What is an Ideal Asset?

What is an Ideal Asset?

There are several assets available in the market. People ask me that, What is an Ideal Asset according to you? Well, according to me, an ideal asset is one which fulfills the following criterias.

- an Asset on which I have a Full or at least partial degree of Management Control &

- an Asset which provides me a Cashflow rather than only a Capital Gain as long as I hold it.

Any Asset which fulfills the both of the above 2 criterias are the ideal asset for me. Say for Example,

- A Fully or Partially Privately owned Business

- Rental Property

- Online Property/Business (Cashflow producing Blogs, Forums & Websites..)

- Intellectual Properties (Books, Music, Movies Copyrights & Royalty Income)

All of the above are the ideal assets according to me. According to me the following are not the idea assets for me.

- Gold

- Mutual Funds

- Bonds

- Real Estate Open Plot – That does not have any Rental Income

- Common Stocks

This is because many of the above assets don’t give me any cashflow and I don’t have any management control over these assets. Say for Example Common Stocks. People say that everyone should buy the stocks of Reliance Industries. But my question is that, Why Should I Buy a Stock of Reliance because I don’t have any management control over that Business.

Rather than why can’t I invest more money to buy more shares of my own family promoted education company through which I am owning this Blog?

Same is true for Gold. Gold is not an ideal asset for me. Because it doesn’t give any cashflow if you hold it even for years. While take the Example of this Blog. This Blog is my Online Asset and it will provide me a steady and growing cashflow as long as I will hold it.

Thus, the ideal Asset is one which fulfills both of the above 2 criterias of an Ideal Asset…!!!