Best Monthly Income Investments in India – March 2025
If you are looking for investment options that will generate a steady monthly income, here are the products that you can explore.
Post Office Monthly Income Scheme (POMIS)
This government-backed scheme is for risk-averse investors and offers stable returns with guaranteed payouts. As of March 2025, this scheme provides an annual interest rate of around 7.4%. The interest will be paid upon the completion of each month from the account opening date and will continue until maturity.
Fixed Deposits (FD) with Monthly Interest Payouts
Bank and corporate FDs can secure a monthly income as the investor can select the non-cumulative option and get the interest paid at regular intervals, such as monthly, or quarterly.
Real Estate Investment Trusts (REITs)
This investment option has gained traction in India as a source of passive income. REITs pool funds to invest in income-generating properties like commercial buildings, offering regular dividends which are then paid monthly or semi-annually.
Annuity Plans from Insurance Companies
Annuity plans are retirement-focused investments where individuals invest a lump sum and receive fixed payouts either for life or a specified duration. The annuity payouts can be made monthly, quarterly, half-yearly, or annually, based on the option selected at the time of purchase. The payout amount determined at the policy’s inception remains guaranteed for life.
Non Convertible Debentures (NCDs)
These fixed-income instruments are issued by well-established companies through public offerings to raise long-term capital. The NCDs usually offer higher interest rates and come with a fixed maturity date when the principal amount along with the accrued interest is paid to the investor. The investor can, however, choose interest payouts on a monthly, quarterly, half-yearly or annual basis.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.