The Beauty of Passive Investments

When people hear the word investment, they would normally conclude that it entails money and effort. It entails money, yes, but effort can be less depending on the nature of the investment as it always goes hand in hand with the time spent to earn from it.

This isn’t going to be a technical description of investment but rather on how much effort will the investor give in exchange of a reasonable profit.

There are people who would prefer to fund a certain business rather than putting it up on their own. They are passive investors doing passive investments. An example would be investors will buy shares in Jackson real estate company rather than starting their own real estate firm. The real estate company already established a name of their own and there is no need to promote its presence through advertisements and this happens to be the most time-consuming and energy demanding.

However, since the investor just provided funds and didn’t exert that much effort, it is just rightful that he or she will get lesser percentage on the net profit. It would be agreed by both parties and should be put into paper with legal arrangements.  This is to protect each party’s interest.

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11 Responses to The Beauty of Passive Investments

  1. i always want to invest. for now the passive investment is all i can do.

  2. Chris says:

    Investing in real estate is a smart move these days. The downpayments are low, same with the mortgage.

  3. Paula says:

    We have shares in the stock market so maybe that means we’re passive investors too.

    • Gene says:

      I wish I know anything about stocks. As of now we’re planning on investing into real estate. Then hopefully we’ll get to have our dream home soon.

  4. Aileen says:

    Thank you for the very simple explanation. I tend to shy away when the topic is about investments and stocks hehehe. I don’t know, it just probably has not sunk in well with me yet.

  5. anne lei says:

    there are seminars conducted every month at PSE. Check citiseconline.com for information.

    me and friend will be establishing a lending business. pakners kami.

  6. Bonz says:

    still saving up to be a passive investor too. hopefully, i can invest soon. :)

  7. Surplus funds can also be considered as potential for investments. That is if the owner of the funds is interested to invest. Speaking of investment here, I’d rather prefer investing my surplus funds by putting it to a trust fund or any other investment facilities. That is if I have a surplus funds. This is what I am doing, most often, investment of surplus funds. And I enjoyed it since, we can use anytime once we need some money to buy something (very important–like tuition fees), we can have it thru a loan availments. :-).

    Nice thoughts in here. :-). I can relate it since I am a banker.:-).

  8. Janice says:

    ‘…Investing in real estate is a smart move these days.

  9. Gene says:

    Thank you. As of now, we’re only focusing on a cooperative in our area.

  10. WOW just what I was searching for. Came here by searching for forex blog

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