How To Invest 25 Lakhs for Monthly Income in India

Money sitting idle will eventually lose its value and depreciate with time. And with the rising inflation and living expenses, just keeping aside savings won’t always help. This is why a user should always look to invest and generate passive sources of income which helps to generate a steady income source while also allowing for an appreciated value of money for the future.

If you’ve already got 25 lakhs with you, then you are certainly in one of the steady places in life, and putting this money into use can further enhance your life and income. There are various ways to invest the said amount across one or many investment schemes. And that’s what we’ll be looking to do in this post.

Let’s find out more about the ways you can generate a steady monthly income with an investment of Rs 25 lakhs for a fruitful life for yourself and your family. But before that, there is some important information that you should know about.

Factors to Consider while investing Rs 25 lakhs for a monthly income

⇒ Financial Goals

You must set your financial goals properly before going into the investment route. You should identify what sort of returns you want and how you can plan your short-term or long-term goals for the future which can be anything from buying a house, retirement fund, or future expenses.

Risk-bearing ability or Risk Appetite

It often depends on your risk appetite to base your investment plan. There are various investment options in the market ranging from low-risk to high-risk ones. A person willing to take higher risk can go for direct equity or mutual funds while those with lower risk appetite can opt for fixed deposits and other instruments.


We understand that you’re seeking a regular source of passive income to inflow with the investment. But you also need to consider the period of investment if you want to take advantage of the compounding effect. A long-term investment tends to grow the wealth multifold than short-term investments.

Also read: How to Invest in Nasdaq from India?


Lastly, another major factor to look into is the patience level. The markets or the investment instruments may not perform as required at times thereby sort of inducing frustration among investors. This is why patience is important as that can help you to react to the situation appropriately and go with the best investment option for better gains in the long run.

Top Investment Options for a Regular Monthly Income

1. Fixed Deposits

Fixed Deposits

We’ll start with the low-risk and one of the most popular investment options in India. Fixed deposits have always been a traditional choice and still hold for the modern day. They are relatively safe and easy to go with. All the major banks offer fixed deposit services where users can invest their amount based on the desired time frame. The term period ranges from six months to 10 years or more. The banks offer varied rates from 5% to 8% as per the time frame and the deposit amount. This can double your income in 10-12 years and give you a good wealth return. The interest is credited monthly too and you can manage your expenses with the interest amount alone.

  • Monthly Income: You can expect a monthly income of Rs 14600 on an average return of 7%.

2. Corporate Deposits

Another popular and safe means of investment for users can be corporate deposits. It works on a similar principle to fixed deposit with the only difference being it is offered via companies rather than banks. These are offered by NBFCs and other corporations that are looking to raise capital. They also tend to give a higher interest amount than the fixed deposit and come with the option for a monthly payout. An investment of Rs 25 lakhs can easily make a good passive income source with this means.

  • Monthly Income: You can expect a monthly income of Rs 20800 at a return of 10%.

3. Government Bonds

Government bonds are another debt instrument similar to corporate deposits and are offered by the central government. They issue bonds as part of the capital raising for various infrastructural works. Government bonds come with various periods of maturity ranging from 5 years to 40 years. This investment is a safe option as it is offered by the government itself and offers an interest payout every six months. Various bonds are offered with varied rates of return that you can choose from.

  • Monthly Income: You can expect a return of 8% on average though coming at a monthly return of Rs 16667.

4. Post Office Monthly Income Scheme

Another government-backed investment option in India, the post office monthly income scheme allows you to invest a lumpsum amount and receive a fixed return at the specified rate of return. The rate of return for the same is revised by the government every quarter. The term period for the same is five years and is a safer option for people to invest. It has been part of India’s investment scene for a long and still is favored by many people.

  • Monthly Income: You can expect a monthly income of Rs 15400 at an average rate of return of 7.4%.

5. Monthly Income Plan Mutual Funds

A popular option for people who want to invest in other investment options than the aforementioned one, monthly income plan-based mutual funds are a great pick. It is generally a debt-oriented mutual fund and invests in a mix of equity and debt funds to generate a steady stream of income for you. This is why these are much preferred by people looking for a regular passive income. The rate of return can vary from anywhere around 2% to 10% depending on the market returns. However, you can expect anywhere around 8% to 9% based on the historical CAGR performance of mutual funds.

  • Monthly Income: You can expect an income of Rs 18750 on an expected rate of return of 9%.

6. Systematic Withdrawal Plans

This is another type of investment option based on mutual funds. This scheme allows an investor to withdraw a fixed amount or percentage of the mutual fund investment at specified intervals like monthly, quarterly, or annually as per the choice of the investor. This is mainly to provide investors with a regular income source for their mutual fund investment. The plan works in a way where the user can withdraw the amount and the remaining capital will stay invested. Since the investment grows with time, users can have regular payout and still have investment ongoing.

  • Monthly Income: You can expect an income of Rs 12500 on an expected rate of return of 6%.

7. Senior Citizen Saving Scheme

Senior Citizen Saving Scheme is a government-initiated savings scheme that is designed to provide investors with a regular income source while having investments made. It allows investors to invest a lump sum amount and receive returns at the designated period as per the interest rate fixed during the quarter. This is generally targeted at senior citizens and makes a good source of regular income. It has a maturity period of 5 years.

  • Monthly Income: You can expect an income of Rs 17083 at an expected rate of return of 8.2%.

8. Dividend Stock Investment

Another area of investment that a user can make is investing in dividend stocks. Dividend stocks are stocks that pay out regular dividends to their users. There are various stocks in the Indian market known for its dividend often termed dividend stocks. These stocks can often give dividends twice or thrice a year. This won’t generally provide you with a monthly income but overall you can get a payout at least twice to thrice easily. The rates of dividends vary from 5% to 15% depending on the type of stock. But do keep in mind that in the meantime, your stock value also rises and you’ll make wealth creation from the equity side as well as the dividends.

Final Words

As aforementioned there are various ways to invest Rs 25 lakhs and generate a steady income source in India at present. Many of these options vary from low-risk to high-risk ones and users can pick the one as per their risk appetite and financial goals. It is always advised to invest based on your financial goals, period, and desired income levels. Based on these, you can easily pick the one most suited for yourself and make the most of passive income sources.

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