I want to know where to invest 2 lacs to get monthly amounts and what are ETF and what are bonds

Ans: You have Rs. 2 lakhs to invest and want regular monthly income. You also want to understand ETFs and Bonds. Let’s create a complete 360-degree investment answer.

Every sentence is short and simple. This response is structured for Indian context.

Know Your Goal First
You want income from Rs. 2 lakhs investment.

This means your goal is income generation.

This is different from wealth creation.

When we invest for income, capital appreciation is secondary.

You must also keep your money safe.

And make sure money is available monthly.

Don’t invest everything in risky instruments.

Protecting money is more important in this case.

First step is capital protection.

Second is monthly income.

Where Can You Get Monthly Income
You have multiple options for this goal:

1. Monthly Income Scheme from Post Office
This is one of the safest options.

You can invest in joint or single mode.

Interest is fixed and paid monthly.

Capital is returned at the end of term.

No TDS is deducted.

But interest is taxable as per your slab.

Good for senior citizens and low-risk investors.

But returns may not beat inflation.

Ideal only for short-term income needs.

You can invest Rs. 2 lakhs here.

Get fixed amount monthly with peace of mind.

2. Senior Citizen Saving Scheme (if eligible)
Only for people above 60 years.

Pays high fixed return every quarter.

Has a five-year lock-in period.

Interest is taxable.

Safe and government backed.

Not for you if under 60 years.

But your parents can use this option.

Ideal to secure their post-retirement income.

3. Debt Mutual Funds with SWP
Debt funds invest in government and corporate bonds.

Safer than equity but not risk-free.

You can start SWP (Systematic Withdrawal Plan).

SWP gives fixed amount monthly from your investment.

Capital stays invested and continues to earn.

Better post-tax return than FD in long term.

Short Term Capital Gain taxed at 20%.

Long Term Gain taxed as per slab.

Use only high-quality debt funds through a CFP.

Don’t go for direct debt funds.

They don’t provide handholding and advice.

Regular plan through certified planner gives support.

CFP monitors interest rate changes and portfolio health.

Avoid putting all Rs. 2 lakhs in debt fund.

Keep part in liquid fund as emergency backup.

4. Hybrid Mutual Funds with SWP
Mix of debt and equity.

Safer than pure equity, better than pure debt.

Monthly SWP can give income and growth.

Ideal if you want 5-7% annual income.

But fund selection is key.

Choose only regular plan through CFP.

Don’t use index or direct mutual funds.

Index funds just copy market blindly.

They don’t offer protection in market fall.

Active hybrid funds have risk control.

CFP reviews it yearly and rebalances.

This ensures stable income and capital protection.

What Are Bonds?
Bonds are like loans you give to companies or government.

They promise to pay fixed interest.

After fixed time, they return the principal.

Government bonds are safest.

Corporate bonds carry higher risk.

You can buy bonds through mutual funds.

Direct bond investment needs large capital and timing.

Better to invest through debt mutual fund.

It gives diversification and expert management.

You don’t need to track bond market yourself.

Debt fund handles risk and duration.

You also get liquidity in emergency.

What Are ETFs?
ETFs are Exchange Traded Funds.

They copy a stock market index like Nifty or Sensex.

They are like mutual funds, but traded like shares.

Most ETFs are passive in nature.

They don’t try to beat the market.

They just copy the market performance.

When the market goes up, ETF goes up.

When market falls, ETF falls equally.

No risk management by fund manager.

ETF can underperform in sideways or down markets.

No help or review comes with ETF.

You must handle rebalancing on your own.

Many investors buy high and sell low.

So, ETFs don’t suit most Indian investors.

Avoid ETF if you want peace of mind.

Don’t use ETF for income purpose.

They are for growth, not monthly income.

Also, there is no fixed monthly payout from ETF.

Mistakes to Avoid
Don’t invest all Rs. 2 lakhs in one place.

Don’t fall for high return schemes.

Don’t trust unsolicited online advisors.

Avoid peer-to-peer lending or private chit funds.

Don’t put money in index or direct mutual funds.

Don’t chase trends like crypto or F&O.

Don’t mix insurance and investment.

Don’t buy ULIPs or endowment for monthly income.

They lock money and give poor return.

Avoid buying stock or bonds directly without help.

Don’t use direct plan of mutual funds.

They give zero guidance and no review.

Regular plan via CFP is far better.

It gives professional support and protection.

Your goal is income, not thrill.

Stick with low-risk, reviewed options.

Ideal Action Plan with Rs. 2 Lakhs
Put Rs. 1 lakh in Monthly Income Scheme.

It will give fixed amount monthly.

Very low risk and safe.

Put Rs. 50,000 in Liquid or Ultra Short Debt Fund.

Use SWP for monthly withdrawal of Rs. 400 to Rs. 500.

Keep Rs. 50,000 in hybrid mutual fund.

Start SWP after 1 year holding.

This gives equity growth and regular income.

Use regular plan only with CFP supervision.

Don’t try to manage it yourself.

Plan will give stable monthly income with growth.

Rebalance every 12 months with CFP help.

Important Reminders for Monthly Income
Don’t aim for very high monthly income.

Higher income need means higher risk.

Keep realistic expectations, around 6-8% yearly.

Withdraw only interest, not capital.

Emergency fund must be kept separately.

Your principal must stay untouched for 3+ years.

Reinvest yearly bonus or extra income.

Grow your capital slowly to Rs. 5 lakhs.

Then your monthly income also increases.

Keep expenses low and track savings.

Small consistent steps bring big change.

Finally
You want to earn monthly income from Rs. 2 lakhs.

Avoid ETF and direct investments.

Don’t go for index funds or direct mutual funds.

Regular mutual funds via CFP are better.

Use a mix of MIS, SWP and debt fund.

Review portfolio every 12 months.

Don’t withdraw full amount early.

Keep your investment safe, simple, and secure.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment