In today’s uncertain economic environment, rising expenses, lack of job security, and unstable income have become common concerns. In such a situation, a monthly income plan can become a great way to safeguard your financial future.
This blog is for those people who want to diversify their income stream and receive a stable income every month – that too without taking on big risks. Here we will talk about the best investment plans for monthly income in detail.
10+ Best Investment Plans for Monthly Income in India
| S.no | Monthly Income Plans |
|---|---|
| 1 | Post Office Monthly Income Scheme (POMIS) |
| 2 | Monthly Income Mutual Funds (MIPs) |
| 3 | Senior Citizen Saving Scheme (SCSS) |
| 4 | Corporate Fixed Deposits (with monthly payouts) |
| 5 | Government Bonds (with monthly interest option) |
| 6 | RBI Floating Rate Savings Bonds |
| 7 | Annuity Plans from Insurance Companies |
| 8 | SWP (Systematic Withdrawal Plan) from Mutual Funds |
| 9 | Real Estate (Rental Income) |
| 10 | REITs (Real Estate Investment Trusts) |
| 11 | Dividend-Paying Stocks |
| 12 | Peer-to-Peer Lending (with monthly EMIs) |
Read Also: Types of Investment in the Stock Market
Overview of the Top Best Monthly Investment Plan for Monthly Income in India 2025
An overview of all the plans is given below:
1. Post Office Monthly Income Scheme (POMIS)
POMIS is a scheme in which once the money is invested, a fixed interest is received every month. The government guarantee and the reliability of the post office make this scheme special among small investors.
Important points (as of 2025)
- Interest rate 7.4% per annum
- Interest is paid every month
- Single account Maximum investment : ₹9 lakh
- Joint account Maximum investment : ₹15 lakh
- Scheme term : 5 years
- Minimum investment ₹1,000
Who can invest?
- Any Indian citizen
- Joint account can be opened in the name of two adults
- NRIs cannot invest in it
Example of returns : Investing ₹9 lakh gives an income of about ₹5,550 every month.
| Advantages | Disadvantages |
|---|---|
| Guaranteed monthly income | Interest received is taxable |
| Capital is completely safe | No tax exemption under Section 80C |
| Investment is simple and easy | Penalty is levied if withdrawn before five years |
2. Monthly Income Mutual Funds (MIPs)
Monthly Income Plans (MIPs) are mutual funds designed to provide regular income to investors. Most of the money is invested in debt instruments (such as bonds) and a small portion in equity to get better returns.
How does it work?
- This scheme provides income every month through Systematic Withdrawal Plan (SWP)
- The return is completely market dependent – there is no fixed rate
- If the equity portion is high, both risk and return increase
- Most schemes invest 75–90% in debt and 10–25% in equity
For example : If ₹10 lakh is invested and the annual average return is 8%, then an income of about ₹6,000 – ₹6,500 can be withdrawn every month (may vary according to market conditions).
| Advantages | Disadvantages |
|---|---|
| Potential for higher returns than bank FDs | Credit risk of issuer |
| Monthly income through SWP | Returns not fixed |
| Provides flexibility for tax planning | NAV may fall if interest rate rises |
3. Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is a reliable and safe investment scheme backed by the Government of India, specially designed for senior citizens aged 60 years and above. This scheme is an excellent option to get a regular and fixed income after retirement, in which your capital is completely safe and the interest is paid on time.
How does it work?
- Age should be 60 years or above. Those aged 55+ who have opted for VRS are eligible.
- Maximum investment limit has been increased to ₹30 lakh in 2025.
- Minimum investment starts from ₹1,000.
- Interest rate is 8.2% per annum, which is paid quarterly.
- The tenure of the scheme is 5 years, which can be extended by 3 years.
Who is it for?
- People who are retired and want a steady income every few months.
- Those who are focused on capital protection and stable income.
Example: An investment of ₹30 lakh earns approximately ₹61,500 interest every quarter, i.e. approximately ₹20,500 per month.
Advantages and Disadvantages
| Advantages | Disadvantages |
|---|---|
| Government guarantee | Interest is taxable |
| Tax exemption under 80C section | Quarterly income, not monthly |
| Fixed interest rate | Lumpsum investment required |
4. Corporate Fixed Deposits
Through Corporate FDs, reputed NBFCs and companies raise funds directly from investors. These instruments, when offered by reputed institutions, can be considered as secure as a bank FD with higher interest rates.
Key details for 2025
- Interest rate 7.4% to 8.6% p.a. (depending on the issuing company)
- Payment frequency : Monthly / quarterly / half-yearly / yearly depending on your choice.
- Minimum investment Depends on issuer
- Maturity period : Ranges between 12 to 60 months.
Who can invest?
- Any Indian citizen
- Senior citizens get 0.25–0.40% additional interest
Example: If the interest rate on an FD of ₹5 lakh is 8.3%, then the income can be around ₹3,458 every month
| Advantages | Disadvantages |
|---|---|
| Possibility of higher returns than bank FDs | Slightly higher risk than banks FDs |
| Regular cash flow due to monthly payout | Risk of capital loss if the issuing company defaults |
| Option to withdraw before maturity | Interest is fully taxable |
5. Government Bonds (with monthly interest option)
These bonds issued by the government are a safe investment in the market. Some government securities offer interest payment options with frequency like monthly or bimonthly, thereby providing a regular source of income.
Key Details (till 2025)
- The government issues bonds with different tenures like 3, 5, 7, 10, 15, 30, 40, 50 years
- Some bonds offer monthly payment options; others offer interest on a quarterly or a semi-annual basis.
- 10‑Year G‑Sec Yield is around 6.6% (till May 2025), which is better than other small savings options
Who can invest?
- Any Indian citizen, HUF, Institutions
- Single or joint holding option
- NRIs may be eligible in some cases
Example : Investing ₹10 lakh, at 6.6% rate, the potential income is ~₹66,000 per annum, i.e. around ₹5,500 per month.
| Advantages | Disadvantages |
|---|---|
| Backed by Government of India | Interest is taxable |
| Can be easily bought and sold | Monthly payouts not applicable for every bond |
| Better return potential than other small savings schemes/FDs | Returns of bonds may be affected due to changes in interest rates |
6. RBI Floating Rate Savings Bonds
This scheme of RBI is for those investors who want their money to be safe and have regular income. It gives better returns than fixed deposit returns as its rate is reset semiannually to NSC (National Savings Certificate) rate + 0.35%
Key Details (2025)
- Interest Rate 8.05% p.a. (for Jan–Jun 2025)
- Payment Frequency: Every 6 months (1st Jan and 1st Jul)
- Minimum Investment : ₹1,000 (in multiples thereafter)
- No maximum investment limit
- Lock-in period of 6 years for investors aged between 60–70 years and 5 years for investors aged between 70 and 80.
Who can invest?
- Any Indian citizen or HUF
- Can be a single or joint account
- NRIs not eligible
Example of returns : By investing ₹10 lakh, you can get about ₹38,600 interest every six months – that is, about ₹77,200 annually
| Advantages | Disadvantages |
|---|---|
| Fully government backed and secured | Interest is taxable and TDS will be applicable (on interest above ₹10,000) |
| Rates are NSC based, floating but lucrative (currently 8.05%) | Not fixed, rates may change every 6 month |
| Periodic income every six months | Premature withdrawal not possible (except in special cases of senior citizens) |
7. Annuity Plans from Insurance Companies
Annuity Plans are options offered by insurance companies in which a lump sum amount is deposited and then regular income is received for a fixed period or for life. This scheme is especially for those who want fixed income after retirement. Companies like LIC, HDFC Life, ICICI Prudential, SBI Life offer these plans.
Key points (as of 2025)
- Annuity Income starts immediately after investment
- Deferred Annuity Income starts after a few years
- Interest rate : 5.75% – 7% (depends on age and plan)
- Income frequency Monthly, Quarterly, Half-Yearly or Yearly
- Minimum investment Starting from ₹1 lakh
- Some plans include a ‘Return of Purchase Price’ option, where the invested amount is paid to the nominee after the annuitant’s death.
Who can invest?
- Individuals aged between 30 to 85 years
- Single or Joint Annuity option
- Extra benefits and payout options for Senior Citizens
Example: Investing ₹10 lakh at the age of 60 can generate monthly income of ₹5,500 under immediate annuity option.
| Advantages | Disadvantages |
|---|---|
| Assured income for life | Returns are limited |
| Capital protection (in some plans) | Does not adjust to inflation |
| Tax exemption (under Section 80CCC) | Premature withdrawal not possible |
8. SWP (Systematic Withdrawal Plan) from Mutual Funds
SWP is a method where you can withdraw a fixed amount every month from your mutual fund investments. In this, your money remains invested in mutual fund schemes and you can get regulated income from it. These schemes are best for investors who want a flexible and tax-efficient way to earn side income.
Key points (as of 2025)
- SWP can be started by investing in any mutual fund scheme
- Withdrawal amount and frequency (monthly/quarterly) are decided by you
- SWP option available in both equity and debt schemes
- Equity SWP has the potential for better returns in the long term
- Withdrawal is based on NAV of units
Example: ₹10 lakh invested and ₹6,000/month SWP started — investment remains intact and can grow as per the market
| Advantages | Disadvantages |
|---|---|
| Withdraw as much as you want, whenever you want | Market risk remains |
| Inflation-beating potential (especially equity SWP) | Decline in invested amount can happen if returns are low |
| Tax-efficient withdrawals (10% tax after LTCG) | Not a guaranteed income |
9. Real Estate (Rental Income)
Rental income is a traditional and reliable way to earn passive monthly income. If you own a residential or commercial property, renting it out can generate a steady income every month. This scheme is especially suitable for people who like investing in physical assets and want a stable cash flow.
Key highlights (as of 2025)
- Rental income can be earned by investing in properties like residential flats, shops, offices, godowns
- The rental yield is 2-3% in metro cities (residential), while in commercial properties it can be up to 6–9%
- Rent agreements are usually for 11 months and TDS can be up to 10% (above ₹50,000/month)
- Property registration, maintenance, and taxes are the responsibility of the owner
Example: If you have purchased a commercial property worth ₹1 crore and it is getting a rental yield of 7%, then a rental income of around ₹58,000-₹60,000 per month is possible.
| Advantages | Disadvantages |
|---|---|
| Stable monthly income | High investment and maintenance cost |
| Benefit of property value appreciation | Low liquidity |
| Tax benefits (interest on home loan under 24b) | Dependency on timely payments by tenants. Legal hassles due to non-payment. |
10. REITs (Real Estate Investment Trusts)
\If you want to earn money from real estate but find it difficult to invest lakhs and crores, REITs are a great option. These are investment trusts that invest in large commercial properties such as office buildings, IT parks or malls — and distribute a portion of the rent generated from them to investors. The best part is that REITs can be bought and sold on the stock market, just like any other stock.
Key points (effective in 2025)
- The three major listed REITs in India are Embassy Office Parks, Mindspace Business Parks, and Brookfield India REIT.
- Up to 90% of the total income is distributed to investors
- Rental yield is between 6% and 8% on an average
- Regulated by SEBI for transparency and security
Example: If you invest ₹5 lakh in a REIT, and the annual yield is 7%, then a monthly income of around ₹2,900 – ₹3,000 is possible.
| Advantages | Disadvantages |
|---|---|
| Low capital investment than investing in real estate | Dependence on real estate market’s current conditions |
| Regulated and transparent structure | Returns are not stable and are dependent on market conditions and occupancy |
| Good liquidity, tradable like shares | Returns earned are taxed |
11. Dividend-Paying Stocks
If you want to build wealth in the long term and also need regular income every year, then dividend-paying stocks are a smart choice. These are stocks that pay a part of the company’s profits to investors as dividends – once or twice a year, some companies also pay quarterly. By strategically choosing companies with staggered payout dates, it’s possible to create a consistent monthly income stream. This method requires monitoring dividend yield, payout history, and financial health of the companies to ensure sustainability and stability.
Important points (as of 2025)
- It is important to choose companies with high dividend yield
- Companies giving good dividends are generally PSUs (eg: Coal India, ONGC) and FMCG (eg: ITC, Hindustan Unilever)
- Dividend yield can be from 3% to 7%
- Liquidity is good in the stock market, making buying and selling easy.
Example : If ₹10 lakh is invested in a stock like ITC and the yield is 6%, then the annual income can be up to ₹60,000 i.e. ₹5,000/month.
| Advantages | Disadvantages |
|---|---|
| Passive income along with price appreciation over time | Market risk is always there |
| Inflation-beating returns | Returns are lower than growth stocks |
| Long-term wealth creation | Long-term wealth creation |
12. Peer-to-Peer Lending (with monthly EMIs)
Peer-to-Peer (P2P) lending through a digital platform allows you to give loans directly to individual borrowers and then get the money back from them in the form of EMIs (principal + interest) every month. In this, you become a lender, and the borrowers take personal loans from you.
Key points (as of 2025)
- Expected returns: 10%–15% (depends on borrower profile)
- You can give loans ranging from ₹500 to ₹50,000 to each borrower
- EMI comes monthly, which creates fixed monthly cash flow
- Minimum investment starts from ₹5,000
- Risk-based investment model: high risk = high return
Example : If you have given a loan of ₹1 lakh at 12% interest, then EMI-based income of about ₹9,000–₹10,000 annually i.e. ₹750–₹830/month can be earned.
| Advantages | Disadvantages |
|---|---|
| Fixed monthly cash flow (through EMI) | Risk of borrower default |
| Returns are better than FD | Capital is not backed any collateral |
| Entire process is online and trackable | Legal recovery may take time |
Read Also: The Art of Value Investing: Meaning and Strategies
Conclusion
If you want a fixed income every month, then today there are many investment options in India that can fit your needs. Some investors prioritize safety, while others are willing to take calculated risks for higher returns. With the right knowledge and planning, you can choose an income plan that aligns with your goals. Be it a post office scheme, mutual fund or any modern investment, with a little planning you can earn a steady monthly income. It is always advised to consult a financial advisor before investing.
Frequently Asked Questions (FAQs)
What is the safest monthly income scheme in India?
The safest options to earn a monthly income include Senior Citizen Saving Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) and RBI Floating Rate Savings Bonds as these are government-backed schemes.
Can I get ₹10,000 per month from any investment plan?
Yes, it is possible to earn ₹10,000/month income by investing ₹10–15 lakh in multiple investment plans like annuity plans or rental property.
Are mutual fund SWPs taxable?
Yes, money received from SWP is counted as capital gains and is taxed.
What are REITs and how do they pay monthly income?
REITs are companies that invest in commercial properties and distribute rental income as dividends.
Is P2P lending safe for earning a monthly income?
There is risk in P2P lending as borrowers can default, but the returns can be higher than FD.
