Key points:
- Technology allows us to earn passive income, one way being through safe bond investments that generate regular returns.
- Bonds, especially government bonds, are a low-risk investment option that can provide you with steady returns, like a monthly salary.
- With the digibank by DBS app, you can invest in bonds anytime, complete with risk profile guidance and access to the digibank Advisor.
Want to earn passive income from bond investments with the right strategy?
The government has just issued a new bond, SR021, which could be the perfect choice for you!
Twenty years ago, who would’ve thought being a YouTuber or a TikTok celebrity could make you rich?
Thanks to advanced technology, life choices have become more varied, and the opportunities for growth are wide open. Information moves quickly, and many of us are now challenging ourselves to achieve new financial goals. Some dream of early retirement, wealth, and happiness. But is it possible?
The answer: absolutely! Technology has also given us the chance to earn passive income, meaning money comes in every month while you relax.
It’s no secret that well-managed passive income can be a key to long-term prosperity.
As workers, there are two ways to get passive income: start a business or invest. But starting a business might not be the first choice, as there are many details to consider, and the risks can be greater compared to investing.
Now, when it comes to investing, there are plenty of instruments to choose from. But remember, any legitimate investment comes with risk. Don’t worry, though—these risks can be minimized if you understand your risk profile and choose the right investment.
One investment instrument with relatively low risk, especially for busy professionals, is bonds. Why? Because bonds are considered quite safe, particularly government bonds, which have a low default risk as they’re backed by the government. No need to worry, as bond coupon payments are always budgeted through the national budget. Plus, bonds can offer double benefits! You can earn from both the coupon and capital gains from price differences in the bond market.
Bond investments can give you passive income through returns or coupons paid regularly—either monthly or semi-annually, depending on the bond type. When you buy bonds, you’ll get a detailed explanation of the returns in the form of interest or coupons.
The coupon rate is usually set at the start. Some offer a fixed rate, while others have a floating rate that adjusts with market interest rates. Either way, with a bond coupon, you’ll receive regular passive income, just like getting a monthly salary. Pretty sweet, right?
Let’s check out a simulation:
Suppose you invest in SR021, the newly issued government bond, with an initial investment of IDR 50 million and a 5-year tenor. You could receive a return of around IDR 268,750 per month*. That’s a nice extra for coffee, streaming subscriptions, or even reinvesting.
Sounds good, right? Don’t want to miss out on passive income from bond investments? It’s easy! Just download and open the Digibank by DBS app.
On the digibank app, you can invest in bonds anytime, anywhere.
- Click “bonds” and check out the available products. If you’ve found the bond you want, just answer a few questions to assess your risk profile.
- Next, create an SID (Securities Identification Number). Once created, you’ll receive a notification via email.
- Once your SID registration is successful, head back to the digibank app to browse the available products.
Need more detailed advice and strategy discussions tailored to your risk profile and financial goals? You can schedule a session with a digibank Advisor.
Remember, investing is a lifestyle. If you keep putting it off, when will you start? Begin now so you can enjoy the benefits sooner!
