How To Earn 50k Per Month Through Investments
Creating passive income has become more achievable in today's fast-paced digital world. By making sound financial decisions, you can address questions like how to earn 50K per month. All it takes is staying on top of your savings goals and strategically planning for your future.
A diversified investment portfolio for earning substantial passive income is crucial for boosting returns and safeguarding funds. While traditional investment avenues like stocks and fixed deposits can be effective, they may not always align with your long-term financial objectives. Equities carry higher risks, and fixed deposits often yield modest returns. Exploring alternative investments for passive income generation could be wise for expanding and diversifying your investment portfolio.
Alternative investments, like securitised debt instruments, corporate bonds, etc., provide greater returns on your investment than traditional options. They allow for a more diversified portfolio, mitigating the risk. Additionally, they offer protection against inflation.
Let us explore some of the best ways to earn 50K per month from passive income.
4 Proven Investment Opportunities To Earn 50K Per Month
If you are wondering where to invest in getting INR 50,000 per month, here are some fixed-income investment opportunities to consider:
1. Corporate Bonds
Corporate bonds offering non-cumulative interest can provide regular passive income. Non-cumulative interest refers to the interest paid out to investors at regular (monthly/quarterly) intervals rather than accumulating. These bonds are typically investment-grade bonds rated by credit-rating agencies and issued by regulated financial institutions.
Assuming the average interest that can be earned on a corporate bond is 12% p.a., investing a principal amount of INR 50,00,000 can earn INR 50,000 a month*.
*The calculations are based on simple interest.
2. Securitised Debt Instruments (SDI)
SDIs present an innovative and regulated way to generate predictable, regular income. They are created by pooling several underlying assets into a listed fixed-income security. The underlying assets can be loans, lease agreements, invoices, etc.
Investors can explore regulated, listed, and credit-rated SDI products like LeaseX, LoanX, BondX, and InvoiceX at Grip Invest. The main USP of these products is that they offer significantly higher returns, between 12-16%, than other similarly credit-rated fixed-income investment opportunities.
Assuming the average return on investment from SDI is 14% annually, you will need to invest approximately INR 43,00,000 to get INR 50,000 a month.
3. Fixed Deposits (FD)
Fixed deposits are among the oldest fixed-income instruments, guaranteeing interest earnings of approximately 7.0% p.a., depending upon the investment tenure. You can select the frequency at which you receive the accrued interest on your fixed deposit - monthly, quarterly, semi-annually, or annually.
FDs are a great way to earn mediocre but safe returns and are preferred for those seeking predictable monthly passive income. Since they provide approximately 7% interest p.a., you will need to invest around INR 86,00,000 to get INR 50,000 a month.
4. Dividend Income
You can earn passive income by investing in good dividend-paying stocks. For this, you must identify fundamentally strong companies, distributing their profits to their investors. Investing at the right price in such shares is equally essential to enjoy capital appreciation.
As per recent data, the top 5 highest dividend-yielding Nifty 50 companies include:
- Vedanta- 38.42% dividend yield
- Hindustan Zinc- 24.36% dividend yield
- Coal India- 5.52% dividend yield
- ONGC- 4.42% dividend yield
- Power Grid- 3.80% dividend yield
Assuming the average annual dividend yield to be 7%*, you would need to invest INR 85,00,000 to get approximately INR 50,000 per month.
*The average dividend rate is calculated from the top 15 dividend-yielding stocks.
Benefits Of Passive Income Generation
Generating reliable sources of passive income provides freedom from financial anxiety, especially in today’s uncertain job market. It helps you reduce your dependency on salary, giving you the freedom of time and choice.
The burgeoning expenses associated with lifestyle, health, and general cost of living create a considerable dependency on salaries. Ultimately pushing individuals to sustain themselves on a single income source.
By building an agile portfolio, you can start reducing your dependency on salary within the initial years.
Conclusion
Generating passive income provides a cushion against life’s uncertainties. This blog provides insights into earning 50K per month in passive income through proven investment avenues. For more investing tips, visit Grip Invest today!
Frequently Asked Questions On How To Earn 50K Per Month
1. Can I earn 50k per month by trading?
While possible, making INR 50,000 monthly from the stock market can be unpredictable due to the volatility of the stock market.
2. What should you keep in mind while investing in dividend-paying stocks?
Stock prices might decrease following the record date for dividend distribution, resulting in a short-term decline in your holding's profit. However, maintaining long-term investments could result in substantial dividends and capital appreciation.
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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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