Needless to say, that the world is growing at an amazing rate. So, in order to account for the changes, one might have to consider different ways of getting spare income other than the traditional sources. Many investment opportunities have opened up for people to move spare funds like gold, trading, real estate, dollar, bonds, etc.
Let’s take a look at how these investment opportunities can help one in diversifying.
Online trading is about making predictions about the rise or decline of assets like shares, indices and other assets. It is a user-friendly way to get additional income from the comfort of their homes. People can choose from various platforms to explore opportunities.
People often turn towards gold when portfolio diversification is the goal. They can either invest in the physical or the digital form. However, physical investments come with the limitation of making charges, storage expenses, inconvenience in selling if there are any impurities and the requirement of purity certificates. The digital route includes sovereign gold bonds, gold ETFs, gold mutual funds and virtual gold. However, one must remember that gold’s performance is linked to its price.
Sovereign gold bonds are an option if the investment period is of 5 years or more. People will receive interest payouts while also having the choice of making tax-free redemptions after an investment period of at least 5 years. Gold mutual funds or gold ETFs are an apt option for people who want a short term investment of about 3 years as this option does have high liquidity and availability.
3. Real estate
Owning a property is a great investment strategy, and many people are eyeing this investment front. However, one must remember that liquidity is one of the concerns of real investment. It can take months to find a buyer, and sometimes in a hurry, people might not sell the house at a fair price. People also need a significant sum of money to venture into this investment and the risk factor is high.
These are fixed-income instruments. Investing in them is less risky in comparison to stocks. Bonds can be classified into government bonds, corporate bonds, tax-saving bonds, bank & financial institution bonds. By investing in bonds, one can have a steady income stream, before maturity, with interests. However, the interest rates are low with this financial tool.
In the present day, additional income generation has become important due to the volatility of the economy and many other factors. With the hustle culture becoming prominent, people have diversified to explore additional income streams.