What is
Passive Income?
Passive Income is a form of income that is often lauded for its ability to generate financial returns with limited time and effort. It is attractive for individuals seeking to build wealth and achieve financial independence.
Passive Income Options
Whether you’re looking to diversify your income streams, achieve financial independence, or simply enjoy extra money benefits, passive income options offer wealth-creation opportunities for all individuals.
Here are some options available to earn passive income in India:
Real estate has always been a known investment option for generating passive income. In India, investing in properties such as rental properties or commercial spaces can be an excellent way to create a regular stream of income. By renting out a property, you can earn monthly rental income that can provide financial stability.
Investing in dividend-paying stocks is another popular passive income idea in India. Dividend stocks are stocks of companies that regularly distribute a portion of their profits to shareholders in the form of dividends. By investing in dividend stocks, you can earn a regular income through the dividends received, which can be reinvested or used for your expenses.
P2P lending is a relatively new investment option in India that involves lending money to individuals or businesses in exchange for interest payments.
By investing in P2P lending, you can earn interest income on the loans you have provided, and the returns can be higher compared to traditional fixed deposits or savings accounts.
Mutual funds are professionally managed investment options that pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, or other securities. SIPs allow investors to invest a fixed amount at regular intervals, such as monthly or quarterly.
While fixed deposits and bonds are not entirely passive income sources, they can be considered relatively low-risk investment options that can provide regular interest income. Fixed deposits with banks or post offices, as well as government or corporate bonds, can provide a predictable source of income.
If you have creative talents, such as writing a book, composing music, or creating artwork, you can earn royalties from your intellectual property. Royalties are payments made to the creator of a work for the use or sale of their creative work.
REITs are financial instruments that invest in income-generating real estate properties, such as commercial buildings, malls, hotels, and residential complexes. They allow investors to participate in the real estate market without the need to own and manage physical properties.
Instead, investors can buy units or shares of REITs, which represent ownership in a portfolio of real estate assets. The income generated from these properties, such as rent or lease proceeds, is distributed to the investors in the form of dividends.
Importance of
Having a Passive Income Source
Here are some key points on why it's important to have a passive income source:
Things to Know
About Earning Passive Income
Here are some key points to know about earning passive income for beginners: