An individual can make investments for a variety of reasons. Some people invest for long-term wealth growth, some for short-term gains, and yet others to get a consistent monthly return on investment that will increase their wealth.
Being able to support your lifestyle without actively working to make money is known as financial independence.
Maintaining your life at the level you want is essential. To do that, you should have sufficiently accumulated money or passive income through these 12 investments that pay monthly income. Value appreciation and stable passive income can be guaranteed by investing to provide a fixed monthly income.
So, to help you, this blog discusses how to invest to generate a monthly income. Let’s dive in!
12 Investments That Pay Monthly Income in 2026: Best Options to Consider
1. Equity Share Dividends, The Best Among 12 Investments That Pay Monthly Income
Equity Share Dividends are the most well-liked option among the 12 investments that pay monthly income on this list, so start here.
Capital appreciation, which occurs when the stock price increases over time, and dividend distribution, which provides you with periodic returns from your stock portfolio, are the two main ways that investing in the stock market yields returns.
If you want to profit from both, it would be better for you to invest in stocks that have a history of high dividend payouts and a strong growth future.
2. Long-term Bonds
Government bonds and other long-term fixed-income investments are among the greatest monthly investment plans. In order to raise money for infrastructure development projects or other expenses, the government issues these government bonds.
A set interest rate and a maturity period that might vary from a few months to several years are features of these bonds.
In addition to paying out the principal amount at maturity, the bond also provides monthly returns.
12 investments that pay monthly income include options like dividend‑paying stocks, high‑yield bonds, and income funds designed to distribute cash once per month.
3. P2P Lending: The High-Yield Monthly Option
An alternative to conventional fixed-income products with a higher yield is P2P lending. In contrast to the SCSS and the POMIS, which cap returns, P2P lending strives for greater rates while maintaining guaranteed monthly payouts.
In India, peer-to-peer, or P2P, lending has become a popular alternative investment in recent years.
You can invest in P2P lending schemes and become a lender. On their loans, lenders receive periodic interest payments, and the principal is collected after the loan period ends.
The investments that pay monthly can range from savings accounts and fixed deposits to rental real estate and monthly‑dividend ETFs, each structured to deliver cash on a monthly basis.
4. Corporate Deposits (Best Investment Plan for Monthly Income)
Corporate fixed deposits are another name for corporate deposits. These instruments, which have a fixed rate of interest for a fixed period, are provided by reputable corporations, much as bank-offered fixed deposits.
Generally speaking, the interest rate for this option is higher than that of standard bank FDs. Housing financing companies and NBFCs frequently provide corporate deposits.
5. Monthly Income Plans
One mutual fund investing tactic is to invest in Monthly Income Plans, or MIPs. These funds make significant investments in a variety of equity instruments as well as fixed-income securities.
Regular returns are given to investors by these funds, although the timing of these payments varies depending on how well the underlying assets of the plan perform.
6. Post Office Monthly Income Scheme
An excellent monthly income investment choice for risk-averse investors among the best 12 investments that pay monthly income is the government-backed Post Office Monthly Income Scheme (POMIS) from India Post. Your fixed monthly interest is paid by the scheme over a predetermined period of time.
You can reinvest in the scheme after the maximum tenure of five years, and the minimum investment prerequisite is INR 1500.
7. Systematic Withdrawal Plans (Good Monthly Investment Schemes)
Investors can take out predetermined sums at regular intervals using Systematic Withdrawal Plans (SWPs), while Systematic Investment Plans (SIPs) allow you to stagger your investments on a regular basis.
Fund houses provide these programs so that you can invest in mutual funds and receive fixed monthly returns.
8. Annuity Plans
A fixed monthly income after retirement can be obtained through an annuity plan. These are provided by insurance firms that invest your funds over time and reimburse you for the profits.
These plans reward earlier lump sum deposits with regular fixed returns. You can choose between a deferred annuity and an immediate annuity.
The first provides returns as soon as you make your initial lump sum investment, whereas the latter begins to pay out after a predetermined amount of time.
9. Pradhan Mantri Vaya Vandana Yojana
The PMVVY is a pension plan that is only available to seniors who are older than sixty. You will receive a set income from this plan after you retire. The PMVVY plan offers investors a guaranteed return of 7% to 9% over a ten-year period.
10. Lease Financing
Another option for an alternative investment that can provide you with a monthly income is lease finance. Lease financing provides a set monthly income in exchange for equipment or buildings that are leased out.
The conditions of payments might be specified in your leasing agreement. Lease finance is typically seen as a safe investment because it is supported by collateral.
11. Life Insurance Plus Saving
A life insurance policy is another high-yield monthly investing plan. The option to receive a fixed monthly payout upon maturity is offered by these life insurance policies. Savings and life insurance together might help you maintain your financial security.
Finding what is the best investment to get monthly income depends on your risk tolerance, but many investors favor high‑quality debt funds, monthly‑dividend stocks, or diversified income ETFs
12. Senior Citizen Monthly Saving Scheme
The Senior Citizen Saving Scheme (SCSS) is a government-sponsored monthly income plan created especially for people aged 60 and up. The significant returns that this monthly savings plan delivers are its main selling point.
In general, investing for monthly income typically means building a portfolio of assets such as bonds, rental property, and income‑oriented mutual funds that are chosen specifically.
Final Thoughts
Hope now you are clear that experts have discussed the top 12 investments that pay monthly income in this post. It covers both conventional and unconventional options. As an investor, you must weigh your options and make decisions based on your financial objectives and risk tolerance.
