How to Invest 1 Crore for Monthly Income?

Investing Rs. 1 Cr for a monthly income is essential for individuals without a regular income stream to sustain a financially independent lifestyle. However, with decent investment money in hand, you can weigh your options to earn a respectable monthly income and protect the principal. In addition, liquidity is a significant concern to meet emergency needs as they crop up. Moreover, leaving a legacy for your descendants is no less important to protect their financial future in your absence.

Read more
kapil-sharma
max life insurance
loading...
tata aia life insurance
loading...
bajaj allianz life insurance
loading...
Investment Plans
  • money
    Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax
  • tax
    Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
  • compare
    Compare & Choose 30+ Plans and 150+ Fund options
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold

Top performing plans with High Returns**

Invest ₹10K/month & Get ₹1 Crore# on Maturity

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Rs.1 Cr Investment Plans for Monthly Income:

Let us now find out the various avenues to park the funds for monthly returns from Rs. 1 Cr:

  1. Bank Fixed Deposits:

    Fixed deposits in banks have been one of the most popular investment vehicles, and most Indian households are comfortable with them. In addition to the inherent fund’s safety, you get many schemes for up to 10 years. The monthly income scheme suits investors looking for a steady income stream. However, with the falling interest rates, the income has shrunken considerably. 

  2. Retirement Plan:

    An Rs.1 Cr corpus is not created overnight. However, your toil fetches a retirement corpus meticulously planned over a long time during the active working life. The superannuation benefits or wealth created through prudent planning are best invested in a suitable annuity to earn a guaranteed monthly pension for the post-retirement lifetime. 

    There are many available variants in the annuity schemes in the market, but a broad classification is an immediate and deferred annuity. The accumulated retirement corpus payable after 60 years is invested in a suitable annuity compulsorily up to 40% of the corpus even with the NPS scheme. 

  3. Bond Investment:

    Various entities issue bonds to fund their business expenses. On the other hand, government bonds are issued by the central and state governments to fund infrastructure development projects. Therefore, they are essentially debt instruments payable after a defined maturity period. The accrued interest is paid monthly, quarterly, half-yearly, or annual frequencies. 

    Therefore, bonds are issued in various flavors and are primarily illiquid till maturity. However, you can trade the bonds in the secondary market in the stock exchange. The upside with bonds is that their coupon rates are higher than the interest paid in banks, and you benefit from a predictable income. While there is a cap of Rs.50 Lac in 54EC capital Gain Bonds, there is no cap on other bonds. 

  4. Mutual Funds:

    Mutual Funds have emerged as a popular investment option providing high yields on investment than other deposits, barring shares in the stock market. However, you can enjoy the benefit of choosing mutual funds aligned with your risk profile. For example, while debt funds are low risk, balanced or hybrid funds are moderate risk vehicles. On the other hand, equities are high-risk market investments with the potential to return the highest yield. 

    In addition, Mutual Funds schemes are designed by Asset Management Companies called Fund Houses, creating diverse portfolios holding multiple asset classes. Let us take a closer look at the options:

    • Debt Funds: Low-risk vehicles with portfolios representing treasury bills corporate or government bonds. They are also referred to as fixed-income short-duration bonds. 

    • Balanced Funds: The portfolio is created with nearly 65% carved out from equity asset classes and the remaining in debt assets. While the returns are comparatively higher, these funds fall in the moderate risk category. 

    While the debt funds disburse dividends monthly or quarterly, they may not provide a monthly income stream. Thus, a Systematic Withdrawal Plan (SWP) fulfills the requirement by investing in the growth plan but specifies a fixed amount for monthly payout. In addition, it circumvents the fluctuating dividend payment as they form a profit component and are based on market forces. 

Inflation Risk on Rs.1 Cr Investment for Monthly Income:

Accumulating an Rs.1 Cr nest egg is no mean task, especially with fixed income vehicle interest rates plummeting significantly. While the bank fixed deposit interest rates for senior citizens are hovering between 5 and 6%, the SCSS offers only 7.4%. So in this landscape, how much monthly income is considered enough. An Rs. 1 Cr may appear enough at face value, yielding Rs.52000 in the monthly income fixed deposit scheme. 

With inflation acting incessantly, the monthly income today will not suffice tomorrow. The following illustration considering 6% annual inflation, projects the rising needs over the years. 

  • 2019: Rs.50000

  • 2024: Rs.66911

  • 2029: Rs.89542

  • 2034: Rs.1.2 Lac

  • 2039: Rs.1.6 Lac

  • 2044: Rs. 2.2 Lac

The projection demonstrates a galloping requirement in every five-year block. Thus, it is sensible to plan considering the inflation risk. The following grid provides an alternative but conservative approach.

Vehicle Return in % Investment Amount Monthly Income
Annuity  7.6 20 Lac  12662
SCSS  7.4 15 Lac  9250
PM VVY  7.4 15 Lac  9250
Bank Deposit  6.35 50 Lac  26318
Total  1 Cr  57480

In Conclusion:

While the Rs.1 Cr corpus looks healthy at first glance, the downward trends in the fixed income investments are squeezing the monthly income volume. Thus, prudent planning and a mix of asset classes aligned with your risk appetite and financial objectives should influence your investment decisions. The best option is derived from spreading the asset allocation in fixed income and market instruments in proportions that will absorb inflationary impact in the long run.

FAQ's

  • Is there any limit on the investment in bank deposits?

    A: No, there is no cap on bank deposit investment regardless of the chosen schemes. 
  • Is there a death benefit in the annuity guaranteeing lifetime pension?

    A: There is no death benefit in the immediate annuity, but others are defined in the scheme parameters. 
  • What is the tenor in the Senior Citizens Savings Scheme?

    A: You can invest a maximum of Rs.15 Lac for a 5-year tenure and extendable for another 3 years on maturity. 
  • Are you required to study the market trends for investing in Mutual Funds?

    A: Though knowledge about the stock market is helpful, it is not essential as your portfolio is managed by professional Fund Managers appointed by the Asset Management Company. 
  • How is the purchase price calculated in annuity investment?

    A: The purchase price of the annuity is calculated on multiple factors like your expected pension income and other scheme benefits chosen by you.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-01-2025

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in 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
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^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 investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

Become a crorepati-1
Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
Bank of India Compound Interest Calculator

30 Dec 2024

The Bank of India- Compound Interest Calculator is an online
Read more
Indian Bank Compound Interest Calculator

26 Dec 2024

The Indian Bank Compound Interest Calculator helps you estimate
Read more
Bank of Baroda Compound Interest Calculator

26 Dec 2024

The Compound Interest Calculator - Bank of Baroda (BoB) is a
Read more
Compound Interest Calculator - Axis Bank

26 Dec 2024

The Compound Interest Calculator - Axis Bank is a powerful
Read more
ICICI Compound Interest Calculator

20 Nov 2024

The Compound Interest Calculator - ICICI Bank is an efficient
Read more
30 Best Investment Options in India in 2024
  • 04 Apr 2014
  • 1867019
Are you looking for the best investment option for you? From traditional investments like Fixed Deposits (FDs)
Read more
Short Term Investments Options
  • 10 Feb 2014
  • 528742
Short-term investments are financial assets that can be easily converted to cash within a short period, ranging
Read more
Post Office Senior Citizen Savings Scheme (SCSS) 2024
  • 13 Feb 2020
  • 102857
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed scheme designed specifically for
Read more
Best Saving Plans in India 2024
  • 30 Jan 2019
  • 155274
Saving money is an important step towards achieving financial independence and security. Whether you're looking
Read more
How to Change Mobile Number in Post Office Account Online?
  • 20 Nov 2021
  • 44597
Indian Post Payment Bank (IPPB) is the banking division of the Department of Post (Ministry of Communications)
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL