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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.
February 24, 2021

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Continued from part 1...

Investment Tips

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
  • Geographical diversification

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!

Download the Cube Wealth app to know more about US stock investments

7. P2P Lending

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:

  • BHEL 
  • Oil India Ltd.
  • Glenmark Pharmaceuticals Ltd.
  • Castrol India Ltd. 
  • CRISIL Ltd.

Top 3 Benefits Of Mid-cap Stocks As A Passive Income Source

  • Comparatively higher returns than large-cap stocks
  • Relatively safer than small-cap stocks
  • Diverse options from different sectors

Read this blog to know how Purnartha and Cube Wealth help you buy Indian stocks

9. Mid-cap Mutual Funds

Mid-cap mutual funds invest a majority of their capital in the aforementioned mid-cap stocks. They bank on the current strengths and future prospect of mid-cap companies to deliver profits. 

Top 3 Benefits Of Mid-cap Mutual Funds As A Passive Income Source

  • Relatively lower volatility than small-cap funds
  • Comparatively better returns than large-cap funds
  • Low minimum investment amount (₹10,000 on Cube Wealth)

Here’s what happens when you invest ₹20,000 a month in mid-cap funds that generate 13% returns on average:

Duration

Money Invested

Returns Earned

Total

3 years

₹7,20,000

₹1,64,345

₹8,84,345

5 years

₹12,00,000

₹4,96,066

₹16,96,066

10 years

₹24,00,000

₹25,33,613

₹49,33,613

20 years

₹48,00,000

₹1,81,10,383

₹2,29,10,383


Mid-cap Funds Available On The Cube Wealth App

1. Motilal Oswal Midcap 30 Fund

2. PGIM India Midcap Opportunities Fund 

Download the Cube Wealth app for the complete list of mid-cap funds

10. Small-cap Mutual Funds

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


Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

Top 5 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Invest in U.S. Stocks
  • Alternative Investments
  • Low Minimum Investments
Try Cube’s Exclusive Wealth Concierge Service! We offer a 10-minute portfolio analysis and set up service to select users.

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