Investors Explore New Age Platforms to Earn Passive Income, Experts Say
Falling interest rates on fixed deposits in banks have forced investors to diversify and invest in options that can generate higher returns. According to market experts, the pandemic has also caused a shift in consumer behavior, with investors focusing on passive income investments rather than speculative assets that only offer opportunities for capital gain.
Some of these new generation investment options that are gaining traction are investing in peer-to-peer (P2P) lending and fractional real estate investments.
According to Bhavin Patel, co-founder and CEO, LenDenClub, these new era technology platforms are emerging rapidly in India with increasing digital adoption.
“Millennials, being digital natives, have been particularly drawn to these new ways of investing because of the end-to-end online execution, the simplicity of the platforms and the higher returns. The last one and a half years have further stimulated the advent of investment tools independent of market volatility. The current generation of investors believe in being active drivers of their portfolios and technology-driven alternatives that offer them higher returns compared to traditional instruments like FD. I’m sure the coming years will revolutionize the way Indians think about investing, ”Patel said.
While talking about different options, Sudarshan Lodha, co-founder of Strata, said investing in commercial real estate is one of those permanent investment options for UHNIs (high net worth people) and institutional investors. However, with the introduction of the fractional investment model, many retail and NRI investors are turning to this high yielding asset class.
“Split investing has made commercial real estate investments affordable. The option earns monthly income from the start of the investment, and the investor enjoys better capital appreciation than other real estate investments. smart way to invest in real estate, ”Lodha added.
Another avenue that is gaining momentum, according to Gaurav Dahake, founder and CEO of Bitbns, is cryptocurrency.
“Cryptocurrency is growing in popularity due to the price appreciation and passive income that investors earn through staking. , in return, earn additional coins. Crypto staking is a new cost-effective and profitable way to provide passive income to crypto investors. Unlike fixed deposits, where investors’ money is blocked for a specific period, in staking , you can trade at any time and earn rewards while keeping the stock market. You can earn an annual return in the range of seven percent to 16 percent by staking, “said Dahake.
With passive investing, individuals can start to generate returns from the very consecutive investment month and earn decent passive income month after month. In addition, there is a lot that investors can do to mitigate risk and control their investment by creating a diversified portfolio with investments across different interest rates, cities, gender, purpose, type and spreading their risk through low cost investments. between products.
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First publication: STI