Where Can I Invest 1 Crore to Get Monthly Income in India?

Imagine you have ₹1 crore sitting in your account. But you don’t know how to invest ₹1 crore for monthly income without exposing yourself to unnecessary risk or locking up your money in low-yield options. In a market full of choices, figuring out where to invest ₹1 crore for steady, inflation-beating returns can be tricky.

The key lies in finding the right mix of safety, returns, and liquidity, and that’s exactly what we’ll understand. 

Where to Invest 1 Crore for Monthly Income? 

The following are the best 1 crore investment plans in India:

Scheme	Duration	Expected Annual Return	Monthly Return (₹)
Debt Mutual Funds: Systematic Withdrawal Plan*	3 to 5 years	6%	50,000
Fixed Deposits**	7 days to 10 years	6.3%	52,500
Corporate Deposits**	1 to 5 years	7.35%	61,250
Post Office Monthly Scheme**	5 years (lock-in period)	7.40%	61,667
Real Estate***	Long-term	3.3%***	27,500

1. Debt Mutual Funds: Systematic Withdrawal Plans

Systematic withdrawal plans (SWPs) are a facility offered by mutual funds that allow investors to withdraw a fixed amount from their investment regularly. SWPs can help investors generate a regular income from their debt mutual fund investments.

Debt mutual funds mainly invest in government securities, corporate bonds, treasury bills, and other fixed-income instruments.

SWPs can also help investors avoid market timing risk and benefit from rupee cost averaging, as they withdraw a fixed amount irrespective of the market conditions.

2. Fixed Deposits

Fixed deposits (FDs) are widely recognised as a secure and popular investment avenue for generating monthly income. To open an FD account, you can choose any bank or post office and deposit a lump sum amount for a predetermined period, ranging from 7 days to 10 years. 

The interest payout frequency can be selected as monthly, quarterly, half-yearly, or annually. Interest rates may vary based on tenure, deposit amount, and the specific bank. Generally, longer-term FDs tend to offer higher interest rates compared to shorter-term ones.

At the end of the FD tenure, investors must renew their deposits to continue to generate monthly income. Most banks offer auto-renewal, which automatically renews the FD at the prevailing interest rate.

3. Corporate Deposits

Corporate deposits are fixed deposits offered by non-banking financial companies (NBFCs) and corporations to raise funds from the public. These deposits come with various tenures, typically ranging from one to five years, and offer interest payouts on a monthly, quarterly, semi-annual, or annual basis. 

The interest rate of corporate deposits depends on factors such as the tenure, deposit amount, and credit rating of the issuer. Generally, corporate deposits offer higher interest rates than bank fixed deposits (FDs) but lower rates than equity funds. Additionally, they are riskier than bank fixed deposits.

4. Post Office Monthly Income Scheme (POMIS)

It is a government-backed initiative designed to provide investors with a monthly income. It offers a reliable option for individuals seeking assured returns and capital preservation. The minimum deposit required is ₹1,000, while the maximum deposit limit is ₹9 lakh for a single account and ₹15 lakh for a joint account. The tenure for POMIS is set at 5 years, with a current interest rate of 7.40% per annum, payable monthly.

5. Real Estate

Real estate is a physical asset that involves buying and selling land, buildings, or properties. It can be used for residential, commercial, or industrial purposes. Real estate can generate income by renting or leasing the property to tenants or users. Capital appreciation is another benefit that investors can enjoy. 

Alternatively, investing in real estate investment trusts (REITs) could provide exposure to the real estate sector without the burdens associated with owning physical properties.

How to Invest 1 Crore for Monthly Income?

Let’s take an example: Mr Bhargav wants to invest ₹1 crore to generate monthly income. Here’s a diversified investment plan across multiple assets to help him meet his expenses.

Scheme	Investment Amount (₹)	Expected Annual Return	Monthly Return (₹)
Debt Mutual Funds: Systematic Withdrawal Plans*	10,00,000	6%	5,000
Fixed Deposits**	10,00,000	6.3%	5,250
Corporate Deposits**	10,00,000	7.35%	6,125
Post Office Monthly Scheme**	5,00,000	7.40%	3,083
Real Estate***	65,00,000	3.3%***	17,875
Total	1,00,00,000	–	37,333

It is advisable to consult with financial professionals or conduct further research before making investment decisions. 

Note: The “Monthly Return” column represents an estimate based on the investment amounts and expected annual returns. The actual monthly returns may vary due to factors such as compounding, market conditions, prevailing interest rates, tax implications, and other factors. 

*Mutual funds returns are subject to market risks and do not guarantee returns.

**The monthly income from FD, CD and POMIS is the interest generated from the principal amount. On maturity, the principal is repaid to the investor. 

***Real estate returns can be perennial income till the time investors are able to rent/ lease the property. Pan India average rental yield estimates. The current rental yield is subject to variations depending on locations.

Conclusion

Investing ₹1 crore for monthly returns must be done in a well-balanced manner that suits your financial objectives, risk appetite, and horizon. Both fixed deposits and POMIS provide capital protection and guaranteed returns, but mutual funds offer the prospect of greater returns. The key is diversification. Before making any decisions, consider consulting a financial advisor to customise a strategy that suits your needs and ensures long-term financial stability.

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