Monthly income from investment

Investing ₹10 lakh wisely can generate a steady monthly income, depending on your risk tolerance, time horizon, and financial goals. Here are some popular options:

Low-Risk Options

1. Fixed Deposits (FDs)
   • Expected Returns: 6-7% annually.
   • Monthly Income: ~₹5,000-6,000 (Interest payout option).
   • Pros: Safe, predictable income, low risk.
   • Cons: Returns are taxable.
2. Post Office Monthly Income Scheme (POMIS)
   • Expected Returns: 7-7.5% annually.
   • Monthly Income: ~₹5,800-6,250.
   • Pros: Government-backed, secure.
   • Cons: Maximum investment limit per individual is ₹9 lakh.
3. Debt Mutual Funds
   • Expected Returns: 6-8% annually.
   • Monthly Income: Generated through Systematic Withdrawal Plans (SWP).
   • Pros: Tax-efficient, relatively stable.
   • Cons: Subject to interest rate changes.

Moderate-Risk Options

4. Dividend-Yielding Stocks
   • Expected Returns: 8-10% annually (dividends + appreciation).
   • Monthly Income: Dividends are paid quarterly, but you can plan withdrawals.
   • Pros: Potential for capital appreciation.
   • Cons: Dividends are not guaranteed.
5. REITs (Real Estate Investment Trusts)
   • Expected Returns: 8-10% annually.
   • Monthly Income: Quarterly/regular payouts from rental income.
   • Pros: Diversified real estate exposure, liquidity.
   • Cons: Moderate market risk.

High-Risk Options

6. Equity Mutual Funds (via SWP)
   • Expected Returns: 10-15% annually (historically).
   • Monthly Income: Customize SWP for steady withdrawals.
   • Pros: High potential returns.
   • Cons: Market fluctuations can impact returns.
7. Peer-to-Peer Lending
   • Expected Returns: 12-15% annually.
   • Monthly Income: EMI-like repayments from borrowers.
   • Pros: High returns.
   • Cons: High default risk.

Other Considerations

8. Renting Out Property
   • Invest in a small residential/commercial property to generate rental income.
   • Expected Returns: ~3-5% annually as rent, plus property appreciation.
   • Pros: Dual income from rent and appreciation.
   • Cons: Requires significant initial investment and management.
9. Senior Citizen Savings Scheme (SCSS)
   (If you or a family member is 60+ years old)
   • Expected Returns: 8-8.5% annually.
   • Monthly Income: ~₹6,600-7,100.
   • Pros: Safe, government-backed.
   • Cons: Age-restricted.

Balanced Approach

• Diversify your investment across multiple instruments to balance risk and returns.
• Example:
  • 40% in Fixed Deposits or Debt Funds.
  • 30% in REITs or Dividend Stocks.
  • 30% in Equity Mutual Funds or Peer-to-Peer Lending.