How To Earn 50K Per Month With Low-Risk Investments?

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 Generation

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.

Best Investment Options For Monthly Income In India

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.

1. Corporate Bonds

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.

• They are backed by the company's credibility to repay the debt and are rated accordingly by credit rating agencies, which reduces their risk levels.
• The listed corporate bonds offer the opportunity to sell the investment in the market, even before maturity.
• Its interest rate is usually high compared to other traditional investment options.
• It aims to safeguard the principal amount up to the redemption of the instruments.

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.

Important Points To Consider While Investing In Corporate Bonds

1. Type of bond and other specifications
2. Rating of a corporate bond
3. The payout frequency
4. Maturity period and redemption procedure
5. Change in interest rate for listed 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.

2. Securitised Debt Instruments (SDIs)

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:

• The direct risk of the underlying asset is reduced to an extent due to securitisation.
• Income at regular intervals for the investors. It can act as an alternative to traditional monthly income schemes.
• The listed Securitised Debt Instruments allows liquidity for the investment.

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. 

Important Points To Consider While Investing In SDIs

1. The underlying asset for SDI and its features
2. Credit rating for the underlying instrument and SDI
3. Redemption process
4. Market conditions

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.

3. Fixed Deposits (FDs)

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.

• The instrument has low risk and offers guaranteed interest at regular intervals.
• Some tax-saving fixed deposits also provide tax deductions under section 80C of the Income Tax Act, 1961.
• One can avail loan facility against fixed deposits.
• There are several types of investment based on the investor’s needs.

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.

Important Points To Consider When Choosing A Fixed Deposit

1. Interest rate offered by bank and interest payment frequency
2. Premature withdrawal attracts a fine or can reduce interest payment
3. Banks or financial institutions, offering the scheme should be reliable
4. Determine between options like auto-renewal or withdrawal

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.

4. Dividend-Paying Stocks

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:

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:

• One can benefit from dividend income and capital appreciation simultaneously.
• The dividend is a positive mark of a company's profit-generating capabilities.
• It offers diversification opportunities for investor’s portfolios.

Disadvantages

1. The rate of dividends declared by companies might be conservative.
2. Companies might not declare dividends at all and choose to retain their profits.
3. Dividend payout might be irregular. Therefore, it might not provide consistent income

Important Points To Consider With Dividend-Paying Stocks

1. Market conditions
2. Tax implications
3. Dividend payout history
4. Proper diversification based on monthly income generation
5. Stock market risk
6. Keep an eye on the record date for dividends

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.

5. Systematic Withdrawal Plan

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.

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

1. Investors can withdraw funds according to their requirements.
2. The remaining capital continues to earn interest, resulting in capital appreciation.
3. It offers greater flexibility and a diversified portfolio.

Disadvantages

1. Uncalculated withdrawals can lead to capital depreciation.
2. The effect of compounding is restricted.

6. REITs (Real Estate Investment Trusts)

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

1. Diversifies the portfolio.
2. Investors can participate in the real estate market without heavy capital expense.
3. Retail investors can access commercial real estate returns.

Disadvantages

1. It is a new form of investment, resulting in a lack of investor understanding.
2. Limited investment options because there are only four REITs available in India as of today.

How To Earn 50K Per Month From Alternative Investments With A Small Budget

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.

Top 3 Monthly Income Plans Under 10 Lakhs

The table below shows the monthly income investment options for 2025.

Keep This In Mind

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.

• Identify your financial goals, risk appetite and investment capacity.
• Diversify your investments.
• Always thoroughly research before selecting any investment option.
• Avoid decisions based on emotions.
• Assess the market conditions. If required, consult a financial advisor.

Conclusion

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!

Frequently Asked Questions On How To Earn 50K Per Month

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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