ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Income investing involves building a portfolio using dividend-paying stocks, bonds, real estate, and other assets designed to generate cash on a recurring basis. With income investing, once you buy the asset, there isn’t a whole lot more to do. This is buy-and-hold passive investing at its best.

Detailed explanation-2: -Investment Income: “Investment income” includes interest, rents, royalties, dividends, capital gains, and other income derived from an asset.

Detailed explanation-3: -Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies in the asset class mix.

Detailed explanation-4: -There are several types of income-generating assets ranging from real estate, stocks, savings accounts, certificates of deposit to private equity. Each of these will have its own pros and cons, which are important to keep in mind as you consider which will be best for your portfolio.