20 Best Investment Plans for Monthly Income 2026

Key Highlights You can find multiple best investment plans for monthly income based on aim, risk, and return profile. POMIS, SCSS, and SWP are top ones that you should consider in 2026. Monthly income plans range from 6.5% to 12% PA. This is based on the nature of the investment, risk profiling, and the market link. Proper analysis and comparison while starting to invest is very important. This should be based on your risk appetite. Rupeezy can help you with tools and information to plan better.

Anyone planning to create a stable monthly passive income needs to know the options available in the market. Selecting the best investment plan for monthly income ensures your long-term financial stability. 

But with so many options of monthly income plans available, making a choice can be hard. This is where you need to first decide whether you wish to go for the government securities or market-linked options. In fact, there are several safe investments with high returns in India that can help generate consistent cash flow. 

Each of these plans has some unique features that make it stand out compared to the rest. This is why selecting a monthly investment plan that balances returns and risk becomes important. So, let us explore the best monthly income schemes to consider in 2026.

Top 20 Best Investment Plans for Monthly Income

When you start to look for the options, you will see there are so many choices. All these range from low to high risk plans. But the best investment plans in India are the ones that offer you a good trade-off between risk and return. Also, this depends on your risk appetite as well.

So, based on the same, here are the top 20 plans that you can consider for monthly income in 2026.

Note: The returns and the details mentioned are based on the available details from news, official platforms, and others. These are bound to change with time. It is advised to check all the details well before investing. 

Overview of Top 20 Best Investment Plans for Monthly Income

Now that you know what the common regular income plans in India are, it is important to go deeper to understand these. Knowing their features will help you to see which of these plans better fits in your financial planning. 

So, here are the brief details of these best investment plans to help you get started. 

1. Post Office Monthly Income Scheme (POMIS)

This is a government-backed scheme which ensures better safety for the investors. You invest a lump sum amount at once, and then after a time, you get monthly payouts. POMIS is for a minimum of 5 years. The investment can be started with Rs. 1000 and can reach up to a maximum of Rs. 9,00,000.

2. Senior Citizen Savings Scheme (SCSS)

This is one of the best investment options in India for senior citizens. The option offers good interest rate and high capital safety. The fund offers quarterly returns, which makes it a great choice for retirement income. The maximum deposit is Rs. 30 lakh. As an investor, you can gain the tax benefit under Section 80C.

3. Systematic Withdrawal Plan (SWP Mutual Fund)

This is one of the smartest ways to create a regular monthly income from mutual funds. You invest a lump sum in a mutual fund of your choice. Then all you need to do is set up a withdrawal plan, which is called SWP. You will get a monthly amount in your account, while the rest of the amount stays invested. This is great from a tax point of view as well. 

4. RBI Floating Rate Savings Bonds

These are government-backed bonds issued by the Reserve Bank of India. The interest rate is updated every 6-months based on the NSC rates. This means the returns can increase when interest rates rise. The interest is paid semi-annually. There is no maximum investment limit. This makes it a good choice to park larger amounts for a longer run in a safe and secure place.

5. Bank Fixed Deposits With Monthly Payout

This is the most popular monthly investment plans in India. You deposit a lump sum amount at a fixed rate for a specific tenure to earn interest. The interest rate is based on the tenure you wish to invest for. For the regular income plan, you would need to go for interest withdrawal every month. Your invested amount in a fixed deposit will continue to earn interest without any issue.

6. Corporate Fixed Deposits

This works similarly to a bank FD, but here the deposits are offered by companies and NBFCs instead of banks. Since the risk is slightly higher, the interest rates are also usually better. Most corporate FDs also offer monthly payout options. But before you plan to invest in this, you must check the financial stability of the company. This will help add an extra layer of safety.

7. Debt Mutual Funds

These are one of the most secure mutual funds to go for. These funds invest in bonds, treasury bills, government securities, and other fixed-income instruments. When you invest in this with the SWP plan, you get a good monthly income plan. They are also considered more tax-efficient than traditional FDs in certain situations. Also, in the fixed income category, these fall under high return investment.

8. Monthly Income Mutual Funds

These funds are also called Conservative Hybrid Funds. These are the funds which invest mostly in debt instruments with a small portion in equities. The debt part helps maintain stability, while the equity portion adds some growth potential. Although returns and payouts are not fixed, these funds are widely used as a regular income plan by moderate-risk investors.

9. LIC Jeevan Akshay Plan

This is a popular LIC monthly income plan. This is actually a one-time investment. You will start receiving fixed payouts for life. The payout amount depends on the annuity option selected at the beginning. All the returns are guaranteed. This is one of the reasons why many retirees prefer this option for a predictable post-retirement income.

10. Immediate Annuity Plans

These are offered by insurance companies. They provide regular payouts after a lump sum investment. There is a choice of monthly, quarterly, and annual income. This will be based on your actual needs. The returns are stable and are not impacted by the market. But it is important to note that conditions vary for these plans. So, properly analysing becomes really important.

11. Dividend-Paying Stocks

Some companies share a part of their profits with investors in the form of dividends. These are usually large and financially stable companies. These usually belong to sectors like banking, FMCG, energy, and utilities. This is often considered a high return investment option for investors. But the benefit is that investing in these stocks will help you gain profits and a regular income.

12. REITs

REITs stand for Real Estate Investment Trusts. It allows investors to earn rental income without directly buying property. These trusts invest in office spaces, malls, and commercial buildings. It generates income through regular rentals, which is shared with investors. This makes it one of the fastest-growing and best investment options for passive income seekers.

13. InvITs

InvITs invest in infrastructure projects. These are mainly like highways, power transmission lines, and gas pipelines. These projects generate stable cash flows over long periods. The income so generated is distributed to investors regularly. InvITs are listed on stock exchanges, so they can also be bought and sold easily like shares.

14. Government Securities (G-Secs)

These are bonds issued directly by the Government of India. Investors receive fixed interest payments at regular intervals. The entire amount that you invest will be paid back at the end of the maturity period only. The retail investors can make a direct investment, which makes it a great option for those seeking safe and stable investment choices.

15. Balanced Advantage Funds

These funds automatically shift money between equity and debt. This is based on the market conditions. By doing so, it helps the investors to manage volatile conditions well. This helps with the long-term market growth. Many investors consider these funds among the best investment plans in India for balancing growth and regular income potential.

16. Monthly SIP + SWP Strategy

This is a combination strategy. The idea here is quite simple. You first build wealth through SIPs and later create a regular income using SWPs. During your earning years, you invest monthly in mutual funds through SIPs. Once a good corpus is built, you can start SWP. This is considered one of the smartest long-term investment plans with high returns.

17. National Pension System (NPS) Annuity Option

NPS is a retirement-focused investment option. It is backed by the Government of India. You create a corpus for your retirement while you are working. You then use the corpus on maturity that provides you regular income. The scheme also offers tax deductions under Sections 80C and 80CCD.

18. Rental Income From Property

It is one of the oldest ways to gain a regular monthly income. If you have property which is either residential or commercial, you can let it out. This will allow you to earn regular rental income from the same. The initial investment is high, but over time, you will be set for a long-term passive income and property appreciation.

19. Post Office Recurring Deposit (RD)

This is a government scheme. You will deposit a fixed amount every month. This is usually for a specific tenure. You can start from Rs. 100. Many investors also call it a post office SIP because of the monthly contribution structure. This is a monthly savings plan that offers returns after maturity.

20. National Savings Certificate (NSC)

NSC is a fixed-income saving scheme available through post offices in India. It is one with a fixed tenure and a return base as well that makes it a suited choice for many. You gain a tax benefit under the section 80C as well. While the direct payouts are missing, this is still considered among the best saving schemes for stable and low-risk wealth creation.

Conclusion

The best investment plan for monthly income in 2026 is not a single product but a smart combination of instruments. You need to plan and diversify your funds in such a way that you gain growth and safety. 

But to get the benefit, you need to start early. Even if you are just 25, starting your first job, you can actually start planning well easily. The idea is to build a portfolio that grows over time and offers you the stability that you need.

So, open your Rupeezy account today. Get access to the best mutual funds, bonds, and equities with zero paperwork. Start investing in under 10 minutes.

FAQs

Which is the best investment plan for monthly income in India?

The best plan for the monthly income is based on your risk and return tradeoff. POMIS or bank FD are the best if you are looking for low risk and stability. If you have a moderate risk appetite, go for SWP.

Can I get monthly income from mutual funds?

Yes. This is usually done through an SWP. So, you invest in a mutual fund from which a fixed amount is withdrawn every month. The remaining amount stays invested.

Which investment gives the highest monthly returns?

Market-linked investments generally offer you the highest returns. These are REITs, InvITs, and SIP + SWP-based strategies. The risk and return potential is high here. 

Is monthly income from investments taxable?

Yes, most monthly income from investments is taxable. This is why you must know the taxation schemes as well.

Can I start a monthly income plan with a small amount?

Yes. You can start the Post Office RD, SIPs, and mutual funds with small monthly amounts.