3 Ways to Get Additional Business Capital from Passive Income

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3 Ways to Get Additional Business Capital from Passive Income

3 Ways to Get Additional Business Capital from Passive Income

Passive income or better known as passive income is the income you get from an economic activity without being directly involved in it. If you need additional working capital to develop your business in the next few years, you can use the capital that you currently have to get passive income.

The question is, how?

The best answer is to invest capital or business profits that you already have. There are lots of investment instruments that you can choose from, from those that provide low returns (time deposits, deposits, etc.) to those that provide high returns (stocks, mutual funds, securities, etc.).

Although there are many investment instruments, it is highly recommended that you choose the instrument that has the lowest risk. Here are 3 investment instruments with relatively low risk that are suitable for increasing your business capital in the next few years:

1. Time Savings

With term savings, you can deposit a certain amount of funds within a certain time according to the agreement, and in a fixed amount. The money that you have deposited can be disbursed at the end of the period of the deposit is due.

Time savings have a slightly higher interest rate than ordinary savings (around 2-5% per year), but the amount is still below the deposit interest rate (around 4-6% per year).

Term savings usually use the auto-debit feature (the balance in your bank account will be deducted automatically), so you don’t have to bother depositing your money manually.

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2. Securities

Securities such as bonds and stocks are one of the right investment instruments and can prove profitable if managed with good management. You can buy stocks or bonds through securities companies or banks.

One of the securities that you can buy is Indonesian Retail Bonds (ORI) which are issued by the Government for national development.

Meanwhile, if you want to buy stocks, you must first carry out an in-depth analysis (fundamental analysis) to ensure that the stock you are going to buy has a good past performance, and has the potential to generate capital gains in the next few years.

You need to know that investing in stocks has a large enough risk because the price is very volatile. However, this is worth the potential benefits that you can get later.

3. Mutual Funds

Mutual funds are another investment instrument that you can take advantage of. Mutual funds are managed by an experienced and certified investment manager, so you no longer need to bother analyzing investing in stocks.

There are 4 types of mutual funds that you can choose from, namely equity funds, mixed mutual funds, fixed income mutual funds, and money market funds.

Money market mutual funds are the most appropriate type if you want to get additional venture capital. This instrument has the lowest level of risk among other types of mutual funds, but has a relatively higher return than deposit interest.

Thus the discussion about 3 effective ways to get additional working capital from passive income. For your business to grow, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and gives you many options to market your product.

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