5 Best Passive Income Ideas for Investors 2020
Passive Income is defined as income that you have to put in little or no effort for. Passive income is a concept that is becoming popular and a lot of people are seeking ways to generate passive income. In this blog, we will touch upon some of the best passive income ideas for Indians. The interesting thing is that you may be equipped to generate passive income through several means. Before we talk about all the different ways to generate passive income. Let’s dig a little deeper into what passive income means in simple terms.
What passive income means essentially is that you can make money regularly by putting in a lot of concentrated effort over a short period of time. The meaning of passive income for most Indians, however, is income coming from rent, partnerships, businesses where they aren’t doing any high-effort work. Now, passive income does not mean easy money as many make it out to be. It can actually require more effort to build a business, system, or process that generates passive income for you in the future.
There are many types of passive income. Given below are some of the best passive income ideas:
Owning land, property or even storage space can be a great way of generating passive income. Many people become landlords. This means you work hard to collect whatever money is required to pay for your first rental property. This is a difficult move in today’s economic situation. More importantly, there is very little liquidity in real estate. It isn’t the easiest or the safest path to passive income.
Investing in mutual funds is one of the best ways to generate passive income. You can choose mutual funds based on your risk appetite and timeframe. This means you not only get to create wealth passively you also get to choose how much risk you are willing to take. If you have a Wealth Coach to guide you through this process you can build the Perfect Portfolio for your financial goals.
You can also use our mutual funds analysis tool for free to evaluate your current financial portfolio!
Investing in stocks is another brilliant way of creating passive income. This is, of course, something that requires a certain level of expertise and knowledge. While stocks can potentially generate a lot of passive income, It is best to invest in stocks under the guidance of an expert advisor. If you wish to invest in U.S Stocks such as Apple, Amazon, Uber & Starbucks you can do this via the Cube Wealth App.
P2P lending is basically an alternative investment path. You will essentially be lending money to borrowers and earn interest on top of it. It is best to invest in P2P lending through an established mediator. This way you invest money but reduce the risk associated with P2P lending by a huge margin. Cube Wealth works with Faircent & Liquiloans which are both trusted names in P2P Lending.
This is one of the oldest ways of creating passive income. The interest you earn from a Bank FD is low. However, people who are extremely risk-averse tend to gravitate towards bank FDs due to the low-risk factor. If you’re willing to expand your horizons then you can invest in a Liquid Fund which is the type of mutual fund that offers high liquidity – this means your money can be taken in when you need it. Unlike Fixed Deposits, liquid funds do not have long lock-in periods.
Here are a few money saving tips that can help in ensuring you make the most of the income coming in with you regular job as well.
Ans. 1. Earned Income 2. Profit Income 3. Interest Income 4. Dividend Income 5. Rental Income 6. Capital Gains 7. Royalty Income
Ans. Pick a passive income idea that suits your skill sets. Then set achievable goals and a timeline. Look at what others who have built this passive income source did and see what you can learn from their journey.
Ans. To create passive income without any money you will have to invest time and effort. You can create videos on YouTube, sell photographs to stock photography websites, etc.
Want to start investing?
We know it’s a big decision to start investing, to change advisors or to try new investment options. That’s why we give you the option of a free personal phone consultation.