10 Top Passive Income Sources In India For Working Professionals - Part 2
This blog will tell you all about investment options that can generate passive income for you. This will include options like mutual funds, stocks, and peer-to-peer lending. We will of course also cover how Cube Wealth helps busy professionals create a portfolio that can generate wealth for them.
October 4, 2023
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Top 10 Best Sources Of Passive Income For Working Professionals
6. US Stocks
Not many are aware that Indian investors can buy US stocks with a powerful app like Cube Wealth. The US markets rank #1 by market capitalization with NYSE being the largest stock exchange in the world.
Moreover, companies that are loved and revered around the world like Amazon, Apple, Microsoft, Google, etc are hosted on these top US stock exchanges.
As for a passive income source, US stocks may be a suitable option because of the following reasons.
Top 3 Benefits Of US Stocks As A Passive Income Source
Strength of the USD
Historical track record of the US markets
Cube Wealth is the first app that’s brought US advisory to India. You can invest in the best US stocks with advice from RIA, Rick Holbrook, Cube Wealth’s US advisory partner.
You can even invest in US stocks on your own with Cube’s DIY US investment feature. But that’s not all. Regardless of whether you choose DIY or advisory, the minimum investment amount for US stocks on Cube Wealth is $1!
Peer to peer lending is an alternative investment asset that helps you generate passive income with recurring monthly interest payments. In a nutshell, P2P lending puts borrowers directly in touch with lenders.
The lender becomes the bank and in turn, has the potential to earn comparatively higher returns than a fixed deposit. Moreover, P2P lending is a non-market linked instrument and hence, can be useful for portfolio diversification.
Top 3 Benefits Of P2P Lending As A Passive Income Source
Risk-based lending options
Lucrative interest rates
Recurring monthly interest payments
On the Cube Wealth app, investors can choose to become P2P lenders with 2 RBI Certified P2P NBFCs: LiquiLoans and Faircent. You can explore P2P lending scheme options on the Cube Wealth app to know more.
8. Mid-cap Stocks
Mid-cap stocks are shares of companies that are on their way to becoming industry leaders. These companies are past their nascent stage and are looking to take the next step in growth.
This prospective jump towards becoming a large-cap company may give them the incentive to maintain a strong balance sheet and become more reliable in terms of revenue and dividends.
You’ll find plenty of big names in this category which is represented by the NIFTY MIDCAP 100 index. A few examples of mid-cap stocks include:
Oil India Ltd.
Glenmark Pharmaceuticals Ltd.
Castrol India Ltd.
Top 3 Benefits Of Mid-cap Stocks As A Passive Income Source
Comparatively higher returns than large-cap stocks
Small-cap mutual funds are equity funds that invest in small-cap stocks. Small-cap companies are budding businesses that are in the development stage of their lifecycle.
Thus, they carry high volatility and sharp price fluctuations. However, these companies may present the opportunity for future growth and profits that may be exponentially higher than mid-cap and large-cap stocks.
Small-cap funds look to leverage all these qualities to deliver growth but also carry the inherent risks of small-cap stocks.
Top 3 Benefits Of Small-cap Mutual Funds As A Passive Income Source
Comparatively higher returns than mid-cap and large-cap funds
Relatively better future growth prospect
Low minimum investment amount (₹10,000 on Cube Wealth)
All mutual fund SIPs mentioned in the list above were calculated using Cube’s SIP calculator. Try it out here.
How Cube Wealth Simplifies Passive Income Creation For Working Professionals
The Cube Wealth app helps you create a diversified portfolio of mutual funds, stocks, alternative assets, etc., each of which is a passive income source that can potentially generate lucrative returns in the long term.
However, it’s important to choose the right passive income sources based on your investment goals and risk profile. One convenient way to identify this is with Cube’s detailed risk analysis quiz.
Download the Cube Wealth app today to take the guesswork out of choosing passive income generating sources and invest in assets that work for you.
Watch this video to know how busy professionals can grow rich
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!