Long-Term Investment: How to Invest 25 Lakhs for Monthly Income in India 2024?

People often think about uncalled scenarios, save money in banks, or buy term insurance plan benefits. But they forget that investing is as vital as saving, especially if you have 25 lakhs that you can invest and earn a steady income from.

Here, you will learn about how to invest 25 lakhs for monthly income via the best investment schemes.

Long-Term Investment Options to Consider

Fixed Deposits: Fixed deposits are the traditional way of investing lump-sum money and earning monthly income from it. In fixed deposits, you are offered higher interest rates than average deposits, which range from 3 to 7%.

Moreover, the tenure of fixed deposits also lasts longer than some other long-term saving instruments. For example, you can deposit your 25 lakhs of lump sum in an FD for 10 years and earn a monthly or quarterly interest amount as income.

FD is one of the safest long-term investments and is preferred by people who do not want to risk losing their money.

Monthly Income Plan Mutual Funds: If you are looking for an investment option to increase your returns through the market, then a monthly income plan mutual fund is your best option. It is a type of hybrid investment option in which 70 to 80% of your funds are invested in debt securities and the rest in equity for consistent returns.

In MIP, you receive returns as dividends, and most importantly, you can decide the frequency of payouts, such as monthly, quarterly, half-yearly, or annually, according to your income requirements.

Post Office Monthly Income Scheme: Another long-term saving scheme to consider is the Post Office Monthly Scheme, which has a 5-year fixed tenure. It is a fixed monthly income scheme with zero risk, and you can invest up to 4.5 lakhs as a single investor and 9.5 lakhs as a joint investor.

Senior Citizen Saving Scheme: This government-backed scheme is specifically designed for senior citizens over 60. Under this scheme, you can invest up to 30 lakhs for a 5-year tenure and enjoy monthly interest income throughout the period.

Moreover, though the scheme's tenure is 5 years, it can be extended for up to 3 more years from the date of maturity.

Government Bonds: Government bonds are long-term investment schemes that help the government raise funds for its infrastructural expenses. The tenure period of these bonds is usually long, ranging from 5 years to up to 40 years.

The best part of these government bonds is that they pay higher interest rates than many banks and post-office schemes. Moreover, the RBI has also specified that investors be given half-yearly interest disbursements to fulfil the periodic returns requirements on such schemes.

Also, read to know about the best investment plan for higher returns

Factors to Consider While Investing in a 25 Lakhs Monthly Income Plan

• Risk Capacity: You should know your risk-taking capacity before investing in any scheme. It is always advisable to choose schemes with low to medium risk, such as the ones mentioned here.
• Tax Benefits: Check for tax benefits that you might get by investing in long-term investment plans. Some plans provide tax deductions under the section 80C of income tax.
• Returns: Do not just chase investment options with higher returns. Instead, opt for schemes that provide guaranteed returns.
• Flexibility: While investing a considerable amount of money for an extended period, you must choose options that provide you with flexibility in tenures and withdrawal for better liquidity.

Also, read to know about short term investment options

Conclusion

Making investment decisions can seem daunting, especially if you are aiming to invest as much as 25 lakhs. But with the investment options discussed here, you can earn a steady monthly income while keeping your money invested in a safe place.

You can also check PNB MetLife for some tremendous long-term investment plans with good returns. Moreover, you should also consider investing in life insurance plans to safeguard your loved ones in case of an unfortunate event.

Disclaimer: