Where to Invest ₹50 Lakhs to Get Monthly Income?
If you have received ₹50 lakhs and want to turn it into a steady monthly income, you are in a great position to plan smartly, especially if you are thinking about retirement or your children’s education in the next 8 to 15 years.
At 40 years old, with plans to retire around 55 and possibly fund your children’s education in the next 8-10 years, you have a 15-year investment horizon, ideal for balancing growth with stability.
A smart approach would be to divide your ₹50 lakh investment in line with a 60:40 allocation strategy.
- This means putting ₹30 lakhs into equity mutual funds. The equity portion can be spread across large-cap, mid-cap, and small-cap mutual funds to take advantage of market growth while spreading out risk. Since equities perform well over the long term, they can help your money grow significantly by the time you retire.
- The remaining ₹20 lakhs can go into fixed-income options like long-duration secured bonds, monthly income fixed deposits, or savings and retirement plans from trusted insurance providers. These instruments offer more stable returns and can start giving you monthly payouts, helping you build a reliable income stream as you approach retirement.
Real estate might seem like a good option, but it has limitations. It requires a large upfront investment, comes with maintenance costs, and is not easy to liquidate quickly. If you are aiming for consistent monthly income and want flexibility, it may not be the most practical choice right now.
Lastly, do not forget to review your investments once or twice a year. As your goals, market conditions, or risk appetite change, you may need to adjust your portfolio. This kind of regular check-in keeps your investments aligned with your life plans and helps you stay on track toward a financially secure future.
Explore Life Insurance policies
If you are exploring after retirement investment plans that offer both savings and retirement payouts without market volatility, two standout Kotak life insurance life insurance plans are worth considering:
Kotak Assured Savings Plan
The Kotak Assured Savings Plan is a savings plan that promises guaranteed* returns as long as premiums are paid on time. Here is how it works:
- You invest for a few years (say 10-15), and after that, you get a lump sum payout consisting of the base sum assured plus Accrued Guaranteed Yearly Additions and Guaranteed Loyalty Addition.
- You get tax benefits as per the applicable tax laws.
Confident Retirement Builder
Kotak Confident Retirement Builder is a unit-linked pension plan that blends market-linked growth for your premiums with a guaranteed income stream at retirement. Here is how it works:
- You invest regularly till retirement or for limited years
- You can choose flexible premium payment options until retirement
- After you invest (typically around retirement age), you must purchase an annuity with the Maturity / Vesting fund amount
- This then pays a fixed monthly, quarterly, half-annually or annual annuity for life
- The plan also offers loyalty additions and lets you select from multiple investment funds during the accumulation phase
Both savings plans offer about 6-8% annual returns in a risk-free manner (true for the Assured Savings Plan; the ULIP plan depends on the market, but the retirement annuity provides stable income). And importantly, they protect your money from market volatility, making them reliable options if you are wondering how to invest ₹50 lakhs for monthly income, particularly in your post-retirement phase.
Benefits of Investing in a Monthly Investment Plan
If you are looking for steady income and peace of mind, monthly investment plans can be a smart choice. They offer a balance of safety, flexibility, and reliable returns–perfect for anyone wanting to grow their savings while earning regular payouts.
Safety of Your Deposit
Monthly investment plans offered by trusted financial institutions often come with high safety ratings, ensuring that your money is secure. You do not need to worry about losing your savings, even in uncertain times.
Unaffected by Volatility and Market Fluctuations
Unlike stocks or mutual funds that go up and down with the market, these plans offer fixed returns. That means your income does not get affected by market changes and remains stable every month.
Secured Returns on Your Deposit
You know exactly how much you will earn right from the start. With guaranteed interest rates, you can calculate your earnings in advance, giving you full control and confidence over your investment.
Flexibility of Time and Interest Payout Frequency
You can choose how long you want to invest, from 1 to 5 years or more, based on your financial goals. Plus, you get to pick how often you receive your interest: monthly, quarterly, half-yearly, or annually.
Convenient Online Investing
Most plans can be started and managed online. From checking returns to completing the paperwork, everything can be done from home, making the process quick, easy, and hassle-free.
Things to Consider Before Investing ₹50 Lakhs
Knowing how to invest ₹50 lakhs for monthly income is not enough; it is also important to plan smartly. A few basic things can help you make better decisions and avoid common mistakes. Let us take a quick look:
Financial Goals
Start by asking yourself: What do I want from this investment? Whether it is regular monthly income, saving for retirement, or growing your wealth, knowing your goal helps you pick the right option.
Emergency Fund
Always keep some money aside for emergencies before locking in your ₹50 lakhs. This fund will support you during medical issues, job loss, or sudden expenses.
Risk Tolerance
Some investments are safe, while others go up and down with the market. Think about how much risk you’re okay with. Choose options that match your comfort level.
Diversification
Do not put all your money in one place. Spread it across different types of investments (like insurance, FDs, and mutual funds) to reduce risk and keep your money safer.
Inflation Protection
Your money should grow faster than rising prices. Pick investments that can beat inflation over time so your income doesn’t lose value in the future.
Conclusion
Investing ₹50 lakhs can feel like a big decision, but with the right plan, it can give you peace of mind and a steady monthly income. Whether you are planning for retirement, saving for your child’s education, or just want to secure your future, there are plenty of smart options to choose from, like mutual funds, fixed deposits, and trusted insurance-based savings and retirement plans.
The key is to balance growth and safety, keep some money aside for emergencies, and review your investments regularly. If you are still wondering how to invest ₹50 lakhs for monthly income, just remember: start with clear goals, pick a mix of investment tools that suit your comfort level, and stay consistent.
No matter your age or life stage, a well-thought-out investment today can give you the financial freedom to enjoy tomorrow, stress-free!
FAQs on How to Invest ₹50 Lakhs to Get Monthly Income in India
1
What is the best way to invest ₹50 lakhs for regular monthly income in India?
2
Are there any tax benefits on income generated from such investments?
Yes. Insurance plans offer tax deductions under Section 80C, and interest income from FDs or post office schemes has certain exemptions. But remember, mutual fund gains may be taxable.
3
Can I get a fixed monthly income from a ₹50 lakh investment?
You can invest in insurance retirement plans or post office schemes that pay you monthly. Even FDs and SWP mutual funds can be used for fixed income.
4
Can I invest in Kotak Assured Savings Plan or Kotak Confident Retirement Builder for monthly income?
Yes, both Kotak Assured Savings Plan and Kotak Confident Retirement Builder help you build a secure corpus that can be used to generate regular monthly income post-maturity. They are ideal for long-term financial planning and retirement goals.
5
How do life insurance savings and retirement plans provide monthly income?
You pay into the plan for a few years. After the policy term, you receive guaranteed payouts regularly, either monthly, quarterly, or yearly.
6
How should I allocate my ₹50 lakh investment across different asset classes?
A good approach is:
- ₹20 lakhs in Kotak retirement/savings plan
- ₹10 lakhs in FDs
- ₹10 lakhs in mutual funds (with SWP)
- ₹5 lakhs for emergency fund
- ₹5 lakhs in the post office MIS or senior citizen scheme
7
Is it safe to invest ₹50 lakhs in mutual funds for monthly income?
Mutual funds can give good returns, but they are not risk-free. If you are okay with market ups and downs, they are a decent option. Use SWP to get a monthly income.
8
What are the risks involved in investing ₹50 lakhs for monthly income?
Some risks include market fluctuation (mutual funds), fixed interest might not beat inflation, and a lock-in period in insurance plans. So, choose a mix of safe and return-generating options.
9
What factors should I consider before investing ₹50 lakhs?
Think about your goals, your age, risk appetite, and whether you need immediate income or can wait. Also, check tax benefits and lock-in terms.
10
What is a Systematic Withdrawal Plan (SWP) and how does it work?
SWP is a mutual fund feature where you can withdraw a fixed amount regularly (like monthly) from your investment. It helps turn your mutual fund into a monthly income tool.
