Online Tools Indian Investors Can Use to Generate a Passive Income

In 2020, PGIM Mutual Fund’s surveys indicated that most Indians have no preparation for their retirement planning. The surveys revealed that 51% of Indians had no financial plans, and 42% of Indians didn’t have any alternative income source.

Having multiple income sources is highly important for securing your financial future. It’s not just about a part-time gig or a hobby; it’s also about having a consistent passive income stream from where money comes in even when you are sleeping. 

Without these extra income streams, building a solid financial foundation can be quite a challenge.

Among older folks, 51% are looking for new income sources, and 47% are keen on passive income. That’s a positive shift, even if they’re getting started a little bit late.

On the other hand, Indian youth seem to be on the right track. About 58% of them are hungry for “higher returns on money,” and 56% are all about “financial security.” Which means they’re taking their financial future seriously.

Online brokerages and investment platforms have seen spikes in activity from young people.

Data shows that people in younger generations have their financial futures front of mind, and all indications are that they’re addressing this priority by seeking passive income through investment.

Creating a passive income source can be a bit tricky for you. You can access online tools to get started and build passive income, such as mutual funds or stock investments. These tools are easy to use, so you don’t have to be a financial expert to make them work for you. They’re like your friendly guides on your journey to financial success.

Let’s discuss the top 4 online tools that you can use to generate passive income.

Top Online Tools for Indian Investors

#1. Investment Apps

When you talk about investing, people often think of putting their money into the stock market. Investing in stocks is pretty popular in India, too, where you can invest in companies you believe will grow over time

You get two types of investment apps –

I. Full-service brokers 

These are like your helpers when you want to invest in the stock market. They give you research-based advice to invest in particular stocks or mutual funds as per your risk appetite and financial goals. 

Full-service brokers like Sharekhan and ICICI Direct have their own apps. These apps not only let you buy and sell stocks but also help you with research about which stocks to choose. Plus, you can manage your whole stock portfolio right there on the app. It’s like having a personal stock market assistant in your pocket.

II. Discount brokers 

Discount brokers are like the budget-friendly option. They give you a dedicated platform to buy-sell stocks online, but you have to do the research on your own when it comes to investing in the share market. However, since they offer fewer services, they usually charge lower fees.

So, full-service brokers are like having a personal coach, while discount brokers are like having a DIY toolkit. Both can be good options, depending on your investing style and needs.

#2. Financial Calculators

I. Forex Calculators

The Forex trading industry is so big that around USD 5 trillion worth of currencies are traded every single day. 

People like Forex trading because it’s open 24/7, which means you can trade currencies at any time. Plus, it allows you to make big bets with a small amount of money, so you can potentially earn a lot (that comes with a much higher risk of losing money). Thanks to the high-leverage facility in forex.

Forex trading has also become popular in India because of the expanding availability of the tools those platforms provide to simplify analysis and trading. They make everything much easier. 

One of the cool things they do is help you understand and use something called “pips.” Pips are tiny fractions of currency that tell you how much you could gain or lose in a trade. Figuring out pips can be a bit tricky at first, but these tools make it a whole lot simpler. 

Today, however, an Indian investor conducting forex trades can log into an online or mobile account and use a built-in pip calculator to analyze possible transactions. A simple tool like this makes the whole forex market more accessible.

II. Mutual Fund Calculators

In a survey done by Dinero in 2022, even when many people were unsure about their financial plans, a whopping 59% said they preferred sticking with mutual funds rather than trying something new, like cryptocurrency. It’s like they have a lot of trust in mutual funds.

Just like forex trading, investing in mutual funds has gotten easier thanks to handy tools. You can find something called a “mutual fund calculator” online, and most of the time, it’s free to use. 

With this tool, you can figure out how much money you might make from your investment. You just need to put in how much you’re investing, how long you plan to keep it invested, and what kind of return you’re hoping for. It gives you a pretty good idea of how your money can grow over time.

#3. Digital Gold Platforms

A recent “Indian Household Finance Survey” revealed that, on average, Indian households hold a significant 11% of their wealth in gold. This reflects the inclination of Indian investors toward gold.

Now, when it comes to gold, you have multiple options. You can buy fancy jewelry, trade gold ETFs, or invest in SGBs (Sovereign Gold Bonds). The first option is about physical gold, but the rest of the two are digital gold.

The best part is you get several apps like Zerodha Coin, 5paisa, and Groww that make it super easy for you to buy “digital gold.” It’s like having electronic gold that’s kept safe for you. So, you can stick to your love for gold but do it digitally.


Online tools aren’t just about gold and stocks; they’ve made all sorts of investments a piece of cake. You can invest in different funds using tools or apps that are as easy as using a mutual fund calculator. 

Plus, you can even jump into the real estate game and manage properties right from your phone with cool apps. With these online tools, you can also invest in cryptocurrency, which once seemed like a puzzle, is now super accessible with beginner-friendly platforms at your fingertips.

So, if you’re thinking long-term financial planning, these online tools are your best buddies. They’ve made the world of investments less daunting and more user-friendly. So, go ahead and explore those passive income opportunities, thanks to these handy digital tools that have been introduced in recent years.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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