How to Make Passive Income in India for Salaried People

How to Make Passive Income in India for Salaried People
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People who are doing a full-time job also like to explore this area and want to know How to Make Passive Income in India. Their salary may or may not be sufficient for them so the constant need to learn more about passive income sources is there. Not all can devote time and efforts in learning a new skill for it or creating any other set-up for it, but most of them can create a wealth corpus which can be used to make regular income out of it just like National Pension Scheme, just that in this case you won’t have to wait till retirement. The wealth should be accumulated and managed in various assets considering the risk-taking ability and financial goals in mind.

It is important to explore and know all about how to make passive income in india the passive income sources such as eBooks, Affiliate Marketing, YouTube videos etc. but most of the time salaried people are not able to devote that much time to these options (they actually are full-time career options for many) and this makes it even more difficult for you to be earning a good chunk out of it. So, here are a few options which can work great for you with little or no efforts.

  1. Debt Investments

Salaried people want to earn high returns with low risk and thus this asset class is a very good option for them. Although some part of their salary goes into the EPF (Employees Provident Fund) which ensures the allocation of their money towards this asset. Their portfolio already includes this asset class by the virtue of them being in an organization where they receive salary. They can still invest in debt markets such as Debt Mutual funds, corporate bonds or govt. Bonds according to their needs and the current returns. This asset class is recommended to salaried people because of its low risk. Since debts are mostly secured and are supposed to be paid before equity in case of the company failure, it makes it much safer to invest in.

  1. Equity Investments

Now, this is something that most of the salaried people avoid even though it is one of the highest yielding assets. Equity has the highest potential to manifold your money invested but it is also very risky. Not everyone has the time to do technical or Fundamental Analysis and have a key eye on the market after doing their job in order to bag high returns, so they avoid it which makes sense. One safer way to invest in equity is to buy index funds and not directly go for any particular stocks or mutual fund. By investing in Index funds, you invest in the top performing stocks of that particular index picked up by the index itself so you can trust it for decent returns. 

Even though it seems hard to invest in Equity, salaried people should explore it more and put their efforts deliberately to fetch the maximum out of it. How to make Passive Income in India is definitely something that doesn’t come very easy but is worth the efforts.

  1. Gold 

Every household is familiar with this Asset as it is a part of our tradition and culture in its physical form such as coins, jewellery etc. Even though we have liked it in physical form since forever, we need to understand that owning Gold in digital form is much more profitable because of various reasons. Gold in Physical form can be stolen, goes through wear and tear, depreciates more than the digital gold whereas the digital gold (gold in the form of ETF or Sovereign Gold bonds) are something that will never disappoint you and will especially come to rescue in the times of crisis (when the market is down), it is a highly recommended asset in the portfolio of a salaried person. 

  1. Insurance

Insurance is one of the most mis-sold instruments to the common households. This asset class is mostly push sold because it is tax efficient. The fact that insurance is not an investment but actually a risk cover and nothing more. We all need coverage for any health issues or even death but not knowing everything about Insurance can really cost you.

  1. Property 

This is one of the most popular asset classes amongst the people in India. People love owning properties, whether land or buildings. Few people simply keep on owning the property in the hope of its quick appreciation. They forget that the cycle of investment in property goes in decades. Even though when the market value of the property is going up, there is no cash flow as most properties are not earning Rental Income out of it which is a loss in itself. This property is supposed to give you regular income in the form of rent apart from appreciation. One small misconception is that your house is also an asset which is not true because it is for self-consumption and not for any return. 

So these were few of the asset classes that salaried people should consider while they are at learning how to make passive income in India.  Action is what will make you stand out, a lot of people have all the knowledge about Financial instruments but how many of them act upon that? How many of them actually take action and make a difference? Very few. Work hard, take action when necessary and get included in the “Very Few” category. 

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