Can you make a monthly income from the stock market?

Everyone loves to think about the stock market as a cash generating machine. The whole idea of investing is about saving up money and buying assets which can provide you more money in the future. But can you get a monthly income from the stock market? The answer is simple – no you can’t! Even though the stock market is a place to build wealth and grow your money, it is not a job which will pay you consistently at the start of every month. 

Investing in the stock market is a business, not a job. Just like a business there is no guarantee of making any money every month and there is a possibility of even losing money! A business has its ups and downs and goes through cycles, similarly the stock market also goes through cycles. To learn why the stock market goes through cycles, visit this article. There will be times in the stock market where you just cannot make any money when the market is going through a sideways correction or a bear phase and there will be times where the markets will be in a clear bull run and it will be easy to make money. 

Consider this fact – almost every investor has earned more in the 18 months after the 2020 coronavirus crash (highlighted in green) than they have earned in 6 years from 2014-2020 (highlighted in red) as shown in the following Nifty index chart. 

That’s not all. If you compare the performance of the Nifty index in the 6 years from 2008-2014, there was a grand total of 0% return made by the investors! (highlighted in yellow)

This massive difference in the performance of the stock market is a clear indication that there is no such thing as a monthly income which can be expected from the stock market.


Does it even make sense to put money in the stock market? 

The answer is an overwhelming YES! Even though the stock market cannot provide a monthly income or a salary, it has proved to consistently give good returns in the long run. The Nifty index over the long run has risen multifold, going from 1000 points in 2002 to around 18000 points in 2021. This shows that the money can be made in the stock market but not in a linear fashion. There will be years like 2008-2014 where the markets will not give any return due to a brutal 2008 crash and there will be times such as the bull rally post the coronavirus pandemic which will more than double your money in around 1.5 years. But that begs the question.


Should people retired from their jobs put their money in the stock market?

Since the stock market cannot provide a monthly salary, how can retired individuals invest in the stock market? Retired individuals would require a constant in-flow of money to take care of their daily needs and cannot rely on the volatile returns of the stock market. There are a few mutual funds which provide a “salary” in the form of dividends which are paid monthly or yearly but such mutual funds tend to underperform the average market return. The only answer is this – do not put all your money in the stock market! Retired or retiring individuals need to put only that money in the stock market which they do not need for the next few years. All money which will be needed in the upcoming days or months need to be at a safe place such as a bank account or a fixed deposit where it is easily accessible and can be easily liquidated.


Can’t traders earn monthly income in the stock market?

Many people might be thinking that investors might not be able to make consistent money in the stock market but traders can make money during a bull or a bear market. So can traders earn a monthly income? The answer is again no. It is again because of the stock market cycles. There will be times when the market is very trendy which will allow traders to earn huge profits and there will be times where markets will be choppy which will make it very difficult to earn money. So even stock market traders cannot make a salary in the stock market. Although many traders are able to earn money which is consistent enough to completely rely on the stock market for their livelihood, they still cannot earn the exact amount every month. If you are an aspiring trader who is looking for a professional trading system, visit this article.


Here is the conclusion, the stock market is a business and not a job. There is no guarantee for anybody to make any money in the stock market. There is certainly no guarantee to make a fixed return or a salary in the stock market. 


If you liked this article, share and subscribe to this website!


DISCLAIMER : I am not a financial advisor. I am not for or against any company which I have mentioned in this article. All the information provided here is for education purposes. Please consult a financial advisor before investing.

How useful was this post?

Click on a star to rate it!

Average rating 4.2 / 5. Vote count: 5

No votes so far! Be the first to rate this post.

Namit Pandey

Leave a Reply

Your email address will not be published. Required fields are marked *