Invest 15 Lakhs for Monthly Income

The ultimate goal of every investment is to generate a reliable and consistent source of income, ensuring that your money is working for you. When pondering how to invest 15 lakhs for monthly income, it's vital to evaluate and understand the potential returns and risks of each option.

Monthly income, as the name suggests, is the steady stream of earnings that you receive from your investments every month. Just like a fixed salary, it acts as a financial cushion to cover monthly expenses and maintain one's lifestyle.

One common avenue that many consider is putting money in a fixed deposit, often inquiring about the 15 lakh fixed deposit interest per month. However, before going with any particular option, it's necessary to assess all available investment options thoroughly.

This article aims to shed light on the myriad of avenues where you can potentially make your 15 lakhs work for you and enjoy consistent monthly inflows.

How to Invest 15 Lakhs for Monthly Income?

Mentioned below are some of the best investment schemes -

1. Lump Sum Mutual Funds

Mutual funds operate by pooling funds from various investors to purchase a diversified mix of assets such as stocks, bonds, or other securities. Investing a lump sum means depositing a substantial amount into the fund all at once rather than going periodically via SIPs.

Benefits and Features

• Diversification: One mutual fund can hold securities from hundreds or even thousands of issuers. This diversification can lower the risk of a significant loss due to problems in a particular company or industry.
• Professional Management: With fund managers and analysts deciding on the fund’s portfolio, you can benefit from their expertise without making day-to-day investment decisions.
• Liquidity: Mutual fund shares can be sold on any business day, providing quick access to cash.

If you have a higher risk tolerance and are looking for potential growth in your investment, mutual funds can be an excellent option. Their potential for high returns, coupled with professional management, makes them attractive for those aiming to maximise wealth.

2. ULIPs (Unit Linked Insurance Plans)

ULIPs are hybrid products that combine the elements of insurance and investment. A portion of the premium that you pay provides life cover, while the remaining part is invested in market-linked assets such as equities or bonds.

Benefits and Features

• Dual Benefit: Besides the investment component, ULIPs provide life coverage. This feature ensures financial security for the policyholder's family amidst unfortunate circumstances.
• Flexibility: Policyholders can switch between different funds (equity, debt, or hybrid) based on market conditions and personal preferences.
• Transparent Structure: Periodic statements allow policyholders to know the exact value of their investments.

For individuals seeking both wealth appreciation and insurance protection, ULIPs serve as a comprehensive solution. Their adaptability in allowing fund switches also offers the chance to maximise returns and adapt to changing financial goals.

3. Pension Plans

Pension plans are structured to provide individuals with a regular income after retirement. These plans can also incorporate life coverage and offer both savings and investment components.

Benefits and Features

• Retirement Security: Pension plans ensure a steady income stream post-retirement, helping policyholders maintain their lifestyle without depending on employment or others.
• Flexible Payouts: These plans give significant control over retirement finances. Depending on the plan, you can opt for a lump sum or periodic payouts.

For those who prioritise long-term financial stability and desire a guaranteed income during their retirement years, pension plans are ideal. Whether it’s market-linked ULIP-based pensions or traditional annuity plans, they offer a blend of security and growth.

4. Traditional Guaranteed Monthly Income Schemes

Traditional guaranteed monthly income schemes are conservative investment avenues where individuals invest a sum of money with the promise of a guaranteed fixed return every month, typically for a lifetime. These plans function pretty much like annuities and can be considered risk-free or low-risk.

Benefits and Features

• Guaranteed Income: These schemes ensure a consistent monthly payout, providing financial certainty for investors.
• Low-Risk Profile: Unlike market-linked investments, these plans are relatively stable, making them suitable for conservative investors.
• life insurance Component: Many such schemes also offer life insurance coverage to provide additional financial security for the family.

For those who prioritise safety over high returns and desire a predictable and steady income, traditional guaranteed monthly income schemes are the go-to choice. They can be especially appealing to retirees or near-retirees.

Example: If you invest Rs. 15 lakhs into such a scheme, it might offer a consistent monthly income of around Rs. 12,000, starting after a predefined period (like 10 years) and continuing for the rest of one's life.

5. Child Plans

Child plans are insurance-cum-investment products tailored to secure a child’s financial future, especially in the event of unforeseen circumstances affecting the parent(s).

Benefits and Features

• Death Benefit: If the parent (policyholder) passes away during the policy term, a lump sum amount is provided to the family for immediate financial relief.
• Waiver of Premium: Upon the death of the parent, the insurance provider takes on the responsibility of paying the remaining premiums. This ensures that the policy continues without burdening the child or the surviving family members.
• Maturity Benefit: At the end of the policy term, the child receives a lump sum or a monthly income, providing financial support during crucial life milestones like higher education or marriage.

Child plans are indispensable for parents who want to ensure their child's future remains financially secure, regardless of any adversities. The dual benefit of insurance and investment makes them a comprehensive protective shield for a child's future.

6. Fixed Deposits (FDs)

Fixed Deposits are a type of term deposit offered by banks and financial institutions where money is locked for a fixed tenure at a predetermined interest rate.

Benefits and Features

• Safety of Principal: FDs are one of the safest investment avenues. They ensure that the principal amount remains intact.
• Predictable Returns: With the interest rate fixed at the time of investment, FDs offer guaranteed returns irrespective of market fluctuations.
• Flexibility in Tenure: Investors can choose from a range of tenures — from as short as a few days to as long as a decade or more.

For individuals who prioritise the safety of their capital and desire guaranteed returns, fixed deposits present an ideal choice. Their ease of operation and familiarity make them a popular choice among various age groups.

Example: On depositing Rs. 15 Lakhs in an FD for a tenure of 20 years with an annual interest rate of 6%, the interest accrued would be approximately Rs. 34.6 Lakhs. At maturity, the investor would receive around Rs. 49.6 Lakhs.

The Investment Takeaway

Exploring the array of investment options in the market is crucial when pondering how to invest 15 lakhs for monthly income. From the versatility of lump sum mutual funds, the dual benefits of ULIPs, and the long-term security of pension plans to the reliable payouts of traditional guaranteed monthly income schemes, each avenue caters to different financial goals and risk appetites.

These investments not only cater to immediate monthly requirements but also bolster future financial security. By making an informed decision, you can elevate the potential of your 15 lakhs and make your money diligently work for you.