The growing Indian economy is nourishing the investment landscape, inducing the entry of new retail investors. For instance, in April 2025, NSE recorded 22 crore investor accounts, adding 2 crore new investors since October 20241. However, one aspect that often keeps certain investors away from market investments like equity is the need for a regular return.
Currently, the Indian fiscal landscape has certain unique monthly income schemes that can generate high returns, up to INR 50k per month or more. A comprehensive and nuanced understanding of the best investments for regular income can not only allow a monthly passive income of around INR 50k but also enable the creation of a well-balanced portfolio.
Therefore, this blog dives into the top monthly income schemes and investment avenues that can help generate passive income.
Passive income refers to the revenue generated without active management of funds by the investor. For instance, if Mr A deposits INR 5,00,000 in a fixed deposit, the interest earned will be categorised as passive income because Mr. A is not actively managing the allocation and usage of the INR 5,00,000.
Not just fixed deposits, multiple other monthly income plans are also available for investment. Understanding their operations and other specifics is necessary for devising a successful investment plan.
The Indian financial market is rich with a diverse range of securities. The 21st century has also witnessed the advent of modern investment mediums like Real Estate Investment Trusts.
This section delves deep into some passive income plans in India.
Debt instruments are usually not understood thoroughly in a traditional investment space. However, they can be part of a rewarding monthly income plan for investors. One of the most famous debt instruments are corporate bonds. These are issued by public and private companies/organisations.
These entities raise money from common investors as a debt. The investors receive interest from the instrument at fixed intervals and receive the full amount at the end of maturity. In India, except for the pandemic years, corporate bond listings have been gaining momentum every year. The below chart shows that the total number of public issuances of corporate bonds has increased continuously for the last 3 years2.
Advantages of Investing In Corporate Bonds
Along with a regular income source, the instrument can provide some significant benefits to investors.
Disadvantages
1. Although corporate bonds are one of the best investment plans for monthly income, they carry interest risk. If the market interest rate increases, the new bonds become more attractive to the users, resulting in a fall in secondary demand for the bond in question.
2. Corporate bonds carry default risk.
3. In case the company faces unforeseen circumstances like bankruptcy, the bond investment might be negatively affected.
Bonds are graded securities. Credible credit rating institutes like Crisil, ICRA and so on provide grades to it, indicating their creditworthiness. The standard rating mechanism of bonds is explained in the table below.
Credit Rating | Description |
AAA | Highest safety with the lowest credit risk. |
AA | High safety and timely management of obligations. |
A | Adequate safety levels. |
BBB | Medium credit quality. |
BB | Moderate quality and default risk. |
B | Significant default risk. |
C | High default risk. |
D | Expected to default soon. Lowest safety. |
Important Points To Consider While Investing In Corporate Bonds
Let us Understand With An Example
For instance, Mr. K invested INR 60,00,000 in a 10% 20-year corporate bond. If the bond gives a monthly payout, his earnings would be as follows.
It is a modern investment alternative to regular market instruments. As the name suggests, Securitised Debt Instruments are attached to market security.
One of the most famous SDIs is mortgage-backed securities. They pool different assets into a fixed-income instrument. Investors can explore regulated, listed, and credit-rated SDI products like LeaseX, LoanX, BondX, and InvoiceX at Grip Invest.
Advantages Of Investing In SDIs
This unique investment avenue offers some cutting-edge advantages to the investors as follows:
Disadvantages
1. They often have a complex legal and stakeholder structure.
2. Some SDIs are not transparent about the underlying debt instruments held.
3. If borrowers repay the underlying loans early, the returns may diminish.
4. In case of any debt security, a conservative analysis can never rule out the risk of default.
Grip Invest offers a range of securitised debt instruments, like InvoiceX, loanX and LeaseX.
Parameter | LeaseX | InvoiceX | LoanX |
Return | Up to 16% | 10-14% | Up to 14% |
Rating | A to BBB | A2 to A1+ | AA to A- |
Regulated by | SEBI | RBI/SEBI | RBI and/or SEBI |
Diversification | High | 20+ invoices from 20+ companies | High |
Important Points To Consider While Investing In SDIs
Let us Understand With An Example
For instance, Mr. A invests 50,00,000 on an SDI that pays 12% return. If the interest payout is monthly, Mr. A can earn returns like those discussed below.
It is one of the most used and traditional monthly income schemes in India. It started with the inception of the banking industry. However, it gained momentum after the nationalisation of the Reserve Bank of India in 1949. It is one of the core reasons that inculcates a disciplined saving habit.
Banks and financial institutions offer Fixed Deposits as an account to save an amount for a fixed period. Due to growing facilities, one can opt for monthly interest. Not just banks, the post office called India Post also offers fixed deposits through the Post Office Monthly Income Scheme (POMIS). It is one of the traditional investment options to earn monthly returns.
Advantages Of Investing In FDs
Most traditional generations in the country advise investing in FDs as they offer varied advantages to investors.
Disadvantages
1. Fixed Deposits usually provide a very conservative rate of return.
2. Premature withdrawal from Fixed Deposits can attract penalties and cause a loss of interest.
3. Over-emphasis of a portfolio on FD might enable unnecessary loss of revenue.
4. Monthly interest payouts diminish the impact of compounding.
Fixed deposits are amongst the best investment plans for monthly income. It is advantageous primarily for risk-averse and conservative investors. The most important takeaways from FDs are listed in the table below.
Principal | Lumpsum investment |
Rate of interest | Fixed |
Security | Up to INR 5,00,000 insured by DICGC |
Premature withdrawals | Possible, but attracts a penalty and loss of interest |
Important Points To Consider When Choosing A Fixed Deposit
Let us Understand With An Example
For instance, suppose Mr. A deposited INR 75,00,000 at an 8% interest rate in a fixed deposit, which has a monthly payout facility.
It is important to note that since the interest is withdrawn monthly, it cannot be compounded. It means that interest rate is levied only on the principal during the investment tenure.
Fixed deposits have their unique benefits and drawbacks. Understanding both can aid in optimum decision-making.
Dividends are the part of a company's profit offered to its equity shareholders. It is an investment that can generate monthly income and offer capital appreciation benefits, owing to stock market conditions. Investors can create a diverse mix of stocks as an alternative to traditional monthly income schemes.
For example, the table below shows the dividends declared by some stocks in March 2025:
Stock Name | Dividend Payout |
Vedanta Ltd | 113% |
Indian Oil Corporation Ltd. (IOCL) | 31% |
Bharat Petroleum Corporation Ltd. (BPCL) | 32% |
Hindustan Zinc Ltd | 119% |
Coal India Ltd | 46% |
The risk of market exposure is an inherent part of this investment. However, diversification can help spread the risk and returns. Dividends are not assured income and are distributed at the company’s discretion.
Advantages Of Investing In Dividend Paying Stocks
Some of the key benefits of dividend-paying stocks are as follows:
Disadvantages
Important Points To Consider With Dividend-Paying Stocks
Let Us Understand With An Example
An investor curates a portfolio of diverse dividend-paying stocks that offers a 6.53%* dividend yield. If this individual invests approximately INR 91.88 lakhs, one can earn 50K per month.
INR 91.88 lakhs * 6.53% = INR 6 lakhs approximately
INR 6 lakhs/ 12 months - INR 50,000
*6.53% rate is the average of the top 5 high dividend-yield stocks, mentioned above.
Systematic Withdrawal Plans refer to a facility provided by Mutual Fund houses that enables the withdrawal of a fixed sum at specified intervals. It allows investors to redeem a part of their investment monthly, quarterly or yearly, rather than redeeming the entire investment. The non-redeemed part continues to earn interest.
Suppose a person has invested INR 60,00,000 for one year. The monthly withdrawal is INR 50,000, and the annual rate of return is 10%. The table below shows the activity of the funds for 3 months.
Month | Balance at the beginning (INR) | Withdrawal (INR) | Return earned (@ 10%) |
1 | 60,00,000 | 50,000 | 49,583 |
2 | 59,99,583 | 50,000 | 49,579 |
3 | 59,99,162 | 50,000 | 49,576 |
Note that the return earned is calculated on the amount remaining after deducting the withdrawal from the opening balance. This return gets added to the balance at the start of the next month.
Advantages
Disadvantages
Although REITs have existed in the US since the 1960s, they are relatively new to the Indian Market3. In 2014, SEBI officially introduced it to India. Currently, there are only four REITs in India, namely Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust4.
The Real Estate Investment Trusts or REITs own, manage and produce income-generating real estate. Investing in REITs is partly like investing in mutual funds. Just like mutual funds maintain a pool of assets, REITs maintain a pool of real estate. Investing in a unit of REITs will make an investor a part-owner of their real estate portfolio. Thus, they are entitled to the returns generated by them.
However, they are listed on the stock market. Investors invest in REITs by purchasing the units from the stock exchange either directly or through a broker. Investors can generate returns from REITs through dividends, interest and capital gains.
Advantages
Disadvantages
Many monthly income plans can help investors earn 50k per month. However, generating around 50k per month often requires a high budget. Therefore, this section explains the alternative securities that can help you earn 50k per month with a comparatively smaller budget.
1. Baskets: Certain investment portals like Grip offer asset baskets that contain different types of investment mediums like SDIs, bonds, etc. It not only diversifies the portfolio through a single investment but can also provide up to 14% pre-tax revenue.
2. High-Yield Fixed deposits: Investment-grade high-yield FDs that are regulated by the RBI can offer up to 14% returns.
3. Peer-to-peer lending: It refers to the process of lending funds to individuals or businessmen without any intermediary. Lenders can set rates at will. However, the default risk is substantially high.
The table below shows the monthly income investment options for 2025.
Parameter | Systematic Withdrawal Plan | HIGH-YIELD FD | Securitised Debt Instruments |
Expected return (%) | Varies based on the Mutual Fund chosen. For instance, multi-cap funds offer around 9.60% returns as of 18 May 20255. | Up to 14% annually | Varies based on the SDI. For instance, LeaseX can offer up to 16% returns |
Approx. monthly income | An investment of INR 60,00,000 can earn INR 50,000+ returns. | An investment of INR 50,00,000 at 12% interest can earn up to INR 50,000 return. | An investment of INR 40,00,000 at 15% interest can earn a return of INR 50,000. |
Liquidity | Medium. Varies with the terms of investment. | Medium | High |
Risk level | Medium to high | Low | Low to high |
The issue of ‘how to earn INR 50000 per month’ can potentially be solved by investing in the given instruments or diversifying into different instruments. However, investors need to keep some details in mind while opting for any of these solutions.
Disciplined investments are a crucial step to reach the desired financial goals. Investors willing to earn regular income with a monthly income plan can invest in different market instruments such as corporate bonds, securitised debt instruments, fixed deposits, dividend-paying stocks, and many more. Such passive investment can help investors reduce dependency on salary income and diversify their portfolios.
So, are you ready to dive deep into the world of unique financial investment options? Login to Grip Invest today and start your investment journey!
1. Can I earn INR 50k per month by trading?
Stock market trading is a risky venture owing to market volatility. Therefore, generating INR 50K per month can be potentially a tough task. Investors can rather buy high dividend-yielding stocks and diversify their investments. It can help them earn 50K per month.
2. What should you keep in mind while investing in dividend-paying stocks?
While investing in dividend-paying stocks investors need to assess the market conditions, dividend payout history, company financials, tax implications, market risk, and other considerations.
3. Can corporate bonds generate regular monthly income?
Corporate bonds are debt instruments issued by public and private companies. Some bonds offer a monthly rollout of interest. However, investors should check the interest rates and credit rating for the instrument.
References:
1. The Economic Times, accessed from: https://economictimes.indiatimes.com/markets/stocks/news/nse-hits-22-crore-investor-accounts-reflecting-soaring-retail-participation/articleshow/120208080.cms
2. Screener, Accessed from: https://www.screener.in/screens/93745/nifty-50-with-high-dividend/
3. Investopedia, accessed from: https://tinyurl.com/4wfyxuwk
4. CRISIL, accessed from: https://www.crisil.com/content/dam/crisil/our-analysis/reports/Ratings/documents/2019/october/indias-reit-opportunity.PDF
5. Morning Star, accessed from: https://www.morningstar.in/tools/mutual-fund-category-performance.aspx
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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in
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