
|Real Estate Structured Debt||12-20%||12-20%||None||Low-None||Backed By Real Estate|
|REITs||5.5%-7.5%||8.11% (Mindpsace REIT)||Taxation on dividends||Moderate to High||No guarantee|
|FDs||Varies||4-8%||Interest income taxable||Low||Bank Guarantee|
|POMIS||Varies||7.1%||Interest income taxable||Low||Sovereign Guarantee|
|ULIPs||Varies||12%||None post 5 years||Medium to High||Diversified Portfolio|
|SWPs||Varies||6-8%||Taxation on gains||Moderate to high||No guarantee|
|Debt Mutual Funds||Varies||6-9%||Taxation on gains||Moderate to high||Diversified Portfolio|
|Monthly Income Plans||Varies||11-14%||Taxation on gains||Low||Diversified Portfolio|
|SCSS||8.2%||Interest income taxable||Low||Sovereign Guarantee|
|SIP||Varies||12%||Taxation on gains||Low-High||No guarantee|
What is the Best Investment option to Invest 50 lakhs for Monthly Income?
As can be seen from the table above, structured debt real estate is the best investment option for investing 50 lakhs to get monthly income. Via alternative investment platforms like Assetmonk, you can get an assured IRR of 17 percent. Furthermore, Investors have the opportunity to benefit from potential tax savings of up to Rs. 50,000. Wow, right?
How can Investment of 50 lakhs with Assetmonk Benefit You?
Assetmonk’s real estate-backed structured debts can be an attractive investment opportunity for retail investors due to several reasons:
- Diversification: Investing in real estate-backed structured debt allows retail investors to diversify their portfolios by adding exposure to the real estate market, which may not be closely correlated with the performance of traditional asset classes like stocks and bonds.
- Capital preservation: Some structured debt products offer capital protection features, meaning that investors may be protected from significant losses in case the underlying real estate assets underperform. For risk-averse investors looking to preserve capital and earn income, this makes them a desirable alternative.
- Higher yields: Real estate-backed structured debt products, such as Asset Backed Securities (ABS) often provide higher yields with an assured IRR of 17 percent.
- Exposure to real estate market growth: By investing in real estate-backed structured debt, retail investors can indirectly participate in the growth of the real estate market and benefit from potential increases in property values.
- Liquidity: These real estate-backed structured debt products, such as ABS, MBS, or CMBS, are traded in the secondary market, providing investors with a certain level of liquidity.
- Professional management: Structured debt products are managed by experienced professionals who carefully analyze the underlying assets and structure the products to optimize risk and return for investors.
Things to Consider Before Investing 50 Lakhs
Before investing 50 lakhs to get monthly income in India, it is crucial to consider the following factors:
Evaluate your risk tolerance and choose investments that align with your comfort level. Investments with higher potential returns may carry greater risks.
Diversify your portfolio across different asset classes to mitigate risk. Consider allocating your investment across multiple options to balance potential returns and income stability.
Determine your investment time horizon, as it can influence your choice of investment options. Investments with longer lock-in periods may provide higher returns but limit liquidity.
Understand the tax implications associated with the chosen investment options. Consider the impact of taxation on the monthly income generated.
Investing 50 lakhs for Monthly income in India requires careful consideration and understanding of various investment options. Fixed deposits, Post Office Monthly Income Scheme, debt mutual funds, ULIPs, REITs, and systematic withdrawal plans offer avenues for consistent income. Each option comes with its risks, returns, and tax implications, and it is crucial to align your investments with your financial goals and risk tolerance.
Before making any investment decisions, conduct thorough research, assess your investment objectives, and consult with a financial advisor if needed. Diversifying your investments, staying updated with market trends, and reviewing your portfolio periodically is key to maintaining a successful income-generating investment strategy.
Assetmonk, India’s rapidly growing and promising alternative investment platform, is committed to providing exceptional investment opportunities backed by real estate assets. These investment opportunities are carefully selected from India’s thriving private markets and are overseen by a trustee registered with SEBI.
Investors can enjoy an assured 17 percent Internal Rate of Return (IRR) by participating in our structured debt offerings in the commercial real estate sector with a minimum investment of Rs. 10 lakhs, you can enjoy the advantages of stress-free investing and attractive high returns.
Q1. How to invest 50 lakhs for Monthly income?
A. You can invest 50 lakhs for Monthly income in the following avenues:
- Real estate structured debt
- Monthly Income Plans
- Fixed deposits
Q2. How to get monthly income from investments?
A. The best investment to get monthly income is real estate. Real estate ensures you assured monthly income via rental income and capital appreciation.
Q3. Which is the best investment plan for monthly income?
A. The best investment plan for monthly income is commercial real estate structured debt. It is a fixed-income investment with an assured IRR of 17 percent via alternative investment platforms like Assetmonk.
Q4. Can I invest money and get monthly income?
A. Yes, you can invest money and get monthly income. In fact, the best way to invest and get monthly income is via real estate. You can get real estate monthly income via rental income.