How to Invest 2 Crore for Monthly Income?

Investing Rs. 2 crores to generate a monthly income is essential for individuals without a regular income stream to maintain a financial independence lifestyle. You can, however, weigh your options if you have decent investment money, allowing you to earn a respectable monthly income while protecting the principal of the investment. Additionally, liquidity is one of the most significant concerns when meeting emergency needs as they arise in the future. Furthermore, it is equally important to leave a legacy for your descendants to safeguard their financial future.

Listed below are the various avenues in which you can park the funds to earn monthly income

Bank Fixed Deposits

Bank fixed deposits with the best FD rates have been one of the most popular investment vehicles among Indians. In addition to the inherent safety of the fixed deposits of 2 crore FD amount with the best FD rates, you can choose from a wide range of long-term schemes. Moreover, there are several benefits of the fixed deposit scheme for investors seeking a steady source of income. 

Public Provident Fund

Public Provident Funds, also known as PPFs, are one of the best investment options for unwilling investors to take any risks with their investments. It is one of the most popular investment schemes because it is completely backed by the government of India and guarantees a satisfactory return on investment after a specific period.

Retirement Plan

Creating a corpus of Rs.2 Cr is not something that happens overnight. The toil you put into your career pays off in a retirement corpus that you have meticulously planned throughout your working life. Investing your superannuation or wealth created through prudent planning in an annuity is the best way to earn a guaranteed monthly pension for the remainder of your life after retirement. Variants of annuity schemes are available in the market, but immediate and deferred annuities are the most common. Even those with accumulated retirement funds after 60 years must invest up to 40% of their funds in suitable annuities to collect an income from the NPS plan.

Bond Investment

Several entities issue bonds to fund their business expenses. On the other hand, a government bond is an investment that a government issues to raise funds for public infrastructure projects. It means that they are debt instruments that must be repaid after a defined period has elapsed. In the case of accrued interest, it is paid to the account on a monthly, quarterly, half-yearly, or annual basis.  Because of this, bonds are issued in several flavors and are mainly illiquid until their maturity date. Alternatively, you can trade the bonds in the secondary market on the stock exchange to make money. However, one advantage of bonds is that their coupon rates are higher than what banks pay out in interest and that you benefit from a predictable income stream.  

Mutual Funds

A mutual fund is emerging as one of the most popular investment options today, as it offers high returns compared to other deposit options. It should be noted, however, that you can also enjoy the benefit of selecting mutual funds aligned with your risk profile. The risk involved in debt funds is low, whereas the risk involved in balanced or hybrid funds is moderate. On the other hand, equities are generally regarded as the riskiest market investments in terms of their potential to yield the highest returns.


The market offers a wide range of investment options such as fixed deposits with best FD rates, Mutual Funds, PPF, and many more from low to high risk. Even though the Rs. 2 Cr corpus appears to be in good health on the surface, the downward trend in fixed-income investments is causing the monthly income volume to decline. Thus, the investment decisions you make should be based on prudent planning and a mix of asset classes aligned with your risk appetite and financial objectives. 

It is essential to have a thorough understanding of the investment market and personal finances before investing hard-earned money. Therefore, it is highly advisable for any investor, regardless of their investment amount, to do deep research before making any decisions.

Comments are closed.