In 2025, financial markets are going through turbulent times. Global trade tensions and growing fears of a U.S. recession have triggered massive sell-offs across stock markets worldwide. Both Sensex and Nifty have seen over a 4% crash — the worst decline in the last 10 months. The offline economy seems stuck, job markets are struggling, and uncertainty looms large.
In such times, having a stable monthly income has become a financial superpower. Imagine earning ₹20,000 to ₹70,000 monthly — whether you work or not — your life runs smoothly. But the moment we talk about passive income, most people assume it involves huge risks. The good news? In 2025, several low-risk or even risk-free investment options can generate consistent monthly income. Let’s explore seven proven investment plans that provide monthly income with varying levels of risk and return.
- Senior Citizen Savings Scheme (SCSS) – Safe & Assured
For retirees aged 60+, the Senior Citizen Savings Scheme is a government-backed plan offering 8.2% annual interest, paid quarterly. You can invest a maximum of ₹30 lakh individually, or ₹60 lakh jointly as a couple.
Returns Example:
- ₹30 lakh earns ₹61,500 per quarter (~₹20,500/month)
- A couple investing ₹60 lakh earns ₹41,000/month
Key Benefits:
- Risk-free (backed by the Indian government)
- 5-year term, extendable by 3 more years
- Tax deduction of ₹1.5 lakh under Section 80C
- Pradhan Mantri Vaya Vandana Yojana (PMVVY) – Pension with Guarantee
Operated by LIC and guaranteed by the Government of India, PMVVY offers 7.4% interest. You can invest between ₹1,000 and ₹15 lakh per individual.
Returns Example:
- ₹15 lakh investment provides ₹9,250/month
- A couple can earn up to ₹18,500/month
Highlights:
- 10-year tenure
- Monthly pension
- Full capital returned after maturity
- Risk-free but low liquidity
- No tax benefits
- Bank Annuity Plans – Regular Payouts, Moderate Flexibility
Bank annuity plans provide fixed monthly payments for life. For instance, a ₹35 lakh investment can offer monthly income close to ₹68,000 at 8% returns.
Important Note: Unlike SCSS or PMVVY, your principal is not returned. You receive a combination of interest and capital.
Why Choose This:
- Guaranteed monthly payouts
- No market risk
- No TDS if annual interest < ₹50,000 for senior citizens
- Systematic Withdrawal Plan (SWP) – High Returns, Moderate Risk
SWP is a facility in mutual funds where you invest a lump sum and withdraw a fixed amount regularly. You can expect 10-12% annual returns, although it’s market-linked.
Example: With ₹40 lakh invested at 11%, you can withdraw ₹68,000/month for 7 years.
Pros:
- Higher returns than FDs
- Flexibility in withdrawal amount and frequency
- Tax-efficient if held long-term
Cons:
- Market risk involved
- Capital erosion if returns drop
- Returns not guaranteed
Ideal for investors with higher risk tolerance looking for better-than-average passive income.
- Long-Term Government Bonds – Safe But Less Liquid
Government bonds offer long-term security with returns between 7.2% to 7.5%, paid semi-annually or monthly.
Example: ₹20 lakh at 7.4% earns about ₹10,000 to ₹12,000/month
Why Consider This:
- Extremely safe (sovereign guarantee)
- Long tenure up to 40 years
- Best for capital preservation
Drawbacks:
- Low liquidity
- Difficult to exit early
- Market fluctuations can affect resale price
- Fixed Deposits (FDs) – Reliable & Tax-Efficient
FDs remain one of the safest and most popular options. Currently, Small Finance Banks are offering 8.5% to 9% interest rates.
Example:
- ₹5 lakh in FD at 9% gives ₹37,500 annually or ~₹3,125/month
Key Points:
- DIICGC insures FDs up to ₹5 lakh
- Tax benefit under Section 80C for 5-year FDs
- Monthly or quarterly interest options
Tip: Book your FD now before rates drop due to recent RBI repo rate cuts.
- Corporate Deposits – Higher Returns, Slightly Higher Risk
These are FDs offered by NBFCs like Bajaj Finance, HDFC, etc., offering 8% to 9% interest. For instance, ₹10 lakh can yield ₹6,000 to ₹7,500/month.
Cautions:
- Not covered by DIICGC insurance
- Only invest in highly-rated (AAA) companies
- Limit your exposure to ₹5-10 lakh
- Monthly Income Plans (MIPs) – Debt + Equity Hybrid
MIPs are mutual fund schemes that invest mostly in debt (70–85%) and a small part in equities (15–30%). They are designed to provide regular income through dividends.
Expected Return: 7–10% annually
Payout Type: Monthly/Quarterly (only if the fund is in profit)
Options:
- Growth Plan: Long-term capital gain
- Dividend Plan: Regular payouts
Note: Dividends are not guaranteed. Use only if you can tolerate short-term fluctuations.
Final Thoughts
With increasing volatility in markets, relying on job income or business alone has become risky. Smart investment planning can create a stable monthly income that cushions you against uncertainty. From guaranteed government schemes like SCSS and PMVVY to market-linked options like SWP and MIPs, there’s a plan for everyone — whether you’re risk-averse or growth-oriented.
If you’re just starting out, consider diversifying — put a portion in FDs for safety, invest in SWP or MIP for higher returns, and ensure your retirement planning is supported by schemes like SCSS or PMVVY.
Want a deep dive into any of these options? Let us know. Financial freedom begins with informed decisions.