How to earn 50,000 monthly income from investments (2024)

Creating passive income has become more feasible in today's fast-paced digital world. Making good financial decisions can help you solve questions like how to earn $50,000 a month. All you have to do is track your savings goals and strategically plan your future.

A diversified investment portfolio to generate significant passive income is essential to increase returns and secure funds. While traditional investment options such as stocks and fixed deposits can be effective, they may not always suit your long-term financial goals. Equities come with higher risks and fixed deposits often offer modest returns. Exploreralternative investments for generating passive incomeIt may be wise to expand and diversify your investment portfolio.

Alternative investments, such as securitized debt instruments, corporate bonds, etc., offer a higher return on your investment than traditional options. They allow for a more diversified portfolio, reducing risk. In addition, they offer protection against inflation.

Let's explore some of the best ways to make 50,000 a month with passive income.

4 proven investment options to earn 50K per month

If you are wondering where to invest to get INR 50,000 per month, here are some fixed income options you can consider:

1. Corporate bonds

Corporate bondsoffering non-cumulative interest can provide regular passive income. Non-cumulative interest refers to the interest paid to investors at regular intervals (monthly/quarterly) instead of accumulating. These bonds are typicalinvestment grade bondsrated by rating agencies and issued by regulated financial institutions.

Assuming that the average interest that can be earned on a corporate bond is 12% per annum, an investment with a principal amount of ₹50,00,000 can earn ₹50,000 per month*.

*The calculations are based on simple interest.

2. Securitized Debt Instruments (SDI)

SDI'sprovide an innovative and regulated way to generate predictable, regular revenue. They are created by bundling several underlying assets into a listed bond. The underlying assets can be loans, leases, invoices, etc.

Investors can explore regulated, listed and rated SDI products such as LeaseX, LoanX, BondX andInvoiceXat Grip Invest. The main USP of these products is that they offer significantly higher returns, between 12 and 16%, than other fixed income investment options with a similar rating.

Assuming that the average investment return of SDI is 14% per year, you will need to invest approximately €43,00,000 to get €50,000 per month.

3. Fixed Deposits (FD)

Fixed deposits are among the oldest interest rate instruments that provide an interest income of approximately 7.0% per annum, depending on the investment period. You can choose how often you receive the accrued interest on your fixed deposit: monthly, quarterly, semi-annually or annually.

FDs are a great way to earn mediocre but assured returns and are preferred for those looking for a predictable monthly passive income. Since they give around 7% interest per year, you need to invest around INR 86,00,000 to get INR 50,000 per month.

4. Dividend income

You can earn passive income by investing in stocks that pay good dividends. This requires identifying fundamentally strong companies that distribute their profits to their investors. Investing in such stocks at the right price is equally important to enjoy capital growth.

According to the latest datatop 5 highest yieldFine 50 companies include:

1. Vedanta- 38.42% dividend yield
2. Hindustan Zink - dividend yield of 24.36%
3. Coal India - 5.52% return
4. ONGC- 4.42% dividend yield
5. Electricity grid - 3.80% efficiency

Assuming the average annual return is 7%*, you need to invest INR 85,00,000 to get around INR 50,000 per month.

*The average dividend rate is calculated based on the 15 best dividend-paying stocks.

Benefits of passive income generation

Generating reliable sources of passive income offers freedom from financial worries, especially in today's uncertain job market. It helps you reduce your dependence on salary, giving you more freedom of time and choice.

The growing costs associated with lifestyle, health and general living expenses create significant dependence on salary. Ultimately, individuals strive to support themselves with a single source of income.

By building a flexible portfolio, you can begin to reduce your dependence on salary within the first few years.

Conclusion

Creating passive income provides a buffer against life's uncertainties. This blog provides insight into earning 50K per month. month of passive income through proven investment options. For more investing tips, visitGrip InvestToday!

Frequently Asked Questions on How to Make 50,000 a Month

1. Can I earn 50,000 per month by trading?

While it is possible, making ₹50,000 monthly in the stock market can be unpredictable due to the volatility of the stock market.

2. What should you consider when investing in dividend-paying stocks?

Stock prices may fall after the ex-dividend record date, leading to a short-term decline in your holdings' profits. However, holding long-term investments can result in significant dividends and capital growth.

Do you want to have control over your finances?

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