7 min read
Updated on Aug 21, 2023
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 from the investment plans. 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.
If you have INR 50 lakhs for investment, the first thought in your mind would be – What to do with this amount? How to invest 50 lakhs for monthly income or how to invest 50 lakhs after retirement?
Let us find the answer to these queries:
INR 50 lakhs is a good amount and you can invest the same in a high-yielding option of investment so that you can get a suitable monthly income required to live a comfortable life.
For middle-aged people, there are many expenses that are likely to arrive with age such as medical costs, responsibility of kids’ marriage, career etc. Earning a fixed income on a monthly basis from an investment will be a great help. And even if the investor has a steady job, it would be great to have an additional source of income to take care of the additional financial obligations of your children and other members of the family.
If you are looking at a high return on investment of INR 50 lakhs, you can try the equity funds. However, equity funds are not for those who want to play the safe and secure game. It is for people who are not scared of risks. For those who want to play it safe can go for a fixed deposit of 50 lakhs or a scheme of post office.
The first crucial aspect is to decide the monthly income that you want to earn from your investment. Look for investment schemes which allow stable returns within the expected term/tenure of your investment. If you want to continue receiving this added earning all through your life, you should select the tenure of the plan accordingly.
It is recommended to go for an investment option that does not require you to switch frequently. And finally, have clarity on your future goals to understand where to invest 50 lakhs in India, your needs and the expenses accordingly.
Below are some of the various avenues to invest 50 lakhs in india:
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 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.
Also Read: Best FD Interest Rates in India
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.
Also Read: Post Office Monthly Income Scheme
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.
Also Read: Senior Citizens Savings Scheme in India
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.
Also Read: How to double your money
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 Read: Best pension plan in India
There are several insurers offering the best investment plans for monthly income. 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:
|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||
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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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.
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.
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.
1. The monthly income plans offer guaranteed regular income
2. The plan also offer insurance cover along with reversionary or terminal bonuses
3. The plan offers tax-saving and a secured future for the policyholders
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
It depends on the amount that you want to invest which decides the duration of a government bond. In general, the tenure of such bonds range between 5 to 40 years.
Post Office schemes can offer different rates for different products. For example, a post office monthly income scheme (POMIS) offers a 6.7% rate of interest.
Monthly income received under a MIP depends on the performance of the fund where you have invested your money. Also, you may note that the market of mutual funds fluctuates. Thus, it depends whether you will receive a fixed monthly income or not under MIP.
Before you invest in a CD or corporate deposit, check the CRISIL rating of the company. A high rating of CRISIL would mean a good-performing deposit.
Yes, you can open FDs in public as well as private banks.
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