How to Build Up Your Passive Income – Mutual Funds

As we are only considering sources of passive income, we are only going to look at income mutual funds. These may be called “growth and income” funds or “income” funds or “value” funds. Nearly every mutual fund family will have their own set of income or growth and income funds. Morningstar and other services provide third party ratings that you can use to identify the safest and highest paying income funds. Invest wisely and always consult a qualified investment advisor before investing. Mutual funds are also required to send you a prospectus (a formal disclosure of the funds objectives and operating guidelines) for your review before you can invest. The Right Way to Invest in Mutual Funds is a good book which gives simple and clear instructions on how to invest in mutual funds for passive income.