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I can invest Rs 50,000 (50K) per month. How to start (Updated 2025)?

Dev Ashish

I got a mail from a young reader. Here is the summary:

“I am 28 years old. Due to a job switch recently, I can now invest close to Rs 50,000 per month. I already have Rs 10,000 monthly EPF contributions. Please guide me on how to begin investing this new surplus of Rs 50,000 per month. If I don’t plan to invest it, I am sure the money will get spent here and there.”

She did not mention anything else about her existing investments or her risk appetite or goals, so I will have to make certain assumptions.

I am assuming that she wants to invest for the long term.

Now with that set, next comes the question about what is her risk appetite. There are 3 broad possibilities – Conservative, Balanced & Aggressive.

Let’s evaluate each of them:

How can a CONSERVATIVE Investor invest Rs 50,000 per month?

For a conservative investor, it’s best to have a low equity allocation. How much? It can be about 25-35%.

She is already investing Rs 10,000 in EPF – which is part of the debt. So for a total monthly investment of Rs 60,000 (= Rs 50,000 extra + Rs 10,000 in EPF), about Rs 15-20,000 can be invested in equities. So here is the broader suggestion:

For equity funds, she can choose from following possible suggestions:

How can a BALANCED Investor invest Rs 50,000 per month?

As the name suggests, a balanced investor should have an equal allocation to equity and debt at 50% each.

She is already investing Rs 10,000 in EPF – which is part of the debt. So for a total monthly investment of Rs 60,000 (= Rs 50,000 extra + Rs 10,000 in EPF), about Rs 30,000 can be invested in equities. So here is the broader suggestion:

For equity funds, she can choose from following possible suggestions:

How can an AGGRESSIVE Investor invest Rs 50,000 per month?

An Aggressive investor would have a higher allocation to equity.

Something like 60-70%

She is already investing Rs 10,000 in EPF – which is part of the debt. So for a total monthly investment of Rs 60,000 (= Rs 50,000 extra + Rs 10,000 in EPF), about Rs 40-45,000 can be invested in equities. Here is the broader suggestion:

For equity funds, she can choose from following possible suggestions:

If you are wondering why I am suggesting investing in index funds for large-cap exposure, please do read Index Funds Vs Large Cap Funds.

I have not suggested tax-saving ELSS funds as tax-saving is already taken care of using EPF, VPF, and PPF in the above examples. So no need to unnecessarily invest in equity funds having lock-in.

I did not have any idea about her goals and assumed that these are for long-term investments. Something like her retirement savings. If her goals are more short-term in nature, like saving for a house downpayment, it’s better to have a high percentage of the debt.

If she has multiple goals, it’s best to start with them, prioritize them and then follow a proper Goal-based Financial Planning approach.

Gold can also be considered via Gold ETFs or Gold Bonds. But I have left it out for time being for simplicity. In any case, if you were to ask me how much to invest in gold, I would say to keep it around 5-10%. That’s it.

That’s about it.

But keep a few things in mind before you begin investing Rs 50,000 per month:

And do you want to know the value of Rs 50,000 per month SIP?

Using this SIP calculator, you will know that assuming average SIP returns of about 12%, here is what a Rs 50,000 monthly SIP can give you:

One more thing – once you start with Rs 50,000 per month, make sure to increase your SIP amount once every 1-2 years in line with the increase in your income. You can create a lot more wealth if you increase the SIP amount every year.

To get yourself a well-thought-through, detailed goal-oriented financial plan, that plans for all important life goals like children’s education, your retirement, house purchase, traveling, etc. and not just talk about investing random amount here and there, you can consider taking professional Stable Financial Planning Service. If you are interested, then head to this page for more details about the Financial Planning Service. You will increase the probability of achieving your goals on time without stress.

So that was about Where should I invest 50k monthly. If you had questions like Where to invest 50,000 Rupees every month (in 2025), then I hope you got your answers.

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