Earning a passive income in India is very important nowadays. The main reason for this is rising inflation, which makes it almost impossible to live on a single salary or one primary source of income.
Furthermore, even if your salary or income from the business is sufficient enough to buffer the fallouts of inflation, making some extra money doesn’t hurt.
Instead, you could use it for investments and make it work and grow to your advantage.
So, I am sharing the 10 best passive income ideas in India for 2021 and beyond. But, You might wonder what passive income is and how to make passive income. Therefore, I will first explain the differences between an active and passive income.
Active Income v/s Passive Income.
To help you understand better, here’s my comparison between an active income and a passive income.
- An active income is your source of money from a fixed job or business. Instead, a passive income is a source of money from assets.
- To earn an active income, you need to exert a lot of effort daily, such as at the workplace or in your business. In stark contrast, earning a passive income requires minimal or even no effort.
- Generally, active income can stop if you lose the job or make losses at business. Instead, a passive income doesn’t depend on your job or business and can provide you with enough money even while you’re not working.
- You can make money as active income daytime by going to work or managing your business. On the other hand, passive income enables you to make money even while you’re asleep.
Now that you’re aware of the difference between an active income and a passive income, indeed, you would want to find ways and means to earn one.
10 Best Passive Income Ideas in India
These best passive income ideas don’t require much educational qualifications or experience. Almost anyone can earn from these passive income ideas.
You can select one or two or even more and earn a passive income. Some of these ideas will start paying you immediately, while you might have to wait a bit for others to begin making money.
Blogging is the best passive income idea in India that I can offer to everyone. That’s because there are no upper limits to how much money you can make as a blogger.
In fact, many bloggers in India are now millionaires in their own right. That’s because their blogs have a very wide audience.
As a beginner, you can start a blog quickly.
You can start writing articles about anything that you know very well. It could be something to do with your profession or even about the place or region you live in.
Or you could write about your hobbies and passions. In many cases, you’ll require some superb writing skills and excellent research on the field about which you’ll blog.
There are many ways to make money by blogging. One of them is Google AdSense. You can subscribe free to Google AdSense when you have a certain number of unique visitors daily to your blog site.
Google will then display ads on your blog site. And whenever anyone clicks on these ads, you can make some money.
The other ways to make money with blogging are by affiliate marketing, accepting sponsored posts and selling advertising space on your blog site.
2. Become a YouTuber
YouTube is one of the largest video-sharing platforms, with billions of users and millions of content creators. To earn with YouTube, creators need to understand the platform’s policies and guidelines and follow best practices for audience engagement and content creation.
Some tips for success include identifying a niche, collaborating with other creators, and using analytics to track performance.
With dedication and hard work, creators can earn revenue, grow their brand, and build a sustainable career on the platform.
YouTube offers various ways to monetize content, including ads, sponsorships, merchandise, and memberships.
To earn with YouTube, creators need to build an engaged audience, produce quality videos, and optimize for search and discovery.
While it can be a challenging and competitive field, with persistence and creativity, it is possible to earn a living on the platform.
3. Selling Your Pictures
Selling pictures as a passive income stream requires photographers to put in the effort upfront to create high-quality and marketable images.
They should research popular topics, use relevant keywords and descriptions, and optimize their images for search engines.
By doing so, they can increase their visibility, attract more buyers, and earn a steady stream of passive income.
However, it’s essential to remember that success in selling pictures depends on factors such as market demand, competition, and seasonality.
Nonetheless, with dedication and perseverance, selling pictures can be a lucrative and rewarding way to earn passive income.
Photographers can sell their images through stock photo websites, which handle licensing, distribution, and payment.
To succeed, photographers must create high-quality, marketable images, research popular topics, and stay up-to-date with industry trends.
4. Rent Your House
Another thing you can do with a spare house if you have one, is giving it out on rent. Generally, a leave-license agreement, as it’s known in India for renting a property, has an 11-month validity.
In such cases, the person or family that takes your house on rent is responsible for its upkeep, though you might have to pay for any major repairs that might crop up without warning and due to nobody’s fault.
You can also rent out your flat to a company that wants to provide accommodation to its senior executives that’s on short-term visits. Look for the top Real Estate websites for renting and selling property.
That way, you are assured of a fixed income every month from this company in the form of rentals. However, renting an apartment or house in India isn’t without its own hazards.
There are countless cases where tenants have laid illegal claims to the house and refused to vacate it despite serving legal notices. Therefore, be very cautious when renting out your house to anyone.
5. Invest in Stocks
Investments in stocks are one of the best passive income ideas that I can provide. As you would know, the stock market is one of the best ways to build wealth in India.
Actually, there are two ways to make money from stocks, as a passive income.
One of the best ways to earn a passive income from stocks is by buying them during an Initial Public Offering (IPO).
And you can also buy Exchange Traded Funds (ETFs) during their New Fund Offer. An ETF is basically a collection of stocks or debt instruments that are traded like stocks on the stock exchanges.
The prices of stocks always rise, despite occasionally hitting lows. As a result, your money also grows a lot. You can withdraw the money by selling off your stocks or ETFs.
The other way is to place orders with your stockbroker. The stockbroker will then trade on your favourite stocks and earn you a profit.
In return, they get a lucrative commission while you can make a lot of profits by such stock trading.
6. Buy Mutual Funds
If you’re looking for the safest way to earn a passive income, invest your money in Mutual Funds. You can get between eight percent and 24 percent returns on your investment.
And sometimes, these returns can also go as high as 100 percent. All you need to do is visit the websites of Asset Management Companies that provide Mutual Funds and buy them.
The best type of Mutual Funds is the ones that come under the category ‘Direct-Growth.’ This means you’ll be cutting off any brokers in between.
There are two ways to invest in Mutual Funds for a passive income. One of them is buying units of a Mutual Fund with a lumpsum amount.
The other is a monthly Systematic Investment Plan or SIP. Both are equally good.
In a SIP, you’ll have to provide standing instructions to your bank to credit a specific amount of money towards your investment to the Mutual Fund house.
This is done by adding the Unique Registration Number (URN) that the Mutual Fund house provides when registering a SIP in the biller section of your net banking portal or app.
According to financial advisers and investment experts, Mutual Funds can give you superb returns as passive income over a period of 10 or more years.
In India, we have different kinds of Mutual Funds. These include Equity, Debt, Hybrid, Liquid, Thematic or Sectoral and Fund of Funds that invest in foreign stock markets too.
A superb portfolio of Mutual Funds will ensure your secure future too.
7. Creating Mobile App
Investing money in an orchard or farmland in rural India is the best way to earn a passive income.
In today’s digital age, the demand for mobile applications is continuously growing. With the rise of smartphones and tablets, it is no wonder that people are turning to mobile applications to fulfil their needs.
From ordering food to booking travel, there is a mobile application for almost everything. But did you know that you can also create a mobile application to earn money as a passive income?
For that, Learn how to create a mobile application. Discover the step-by-step process of building a mobile application that can make you money. At the same time, you sleep, and also explore the various monetization strategies that you can implement to maximize your revenue from the app.
8. Affiliate marketing
Affiliate marketing is a type of marketing where affiliates promote a product or service in exchange for a commission on the sales or leads generated through their unique affiliate link.
Affiliate marketing has become a popular way for people to earn money online.
When you can promote products or services through your blog, social media, email marketing, or any other platform that you prefer. You can go through this article to know how to create a Blog.
You only promote the products or services and earn a commission on successful sales or leads. Read this blog related to Amazon affiliate marketing.
The commission rate varies depending on the affiliate program and the product or service being promoted.
9. Bank Fixed Deposits
A Fixed Deposit account at any good bank can earn you passive interest by means of interest. Nowadays, most banks pay between six percent and 9.5 percent interest on Fixed Deposits.
Your money grows over a period of years. Generally, banks offer women and senior citizens an additional 0.5 percent as interest on Fixed Deposit accounts.
You can study the rates of interest offered by various banks before opening an FD account.
All FD accounts in India are insured up to the sum of Rs.100,000 by the Reserve Bank of India and its agencies. This means your investments worth Rs.100,000 are safe.
However, ensure that you select an excellent bank such as a reputed private or cooperative bank, nationalized bank or India Post Bank to keep your money. Here are some best options for fixed deposits.
In recent years, some banks have collapsed for various reasons, causing their depositors to lose lots of hard-earned money.
10. Create & Sell Online Courses
And finally, here is one of the best ways to earn passive income. Creating and selling your online courses has become an easy and fast way for someone to share their knowledge and expertise with a global audience.
With the increasing demand for online learning because it is very flexible to attend and complete it. Creating an online course is very easy, as also selling the courses.
To create an online course, first, decide your niche and what you want to teach on the platform at which you are best.
Once you have your topic, you can start creating your course content, including video lectures, examinations, and assignments.
After creating your course, you can sell it through online course platforms or through your own website or blogs.
Marketing your course through various social media and email campaigns can help you reach a wider audience and boost sales.
With dedication and hard work, creating and selling online courses can be a rewarding way to share knowledge and earn a passive income.
Passive income is the best way to achieve financial freedom with just a one-time investment, and it helps to create a more flexible lifestyle.
You can create a steady income stream by investing your time and money into suitable passive income streams without sacrificing your time or energy.
Whether you invest in real estate, dividend stocks, or create an online course, India has many opportunities to earn a passive income. So, get started today and take control of your financial future!