Top 6 Passive Income Ideas with Small Investments
Passive income is a concept that is highly sought after but also a highly misunderstood concept. Passive income investments do not necessarily mean ‘no effort’. At the beginning of the investment, you must nurture it with some time and hard work to start building it. Once the kick-off, they are sure to bring up a consistent and stable income without much effort from your side.
By adding passive income ideas to your income stream, you can diversify your portfolio and also help increase the earning by accelerating your financial goals. You can also use passive income channels to pay off your debts and also attain financial independence. Here are some of the best passive income sources for you!
Types of Passive Income
Passive income options have been attractive investments for the youth as well as the elderly. It has been recognized as a great means to generate cash flow. With the onset of the pandemic, many stood at a tough spot due to the uncertainty in employment. In such economic upheaval, passive income plays a vital role in bridging the financial gap. Here are some of the best passive income ideas.
Real estate crowdfunding is an excellent way to start your earnings from the real estate sector. Crowdfunding is a funding model whereby a group of investors come together and invest in a real estate project. By investing in crowdfunding options, you can stay completely passive as the property managers take care of the property and its maintenance.
Crowdfunding options are applicable for high-end commercial projects and often let out on rents. By investing in one of the crowdfunding opportunities, you can kick start your passive income with small investments and reap high capital returns and interest on your investment. By investing through crowdfunding options, your real estate assets become liquid. Assetmonk is a crowdfunding platform offering opportunities in main Indian cities such as Bangalore, Chennai and Hyderabad. We, as property managers, ensure that the property is very well maintained and improved on a timely basis. We also conduct research and due diligence on the property and thus ease the burden on investor’s shoulders.
By investing your money in rental options, you can not only earn a good amount as rent, but you can also earn higher capital appreciation. To start earning from your rental investment, you must put in considerable effort. You as the landlord should conduct adequate market research, evaluate the development prospectus of the locality and do your math. While calculating your expenses you are required to take into concern the tax liabilities, maintenance charges, mortgage repayment (if any), etc. You can invest in small warehouses or housing units and then let them out to start your rental income. Real estate is a tangible asset that is stable and less volatile. Thus real estate investment is one of the safer options to invest.
Cryptocurrency as an investment platform is gaining prominence in recent times. With the emergence of blockchain technology, the use of cryptocurrency has also spread across real estate investors as well. Real estate is traded using blockchain technology by breaking real estate assets into smaller blocks. This makes trading of real estate assets easier and thus helps in increasing the liquidity rate. By using blockchain technology and cryptocurrency, you can also invest in real estate with much ease as they tend to eliminate the high capital entry barrier for real estate assets.
Bank Fixed Deposit
Bank fixed deposit is one of the oldest ways of investing to earn passive income. However, this may not be highly rewarding. One of the main factors driving FDs is that it is comparatively less risky than other investment options. If you are willing to expand your horizon a little, then you can invest in Liquid funds which is also a type of mutual fund offering high liquidity. Unlike FDs, liquid funds are not under long lock-in periods.
Dropshipping is a source of passive income which requires smaller funds and is dealing with the management of online retail stores and using third-party to complete the orders. By engaging in dropshipping techniques, you don’t have to actively participate or deal with products directly. It is similar to the normal retailing business but it is different as the seller does not own or stock the inventories. the seller just purchases the inventory from the manufacturers or wholesalers in order to fulfil orders.
Dropshipping a channel of passive income that does not require upfront capital to get started as you need not purchase the products before the sales take place. You also need not know to code or build websites to start earning from dropshipping.
Affiliate marketing is a passive income earned by teaming with retailers and promoting their products. In affiliate marketing, you earn income in the form of commission on the sale of products or services which you have promoted. You can engage in affiliate marketing through social media platforms, email marketing, blogs, YouTube, etc.
Extra cash is always better and people in recent times have come to understand the concept of passive income and its opportunities. Many invest in passive income to secure their post-retirement needs while others try building their wealth. Investing in different passive income choices enables investors to diversify their portfolios and thereby mitigate risk. While determining your passive income investments, it is very important to know when to invest and when to exit.
It is also important that you invest in stable options which provide you with higher returns. Assetmonk is a crowdfunding platform that provides real estate investment opportunities in the top Indian market and offers properties with an IRR of 21%. We offer products in three main categories namely Growth, Growth +, and Yield. We also offer a wide range of investment options such as co-living, senior living, residential properties, commercial properties, etc.
Passive Income Ideas with small investments FAQ's:
You invest in crowdfunding opportunities, REITs, mutual funds, or stocks to start your stream of passive income. You can also start investing in these options with small investments and earn higher returns.
For a beginner, the priority should be to reduce risk and maximize your return. Real estate investments are an excellent choice to start your investments. If you have a considerable amount of money at hand, then you can invest in real estate properties using traditional means and in case you are investing with small capital, then it is recommended that you start your investment through crowdfunding options.
Investing in crowdfunding options, REITs, mutual funds, fixed deposits, stocks, etc. are all passive income options that do not require you to actively participate. Rental investment is one the best ways to invest your money, however as a landlord, it is important that you actively participate in the management of the property.
Rental investment or crowdfunding options can be a good source of income as they provide you with a good return and the asset is comparatively stable and less volatile. However, if you have high-risk tolerance you may also opt for mutual funds as they can earn you higher returns.