How to invest 50 Lakh to get fixed monthly income?
There are several investment options for investors to earn good returns. However, most investments come with risks and so it is important to consider how to invest 50 lakhs for monthly income. Let’s find out in this post.
Most of the instruments of investment offering high returns come with a certain amount of risk. Based on the profiles of each investment tool, investors make their choice of investment. The risky tools of investment are used by people who don’t mind taking risks to earn greater returns. On the other hand, those who are risk averse, invest on instruments that offer moderate returns and are less risky tools.
If you have INR 50 lakh to invest and you want to earn a fixed monthly income, you get wide investment options to choose from. In this post, we are discussing how to invest 50 lakhs with some top investment instruments to earn a handsome monthly income.
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How to invest 50 lakhs for monthly income ?
INR 50,00,000 investment would allow you diversified investment options to earn a handsome income monthly. If you are searching for answers about where to invest 50 lakh in India, we have a list of investment options that you can pick from to earn monthly income as mentioned below:
Fixed Deposits (FD)
Fixed deposit is one of the traditional investment options that is trusted by most people when it comes to investing a huge amount and earning good monthly returns. A FD account can be easily opened in a government or a private bank. In fact, for better returns people can divide the investment amount in equal values and get several FD accounts in different banks. For instance, if you divide INR 50 lakh in 5 equal denominations and get 5 FD accounts in different banks, you can easily earn a monthly income in the range of INR 30,000 to 40,000 with the 50 lakhs interest per month.
Post Office Monthly Income Scheme (POMIS)
A POMIS is another lucrative option to earn good monthly income for investors. However, the maximum amount allowed to invest under this scheme is INR 4.5 lakh for individual accounts, whereas it is INR 9 lakh for joint accounts. The investor can earn a rate of interest of 6.6 percent yearly under POMIS and the amount is paid to the investor on a monthly basis. This is a government of India scheme with a five years deposit tenure and is risk free.
Senior-Citizen Savings Scheme (SCSS)
For senior citizens who want to invest INR 50 lakh on monthly return policy, the best option to go for is definitely the SCSS or Senior Citizen Savings Scheme. The scheme allows a good interest rate of INR 7.4 percent annually with quarterly payments. The SCSS is available in any Indian bank and post office and allows a maximum investment of INR 15 lakh under the scheme.
Corporate Deposits
This is another monthly income scheme available with Housing Finance Companies (HFCs) or Non-Banking Financial Companies (NBFCs) in the private sector. Corporate deposits are, however, high-risk options offering high-risk returns. The investor should be very cautious to check the ratings of the particular financial company before trusting it with their money. People who are looking at where to invest 50 lakhs in the private sector and who are willing to take high-risk should select these options for high returns. However, the risk involved is something to take careful of while choosing such plans.
Government Bond
For people who are risk averse, the Government bonds can serve as effective investment options. Available with monthly interest payments, these bonds can be invested for a duration that ranges between 5 to 40 years. The government bonds come with a predefined maturity date.
Also Know: Monthly interest for 5 Lakh FD investment
Monthly Income Plans Offered by Different Insurers
There are several insurers offering varied monthly income plans. The sum insured and the premiums of such plans varies depending on the income, age as well as other factors including the specific need of the policyholders.
Here are some of the monthly income plans by top Insurers in India:
| Plan Name | Benefits |
| Bharti AXA Life Monthly Income Plan Plus |
|
| Canara HSBC Oriental Bank of Commerce Life Insurance Smart Monthly Income Plan |
|
| Max Life Monthly Income Advantage Plan |
|
| MetLife Monthly Income Plan |
|
Read More: How to save tax for salary above 10 Lakh in India and pay zero tax?
Summing Up
As seen above, there are various options to invest INR 50 lakh in different schemes or policies. However, if you are looking at a monthly income after your retirement or after a certain age, you should consider a monthly income plan. However, do good research, and compare plans while buying a policy. Also, you may take advice from insurance advisors if required before investing INR 50,00,000.
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FAQs on How to Invest 50 Lakhs for Monthly Income
Is a monthly income plan different from other fixed income plans? How?
Yes, there are differences between the two investment tools. Monthly income plans are investments where a portion of the amount is invested in equity, whereas the other portion is invested in debt. The return received in a monthly income plan is based on the market fluctuations and performance of the fund in the market.
On the other hand, the fixed income plans generally invest in the debt instruments and provide a fixed rate of return.
When should I buy a monthly income plan?
Buying or investing on a monthly income plan at a young age is better as it helps in reducing the cost of investment on your return amount. Further, experienced investors try to invest in such plans at a time when the ROI or Rate Of Interest is high because it brings a decrease in the value of the net asset.
Which is better - buying the insurance products online or through the traditional mode?
Buying insurance online is more cost-efficient as you can avail discounts as well as you can avoid the charges paid to agents. Further, you do not need to visit the branch of the insurer and can buy the policy from the comfort of your house. Most insurance products including monthly income plans are available online. However, it depends on the personal choice of the policy seeker to choose online or traditional method to buy the policy.
What all benefits are offered under the monthly income plans?
The monthly income plans offer guaranteed regular income
The plan also offer insurance cover along with reversionary or terminal bonuses
The plan offers tax-saving and a secured future for the policyholders
Is a monthly income plan good?
A monthly income plan is an apt plan for investors who are looking at an assured source of alternative income or a backup income source. These plans work well for people who want a guaranteed monthly income after retirement and are looking at good returns
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