We have all been looking for the best passive income ideas in india and we definitely come across a lot of options while we are at it. But, do we have enough corpus to be put in these diverse asset classes? Well, certainly not everyone has enormous capital at all points in their life. That is why it is very important to know about those asset classes which give us good returns and do not require large amounts of investment.
There are many who know how to earn passive income but do not have enough to invest or they think that they do not have enough which may turn out to be their lack of knowledge about the initial investment required in few of the assets. There are assets in which one can invest a very small amount as well and get good returns on it, the income on a small amount will be in proportion to that only but the money will be growing.
Some of the asset classes requiring low investments are :
- Sovereign Gold Bonds or Gold
Investment amount: under Rs5,000
Gold is one of the most reliable asset classes which has given positive returns especially in the times of crisis. This includes the 2008-2011 Global banking crisis as well as the current COVID-19 pandemic.
When one thinks of Gold as an investment, they simply assume that it is going to require a lot of money to buy Gold. This is a big myth. One can invest in Gold for as low as Rs 5000. It has become very simple to invest in Gold Bonds as there are a lot of platforms and applications such as Paytm & ET money. The best part of investing here is the benefit of 2.5%-2.75% fixed interest that comes in your bank account passively with an opportunity to make big money from long term and safe gold investment.
- Corporate Bonds
Minimum investment Rs10,000
Many people who are not happy with the low interest of bank FDs are disturbed today. While there are limited passive income ideas in India which can replace an FD, these people still have immense opportunity to create passive income using FD type similar investments with low capital investment. Corporate bonds are one such option which can offer upto 9% annualised return under secured bonds safety. Many AAA & AA rated companies with great financials are offering such options which are today better than bank FDs as well as Corporate FDs. Not only are these bonds liquid as they trade on stock exchange but one can invest as less than Rs10,000 into these and reap the benefits of low investments and high returns.
- REIT (Real Estate Investment Trust)
Investment amount: under Rs 2lc
This method of investment in real estate is a more passive way and is likely going to be the future of real estate investments in india. A real estate investment trust can be understood as a mutual fund holding several real estate projects. The fund is managed by professionals and it does not require your active involvement.
It does not require a lot to invest in REITs typically under Rs2lc, whereas it takes a huge amount to buy an actual property. Thus, REIT makes the job of investing in Property really easy and also removes the barrier of requirement of huge funds. Best part is that the rest comes in your account directly without any effort and passively.
It is important to know about all the asset classes and then see which of the asset classes align with our requirements and then invest accordingly. These three passive income ideas in India can really help an individual with less investments to get started on their passive income journey.
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