How to Invest 1 Crore for Monthly Income in 2025?

1) Fixed Deposits (FDs)

In India, fixed deposits are one of the oldest and most secure investment options. They provide fixed interest offered for a specified tenure and are even available in the form of monthly payout FDs at most banks.

• Interest Rate: 5% to 7% per annum
• Contentious Income: ₹41,666 to ₹58,333 for ₹1 crore
• Tax: Interest on FD are taxable, and the tax chargeable is based on your income slab.

FDs are considered safe investments, however their returns are less compared to risk-based investments.

It might be the right option for you if you value security and predictability.

For example, the interest on 20 lakh rupees fixed deposits at 7 percent, will be around ₹11,667.

2) Peer-to-Peer (P2P) Lending

Instead of traditional fixed-income assets, online P2P lending platforms like LenDenClub directly connect lenders to borrowers, offering higher interest.

• Yearly Earnings Expected: 10–12%
• Pros: Strong earnings, investment diversification options
• Cons: Potential risk of borrower defaults

So, allocating ₹10 lakh in P2P lending at an average 12% interest get you ₹10,000 a month.

3) Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme (POMIS) offers a fixed monthly income with the trust of the government. 

It is a low-risk investment, which makes it appealing to conservative investors.

• Interest Rate: 7.4% per annun (payable monthly)
• Monthly Income Estimation: ₹61,667 for ₹1 crore
• Tax: TDS on POMIS interest is applicable, as per the income level.

This scheme is a good bet if you are looking for a government backed safe haven with moderate returns.

For example, you have invested ₹15 lakh in POMIS which can lead to earn around ₹9,250 every month at 7.4% of interest rate.

4) Senior Citizens Savings Scheme (SCSS)

The Senior Citizens Savings Scheme (SCSS) allows you to invest ₹1 crore in it if you are 60 years or above, and earns a regular monthly income.

The interest rate on SCSS is more than FDs.

• Interest rate: 8.2%p.a., payable quarterly
• Approx monthly gives for ₹1 crore: ₹68,333
• Tax: Income from SCSS is taxable.

For conservative investors such as seniors who need safety and a monthly income vehicle, SCSS is the answer!

5) Debt Mutual Funds with SWP (Systematic Withdrawal Plan)

Debt mutual funds provide relatively stable returns since these funds invest in bonds, corporate debt, and government securities. 

A Systematic Withdrawal Plan (SWP) enables you to withdraw a certain sum of money at regular intervals (monthly, quarterly) from your mutual fund investment.

• Approximate Monthly Earnings: ₹70,000 to ₹1,00,000 (Depending on the performance of the mutual fund)
• Tax: Invested money on Mutual Fund returns has to be taxed when sold, depending on the holding duration, selling the investment before 3 years attracts short-term capital gain (CGST) tax.

If you are seeking returns higher than FD with lowest possible risk, then debt mutual funds are for you.

For instance, investing ₹30 lakh in debt mutual funds with an average return of 8% can provide around ₹20,000 of monthly income.

6) Dividend-Paying Stocks

There are different types of investments you can make and one of them includes investing in dividend-paying stocks.

There are companies like ITC, Reliance, HDFC Bank that pay regular dividends that you can manage on a monthly basis.

• Dividend Yield: Generally 2% to 5% annually
• Monthly Income: ₹16,667 / ₹41,667 per ₹1 crore (as per dividend yield)
• Tax: Dividend income is taxable.

Stock investments carry more risk but also has the potential for higher returns and capital appreciation.

7) Real Estate

With rentals, investing 1 crore in real estate can be a great way to generate monthly income.

Real estate in India, particularly in metropolitan cities, gives attractive rental yields.

• Rental Yield: Usually between 2% – 4% p.a.
• Monthly Income Potential: ₹16,667 to ₹33,333 for a ₹1 crore investment
• Income tax: Rental income shall be taxable under income from house property. The standard deduction stands at 30% of the rental income.

Although real estate is a relatively illiquid asset, it is a secure investment that provides potentially high capital appreciation as well.

A property investment of ₹50 lakh in Mumbai could generate ₹35,000 monthly through rental income.

Sample Portfolio Allocation

Here’s an example of diversified investment portfolio for 1 crore rupees:

This diverse portfolio minimizes risk and provides consistent monthly income, while keeping capital intact.

Tax Considerations for Monthly Income Investments 

A key step to maximizing returns on your monthly income investments is to understand the tax impact.

Here’s how taxation influences one crore investment:

• FDs and POMIS: TDS applies if interest income is greater than ₹40,000 (₹50,000 for seniors). Form 15G/15H can be submitted to avoid TDS.
• Debt Mutual Funds: Tax rate depends where you stood in terms of holding period. For holdings over 3 years, gains are taxed at the rate of 20%.
• Stocks and Dividends: All dividend income is subject to ordinary income tax rates. Short Term Capital Gain (STCG) tax comes into play if the stocks are sold within a year.
• Real Estate: Rental income is taxable, though you can take a standard 30 percent deduction on property maintenance.

Why Diversification is Key to Invest One Crore Rupees?

When you have ₹1 crore to invest, putting all your money in one basket can be risky.

Hence, spreading the risk across several asset classes lets your portfolio remain stable while continuing to generate returns.

When you combine the higher-yielding with the more secure, you will have a portfolio that is balanced out accordingly to your financial goals.

Expert Tips to Invest 1 Crore with Low Risk

Investing one crore rupees in various avenues requires careful consideration of multiple strategies, a few of which are as follows:

Tax-Efficient Investment Strategies

The taxation involved is also a major factor in determining your net returns. Some tax-efficient strategies include:

• Equity Linked Savings Schemes (ELSS): Provides tax deduction under Section 80C and offers equity market exposure.
• Tax-Free Bonds: These bonds are issued by government-backed companies that do not tax your interest income.
• Systematic Withdrawal Plans (SWPs): Withdrawals from mutual funds are subject to capital gains tax, which may be lower than regular income tax rates.

Why It’s Important: You can improve your monthly income by optimizing tax liabilities effectively.

Emergency Fund Allocation

While focusing on returns, many 1 crore investors overlook the importance of liquidity for emergencies. 

You can consider allocating some of your ₹1 crore to the following highly liquid avenues:

• Liquid Mutual Funds: Redeems fast with a low-risk factor.
• High-Pay Savings Account: Provides instant access to money while earning some interest.

Why It’s Important: Emergencies are unpredictable, and liquid funds allow you to maintain financial stability without affecting your long-term investments.

Age-Based Investment Strategies

What you invest in depends significantly on age and life stage. Here’s how:

• Young Investors (20s–30s): Able to take more risk and should predominantly focus on equity and growth-oriented investment options.
• Mid-Age Investors (40s–50s): Balance risk and stability through diversification in debt funds and real estate.
• Retiree (60+): Must focus more on safety and guaranteed income through fixed deposits, POMIS or Senior Citizen Savings Schemes (SCSS).

Why It is Important: Investing by age makes sure your investments align with your ability to take risks and financial goals.

Behavioral Finance: Overcoming Emotional Biases 

When it comes to investing, emotions get in the way, and make things worse. Common biases include:

• Loss Aversion: You carry the fear of loss, and thus may not opt for high-return options such as equities or P2P lending.
• Herd Mentality: Poorly researched investing decisions by following trends.

Solution: Abide by a well-researched financial plan and seek professional assistance if required.

Inflation-Proofing Your Portfolio

Inflation gradually reduces the value of your money, making it harder to maintain the same standard of living as time goes on. 

To keep your purchasing power intact, it’s essential to include investments that outpace inflation in your portfolio. These assets can help ensure that your wealth grows enough to keep up with rising prices, so you don’t feel the pinch as much in the future.

• Equities: Over the long run, stocks tend to provide returns that outstrip inflation, helping your money grow as the cost of living rises.
• Real Estate: Rental income and property appreciation acts as a hedge against inflation.
• Gold ETFs: Best bet during uncertain economy.

Why It is Important: It helps to protect your future purchasing power, ensuring your wealth keeps growing even when prices rise.

Leveraging Technology for Portfolio Management

Investors still rely on traditional mechanisms for tracking investments Use modern tools like:

• Investment apps: Follow performance, rebalance portfolios, and automate investments.
• Robo-Advisors: Offer algorithm-based investment recommendation that match your risk profile.

Why It is Important: Technology makes it easy to manage portfolios, saves time and enhances decision-making.

Rebalancing Your Portfolio

Asset classes perform differently throughout market cycles which shift over time. Keep rebalancing regularly so you can stay on track with your goals:

• Gradually decrease the equity exposure and increase your debt exposure as you near retirement.
• Reallocate funds during market downturns to capitalize on lower valuations.

Why It is Important: Rebalancing maintains the optimal risk-return balance in your portfolio.

How to Invest ₹1 Crore Rupees on LenDenClub: Step-by-Step Guide

LenDenClub offers a 1 crore investment opportunity for those seeking to earn a monthly income through their peer-to-peer lending platform.

₹1 crore helps you build a diverse portfolio with loans that have gone through rigorous credit checks and have a strong repayment history.

Let us share with you a step-by-step detailed guide on investing ₹1 crore in LenDenClub to earn good monthly income.

Step 1: Sign up on LenDenClub

The initial thing to do to invest on LenDenClub is to open an account.

To get started, visit the lendenclub.com website and click on the  “Sign Up” button. Your personal information like name, contact details, and PAN (Permanent Account Number), will have to be filled in.

Step 2: Complete KYC

We strictly adhere to all regulatory policy guidelines which ensures safety of every potential people (borrowers and investors).

Once you register, you must complete the KYC process and upload the required documents.

• Required documentation: PAN card, Aadhaar card, Bank account details, and other documents relevant to income verification.

Once verified, your account will be activated, and you can proceed to the investment phase.

Step 3: Pick Your Investment Strategy

With your account created and verified, next comes selecting your investment strategy.

Loans are offered in two segments on LenDenClub based on risk, tenure, and interest rate. Some key factors you may want to think about:

• Risk Profile: LenDenClub lets you choose loans on the basis of borrower creditworthiness. You can take high-risk, high-reward loans or lower-risk loans with more gradual returns.
• Tenure: The investments on LenDenClub typically available from 6 months to 36 months. Pick a tenure according to your desired income.
• Diversification: With ₹1 crore you can divide your money over many loans so that your investment is diversified and risk is reduced. (And it’s always a good idea to mix high-return loans with low-risk opportunities.)

Step 4: Fund Your Account

Before investing, you need to transfer money to your LenDenClub account.

At LenDenClub, you can fund your account through a bank transfer. You then can start rolling up loan listings to invest in once funds are successfully credited into your account.

Bank transfer, UPI, NEFT/RTGS are some of the funding options available.

Step 5: Which Loans to Pick and Invest

Now, the fun part — choose the loans you want to invest in! For each loan, LenDenClub provides detailed information as follows:

• Interest Rate: The amount of investment return presented by the borrower.
• Loan Amount: The requested total loan amount by the borrower.
• Credit Analysis: On the basis of how the borrower in their credit rating.
• Loan Tenure: How long you will be lending your money.

You can allocate your ₹1 crore over different risks in various loans to create a balanced portfolio.

Step 6: Monitor Your Investments

Once you have invested in the loans, the next thing is to track your portfolio performance.

LenDenClub allows investment returns tracking, payments tracking, and portfolio management, done very well through its simple-to-use dashboard.

Payment Tracking: The platform displays the total you have earned each month through interest payments from the borrowers.

Reports and Updates: You will receive reports for each individual loan — making it easy to track any defaults or delayed repayments.

Step 7: Get Paid Every Month

It is one of the most important advantages that investment in LenDenClub offers with monthly income. 

When borrowers pay off their loans, you will receive monthly payments based on the agreed interest rate.

You get paid on time, and LenDenClub will track your earnings for you.

If you want to compound the returns as much as possible, reinvestment option available on the platform. It helps you to take the monthly payouts and reinvest them into new loans on the platform.

Step 8: Withdraw Earnings

You can redeem your LenDenClub earnings at any time (but most investors prefer to reinvest monthly payments for compounding returns).

You’re able to withdraw the money through bank transfer.

Benefits of ₹1 crore Investment in LenDenClub

• High Returns: P2P lending on LenDenClub largely provides higher annual returns as compared to other traditional fixed instruments.
• Monthly Income: With regular repayments, you will receive a fixed monthly amount.
• Variety: Do not invest only in one sort of loan — to reduce risk and improve returns, invest in multiple segments of loans.
• Transparency: LenDenClub ensures complete transparency by providing detailed information about the borrowers, credit ratings and the terms of loans.

Conclusion

Well, you might be looking for a strategy to generate a monthly income through an investment of ₹1 crore. 

Based on your risk profile, time frame, and income requirements, combining above mentioned options will provide you with a steady stream of income.

Take an approach where you maintain the right balance between risk and returns, taking into account taxes too. 

So whether you want something safe, or something with a better return, there are plenty of different methods you can use to create a one crore investment plan that helps you achieve your goals.