I am working professional, how can I generate a regular income from stock market without spending much time on it?
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If you want to generate income consistently and regularly, you will have to invest time and pick proper positions in the market. There is no way to generate regular and consistently periodic income from markets without investing your time unless you hire someone trustworthy and who has the experience to do this for you.
If you are looking for consistent returns, it is good to invest in Nifty index stocks. You can expect a decent return of 10 to 20 percent per annum.
Which is much higher than investing in mutual funds or in Fixed Deposits. If you are expecting regular income, then you can invest in dividend paying stocks or learn options and futures. It gives much higher returns but the risk is also involved.
Investing in Dividend paying stocks involves absolutely no risk.
Have a look on few dividend paying stocks here.
There are many strategies to generate regular income from stock market, but the only thing is the more you expect from stock market, the more risk you must take.
Covered call strategy is the best way to generate regular income if you have an investment of at least 10 to 15 lakh.
What is Covered Call Strategy?
Covered Call strategy is nothing but selling the call options of the shares that you are holding in your demat account.
For Example, if you are holding 250 shares of Reliance Industries for long term, you can sell the out of the money call options and generate regular income.
But you must select the far out of the money call options, so that the share value doesn’t cross the price till the expiry.
You can invest in mutual funds or you can sell options using low risk strategies.
There are many ways to generate regular income from stock market. You can invest in companies that are paying dividends frequently. There are few stocks that pay monthly dividends. Search for those stocks and study the fundamentals before you invest.
You can also earn regular income through covered call strategy.
There is no guarantee that you will earn regular income from stock market. Losses are inevitable in the stock market. But if you have a reasonably good knowledge on option selling, you can earn a decent amount (little higher than FD and mutual funds).
If you are a risk-taker and have basic knowledge of selling options, you can invest in bluechip stocks and sell far away call options.
You can also try SIP and mutual fund investment if you have no time to spend on the stock market.
List of Stocks to Give Ex-Dividend Next Week
I will explain how to generate regular income in simple steps.
Step 1: Find two blue chip stocks from different sectors that pay regular dividends to investors.
Step 2: Open a demat account with discount brokers.
Step 3: Invest in those stocks and monitor them once a month.
If you are looking for regular income then choose stocks that pay dividends frequently (once in 3 months)
Highest dividend paying stocks in India
Getting regular income from stock market is possible through dividend payouts. If you have enough capital and you don’t have time for active participation in stock market, dividend is the best way to earn.
Earn 1 Lakh per Year
Here are some of the Highest dividend paying stocks in India with which you can earn around 1 lakh per year.
Generate Regular Income from Stock Market (For Working Professionals)
Many employees try to generate a passive income apart from their salary. As a part of it they try multiple ways. Most of the working professionals tried investing in stock market to generate regular income and failed (about 99%)
I will give you the best working tips to generate regular income from the stock market.
I will also explain the practical tips and strategies that employees can implement to generate regular income from the stock market while balancing their job.
Things to do Before Investing
Start with Education:
Before entering into the stock market, you should invest time in educating yourself about basic investment principles and some strategies.
Assess Risk Tolerance:
Understand your risk tolerance level and investment accordingly. Employees with a low risk tolerance may opt for more conservative investment strategies, while those comfortable with higher risk may explore growth-oriented opportunities.
Strategies to Generate Regular Income:
Dividends:
Invest in fundamentally strong and dividend-paying stocks. Dividends provide a consistent source of income, suitable for working professionals who want to generate a passive income source.
Covered Call Writing:
If you can able to spend some time during the market hours, you can Implement covered call writing strategies, where you own the underlying stock and sell call options against it.
This strategy generates income through premium collection while potentially limiting downside risk.
Bond Investments:
Bonds offer fixed interest payments at regular intervals, providing a stable income stream. It is risk-free compared to investing in direct stocks.
Real Estate Investment Trusts (REITs):
Invest in REITs, which own and operate income-generating real estate properties. REITs typically distribute a significant portion of their income to shareholders in the form of dividends.
Systematic Withdrawal Plans (SWPs):
SWP is a mutual fund based plan. This allows you to periodically withdraw a fixed amount from your investment while potentially benefiting from market appreciation.
Tips to Generate Regular Income from Stock Market:
If you can able to implement the following tips before investing, you will definitely generate a passive income from the stock market.
Diversification:
Diversify your investment portfolio across different sectors, schemes and categories to minimise the risk and maximize returns.
Monitor Regularly:
Stay informed about market news, economic events (budget events, etc.,), and company related news.
Regularly review and modify your portfolio if required.