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5 Ways You Can Earn Monthly Income From Investment in India
The Power of Investment: Let Your Money Work for You
Imagine a situation where your money earns for you while you sit back and relax. For many Indians, this is the ultimate financial goal. Whether you earn a modest salary or a substantial one, the idea of having your money grow through smart investments is universally appealing. The concept that “paisa paise ko kheechta hai” or “money pulls money” is a dream that most people aspire to achieve. With the right strategies and a bit of capital, this dream can become a reality.
In this blog, we will explore five ways in which you can earn substantial monthly income through smart investment plans. While a decent amount of initial capital is necessary, you can still generate significant returns. Let’s dive into these investment strategies and see how they can help you achieve a stable monthly income.
1. Mutual Fund Systematic Withdrawal Plan (SWP)
Mutual Fund Systematic Withdrawal Plan (SWP) is an excellent way to earn a steady monthly income. With an SWP, you can invest a lump sum amount in a mutual fund and then withdraw a fixed amount regularly. This strategy allows your investment to grow while you enjoy a steady income.
How It Works:
Initial Capital Required: ₹5,00,000 to ₹10,00,000
Investment Options: Equity mutual funds, debt mutual funds, balanced funds
Expected Monthly Income: ₹4,000 to ₹8,000 (depending on the fund’s performance and withdrawal rate)
Time Duration: You can start withdrawing as early as one month after the initial investment
2. Dividend-Paying Stocks
Investing in dividend-paying stocks is another effective way to earn a monthly income. Companies that are financially stable and have a history of paying dividends regularly can provide a steady income stream.
How It Works:
Initial Capital Required: ₹1,00,000 to ₹5,00,000
Investment Options: Large-cap stocks, blue-chip companies
Expected Monthly Income: ₹1,500 to ₹5,000 (based on the dividend yield)
Time Duration: Dividends are typically paid quarterly, but some companies may offer monthly dividends
Investing in a diversified portfolio of dividend-paying stocks can reduce risk and ensure a more stable income.
3. Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts (REITs) allow you to invest in real estate properties without the need to buy physical property. REITs generate income through rental properties and distribute a significant portion of their earnings to investors as dividends.
How It Works:
Initial Capital Required: ₹50,000 to ₹2,00,000
Investment Options: Listed REITs on Indian stock exchanges
Expected Monthly Income: ₹2,000 to ₹4,000 (based on the REIT’s performance)
Time Duration: Monthly or quarterly dividends
REITs are an excellent option for those looking to diversify their investment portfolio and earn passive income from real estate.
4. Fixed Deposits with Monthly Payouts
Fixed deposits (FDs) with monthly interest payouts are a low-risk investment option suitable for conservative investors. Many banks and financial institutions in India offer fixed deposits that pay interest on a monthly basis.
How It Works:
Initial Capital Required: ₹1,00,000 to ₹5,00,000
Investment Options: Banks, NBFCs, post office schemes
Expected Monthly Income: ₹2,500 to ₹10,000 (depending on the interest rate and deposit amount)
Time Duration: Typically, 1 to 5 years
Although the returns from fixed deposits are lower compared to other investment options, they offer stability and assured returns.
5. Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that offers a guaranteed monthly income. It’s a low-risk investment option ideal for conservative investors who prefer stability and security.
How It Works:
Initial Capital Required: ₹1,50,000 to ₹9,00,000 (individual and joint accounts)
Investment Options: Post Office branches across India
Expected Monthly Income: ₹2,500 to ₹5,000 (depending on the interest rate and deposit amount)
Time Duration: 5 years (with an option to extend)
POMIS is a reliable option for those seeking a fixed, predictable monthly income with minimal risk.
Summary Table of Investment Options
Investment Option | Initial Capital Required | Expected Monthly Income | Time Duration |
Mutual Fund SWP | ₹5,00,000 to ₹10,00,000 | ₹4,000 to ₹8,000 | From one month onwards |
Dividend-Paying Stocks | ₹1,00,000 to ₹5,00,000 | ₹1,500 to ₹5,000 | Typically quarterly dividends |
Real Estate Investment Trusts (REITs) | ₹50,000 to ₹2,00,000 | ₹2,000 to ₹4,000 | Monthly or quarterly dividends |
Fixed Deposits with Monthly Payouts | ₹1,00,000 to ₹5,00,000 | ₹2,500 to ₹10,000 | Typically 1 to 5 years |
Post Office Monthly Income Scheme | ₹1,50,000 to ₹9,00,000 | ₹2,500 to ₹5,000 | 5 years (with an option to extend) |
Conclusion
Earning a substantial monthly income through smart investment plans is achievable with the right strategies and initial capital. By diversifying your investments across various options such as mutual fund SWPs, dividend-paying stocks, REITs, fixed deposits, and P2P lending, you can enjoy a steady stream of income while minimizing risk.
Multipl’s innovative spendvesting approach can further enhance your savings and investments, ensuring that your money works hard for you. Start investing wisely today and watch your money grow, providing you with financial stability and peace of mind.