What is Passive Income
Passive income is earnings derived from a rental property, limited partnership or another enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. Portfolio income is considered passive income by some analysts, so dividends and interest would, therefore, be considered passive.
What is sip??
A systematic Investment Plan is an investment vehicle, where an investor makes fixed, regular payments into a mutual fund, to reap the benefits of long-term investing. It helps you gain exposure to your selected asset class through the investment of a small or large amount of money, at fixed intervals and in a disciplined manner. Benefits of a SIP The compounding factor: make your money work for you by generating earnings that are further reinvested to generate their own earnings. The compounding process ensures that both the capital gains and interest earned from an investment, earn interest, as time passes. Rupee cost averaging: trump the maxim “buy low, sell high” by automatically adjusting quantity bought against price, to average the cost of acquisition over time. Investing a fixed amount in the markets, at regular intervals helps lower the average cost of investment, as one buys more quantity when the price falls, and less quantity when the price rises. Market timing becomes redundant: invest wisely across market cycles, reducing the impact of volatility. Since investments are made at fixed regular intervals, timing the market for appropriate entry levels becomes less important. I have explained the wise way to use the credit card in short, you have to make the payment in full always, as credit card debt is a vicious circle. I have also explained why you need a financial planner.
To consult Bhaven, CFP
What’s app- 9004789500
To consult him for your personal financial planning click on the below link.
Also, visit our website- https://theartofwealthbuilding.com/
To open an account with zerodha, and invest in direct mutual funds and purchase stocks click on the below link