Just imagine how it would be if, along with the money you earn in your daily life, your job and your work, you also get an additional passive income which gets credited to your account every month and you do not need to give any additional active time for it. Yes , this is actually possible. And in today's video I will tell you five such tried and tested and practical methods. And the best thing about these methods is that you do not need lakhs or crores of rupees to earn passive income from them. You can even start a passive income for yourself with an amount of Rs 1000 or even less. Now along with all these methods, we will also discuss the risks associated with these methods. So that you can get a complete picture of things and the purpose of making this video is that by the end of this video you should be able to choose the right asset classes for yourself according to your risk appetite and your financial goals. So the first asset class on our list is corporate bonds, and in this you will see one of the lowest risks compared to our other asset classes. Now if you talk about corporate bonds, then outside India, in countries like US, the retail investors there have been investing in the US bond market for a long time and they invest in it on a very large scale. But particularly in India, bond investing is still largely unexplored. Where 95% of retail investors in India are still unable to explore the actual potential of bond investing. And the reason behind this is that till some time ago, bond investing in India was not so accessible to retail investors. Because earlier, if you had to invest in bonds, you needed a huge capital for it. That means you needed capital in lags. Plus, even after investing in them, the tenure of these bonds, i.e. the money you would get back after maturity, was around 8, 10 or 12 years. Where it would have been a big task for that investor to recover his money by selling his bonds before time. But then in the last few years, our SEBI has made bond investing much more accessible to retail investors. Where today a retail investor can start investing in bonds with even ₹1000. In this he can choose these 10 years himself. In which 10 year bond should they invest? Plus, here they can also see whether they want the interest on the bond on a monthly basis, annually or semi- annually. Now before I show you practically how you can select the right bond for yourself. First of all, you need to know the most important factor in case of bond investing which is the credit rating of a bond. The credit rating decides how much interest you will get in the case of that bond and how much risk you will face in it. Where in case of each bond, a third party credit rating agency provides a rating to that bond according to its risk factor. And that rating is visible in the manner you see it on your Right Now screen. So this rating starts from Triple A where Triple A is considered one of the safest category of bonds. And for this reason, the returns you get in this are also the lowest. And as you move from A to D rating, the risk of your bonds increases. And along with that, the returns offered to you also keep increasing. And if a person is investing in bonds for his passive income, then it is suggested for him not to go below A rated bonds. Because in such a situation you face risk on your capital. And it is important for us to protect our capital. Because if we want higher returns then for that we can also invest directly in the stock market. Now let me give you a quick demonstration of how you can select the right bond and what are the risks, parameters and factors that you should keep in mind while selecting a bond. So for this entire process I will use the Wintwth platform. Because it is a SEBI registered platform and I myself use it for my bond investing. But let me tell you here that this is not any kind of promotion. Nor did they pay me to promote anything to you. If you want, you can use any other bond platform. But keep in mind that in his case it should be SEBI registered. In his case, you will see good liquidity of bonds. So if I give you a basic demonstration, here we will first click on Bond Investing and apply a basic filter that we have to select such bonds which are starting from ₹1000. So here we will get to see all the bonds. Let's suppose we pick a random bond which is an A rated bond. Because A rated, you will get to see the least risk and comparatively your money remains more safe here. So we select SMC Global. Now let me tell you here that SMC Global is not a recommendation. I am looking at this just for example. So first of all here we will check the basic details of the bond that the total returns you will get year till maturity will be 10%. Maturity Left 20 Months and it is an A rated bond. Apart from this, one unit of this will cost you around ₹1000. Where if you invest let's suppose ₹17,000 as mentioned here, then you will get an interest of ₹3,476 from this bond. If we talk about the highlights, the security cover of this bond is 1.1x. That means if this ₹1 is being taken from you as a loan, then 1.1x of it is kept as collateral and the Wyndth platform itself holds 2% holding in this bond. If you look at its creditors, that is, which people or institutions have invested in this bond and lent money to it, then lenders like HDFC, Federal Bank and Bajaj Finserv come under it. That is, which are trusted names. If you look at other information, the first information you have to check is comfort and risk. Where first of all you have to pay attention to the risk parameters. Because as I have already told you that even though bonds are much less risky than our security market, still there is some amount of risk in them. So in this case you have to see what risk is involved in it. So the first risk is exposure to inherent capital market volatility. That means they invest in some assets from the capital market. Recent increase in NPAs. That means, their NPS, that is, their landing business, has seen some recent increase in NPS. So here in such a case we will have to see whether the NPS of other NBFCs are also big in this industry or we are seeing this risk only in their case. Now after this, if you check other details like if you see the overview of the company, then in the overview you will get all the details like what is the issue size of the company? That is, how much money do they want to raise from the market through this bond. For how much duration do you want to lift it? What is the coupon type? Like in this we are seeing fixed, then you will get a fixed interest and all the other details other than what has been the financial statement of this company, revenue, profits, debt to equity ratio, you can check all these things, you can check the rating of the fund i.e. you can check the rating of the bond and other documents and the most important thing that you have to check includes two factors. Firstly, the company itself, i.e. the company whose bond you are buying, should not be a very new company and if it has a good name in the market, i.e., credibility, then it is better and secondly, as I showed you earlier, its lenders and its investors should be credible names. As we are seeing in the case of this bond. But I am telling you again that this is not a buy or sell recommendation. Apart from this, if you want a safer bond which is double rated or even less risky, then you can select that also. Now if you decide to select a bond and invest in it, then you can select your unit from here. Further, if you click on the investment amount on this amount, you will get the complete breakup of the price and how much is the principal amount ? How much accrued interest do you have to pay? How much brokerage will it cost you and what is the seller discount? And at the end the total amount is how much you have to pay for those units. Now let me tell you here that I have already made a separate video on bond investing. So if you want to understand this in more detail then you can refer to this video, to which I will provide the i button and the description of this video. Now after this, our second asset class is REITs i.e. Real Estate Investment Trusts with the help of which you can invest in commercial real estate such as office spaces, malls and even hotels. As we all know, the rental yield in commercial real estate is quite high as compared to residential real estate. And in its case we get to see rental yield of 6 to 10% per annum. But the problem here is that the prices of commercial real estate are also very high in comparison to residential real estate. Due to which they become out of reach of normal people. In such a situation, REITs are a type of trust which collects money collectively from many investors and then buys a commercial real estate with the help of that money. Let's assume he bought some office space. Then they will rent that office space to some company from which they will get rent at regular intervals. Now they will distribute that rent back among the investors of this real estate investment trust. In the same proportion in which they had invested in it and in this way we get a regular passive income from here. Now, the rental leads that they distribute are generally seen by you on a quarterly basis. And in the last few years, the REITs in India have given exceptional and good returns of around 9 to 12% per annum. But this does not mean that you will see similar returns in the future. It is possible that the prices and interest rates may vary depending on the market conditions and the nature of the property markets. Now if you look at the current situation in India, there are mainly five listed REITs whose list you can see on your screen right now. Where if you want to invest in any of these, then these reeds as you can see are listed in the stock market just like stocks. An example of which is Embassy Office Reads which is just an example. Please do not consider this as a buy or sell recommendation. In such a situation, you can see its market cap of ₹40,000 crores and the entry price in it is only ₹426. Currently, you can buy one unit of it even for less than ₹1000. And in such a situation, you will be able to see that all the other details of this reads i.e. financial details are mentioned here which you can check. And the best part is that just like stocks, if you want to recover your money by selling them tomorrow, then you can sell them immediately just like stocks. Now in such a situation, our third asset class is dividend stocks. Now in such a situation, you invest your money in the stocks of such companies which are very high profit making companies and they do not need to reinvest the high cash flow they earn back in their business because they are not actively looking for expansion. So that is why this extra profit is given back to its investors in the form of dividend. And it generally distributes this dividend on quarterly, semi-annually or annual basis and this is decided by the management of the company. Now in such a case, how can you identify dividend stocks within minutes with the help of a simple filter. Before I tell you this, let me show you practically what magic you can see by investing in a good dividend stock. So now in such a situation, if you go to our filters identifying high quality dividend stocks and choose any one high quality dividend stock in it, for example GEL, then we open GEL here. Now let me tell you here that this is not a buy or sell recommendation. We are just using this as an example. So GEL is a PSU company which works in gas distribution and it has the largest network of gas distribution pipelines in India. Now in this case, if we see that if someone had invested in GEL stock today in the last five years, then how much benefit would he have got on the basis of overall dividend in GEL. Due to its high dividend, 5 years ago the stock of GEL was trading around ₹60 and in the case of GEL, the dividend yield of GEL is 4.16%. That means the company gives a dividend of 4.16% to its investors every year on its stock. So in such a situation, if that person buys the stock at a price of ₹60 and if you look at these 5 years, then under the announcement filter, you will see how many corporate actions have taken place in the case of Gail. So if you total the amount of dividends distributed by GAIL in 2021 and 2022, it will come out to ₹32, which means that in these five years, GAIL has distributed a total dividend of ₹32. So, if you do basic calculations in the calculator, you had bought that share at ₹60 five years ago and we have received a dividend of ₹32 in the last five years. That means the total value of your investment in that stock becomes ₹92 and our time duration is 5 years. So in this case, on the basis of that dividend alone, you would get returns of 8.92% CAGR from Enam Gail, which is much higher than things like FDs etc. And things don't end here. This is just how we calculated the dividend. The stock price of GEL has also increased during this period. So in such a situation, if we also count the appreciation of the stock price in this, then our stock price has appreciated up to ₹178 or we can consider it as ₹180. So in this also, if we subtract ₹60 from ₹10 then our total comes to around ₹120. If you add this to the dividend, then overall our value comes to around ₹22. So after calculating ₹ 22 dividend from ₹60, our end value comes out to be that in the last five years, GEL has given CGR returns of 28%, which you do not get to see even in high quality small cap companies. Now, even in the case of dividend stocks, you have to keep in mind that past returns do not guarantee future performance. It is possible that you may see a change in your performance in the coming time. And secondly, whenever you are investing in dividend stocks, you must read the dividend distribution policy of that company. Because here we should make sure whether they will pay similar high dividends in the future or not. And for this you just have to go to Google and search the name of that company and then search its dividend distribution policy. Like here we can see the dividend distribution policy of GEL. If you have to read this, then here the company has mentioned, like here GEL has mentioned that they will distribute their highest dividend of 5% of the net worth among the investors. Now, if you want, you can take a screenshot of this filter we've created to identify high-quality dividend stocks and use it further, and even customize it to your liking. Now after this, in our fourth asset class, you can earn a regular source of income by investing in toll systems etc. on highways. The name of this entire asset class is InvITs i.e. Infrastructure Investment Trust. This is quite similar to REITs. But in REIT your money is invested in commercial real estate. Where you earn money from malls or office spaces. Whereas in their case i.e. in the case of Invits, your money is invested in bonds. Your money is invested in infrastructures like gas pipelines and power transmission infrastructure. Where generally, if our government constructs a highway, then after constructing that highway, the work of maintenance of that highway is done. Plus, to recover the cost of building that highway, it leases that highway to an Invit company on a contract basis. Where this invite first collects money from investors like us and then by bidding on the contract of that highway, they win that contract first. Then after that contract, when it comes to earning money from that highway, they install their toll systems there. Out of the money they earn from those tools, they keep 8 to 10% of it separately which is used for the maintenance of that highway and the remaining 90% of the money is distributed to the investors of this InvIT, that is, people like us, in the same proportion in which they have invested in it, in the form of dividend and they have this mandate from SEBI that they should distribute 90% of the money as a dividend among their investors and they distribute this dividend quarterly or semi-annually or annually depending on that company. Now, like REITs, InvITs are also listed in the stock market. Where you can see the top listed invites of India on your screen. Where different InvITs firms invest in different segments of infrastructure. And in these, you have seen returns of 10 to 14% per annum in the form of dividend, which are very good returns. But again I would like to tell you here that these returns are not necessary that you will get the same returns in the future. So you always have to keep this thing in mind and to invest in them, you have to directly search for it on the app in your stock market, directly on the platform and from there you can invest in them and can also sell them at any time. Now after this comes our fourth category of dividend paying mutual funds. Now earlier where we talked about dividend stocks, in the case of a dividend stock, we had to select it ourselves and identify its financials etc. and then invest in it. But here in the case of these mutual funds, they invest your money mostly in such stocks which are high dividend paying stocks and are of high quality and in this case minimum 65% of your money remains invested in such companies due to which you keep getting a dividend from this mutual fund in regular form and from time to time the allocation of your money also changes. For example, let's assume that the performance of those companies is changing or the performance of the market is changing. So in such a situation, your money is also invested in instruments like debt. Like bonds etc. and for that you get dividends from there in an overall consistent form. Now if you look here, if you go to Google and see the list of high dividend paying mutual funds, then here you will get to see some lists like this. Where if we pick up the list of a mutual fund from this, for example, if we click on ICICI PDL, then in this case, in the last five years, it has given returns of 282% on absolute basis. In which both dividends and their capital appreciation are included. The only difference here is that dividend investing for you is being done by a mutual fund owner, that is, the fund manager of the mutual fund, who is a highly qualified person. So here is the list of five asset classes that can help you generate stable passive income. Tell us in the comment box which of these acid classes you found correct. So thanks for watching this video till the end. 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