How to Turn ₹50 Lakh Into a Monthly Income Engine
PK
If you have a ₹50 lakh corpus and are looking to generate stable, monthly income - without taking on unnecessary risk - you’re not alone. Many mid-career investors want predictable returns while still allowing their money to grow over time. In this post, we break down a practical investment plan that balances income, safety, and reinvestment options using modern tools like REITs, debt funds, and hybrid strategies.
1. Stable Income (Low Risk, Monthly Payouts) – ₹25L (50%)
Objective: Generate monthly cash flow with minimal risk
| Instrument | Amount | Expected Annual Return | Monthly Return (approx) |
| Senior Citizen Saving Scheme / Post Office MIS (if eligible) | ₹5L | 7.4–8.2% | ₹3,000–₹3,500 |
| Corporate Bond Funds (AAA-rated) | ₹10L | 7–7.5% | ₹5,800–₹6,200 |
| Monthly Income Mutual Funds / Hybrid Debt Funds | ₹10L | 7–8% | ₹6,000–₹6,700 |
🧮 Total Monthly Return from this bucket: ₹15,000–₹16,500
2. Moderate Growth + Reinvestment (Medium Risk) – ₹15L (30%)
Objective: Let profits compound and grow over time. Reinvest profits annually or semi-annually.
| Instrument | Amount | Expected Annual Return | Reinvestment Strategy |
| Balanced Advantage Funds | ₹5L | 10–12% | Annual profit reinvested |
| Equity Savings Funds | ₹5L | 9–11% | SIPs or STP into equity |
| REITs / InvITs | ₹5L | 8–9% + capital gain | Dividends can be reinvested in SIPs |
🧮These are more tax-efficient and provide a hedge against inflation. Moderate volatility expected.
3. High Growth (Equity/Long-Term) – ₹10L (20%)
Objective: Build wealth long-term through equity (reinvest 100%)
| Instrument | Amount | Expected Return (5–10 yrs) |
| Index Funds (Nifty 50, Nifty Next 50) | ₹5L | 12–14% CAGR |
| Midcap Flexicap Funds | ₹5L | 13–15% CAGR |
🧮Reinvestment tip: Setup auto-SIP from your monthly income bucket into these.
Monthly Strategy Example:
1. Assume ₹15,000–₹20,000 monthly return from low-risk bucket
2. Use ₹10,000 for living needs (or keep in liquid fund)
3. Reinvest ₹5,000–₹10,000 via SIP into:
- Index Funds
- REITs
- Balanced Funds
Pro Tips:
Emergency Fund: Keep ₹2–₹3L in a liquid fund or sweep FD
Tax Planning: Choose tax-efficient debt funds (more than 3 years) for indexation benefit
Review Annually: Shift profits from growth buckets to income if needed
📢 Disclaimer:
The content provided on this blog is for educational and informational purposes only. It does not constitute financial, investment, or trading advice and should not be interpreted as a recommendation to buy, sell, or hold any security.
The views expressed are personal opinions based on publicly available information and market trends. I am not a SEBI-registered investment advisor or analyst.
Readers are strongly advised to consult with a SEBI-registered financial advisor before making any investment decisions. The blog owner will not be held responsible for any financial losses incurred based on the content published here.