How To Invest 15 Lakhs For Monthly Income

Don’t know where and how to invest 15 lakhs for monthly income?

Turning your savings into a steady income stream requires smart planning and careful consideration of various investment options. 

With the right strategy, your 15 lakh rupees can generate consistent monthly returns while preserving your capital.

In this comprehensive guide, we’ll explore the most effective investment options for generating monthly income from 15 lakhs in 2025.

Best 15 Lakhs Investment Plans for Monthly Income in India

If you are wondering where to invest 15 lakh rupees in India, then here are the best investment plans you can think of for maximum returns.

1) Fixed Deposits: Steady Returns with Minimal Risk

Fixed deposits remain the go-to choice for many Indian investors with 15 lakhs seeking predictable returns with minimal risk.

Let’s look at the current FD rates offered by major banks and financial institutions for regular and senior citizens:

How FD Monthly Income Works

When you invest in a monthly income FD, the bank keeps your principal amount intact while paying out the interest earned each month. 

For a 15 lakh FD at 7.5% annual interest:

• Annual interest: 15,00,000 × 7.5% = ₹1,12,500
• Monthly interest payout: ₹1,12,500 ÷ 12 = ₹9,375

This steady income stream makes FDs particularly suitable for retirees and those looking for financial stability.

However, remember that FD returns may barely outpace inflation, potentially affecting your real returns in the long run.

If you have 50 lakhs and want to know how much interest you can earn from fixed deposits, then check out this detailed guide on monthly interest on 50 lakh FD.

Tax Implications of FD Income

The interest earned from FDs is fully taxable as per your income tax slab. 

For someone in the 30% tax bracket, a significant portion of the interest income goes toward taxes. 

For example, on a monthly income of ₹9,375 from FDs:

• Annual income: ₹1,12,500
• Tax at 30% slab: ₹33,750
• Net annual income after tax: ₹78,750
• Net monthly income after tax: ₹6,562

This tax impact is something to carefully consider when planning your investment strategy.

2) Systematic Withdrawal Plan (SWP): Balancing Growth and Income

For 15 lakhs investors willing to take some market risk for potentially higher returns, Systematic Withdrawal Plans (SWPs) offer an excellent option. 

SWPs allow you to invest a lump sum in mutual funds and withdraw a fixed amount regularly.

How Much Monthly Income Can You Generate with SWP?

Based on our analysis, here’s what you can expect from a 15 lakh investment in SWPs with different withdrawal rates and returns:

Let’s look at a detailed analysis for a 15 lakh investment with a monthly withdrawal of ₹15,000 and an annual return of 9%:

• Monthly withdrawal: ₹15,000
• Annual return rate: 9%
• Investment duration: 15.5 years
• Total amount withdrawn: ₹27,82,986
• Net profit: ₹12,82,986

This example demonstrates that SWPs can provide sustainable income while potentially preserving capital for a considerable period. 

The key advantage of SWPs is the potential for your capital to grow even as you withdraw regular amounts.

Best Performing Debt Mutual Funds for SWP (April 2025)

For conservative investors with fifteen lakh rupees, debt mutual funds provide a good balance of returns and risk. These funds primarily invest in fixed-income securities like corporate bonds and government securities, offering more stable returns than equity funds.

3) P2P Lending: Higher Returns with Calculated Risk

Peer to peer lending has emerged as a popular alternative lending option in India. The P2P lending market has matured with clearer regulations and more reliable online lending platforms like LenDenClub.

Top P2P Lending Platforms in India (2025)

LenDenClub, India’s largest P2P platform, offers expected returns of 11.28% with a moderate risk level. 

After accounting for non-performing assets (NPA) of 3.77%, the effective return is approximately 7.51%, counting to a monthly income of around ₹9,387 on a 15 lakh investment.

How P2P Lending Works

P2P lending connects borrowers directly with lenders through online platforms. Here’s how it works:

1. You register on a P2P platform like LenDenClub
2. Complete KYC verification
3. Fund your account with your investment amount
4. The platform helps you diversify your investment across multiple borrowers
5. Earn returns as borrowers repay their loans with interest

The key advantage of P2P lending is the potentially higher returns compared to traditional fixed-income investments. 

However, it’s important to understand the risks involved, including default risk and platform risk.

Recent RBI Regulations on P2P Lending

In late 2024, the RBI updated its guidelines for P2P lending platforms, bringing more structure and safety to this investment avenue. Key points include:

• Maximum exposure limit of ₹50 lakhs for lenders across all P2P platforms
• Requirement of net worth certificate for investments exceeding ₹10 lakhs
• Prohibition of credit enhancement or guarantee services
• Mandatory escrow mechanism for fund transfers
• Increased disclosure requirements for borrower risks and portfolio performance

These regulations have made P2P lending more secure, though they’ve also impacted the returns somewhat. 

LenDenClub has fully implemented these guidelines, ensuring compliance and investor protection.

From 15 lakhs, you can start lending 1 lakh rupees in p2p lending and increase the amount over the time depending on the performance and experience.

4) Corporate Deposits

Corporate deposits are fixed-term investments offered by Non-Banking Financial Companies (NBFCs) and large corporations, not regular banks.

• Expected Returns: 9% to 12% per annum, depending on the company’s credit rating and tenure.
• Minimum Investment: Usually starts at ₹10,000, so 15 lakhs can be easily allocated.
• Tenure: 1 to 5 years.
• Risk Level: Higher than bank FDs, but lower than equity. Choosing AAA-rated or highly reputed NBFCs reduces default risk.
• Liquidity: Premature withdrawal is possible, but with penalties.
• Example: Investing 15 lakhs at 10% per annum gives you ₹1,50,000 a year, or about ₹12,500 per month, before tax.
• Taxation: Interest is taxable as per your income slab.

Why consider it?
Corporate deposits offer better interest rates than bank FDs and are suitable for investors ready to accept moderate risk for higher returns. Always check the company’s credit rating before investing.

5) Government Savings Bonds

Government savings bonds, such as the RBI Floating Rate Savings Bonds, are direct debt instruments issued by the Government of India.

• Expected Returns: 7.75% per annum (as of April 2025), paid out half-yearly.
• Minimum Investment: ₹1,000, with no upper limit.
• Tenure: 7 years.
• Risk Level: Very low, since these are government-backed.
• Liquidity: Premature withdrawal allowed only for senior citizens under specific conditions.
• Example: Investing 15 lakhs at 7.75% gives you ₹1,16,250 per year, or about ₹9,687 per month, before tax.
• Taxation: Interest is taxable as per your income slab.

Why consider it?
Government savings bonds are among the safest options for those who want higher returns than bank FDs without taking on equity or business risk.

Best Low-Risk Investment Options for 15 Lakhs

If you want to keep your 15 lakhs safe and still earn steady returns, these are the best low-risk investment options in India right now:

1. Fixed Deposits (FDs)

• Interest rates: 6.5% to 7.5% per annum at top banks.
• Safety: High, principal and interest are protected.
• Tenure: 1 to 5 years.
• Liquidity: Can be broken with a penalty.
• Returns on 15 lakhs: Around ₹97,500 to ₹1,12,500 per year, before tax.

2. Public Provident Fund (PPF)

• Interest rate: 7.1% per annum (April 2025).
• Lock-in: 15 years.
• Tax benefit: Up to ₹1.5 lakh under Section 80C.
• Returns: Tax-free, government-backed.

3. Post Office Monthly Income Scheme (POMIS)

• Interest rate: 7.4% per annum (April 2025).
• Maximum limit: ₹15 lakhs (joint account).
• Tenure: 5 years.
• Monthly income: About ₹9,250 on ₹15 lakhs.
• Safety: Government-backed, capital protected.

4. Senior Citizen Savings Scheme (SCSS)

• Interest rate: 8.2% per annum.
• Eligibility: Age 60+.
• Tenure: 5 years.
• Maximum limit: ₹30 lakhs.
• Returns: Paid quarterly, government-backed.

5. Debt Mutual Funds (Short-Term or Liquid Funds)

• Returns: 6% to 7.5% per annum.
• Risk: Low, but not zero (subject to market and credit risk).
• Liquidity: High, can be redeemed quickly.
• Best for: Parking money for short periods or earning better returns than savings accounts.

6. Tax Saving Investments (ELSS, NSC)

• Returns: 6.8% to 7.5% per annum (NSC).
• Lock-in: 5 years (NSC), 3 years (ELSS).
• Tax benefit: Up to ₹1.5 lakh under Section 80C.
• Safety: NSC is government-backed; ELSS has some market risk.

Key Points

• FDs, PPF, POMIS, and SCSS are the safest bets for capital protection.
• Debt mutual funds offer better liquidity with slightly more risk.
• Government schemes (PPF, POMIS, SCSS, NSC) are best for those who want zero risk.

These options help you grow your 15 lakhs with minimal risk and are suitable for anyone who wants to avoid market volatility

Best Businesses to Start with 15 Lakh Investment in India

For those willing to take higher risks for potentially greater rewards, starting a business can be an excellent way to generate monthly income. 

With 15 lakhs, you have several viable business options in 2025.

Top Business Opportunities with 15 Lakh Investment

Examples of Franchise Options Under 15 Lakhs (2025)

These franchises offer a proven business model with brand recognition, making them less risky than starting a business from scratch. One Bite, focusing on fast food such as burgers and pizzas, requires an investment of ₹10-15 lakhs and offers potential monthly returns of ₹25,000-31,250.

Manufacturing Business Ideas

Based on market trends in 2025, below manufacturing businesses may offer good returns with a 15 lakh investment:

1. LED Light Bulb Manufacturing: With low production costs and high margins, LED manufacturing can yield monthly returns of ₹30,000-40,00010.
2. Notebook Manufacturing: This business can be started with just ₹5-10 lakhs and offers steady, year-round demand with good profit margins.
3. Corrugated Box Manufacturing: Essential for logistics and e-commerce, this business requires machinery costing ₹8-12 lakhs and can yield monthly profits of ₹25,000-35,00010.
4. Tissue Paper Manufacturing: With machinery costs between ₹5-10 lakhs and low brand competition, this is an accessible manufacturing option with good growth potential.

The key advantage of business investments is the potentially higher returns compared to passive investments. 

However, they require active management and come with higher risks.

If you have ability to invest 50 lakhs to 1 crore, then starting your own business may help you earn higher returns with consistent efforts and strategic business planning.

Where to Invest 15 Lakhs: Examples of Diversified Portfolio

Rather than putting all your money in one basket, a diversified portfolio can provide more stable monthly income while managing risk. 

Here are three portfolio allocation strategies for different risk appetites:

Conservative Portfolio (Lower Risk)

Expected Overall Portfolio Return: 8.78%
Estimated Monthly Income: ₹10,972
Estimated Annual Income: ₹1,31,670

This conservative allocation focuses on capital preservation while still generating decent monthly income. 

With 70% allocated to fixed income instruments (FDs and debt funds), this portfolio provides stability with some growth potential from equity and alternative investments.

Moderate Portfolio (Balanced Risk)

Expected Overall Portfolio Return: 9.84%
Estimated Monthly Income: ₹12,302
Estimated Annual Income: ₹1,47,630

The moderate portfolio increases exposure to equity and P2P lending while maintaining a significant allocation to fixed income. This balanced approach aims for higher returns while keeping risk at a manageable level.

Aggressive Portfolio (Higher Risk)

Expected Overall Portfolio Return: 14.41%
Estimated Monthly Income: ₹18,007
Estimated Annual Income: ₹2,16,090

This aggressive portfolio adds a business venture component and increases allocation to higher-risk instruments. While it offers the potential for significantly higher monthly income, it also comes with greater volatility and risk of capital loss.

Tax Implications of Different Investment Options for 15 Lakh Rupees

The tax treatment of your 15 lakhs investment returns can significantly impact your net monthly income. 

Here’s a breakdown of the tax implications for different investment options:

For those in higher tax brackets, options like equity mutual funds with more favorable tax treatment might result in better after-tax returns despite potentially lower pre-tax returns.

8 Tips to Start Generating Monthly Income from 15 Lakhs

Now that we’ve explored various investment options, let’s outline the steps to start generating monthly income from your 15 lakhs:

1. Assess Your Risk Tolerance: Honestly evaluate how much risk you’re comfortable taking. This will guide your investment allocation.
2. Determine Your Income Needs: Calculate how much monthly income you need from your investment. This will help set realistic expectations.
3. Diversify Your Portfolio: Spread your investment across different asset classes to balance risk and return.
4. Start with a Core Stable Investment: Allocate a portion to fixed deposits or debt funds to ensure some level of stable income.
5. Add Growth Components: Include some equity mutual funds or P2P lending for potential growth and higher returns.
6. Consider Tax Implications: Structure your investments to maximize tax efficiency based on your tax bracket.
7. Review and Rebalance Regularly: Monitor your portfolio performance and rebalance as needed to maintain your desired risk-return profile.
8. Consult a Financial Advisor: For personalized advice tailored to your specific situation, consider consulting a financial advisor.

Following these steps will help you create a sustainable income stream from your 15 lakh investment while managing risk effectively.