Passive Income in layman’s terms can be described as a income which comes even though a person is not working actively. Passive Income can come from different sources like rental property, real investment deals in which a person is not directly related. Passive Income though taxable, can make you financially free and when a person is financially free, one can leave the desk job if one wants and pursue the life of one’s dreams. Believe it or not, a person can earn passive income even when he’s asleep.

Investment in equity and Investment in Real Estate are two big ways in which a person can increase his ways of earning passive income. In this article we are going to discuss on which one of the two is better.

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Investment in Equity

In every mutual fund related advertisement consumers have frequently heard about how the mutual funds are always subjected to market risks. But if one can ignore that investing in equity can come with its own set of benefits. If anyone is thinking ofdirect investments in Equityit needs more research on the part of the investor on how you can either purchase or sell off stocks according to the rise and fall of the market. The best form of Equity Investment though is always through a mutual fund. Equity mutual funds offers the customer the best benefit that is they save the customers from the hassle of tracking the stock markets regularly. Investment in equity funds have various forms and they are index funds, diversified funds and sectorial funds among others.

Investment in Real Estate

Real Estate Investments is a potential source of renewable capital. Real Estate can be the best option when it comes of the growth of on going passive income and as per the experts, investment in properties or renting ofproperties or RERA mutual funds is the best forms of Long Term Investment. The low cost and the track record are the two most important features of the Real Estate Investment that the Investors like to swear on. Real Estate Mutual Funds are the best way to invest in Real Estate.Besides, the strategists of  the real estate mutual funds, are noted Nobel prize winners, therefore investing in Real Estate mutual funds is a safe and beneficial all gains process. The Real Estate Mutual Funds have broad diversities among real estate holdings and low fees.

Conclusion: Which one of the two is better?

Both. Investing in mutual funds when it comes to both Equity and Real Investment can be profitable to the user. Be it Real Estate or Equity, Always try to invest in the kind of mutual funds which not only has a strong and excellent history of dividend growth but also pays you a strong dividend. When building an investment portfolio try to research and put your focus on buying the companies which gave a strong history of both dividends and strong financial growths.

Last but not the least, do a steady research before investing and stay true to your investments.