Top 5 Ways For Additional Income in 2022

To meet various lifestyle necessities, support from just one income source will never be enough to meet different short and long term financial goals. Hence various investment methods are considered and made depending upon one's risk profile, age group etc. to grow one's finances. Also the corpus accumulated through these ways can come in handy during contingencies. So, here are some popular or top variants for getting additional income:

Mutual funds:

This asset class is among the few buzzing investment avenues these days due to the booming equities and confidence of investors in the Indian economy. A mutual fund is a type of financial instrument comprising a pool of funds collected from investors to be put across assets such as equity, bonds, money market securities, bullion etc. SIP or Systematic Investment Plan in mutual funds is even more rewarding as there is a disciplined and consistent investment made through the route. Various life goals such as vacations, purchase of a car, child's higher education, marriage etc. can be planned through proper channelisation of funds in suitable mutual fund schemes.

Real Estate:

Surely, property purchase may be out of reach for many individuals but current low-interest rates, easy financing options and low real estate prices can be considered as all real estate forms be it residential unit, a commercial space, a plot and even agricultural land has the potential to grow your finance over the long term. More so, over the years there have evolved options such as REITs or Real Estate Investment Trusts that give you good exposure to the real estate market. On the real estate property you own, you primarily get passive income in 2 ways i.e. through an increase in property prices (capital gains) and/or rental income.

Gold:

An investment portfolio will be incomplete without this traditional store of value. Experts do suggest an allocation of 10-15% to gold which has the potential to run up when other asset classes such as equity, bond etc. tend to get riskier.. Now, financial investment into gold is being advocated as against physical buying which can be done through Sovereign gold bonds, gold ETFs, gold Mutual funds and digital gold. In the retail bullion market, the gold price has given exponential results exploding from Rs. 88.62 per 10 gm in 1947 to Rs. 49,000 per 10 gm levels currently.

Fixed deposits:

Deposits booked in at the bank or post office or NBFCs for that matter for a fixed term are referred to as term or fixed deposits. These bear a fixed rate of return and also give the option of premature withdrawal with some penalty charges. Currently, as we are in the low-interest rate regime, one can at most get a result of 6.3% on FDs at banks. NBFCs on FDs still offer higher results than banks with some of them carrying good credit ratings ensuring the safety of funds. So, conservative investors who are risk-averse, for additional income can deploy their investible surplus into Fixed deposits.

Trading:

Apart from regular investment avenues such as equities, mutual funds, FDs and bonds among others, a form of investment called Fixed time trading (FTT) has emerged as a great alternative. Typically FTT works on prediction and after you have zeroed in on the asset you wish to trade in, you need to set the investment amount and time against the trade, now in case your prediction for the trade is right you make extra, else your sum is lost.

Trading is a newly evolved alternative investment way to get additional income through platforms such as Binomo. Herein after you set an investment value and select an asset, you need to predict the outcome for the asset and in case your estimates go right you end up earning extra income else you lose your investment sum.

FTT in India context:

Over the years, there have evolved a number of such platforms that offer FTT in India and with the extensive use of smartphones this trading option is viewed as a viable way to earn extra income.

The choice for the right trading platform can be made considering the following pointers:

1.Regulation:

As it is the trading platforms are not of Indian origin and hence their licensing and regulation is of high importance. The licensing and regulations that can be looked upon are FCA, MiFID and CySec.

2.Availability of more number assets:

More assets will help you diversify your portfolio. Some of the brokers with standard accounts offer only a handful of assets and only if you open a premium account give access to more assets. So, here you would need to ensure that the platform offers the asset classes that you want to trade-in.

Payout is another criteria to choose a trading platform:

Look for a platform with a payout of between 70-85% and in no way settle with the one that pays too low a payout. Although all of them have their own pros and cons, among them we have selected Binomo as the best trading platform that is highly secure considering Indian standards which can be relied upon considering regulation by trusted independent entities.

In the end, we would like to highlight that trading on these platforms entails an element of risk of loss of capital and one should always use due diligence to minimize losses and increase your returns. If you do that, then the trading shall be a joy for you.

Hence, to supplement your income stream you can allocate your investible surplus to these asset classes after carefully evaluating your own profile and considering your financial goals that lie ahead.