BANGALORE: One of the main reasons for investing, especially for the long term, is to receive supplementary investment income.  Extra income is always welcome and a passive income source is always better than getting a part-time job. Investing is one of the ways many people choose to increase their financial worth. Because there are so many different ways to invest, people are sometimes confused about how to go about earning money from investments.

Let as have a look at some simple steps that can result in an investment portfolio that is balanced and likely to earn a return for many years to come:

1. Dividends

Always remember that whenever you buy stocks, you are purchasing a portion of the company. Thus any growth in a company, whose stock you hold, will indirectly benefit you as an investor. The reason is simple; the value of the stock will also increase. But that is not the only source of returns from shares.

The listed companies distribute a portion of their profits to shareholders regularly as dividends. These returns can be either on quarterly, half-yearly or annual basis. Sometimes, after a company has extra cash reserves, it could even announce a surprise bonus dividend. As a result, it can be a source of regular income to investors.