Top tools for passive income: what an investor should take a closer look at

There is an opinion: in order to make money on investments, you need to actively trade and devote a lot of time to it. In fact, this is not always the case. Some assets allow an investor to receive passive income — a well-built portfolio minimizes your time in the market.

Passive income is a way of generating income that requires minimal or no effort. So, working and receiving a salary is an active income, and renting out your own apartment and receiving monthly payments from tenants is a passive income.

For many beginners, the market is a place where you need to actively work with your portfolio in order to make a profit: look into it every day, closely monitor the dynamics of securities, look for more attractive ideas and immediately move into them. In other words, not to miss a minute, otherwise, as it may seem, everything will be lost.

Nevertheless, a number of tools allow you to earn money for those who are not yet ready to spend a lot of time on the market. Yes, it will take effort if you haven't figured it out yet, but once you've mastered the basics of investing, there are plenty of opportunities for passive income to make you.

We offer our selection of solutions that will make you feel confident in this.

Bonds

Bonds are debt securities that work like a receipt: you borrow money from the issuer, and they commit to pay it back to you. The issuer can be companies, municipalities and states.

Such instruments are considered the most conservative and reliable on the market, so they are suitable for a "passive" portfolio.

An offer is a proposal to conclude a transaction, which sets out the essential terms of the contract, addressed to a limited or unlimited number of persons. In the case of bonds, an offer is an offer for early redemption of the bond by the issuer at a predetermined price.

Redemption of a bond is the termination of its trading on the stock exchange and the return of invested funds to the owners of the security.

Mutual investment fund (UIF)

Investors who are not ready to engage in self-compilation of a portfolio or do not find time for this can turn to ready-made solutions, for example, mutual funds.

A mutual fund is a fund that combines the money of several investors (shareholders) and is created by professionals.

Among the advantages are the diversification of assets, their availability and time saving. In addition, if you are not completely confident in your abilities, you can choose a mutual fund created by professionals you trust

The opportunity to invest in the Russian stock and bond market and receive quarterly payments at the same time is provided by the BCS Capital fund. The priority is stocks with a good dividend yield, corporate and government bonds with interesting coupon rates.

As a result

In the market, there is an opportunity to earn with minimal effort.
For such purposes, it is worth considering bonds - a reliable and conservative instrument.
A ready-made solution will minimize time on the market and allow you to generate income through the work of professionals — mutual funds are suitable for this.