Risk: Speculative product. Capital at risk. Not a bank deposit. Not covered by any deposit-guarantee scheme.

Passive income

'Passive income' has become a marketing term. Here is a working definition and a look at the honest sources.

A working definition

Cash flow that requires little or no ongoing personal effort to maintain, once the initial capital and setup are in place. Not the same as risk-free.

Real sources

Dividends from equity portfolios.

Interest from bonds, money-market funds, and cash deposits.

Rental income (semi-passive — property still requires attention).

Distributions from managed strategies and funds.

Where yield programmes sit

A programme like Vision Bank is closer to a managed strategy than to a dividend — you contribute capital, receive periodic distributions, and take no operational role. The trade-off is that the yield is not contractual and can vary or be negative.

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