Take help of Adviser street to earn second income never depend on single income.

Earn second income by investing.

Investing in liquid or debt mutual funds could be a source of generating extra income for anyone.

Eveyone work hard to earn money for living and enjoying their life . They do work very hard to earn money but they don’t let their money work for them to earn extra income. There are many options in the world to earn extra income . Two of these ways are to put your money in liquid funds and in accrual funds . Investing in these kind of fund can even secure retirement and even after retirement also you can invest to generate extra income. One of the pretty good advisors to help in investment is adviser street.

LIQUID FUNDS AND ACCRUAL FUNDS?

Liquid Funds are the mutual fund scheme in which the money is kept for very small period time, we can say preferably  not more than three months. As it is for short period of time the risk associated with it is very less as the volatility is less here. Accrual funds are the funds which are

 Invested  in Debt papers for short and medium time period to generate interest income. These funds usually do not take any interest rate/credit risk but stick to earning interest.

WHO AND HOW TO INVEST IN ACCRUAL FUNDS

According to financial consultant and advisors, retired people could invest in Debt accrual funds for higher post-tax income. These funds benefits more to those retired people who are in the higher income tax bracket (20% and 30%). For those who are in the 10% tax bracket, and also those who do not have to pay any taxes, bank fixed deposits are equally good, they say.

This is how the people who are in the 20% and 30% tax bracket can generate another stream of income by investing in accrual funds: The investor like adviser street will invest in the fund and subsequently should also set up a systematic withdrawal plan (SWP) for the same scheme. The SWP are set up in such a way that only the gains from the fund are transferred to the investor's bank account, at regular intervals, while the principal iss not touched. By which the investor gets the benefit of steady second income and also have to pay less tax as compared to if he have invested in Bank’s fixed deposit . This is because as per tax rules, only the gains are taxed not the principal amount. As per the financial planner and investors while investing in accrual funds, the investment option should be growth and not dividend.

INVESTING IN LIQUID FUND

You can get return upto 7% by investing in the liquid fund. As the banks cutting interest in savings account, Liquid Funds, which are almost a perfectly substitute product for SB accounts, could turn more attractive in terms of return.

At 6% annual rate of interest, even if the fund house has to pay a dividend distribution tax of about 28.3%, the post-tax return works out to about 4.3%. In case the fund manager can generate a bit higher return in the fund, the returns to the investors in the fund could also be proportionately higher.

To help more with investment contact us at

https://www.adviserstreet.com/