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How to Invest 25 lakhs for Monthly Income in 2023?

So, you have 25 lakhs, and are wondering how to get monthly income from investments? You’ve come to the right place!

In this guide, we’ll explore how to invest 25 lakhs for monthly income in 2023. 

But before we jump in, remember: the financial world is a complex arena, and every decision you make should be tailored to your personal goals, risk tolerance, and financial situation. 

That being said, let’s start our journey into the strategies that can potentially help you to turn your 25 lakhs into a reliable source of income. 

Ready to delve into the art of investing?

how to invest 25 lakhs for monthly income

Factors to Consider for Rs. 25 Lac Monthly Investment Income

The primary goal of any investment is to earn returns. The crucial factor that determines the choice of investment is the expected earnings over the chosen period. However, the purpose of monthly income differs significantly from the long-term perspective.

Before we discuss some best option to invest money, Here are some factors to consider for 25 lac monthly investment income:

  • Investment Amount: Determine your entire investment to obtain the desired revenue. You’ll require a large initial investment to earn Rs. 25 lac each month. Consider your risk tolerance and financial capacity to invest such an amount.
  • Rate of Return: Your income depends on your investment return. You’ll need a high-return portfolio to earn Rs. 25 lac every month. You must balance risk and reward because bigger returns usually mean higher dangers.
  • Diversification: Diversify your investing portfolio to reduce risk and boost rewards. Diversified portfolios comprise stocks, bonds, real estate, mutual funds, and other investments. Diversification reduces the impact of market changes on your income. 
  • Time Horizon: Consider the time period over which you want to generate Rs. 25 lac per month. Shorter time horizons might require more aggressive and riskier investments, while longer time horizons may allow for a more balanced approach.
  • Tax Implications: Taxation can significantly impact your investment income. Different types of investments have varying tax treatments. Consider tax-efficient investment strategies and consult with a tax advisor to minimise the tax burden on your income.

When planning for consistent returns, understanding How to Choose the Best Investment Plan for Monthly Income in India? is crucial. Your choice depends on factors like risk appetite, time horizon, and financial goals.

8 Best Monthly Income Investments

Generating a monthly income of Rs. 25 lac requires substantial investments and careful consideration of various options. Here are some investment options that could potentially contribute to achieving such a significant income goal. 

Let’s find out which is the best investment plan among these: 

1. Systematic Withdrawal Plans (SWP)

A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed amount or a percentage of their mutual fund investment at regular intervals, creating a steady income stream. 

However, the returns depend on the mutual fund’s performance and withdrawal timing. In this scenario, investing 25 lakhs for 30 years with a monthly SWP of Rs. 12,500, approximately Rs. 21,77,316, will remain at the end of the period. 

It’s crucial to consider the impact of inflation, as the purchasing power of Rs. 12,500 will decrease significantly over 30 years. After 30 years, Rs. 12,500 is worth Rs. 2,176.38 at 6% inflation. Thus, inflation must be considered to preserve investment value.

2. Fixed Deposits

Fixed Deposits (FDs) are deposits made with banks or financial institutions for a defined duration at a guaranteed interest rate. They offer a stable return for risk-averse investors.

The interest income is taxable according to income tax rules. Some banks offer monthly income schemes with interest payments made monthly.

To sustain monthly income, you must renew the FD at maturity, with auto-renewal often available. However, the renewal will be at prevailing interest rates, which may vary from the original rate.

3. Corporate Deposits

Corporate deposits are fixed-term deposits made with companies or NBFCs, offering higher returns than traditional bank deposits but with some risk. They provide fixed interest rates, independent of market fluctuations, and interest income is taxable.

However, there’s a risk of default if the company or NBFC fails to pay interest or principal.

Like fixed deposits, corporate deposits generate income only during the deposit’s tenure, requiring reinvestment at maturity for continuous monthly income.

Investors should carefully assess the risk and opt for well-established and reputable companies when considering corporate deposits for monthly income.

4. Post Office Income Scheme

The Post Office Deposit Service offers various schemes with fixed returns, backed by a sovereign guarantee, making them safer than equity shares and many fixed-income options.

One of the highest-earning schemes is the Post Office Monthly Income Scheme, which provides a 7.4% interest rate and disburses interest monthly. But, POMIS account allow deposits from Rs. 1,000 to a maximum of Rs. 9 lakh (single account) or Rs. 15 lakh (joint account) with a 5-year tenure.

Alongside other post office schemes, it is validated by The Ministry of Finance. These schemes, including the Post Office Savings Account, Post Office Recurring Deposit, and Post Office Time Deposit, offer reliable investment avenues with the assurance of government backing.

5. Government Bonds

Government Bonds, also known as G-Secs or Government Securities, are long-term investment schemes used by the central and state governments to raise funds for infrastructure development.

They are fixed-term debt instruments with tenures ranging from 5 to 40 years, offering a fixed coupon rate (interest) higher than bank or post office fixed deposit schemes.

Retail investors gained access to the Indian bonds market in November 2021, making these investments attractive, and there’s no monetary ceiling for G-Sec investments.

RBI mandates half-yearly interest disbursement, providing periodic returns, making G-Secs ideal for low-risk investors.

6. Renting out Property

Investing a considerable sum in real estate, such as buying land, apartments, or commercial complexes, is a lucrative option to generate immediate benefits.

Renting or leasing out the property provides a steady monthly income, and the property’s appreciation value enhances the investment’s overall return. 

By increasing the rent amount annually (e.g., 10%), the income grows in line with inflation, making real estate investment a strong choice.

7. Monthly Income Plan Mutual Funds

Mutual Fund Monthly Income Plans (MIPs) are hybrid funds that aim to provide a fixed return every month. They allocate 70-80% of funds in debt securities and the rest in equity instruments.

Returns are received in the form of dividends, and investors can choose the frequency of payouts. MIPs are subject to taxes applicable to debt funds.

Short-term gains are added to income and taxed as per the slab rate, while long-term capital gains are taxed at 20%.

Investors seeking a regular income stream with some exposure to equities may consider MIPs, but they should be mindful of tax implications and market risks.

For investors looking for diversification, it’s crucial to know the Best Alternative to Mutual Funds.

8. Green Assets

Investing 25 lakhs in traditional options like mutual funds and fixed deposits can yield varying returns, impacted by factors like inflation and taxation.

However, green assets have emerged as a powerful alternative, offering sustainable returns and contributing to environmental preservation.

Platforms like SustVest, which provides a robust 10-11% p.a. return, disbursed monthly, can enhance portfolio performance while supporting green initiatives. 

In the face of unpredictable market conditions, including green assets in your investment strategy may result in a diversified, future-proof portfolio.

It’s essential to align your choice of investment with your risk tolerance, financial goals, and investment tenure.


What are some investment options for generating a monthly income of Rs. 25 lakhs in 2023?

Some investment options include dividend-paying stocks, real estate rentals, Systematic Withdrawal Plans (SWP) in mutual funds, Government bonds, Mutual Fund Monthly Income Plans, etc.

How can I minimise the risk while investing Rs. 25 lakhs for monthly income?

To reduce risk, consider diversifying your investments across different asset classes and sectors. Avoid putting all your money into a single investment and opt for a mix of low and high-risk options.

What rate of return should I expect from my Rs. 25 lakhs investment for generating a monthly income?

The expected rate of return depends on the type of investments you choose. Generally, a conservative estimate would be to aim for around 6% to 8% annual returns for a balanced portfolio.

Are there any tax implications when investing Rs. 25 lakhs for monthly income?

Yes, taxes can impact your income from investments. For example, income from fixed deposits and debt mutual funds may be subject to income tax as per your applicable tax slab. Be sure to consider the tax implications before making investment decisions.

Why Invest in Monthly Income Scheme?

Investing in a Monthly Income Scheme can provide a steady and predictable monthly income, making it a reliable option for those seeking regular cash flow. It’s like having a financial friend who pays you a set amount every month, offering stability and financial peace of mind.


To conclude the article on how to invest 25 lakhs for monthly income, Achieving a monthly income of Rs. 25 lac requires a well-thought-out investment strategy that balances risk and returns.

Diversified options such as equity investments, real estate, mutual funds, and fixed deposits can contribute to this goal. Investors should consider their risk tolerance & financial goals, and consult with a financial advisor to design a tailored portfolio.

In an ever-evolving investment landscape, knowing the Top 10 Assets That Generate Income In India 2023 can offer lucrative opportunities. Assets range from real estate, stocks, and bonds to digital assets.

For sustainable and responsible investment choices, explore SustVest, offering opportunities that align with your values and long-term financial objectives. 

Start building your income plan with SustVest today!