Stocks that regularly distribute dividends to their shareholders are known as dividend stocks. By investing in dividend stocks, investors can earn a passive income stream from their investments.
In India, rental income is a typical source of passive income. Investors that own rental properties can profit from the rent collected from tenants.
Mutual funds that invest in dividend-paying stocks are known as dividend mutual funds. Investors can benefit from the dividends paid by the underlying equities by purchasing dividend mutual funds, which provide a passive income stream.
Payments provided to the owner of a piece of property, an asset, or an idea are known as royalties. For example, a book author can earn royalties on their book sales.
An example of an index fund is the BSE Sensex or the NSE Nifty. Index funds are a form of mutual fund that follow certain market index. Investors who purchase index funds can benefit from the dividends that the underlying equities provide as a passive income source.
Real estate investment trusts (REITs) are financial instruments that own and manage income-producing real estate assets like hotels, office buildings, and retail centres. Investors can profit passively from the rent collected from tenants by purchasing REITs.
An affiliate in affiliate marketing receives a commission for promoting the goods or services of another business. People can generate passive earnings by using affiliate marketing to promote goods or services.
People frequently take online courses to obtain new knowledge and skills. Individuals can generate a passive income from the sale of online courses by creating and selling their own courses.
A popular platform for sharing video content is YouTube. People can generate a passive income from ad revenue by producing and monetizing YouTube videos.
Online purchasing and selling of products and services is known as e-commerce. Individuals can create a passive income stream from the sales of their goods by starting an online store.