So you wanna build an asset, you are in the right place.
There are many ways through which you can build your assets and earn passive income. In this blog 6 such methods are discussed.
Real estate
This is the most powerful asset in which rate grow around 6% per annum and it increases with suburbs. But the drawback is heavy capital is required. It high cost low-risk investment. Invest when the market is not hot then only you can make more profit from it. While investing check the various factor which can affect the pricing. You can also start investing in a small amount through REITs(Real estate investment trust) pool fund in which a large number of investors and invest the money in rent-generating properties, which are usually commercial properties like offices, shopping centers, hotels, etc.
Stock Market
It is one most common asset to invest on. You buy the share of the company and if the company does well you earn a profit on that share. It is a high reward and high risk, but by proper guidance and knowledge, you can minimize the risk factor involved. There are some
books which will give an insight into the stock market. Buying any stock evaluation is recommended and please do not involve emotions in it. If you get excited when stocks go up and nervous when the market goes down then you might an emotional decision which may harm you in the future.
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Mutual Funds
This is the safest option to begin investing. It is somewhat similar to the stock market but the decision on investing is done by the professional. This long term investment and you will get good returns after 5-10 years. Returns can vary from 10-27%. Investing in the mutual fund has become very easy by online portal, I use Groww App if you want to start you can use my
referral link. If you want to invest in a small amount you can do SIP (Systematic investment plan).
Bonds
When you purchase any type of bond which can be of government, convertible, callable, etc, you are lending money to the issuer which may be a government, the corporation, a federal agency or any other entity. In return, the issuer promises to pay a specified rate of interest during the life of the bond. The issuer also repays the face value of the bond when upon maturity of the term. This is the risk-free investment that has a fixed interest rate. Some bonds offer quarterly returns.
Cryptocurrency
Cryptocurrency is a very volatile market and emerging market. One day it goes all-time high and next week value may become half of it. But as I said it is an emerging market it will grow in the future. There are more than 2500 cryptocurrencies you can invest in. Philosophy and technology determine the value of the cryptocurrency.
Create your own product
You can build your own product such as music, writing a book, creating courses and many more which will give you royalties of it and you can earn tons from it.
Create a website and start selling products or you even try dropshipping. There are many ideas, keep looking till you get the best idea you can work on.
Invest in yourself
Last but one of the most important asset you can ever build and it will help in the long term, once it is built it cannot be lost. Improve yourself by reading books. Try to learn things which will help in self-development. Set goals. Start with small and eventually make it big. Attend seminars and workshops to expand your knowledge and skills. This will also allow you to meet like-minded people.
