You can also generate money in the form of bonds and bond index funds.
A bond is essentially a loan that you give to a corporation or the government. In return, you receive steady interest payments.
With a bond index fund, you essentially give investors a set amount of cash that they use to invest in different bonds. These funds offer you more portfolio diversification and can reduce the overall risk.
Since bonds are generally less volatile than, say, stocks, they’re a good option for more conservative investors looking to earn money passively.
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