Salaried individuals must explore alternative investment options for passive income
By Lokmat English Desk | Published: June 28, 2021 10:28 AM2021-06-28T10:28:47+5:302021-06-28T10:28:47+5:30
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There is no denying that financial planning has become very important in the Corona crisis. But Corona has taught the working class a good lesson. It is necessary to provide for passive income, ie other means of income, to meet the financial crisis in times of crisis.
We are going to look at some passive income options that do not require much effort. Good returns can be obtained by investing a certain amount from the monthly salary of the working class. This can create a new source of income.
The craze of REIT, cryptocurrency, peer-to-peer lending has increased a lot in the last few years. But anyway, when investing in any place, it is very important to know all the details. It is important to know the pros and cons of investing in advance.
The stock market and mutual funds are two traditional investment options. The number of investors has also increased during the Corona period. Investing in the stock market is risky, but investing wisely can be very rewarding.
If you include large and small companies in various sectors in your portfolio, you can manage the returns in a smart way. Mutual funds are also a safe option. But equity funds carry more risk.
In addition to the stock market and mutual funds, peer-to-peer lending is also great savings option. Apart from this, options like lease financing, venture capital, fractional investment, REIT are also available.
Peer to Peer (P2P) lending platforms have brought much better returns generating debt instruments to investors etc. Mutual funds or stocks are known instruments. However, P2P lending is a new kid on the block to give people diversification options in their debt portfolio.
Through Venture Capital, you can invest in a business idea. You get leverage to grow your business faster with your business plan and your financial support.
The reason for the sharp rise in investment over the last few years is the decline in interest rates on traditional options such as savings accounts or term deposits. So now the consumer trend towards investment has increased. Because it gives you very good returns.
