It is never too late to start learning about how to make passive income and passive income ideas in India especially in the crucial year of 2021 which is a year of hope and financial recovery. No matter which age group you currently fall in, the area of Passive income has something to offer you. In fact, your financial goals are supposed to be determined keeping the age group into mind. Every year a large chunk of the population enters into the world of Passive Income which is clearly reflected in the increased no. of Demat Accounts and increase in the demand for other financial instruments.
Here are some passive income ideas for beginners in 2021 :-
Gold is an asset which almost all the household possess but holding gold in the physical form has its own limitations such as wear and tear, loss by theft and everything. Gold in digital form is the best way to invest in Gold. Gold also acts as a shield for your portfolio because it goes against the market as it has an inverse relationship with economic stability and thus does not disappoint you when the GDP, economic security is affected.
- Equity Markets
Equity is something that one must be exposed to but also invest in it according to their risk taking ability and financial goals. Those who are looking for high returns should definitely try learning about it and investing in it as it has the highest scope of growth amongst all other assets. However, there is a safer way to invest in Equity as well, which is to invest in index funds. Index funds is a combined fund comprising the stocks of all the top performing companies and thus investing in index funds is like investing in the best performers and market leaders of mostly all industries.
Debt is the next asset class to be considered in this process of learning how to make passive income and that too with ease. Debt includes assets like Bonds (Corporate and Government), Treasury bills, PPF (Public Provident Fund) and EPF (Employees Provident Fund). This asset class mostly gives fixed returns and is safer as compared to the Equity class because of the creditors having the right to be paid before equity holders. This works as one of the best asset classes for the beginners in the year 2021 as investing in Bonds (especially Govt.) is very safe, does not require a lot of research on your part and also gives decent returns.
Insurance is one of the most mis-sold financial instruments possible. Although it also has the possibility to create passive income but it is at the cost of the financial ignorance of the investors as the returns are compromised and often only for very long term time frames.
This asset class is considered to be best understood because of it being a very common and old one. People owning property and getting rental income from it is one of the easiest things to understand. This asset class is believed to have a constraint of having less funds which was very true until recently. Now we have REITs (Real Estate Investment Trusts) wherein we can invest very small amounts as well and be entitled to get rental income. Even warehousing with higher ticket investments can be considered for better monthly income if more control of the property is a need of the investor.
Taking actions on the above might seem like a lot but not taking actions and being in the same static state for years is no less worrisome. It is important to understand that financial growth will not come on its own, especially not when you have put all your corpus into the bank and are waiting for it to de-grow. Therefore, it is important to learn how to create passive Incomeand work more on learning about Passive Income Ideas in India. May 2021 gives you that one motivational push to start your passive income journey!
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