Investors invest their money based on their risk profiles. High-risk individuals invest money in risky instruments to generate higher income. Risk-averse individuals invest money in low-risk instruments. It offers them a moderate return. There are various opportunities available in India which will provide decent monthly income for investing INR 50,00,000. The article discusses different instruments for investing money to earn monthly income.Read more
Top performing plans with High Returns*
Invest ₹10K/month & Get ₹1 Crore returns*
To invest INR 50,00,000 for earning monthly income, the investor can diversify the investment to mitigate interim risk factors. There are various plans which offer monthly income facilities. These plans are discussed below:
Post Office Monthly Income Scheme: The scheme allows a maximum deposit of INR 4,50,000 for a single account and INR 9,00,000 for joint accounts. It offers a 6.6% interest rate per annum. The amount is payable monthly as monthly income. This monthly income scheme has a deposit tenure of five years. It is a risk-free investment option and is backed by the government of India.
Government Bond: Government bonds are effective for risk-averse investors. It offers monthly interest or coupon payments. The duration of the bonds ranges from 5 years to 40 years. These bonds have a predefined maturity date.
Corporate Deposits: The monthly income scheme is offered by non-banking financial companies and housing finance companies. It is not secure like bank deposits. However, it offers a high-interest rate due to the high risk factors involved. The investors must check the credit ratings of the NBFCs and HFCs before investing these deposits.
Senior-Citizen Savings Scheme: If the investor is 60 years old, they can invest in a senior-citizen savings scheme. It has an annual interest rate of 7.4 percent. It is payable quarterly. The investors can invest a maximum of INR 15 lakhs in the scheme. The scheme is offered by Indian banks and post offices.
Fixed Deposits: One of the traditional plans to invest money and get monthly returns is a fixed deposit scheme. An investor can open an FD account in any of the public or private sector banks. Moreover, one can deposit money in the equal denomination in five fixed deposit accounts such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and others. That is depositing ten lakhs amount as fixed deposit in five banks. It will help to get around INR 30,000 to INR 35,000 as monthly income.
Monthly Income Plans Offered by Different Insurers: Different insurers offer different types of monthly income plans. The premiums of these monthly income plans change as per the age, income, and requirements of the policyholders. Some of the top monthly income plans are:
This monthly income plan offers payouts after the end of premium payment terms. On maturity, the monthly income scheme offers reversionary bonuses and terminal bonuses, if applicable. The investors are required to pay premiums during the premium payment terms. The premium amount depends on the amount of monthly income chosen. The monthly income plan offers premium discounts for long-term policy, i.e., 20 years or 30 years.
This monthly income plan offers a life cover of 25 years and per month income for 15 years. It offers an assured sum of the amount 100 times the monthly income chosen. The MIS plan has the facility to set off payout receivable against the premium due from the eleventh to the fifteenth year. The policy offers annual bonuses and terminal bonuses as applicable.
The monthly income plan offers monthly income for 10, 20, or 30 years. It starts paying monthly income after the premium payment term ends. It allows options to receive the whole amount as a lump sum instead of monthly income. The policy offers terminal bonuses payable at the end of the payout period.
This monthly income plan offers life insurance coverage. It also offers monthly income in the range of INR 1,500 to INR 1,00,000. The plan offers monthly income for 15 years. It has 10 years of premium terms. It also offers a reversionary bonus.
Past 5 Year annualised returns as on 01-03-2024
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
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