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    Investing 5 lakhs for Monthly Income

    • 5 min read
    • Last Modified Date: April 1, 2024
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    Investing 5 lakhs for Monthly Income

    • If you have been wondering how to invest 5 lakh, then this is the right spot. When investing 5 lakhs for monthly income, several factors must be carefully considered to maximise returns and achieve financial goals. For steady growth, 5 lakhs should be invested using a planned and strategic method.
    • This blog will look at and assess various investment options based on a number of important considerations, including the suitability of the investor profile, tax implications, returns, liquidity, etc. 
    • We will explore various investment options, their potential returns, and associated risks. We will also see the key factors to consider before making investment decisions.

    Considerations Before Investing 5 Lakhs for Monthly Income in India

    Before committing 5 lakhs towards generating a monthly income in India, it is essential to take into account the following aspects:

    • Risk Tolerance: Assess your risk tolerance and opt for investments that suit your comfort level. Keep in mind that investments with higher potential returns usually come with increased risks.
    • Diversification: Spread your investments across various asset classes to minimize risks. Explore diversifying your portfolio among different options to balance potential returns and income stability.
    • Time Horizon: Define your investment time horizon, as it can influence your investment decisions. Investments with longer lock-in periods may offer higher returns but could restrict liquidity.
    • Tax Implications: Be aware of the tax considerations linked to your chosen investment vehicles. Evaluate how taxation could impact the monthly income you receive.
    • Stay Informed: It is crucial to stay informed on the market trends and latest news related to your funds. Regularly monitor your portfolio and make suitable adjustments to enhance your returns.

    Investment Options for Investing 5 Lakhs to Get Monthly Income in India

    Here are the Various best investment options to invest 5 lakhs for monthly income: 

    EV Charging Station investment 

    It is a fixed-income, asset-backed investment product diligently that is curated from the booming EV industry to enhance the stability and growth of your portfolio.

    According to MordorIntelligence, The Indian EV market is on track to grow from USD 34.8 billion in 2024 to USD 110.74 billion by 2029, with a growth rate of 26.05% annually. This growth shows that EV investing is the next big thing.

    The product has an NCD product structure, and the minimum investment is just 5 lakh rupees. It has a fixed yield of 9% P.A (Paid Monthly). It could be a source of steady monthly income for you.

     It is a short-term investment avenue with a tenure of 39 months and is backed by real estate assets. 

    Fixed Deposits

    One of the most well-liked financial choices in India is fixed deposits or FDs. They are regarded as safe and provide a guaranteed return on investment. A bank or post office offering a higher interest rate might be your best option for a one-year fixed deposit. FDs normally have interest rates in the region of 5 to 7%. It is a good option if you want a safe investment avenue to invest 5 lakhs for monthly income.

    Although they provide capital protection, their returns may not be as high as those of other investing options. Moreover, FD interest income is subject to taxation.

    Real Estate Structured Debt

    Structured debt backed by real estate refers to investment vehicles that utilise real estate assets as collateral, providing fixed-income opportunities. These investment products enable investors to access the real estate market without requiring direct property ownership or management. 

    These investments offer attractive returns by earning interest payments and potentially benefiting from capital appreciation. However, returns may vary depending on market conditions and the performance of the underlying assets. 

    Generally, alternative investments like these have the potential to generate returns between 12% and 18%. It is one of the best investment avenues to invest 5 lakhs for monthly income.

    You can invest in asset-backed fixed-return investments through alternative platforms like Assetmonk and earn guaranteed returns.

    Debt Mutual Funds

    For individuals looking for the 5 lakh best investment, debt mutual funds are worth considering.

    Debt mutual funds invest in money market instruments, corporate bonds, and government securities, among other fixed-income products. They offer greater returns than FDs and are comparatively more secure than equity mutual funds.

    The returns generated by debt mutual funds can fluctuate based on market conditions and are subject to taxation.

    Post Office Monthly Income Scheme (POMIS)

    POMIS is a fixed return on investment savings plan backed by the government. It provides a 7.4% return and has a tenure of five years. It is a secure investment choice to consider if you want a steady income.

    However, the interest income is taxable.

    Public Provident Fund (PPF)

    Under section 80C of the IT Act, PPF is a long-term investment option that provides tax benefits. The investment promises a 7.1% annual return throughout its 15-year term. Taxes do not apply to interest generated on PPF. You can deduct the PPF investment amount when submitting your income tax return. 

    Real Estate Investment Trusts (REITs)

    An organisation that owns, administers, and invests in income-producing real estate or assets connected to it is known as a REIT, or real estate investment trust. It provides among the finest high rates of return on investment. The fund mortgages these assets to produce revenue and distribute it to shareholders. It is a good investment option to invest 5 lakhs for monthly income and earn good returns. 

    REITs present a potential avenue for monthly income while also offering the advantage of diversification. It is important to note that the income derived from REITs is subject to taxation.

    Systematic Withdrawal Plans (SWPs)

    For investors holding a diversified portfolio, Systematic Withdrawal Plans (SWPs) can successfully create a steady monthly income. SWPs enable investors to systematically withdraw a set sum from their mutual fund holdings at specified intervals. 

    This method ensures a reliable income flow while retaining the remaining capital for potential growth opportunities.

    Bonds and Fixed Income Instruments

    Individuals can establish a consistent income stream by investing in bonds and fixed-income instruments. Government bonds, corporate bonds, and fixed-income mutual funds are all examples of investment options that provide fixed-interest payments at regular intervals.

    Assessing Investment Options of Investing 5 Lakhs to Get Monthly Income in India

    To gain a comprehensive understanding of the investment options mentioned above, let’s examine their risks, potential returns, and tax implications:

    Comparison Table of Investment Options

    Various Investment SourcesReturnsYieldSecurityVolatility RiskTax Implications
    Real estate structured Debts12-20%12-20%Secured by Real EstateLow-NoneNone
    Fixed Deposits4-8%VariesBank GuaranteeLowInterest income taxable
    EV Charging Station investing9%-18%9%-18%Secured by Real EstateLow-NoneNone
    POMIS7.1%VariesSovereign GuaranteeLowInterest income taxable
    Debt Mutual Funds6-9%VariesDiversified PortfolioModerate to highTaxation on gains
    POMIS7.1%VariesSovereign GuaranteeLowInterest income taxable
    REITs8.11% (Mindpsace REIT)5.5%-7.5%No guaranteeModerate to HighTaxation on dividends
    Systematic Withdrawal Plans6-8%VaresNo guaranteeModerate to highTaxation on gains
    Bonds & Fixed Income Instruments4-8%VariesSovereign guaranteeModerateTaxation on gains

    Where to invest 5 lakh rupees?

    As can be seen from the table above, real estate structured debts is the best investment option for investing 5 lakhs to earn monthly income. 

    Via alternative investment platforms like Assetmonk, you can get an assured IRR of 17 percent for investing 5 lakhs and get an assured monthly income.

    How to Invest 5 lakh in Real Estate Structured Debt With Assetmonk

    You have the option to invest your 5 lakh in real estate-backed investment options, which falls under fixed-income investments. The fixed-income characteristic of these assets means that they are designed to provide investors with a consistent fixed amount on a regular basis, similar to receiving scheduled interest payments on a loan. Moreover, these investments entail only moderate risk and offer an assured Internal Rate of Return (IRR).

    Assetmonk is dedicated to providing investors with exceptional alternative investment opportunities that are backed by real estate. These investment products guarantee a 17% Internal Rate of Return (IRR) and are secured by assets, offering investors peace of mind. They also provide a hassle-free exit option. These investment opportunities are meticulously chosen from India’s thriving private markets and are overseen by a trustee registered with SEBI. 

    With a minimum investment of just 5 lakhs, investors can enjoy stress-free investing and attractive high returns. This is an outstanding opportunity to take advantage of India’s economic growth and be a part of its success story. Don’t miss out on this exciting opportunity to ride India’s economic prosperity wave.

    Bottom Line

    When it comes to investing 5 lakhs to get monthly income in India, it is crucial to approach it with careful planning. This entails clearly understanding your financial goals and being willing to assess and manage risks. By diversifying your investments and utilizing various avenues such as fixed deposits, mutual funds, real estate, and bonds, you can establish a dependable source of monthly income. It’s important to review your portfolio regularly, stay informed about market trends, and seek advice from financial experts if necessary. 

    You can successfully achieve your financial objectives and secure a comfortable future with patience and careful decision-making. 

    Assetmonk is a new-age alternative realty investment platform with a keen focus on structured quality deals from real estate, one of the most profitable asset classes once only accessible to the 1%. 

    Our guiding principle is “investor-first,” and our objective is to make the investment experience seamless and transparent. We achieve this by offering promising assets, third-party due diligence, easy online tracking, regular updates, and trust mechanisms such as trustees/escrow. 

    Additionally, we utilize tech-enabled payout automation and provide asset management services until the exit, among other features and benefits.

    Investing 5 lakhs for Monthly Income FAQs

    Q1. Where to invest 5 lakhs in India?

    A. You can invest 5 lakhs to get a monthly income in real estate structured debt. You only need to invest with just Rs. 5 lakhs and get an assured IRR of 17 percent via Assetmonk.

    Q2. How to get monthly income from investments?

    Real estate stands out as the top choice for securing monthly income. Real estate investments provide a reliable source of monthly income through rental yields and potential capital appreciation.

    Q3. Where to invest 5 lakhs for short-term ?

    A. You can invest 5 lakhs for a short term in real estate structured debt products and earn guaranteed returns.

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