How To Invest 1 Crore for Monthly Income | LenDenClub (2024)

2. Fixed Deposits

A fixed deposit (FD) is known for its safety and is a popular choice for creating a monthly income. To start an FD account, you can pick any bank or post office and put in a lump sum amount for a set period, which can range from as short as 7 days to as long as 10 years.

You have the flexibility to decide how often you want to receive your interest payments, whether it’s monthly, quarterly, half-yearly, or annually.

Features:

• Fixed interest rates.
• Various tenure options.

Pros:

• Capital preservation.
• Predictable returns.

Cons:

• Limited returns compared to other options.

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3. P2P Lending

Often, people turn to their friends or relatives for financial assistance when banks and financial institutions reject their loan applications due to income, documentation, or credit scores. However, this limits access to financing.

This is where P2P lending comes. Peer-to-Peer (P2P) lending is an emerging investment option that connects borrowers with individual lenders, bypassing traditional financial institutions. Investors can earn monthly returns by lending their money to creditworthy borrowers.

Features:

• Online platform connecting borrowers and lenders.
• Monthly returns from interest payments.

Pros:

• Diversification.
• Higher returns compared to traditional fixed-income options.

Cons:

• Risk of borrower defaults.

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4. Post Office Monthly Income Scheme

Many people consider POMIS as a viable option to invest get a monthly income. It’s a safe choice for people who want to be sure of their returns and keep their money safe.

You can get started with as low as 1,000 rupees, and if you want invest more, you can go up to 9 lakh rupees for an individual account or 15 lakh rupees for a joint account. You’ll be in for 5 years, and right now, the interest rate is a decent 7.40% per year, and you’ll get it every month.

Features:

• Government-backed scheme.
• Assured monthly income.

Pros:

• Capital protection.
• Regular, predictable returns.

Cons:

• Limited investment limit.

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5. Real Estate

When you invest in real estate, you are dealing with physical assets such as land, buildings, or properties. You can make money from real estate by renting or leasing it to tenants. Plus, as time goes by, the value of your property can increase, which is a nice bonus. If you raise the rent by 10% each year, your income will keep growing, even when prices go up.

Instead of owning physical properties, you can invest in real estate investment trusts (REITs). Speaking of returns, real estate investments in Mumbai can give you around 7-12% returns. It’s an option that’s worth thinking about.

Features:

• Rental income potential.
• Capital appreciation.

Pros:

• Tangible asset.
• Hedge against inflation.

Cons:

• Illiquid investment.

How to Invest 1 Crore for Monthly Income

Please note:

The “Monthly Return” column provides a figure based on the specified investment and anticipated annual returns. It’s important to understand that actual monthly returns can fluctuate due to factors such as compounding, market conditions, prevailing interest rates, tax implications, and other variables.

**When it comes to mutual funds, it’s important to remember that their returns are subject to market risks, and there are no guarantees of fixed returns. If you opt for the Systematic Withdrawal Plan (SWP) option, you can periodically withdraw a portion of your invested capital.

**For Fixed Deposits (FD) and the Post Office Monthly Income Scheme (POMIS), the monthly income represents the interest earned from the principal amount. Upon maturity, the principal amount is returned to the investor. Additionally, POMIS has a maximum investment limit of INR 15 lakhs for a joint account.

***For P2P Lending Platforms lenders can anticipate returns ranging from 12% to 28%, which can vary based on the diversification of your investment and the current demand for lenders on the platform.

****Real estate investments can provide a consistent source of income through property rentals or leases. The rental yield in different locations across India may vary, and the current rental yield is influenced by local market conditions.

Conclusion

In conclusion, when you are thinking on how to invest 1 crore, it’s important to explore various investment options and after that making a decision. Each choice comes with its own set of considerations.

However, it’s advisable to consult with financial professionals to make the best investment decisions for your financial objectives.