How to Invest 50 Lakhs to Get Fixed Monthly Income?

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.

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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.

Best Monthly Income Plans for Investing Rs.50 Lakhs:^~

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:

Bharti AXA Life Monthly Income Plan Plus

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.
Canara HSBC Oriental Bank of Commerce Life Insurance Smart Monthly Income Plan

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.
Max Life Monthly Income Advantage Plan

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.
MetLife Monthly Income Plan

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.

FAQ's

How monthly income plan is different from other fixed income plans?

Ans. Monthly income plans are a hybrid investment product. A part of the investment plan is invested in equity, and another part is invested in debt. The monthly income plans offer a return based on the market performance of funds. However, fixed income plans are invested in the debt instruments. Therefore, they offer a fixed rate of return.
When is the best time to buy a monthly income plan?

Ans. Investments made in monthly income plans at an early age help to reduce the cost of investment for a certain amount of return. Therefore, the investors must focus on investing for long-term gain. It will help them to leverage the best benefits from the monthly income plans.
Should I purchase the products online or follow the traditional route?

Ans. The monthly income plans are available online. Investors can choose to follow online purchases or follow the traditional method. To follow the traditional method, they are required to visit the nearest branch office of an insurance company and provide all the documents required. They can purchase the product through a debit card, cash, or cheque.
Which benefits does the monthly income plan offer?

Ans. The monthly income plans offer guaranteed regular income. It includes insurance cover, offers reversionary or terminal bonuses, and others. The policies offer tax-saving benefits as well as a secure future for individuals.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. 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. 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 01-02-2025

^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).