How do I get passive income? 2025 Ways to Increase Passive Income in Hong Kong
What is Passive Income?
Passive income refers to continuous income without directly engaging in work, providing services, or exchanging time and labor. But it does not mean that you do not have work or effort at all, but generally invest a certain amount of time and resources early on in creating and managing the corresponding investment or asset. Passive income has the advantage of being able to generate a stable income for individuals, without exchanging income for labor time, giving people more time and space to do what they want, while also helping to achieve financial freedom.
Generally, the products that generate cash flow include: Bank term deposits, hedge currencies, bonds and bond fund funds, gilt gold, and other products such as FUTUs, the main investment government short-term cash portfolio. Banks, Bonds, and Bank Bank's highly secure fixed-term deposit equivalent currency MMF tool is suitable for you with relatively stable passive income.
If you want a steady passive income, Futu Cash is one of the options to consider.
Get Passive Income Method 1 - Regular Deposits
Periodic depositIt is a financial product, usually provided by banks, and supports different currencies such as HKD and USD. It is a method of saving money by depositing your money into a fixed term account opened by the Bank, and at a specific time (called a deposit term or an inactive loan, usually the deposit period is limited to 7 days, 1 month, 3 months, 6 months, 1 year, depending on your needs. From this point on, the deposit amount will receive an agreed interest. Once the deposit period is complete, you will be able to get back the cash and interest earned.
However, there will be a lack of cash flow during the period of time, and those who wish to withdraw in advance may lose interest due to the need to pay cash or recurring fees. Fixed-term deposits are a safe investment method, and the Hong Kong Deposit Insurance Scheme provides security of up to HK$0.8 million for each depositor's funds in each Member Bank.
But it should be noted that deposit rates can be affected by inflation and other economic factors that may not fully offset the depreciation of funds brought about by inflation.
To summarize: Regular deposits have the following advantages
Fixed Rate: Time deposits usually offer a fixed interest rate, which means you can determine your return over the term of your deposit. This helps you make accurate financial planning and know how much interest you will get.
Safe and hassle-free: Time deposits are a simple and easy to understand financial product. You simply deposit money into the bank, agree on the deposit term and interest rate, and then wait for the deposit to expire to withdraw the principal and interest, without keeping an eye on the market for a long time.
Low Risk: Compared to other investment options such as stocks or bonds, term deposits are a lower risk way of saving. Your deposit amount is usually protected by a deposit insurance plan, which means that deposits of 0.5 million or less can be protected even if the bank runs into difficulties.
But there are also certain limitations to regular deposits:
Low liquidity: Due to the nature of regular deposits, your funds are fixed for the duration of the deposit and cannot be accessed at any time unless a penalty or processing fee is paid. If you have the opportunity to use these funds in the short term or need to move these funds urgently, a regular deposit may not be the best option.
Minimum Deposit: The Bank's general term deposit cities have a minimum deposit requirement. Currently, the minimum deposit amount is HK$10,000. If you want to get a higher return, the minimum deposit requirement will be higher. A fake bank may not set minimum deposit requirements.
Inflation risk: Fixed interest rates over the term of the deposit may not fully offset the effects of inflation. If the inflation rate is higher than the rate on a fixed deposit, the actual purchasing power of your funds may decrease.
How to Obtain Passive Income 2-Futu Cash
Futu Cash TreasureLive your life and make a difference in your money. Cash is the benchmark for the FDI brand. The main investment of FDI funds under the Commodity Commodity brand is in short-term government bonds and money instruments with high security equal to bank term deposits. The investment period is highly stable, suitable for all types of investors such as hedge investors.
Futu Cash Benefit
Low Threshold: Orders as low as HK$0.01 can be purchased even if $100 is purchased.
Flexibility: You can buy and withdraw money at any time, as well as trade at any time according to your cash flow needs.
Intentional and stable returns: Average return of USD money market funds 4.5*+5% opening bonus^
0 Redemption Fees: All funds are commission-free and the net account value is the real return on investment after the management fee is deducted.
Set up automatic cashback mechanism: Futu Cash Set up automatic application function to automatically buy cash from your securities account after daily market collection into money funds moneymarketfunds at the same time as money market funds MoneymarketfundsAsset assetsAsset assetsThe power to buy securities can be directly applied to money market funds Asset Assets will be able to purchase securities directly for Stock Stocks trading, to purchase new shares (without financial interest), to purchase securities directly to Stock trades, to buy new shares (without financial assets), to buy new shares (without financial assets), to buy new shares (without financial assets) If you purchase new shares (without financial capital), MoneyMarketFunds will generate funds in Buy Non-money Funds MoneyMarketFunds Account AccountAutomatic RedemptionThe same market currency fund does not need to be redeemed manually to pay off debts.
Money market funds are more secure, but when faced with extreme situations, such as a default on short-term notes purchased by the fund company, a sudden sharp rise in interest rates causing a bond price slide, a market panic redemption, etc., it can also result in losses for investors.
How to Obtain Passive Income3-Investing in Bonds
debenturesIt is the issuer of a financial note issued to raise funds, which undertakes to pay interest at a set interest rate within a specified period of time and return the principal on the maturity date. As an investment instrument with a long history, bonds have long been favored by investors of all kinds due to their characteristics of regular interest payments and maturity returns. Sovereign bonds issued by countries or governments in particular are known for their high security. As a Hong Kong investor, the bonds that are more easily accessible are probably Treasury securities issued by the US government.
U.S. Treasury Bonds, also known as U.S. Treasury BondsIt is a long-term debt tool issued by the US government to coordinate to support other operations and settle debts. These Treasuries are primarily issued by a wide range of investors including large Institutions and individual investors, and enjoy high circulation and confidence in the global financial markets. Due to their stability and safety characteristics, US Treasuries are often considered to be one of the preferred investment tools in risk management strategy. Provided by FutuUS bonds of different maturitiesTo meet investors' goal of obtaining stable dividends.
What are the benefits of buying US bonds?
Security: Because US bonds are issued by the US government, they are essentially protected by their credibility and ability to repay their debts.
Fixed Returns: As a result, US bonds are generally regarded as “non-defaulting” bonds and have a reputation as one of the safest investment instruments in the world.
HIGHER LIQUIDITY: US DEBT PROVIDES FIXED RETURNS TO INVESTORS, SO INVESTORS CAN EARN STABLE INTEREST INCOME AFTER BUYING US BONDS.
Balance sheet risk: Relative to other types of bonds, the US bond has a high liquidity. Purchasing high-risk products at the same time as buying US bonds can lead to balancing risks and returns.
What are the risks of buying US bonds?
However, although the risk of default on US bonds is lower, we do not rule out the possibility of it happening. In addition to this, there are:
Interest Rate Risk: Bond prices are inversely proportional to interest rates. That is, the lower the interest rate, the higher the price of the bond; on the contrary, the higher the interest rate, the lower the price of the bond. Investors tend to deposit money in banks. The attractiveness of the bonds decreases, which leads to a drop in market prices, and investors who have already taken up bonds may incur losses.
EXCHANGE RATE RISK: HOWEVER, THERE IS EXCHANGE RATE RISK WHEN BUYING OVERSEAS BONDS.
How to Obtain Passive Income 4 - Dividend Stock Portfolio
For those who lose active income after retirement, a stable passive income can provide you with ample cash flow to help support your retirement life! And investing in stocks with relatively stable yields or is one option for you to increase passive income. Today we will introduce both Hong Kong and US equity dividend stocks.
Hong Kong Stock Dividend Portfolio
SENIOR STOCK COMMENTATOR KNOWN AS “UNCLE LU”Yong Lu ChenAnalysis of Hong Kong's stock market on investment strategy in March 2025, the reduction in the value of shares received during the reporting period has led to concern When considering the outlook for the company, it will be possible to obtain as little information as possible, and the company has no shares repurchased and will continue to operate. Buying income shares should look at the long lines, be calculated and the investment portfolio should be considered It shows that a large part of their own wealth is derived from self-income.
We can also choose to invest in some excellentHong Kong Stocks High YieldIncrease your passive income as an enabler.
U.S. Stock Dividend Portfolio
“Dao Dog Stock” is a kind ofUS Equity Income SharesThe investment strategy, proposed by Michael B. O'Higgins in 1991, is aimed specifically at investors seeking dividend income. The strategy is intuitive: pick 10 stocks with the highest dividend yield from the Dow Jones Industrial Average, buy at the start of each year, and sell at the end of the year.
In 2022, when U.S. stocks performed poorly overall, a combination of dog-stock strategies performed brilliantly, gaining 2.2% overall, while the Dow Jones Industrial Average fell 8.8%, and the S&P 500 and NASDAQ fell more than 10%. This shows that a portfolio that pursues dividend income can be a haven for investors in the face of market volatility.
The strategy is suitable for investors with low risk underwriting and a stable dividend income with the expectation of a certain capital gain in the long run. However, hearing becomes stable, without the possibility of loss, for example, stopping the party at any time and informing about the price.
