How to Earn 5000 Rupees Per Month – 7 Best Investment Options in India to Earn 5K Monthly, 2023

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How to Earn 5000 Per Month in India?

Wondering how can you earn 5000 monthly with investment? It is very important to have investment options that can help you earn high returns that come in handy when you need them the most.

The first name that needs to be taken in this context is that of bank deposits. As far as the financial industry of India is concerned, banks have been the very backbone of the same. The thing with banks is that they are present all over the country. They are masters at catering to the requirements of their customers and that too with the highest degree of safety. So, over here you can easily invest in the likes of fixed deposits that would pay you regular interest.

The money that you invest in a bank is protected by the DICGC (Deposit Insurance and Credit Guarantee Corporation Act). So, there is no need for you to worry about its safety. This is one more reason why investing in a bank account or a fixed deposit could be the best investment plan for you. An FD offers you several benefits such as flexible tenors, good interest rates, preferential rates for senior citizens, maturity value, etc. If you wish to get a monthly return of 5k rupees from an FD you need to invest around 12 lakh rupees over there. Now let’s learn how to earn 5000 per month with the below methods.

Top Investment Options to Earn 5000 Per Month in India

1. Post Office Monthly Income Scheme

The post office monthly income scheme is the best investment plan for 5000 per month. This is a great investment plan in this particular context. Apart from its postal responsibilities, India Post also offers you banking services. It has a customized scheme that offers you a monthly income. Here the interest accrued on the same is disbursed each month so that you have a steady stream of income coming into your bank account at that frequency. If you are a risk-averse person this is the right option for you. You can avail of it at various post offices across the country.

Key Highlights of Post Office Monthly Income Scheme

Tenure 5 years
Type of account Single or Joint
Investment limit Maximum – INR 4.5 lakh (Single Account)

INR 9 lakh (Joint Account)

Interest rate 7.40% per annum

2. NPS (National Pension Scheme)

NPS was introduced in 2004 by the Indian government and ever since it has been regarded by many as being the best investment plan in India. In the initial stages, it was meant only for the employees of the central government. However, it was extended later on to all citizens across the country. The rules of NPS state that you need to register first in the pension plan so that you get a PRAN (Permanent Retirement Account Number) card and then start the Tier 1 and 2 accounts. The contributions that you make in this case would be deposited in the Tier 1 account.

Key Highlights of NPS (National Pension Scheme)

Entry age 35 years
Retirement age 60 years
Investment period 25 years
Monthly Contribution INR 1000
Expected NPS return 9 % – 12 %

Read More: Top Pension Plans in India

3. APY (Atal Pension Yojana)

If you are looking for the best investment plan with high returns this is something that you could consider with ease. This is a government-funded program and was started in 2015 to offer people working in the unorganized sector a level of financial security. The plan offers a pension cover ranging between 1000 and 5000 rupees per month. The amount is normally paid when the scheme matures. It is administered by the PFRDA (Pension Fund Regulatory & Development Authority). The pension you receive over here depends on the contribution that you made to the same.

Key Highlights of APY (Atal Pension Yojana)

Entry age 18 – 40 years (Indian citizen only)
Government contribution 50% of subscribers’ contribution or INR 1000 (whichever is lower)
Maximum contribution period for government 5 years
Important Requirement Applicant must hold a bank account with KYC-compliant
Others criteria Applicant must not be covered under any social security scheme

Read More: How To Apply Online for Atal Pension Yojana On SBI?

4. Mutual Funds

In recent years they have become one of the most viable investment options in India. They are especially popular among people who are looking to make higher returns on their investments. In this case, various investors put their money in a fund that is managed by experts who take that money and invest in various market-linked investment options. The focus over here is to make it as diverse as possible so that the investors can get a good level of safety and also earn profits on their investment.

Key Highlights of Mutual Funds

Diversification Mutual funds invest in a basket of stocks across sectors
Professional Management Mutual funds are managed by professional fund managers with expertise
Transparency Scheme information is readily available for an investor to track easily
Tax benefits Mutual funds are tax efficient when held for a longer duration
Risk Mutual funds are subject to market risks

Read More: Difference Between Unit-Linked Insurance Policy (ULIP) and Mutual Funds

5. Corporate and Government bonds

A lot of investors in India consider these to be the best investment plans in the country. Various entities issue bonds so that they can raise funds for specific purposes. For example, government bonds are issued so that the government can generate the funding that may be needed to complete an infrastructure project. In fact, corporations too issue bonds for the same purpose. These bonds can have various maturity periods and at times they can go up to 40 years! The coupon rates over here are higher than the likes of post offices and banks.

Key Highlights of Corporate and Government bonds

Diversification Bonds allow diversification of investment
Return Bonds offer potentially higher returns as compared to other investment options
Risk Bonds are safer investment options

Read More: Best Monthly Income Plans in India to Invest in 2022

6. Annuity

These are great investment plansas well! The term annuity means an insurance policy that would offer you assured income for life. There are so many benefits of these policies such as tax advantages, investment protection, easy payouts, etc. They are the perfect option to build a decent corpus for the later stages of your life. So, if you wish to be financially independent and stable when you retire, this is something that you must go for. The price that you pay for buying an annuity could be categorized into two categories based on your income requirements.

Key Highlights of Annuity

Payout The payout depends on the type of annuity purchased
Long/Short term benefits Annuities support long-term income strategies as compared to short-term
Inflation Annuities support inflation adjustments
Return Annuities secure your retirement
Risk Annuities are low-risk plans

7. Life insurance 

Plenty of people consider them to be the best investment plan in India and for a good reason. If you are looking for a secure source of income following your retirement this is what you must be going with. This is especially true for guaranteed income plans. These plans offer you a stream of monthly income that helps supplement the other income you may have when you retire in life. The money in this case is provided as per a predefined schedule and it is a fixed amount.

Key Highlights of Life Insurance

Payout Payout commences after the maturity of the policy or after the demise of the policyholder
Income The plan provides an additional source of income
Security It secures the family of the insured after his/her demise
Options You have options to choose from among the different types of life insurance plans to suit your need

Popular General Insurance Companies India, 2023

Conclusion

The day you retire from your work could be the one when the financial balance of your life gets disturbed. This is especially when you did not plan financially for retirement. This is where the best investment plan with high returns could be what the doctor ordered for you. You need to make sure that you start planning for your retirement when you are already working. As you would have seen already, there is no dearth of options in these cases. Investing in them could help you stay financially stable when you retire. This can help supplement the money you have saved in your bank account.

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May 26, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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