Different types of investments available in India

Different types of Investment available in India

In this article you will find many available options to make an investment. A number of options are available today for a person to invest his money and make a decent return. Let’s take a skim through all those schemes.

Financial Assests (that can not be traded)

A number of financial assets can not be traded with a third party. Such schemes are listed below.

Bank Deposits: It’s simple and every one knows about it.
Post Office Savings
Provident Funds
Chit Funds
Company Deposits

Bonds

Bonds are debt securities or long term debt instruments. An authorized issuer of bond promises the person who hods the bond to pay interest on particular periods and to return the principal after a fixed period (at the time of maturity of the bond).

Different types of bonds are;

Government Securities
Government Agency Securities
PSU Bonds
Private Debt Securities
Preference Shares
Mortgage Based - Securities

Stocks

Stocks represent ownership. A person who holds stocks of a particular company is treated as one of the many owners of the company and deserves a share of the net profit that company earns after all expenses. Stocks is one of the best investment options available and at the same time it demands knowledge about many fundamentals to make a decent return.

Different types of stocks (as classified by financial analysts)

Growth Stocks
Value Stocks
Blue Chip Stocks
Income Stocks

Money Market Instruments

These are debt instruments with less than 1 year duration for maturity.

Different types are

Treasury Bill
Commercial Paper
Certificate of Deposits

Mutual Funds

Mutual Funds are a better investment option for those who can’t find time to learn about stock market and it’s trends or those who don’t understand it’s working correctly.Mutual funds are usually managed by a Private financial company or a Bank.

Different types of mutual funds are;

Stock based schemes
Fixed income schemes
Monthly income schemes
Tax saving schemes
Hybrid schemes
Balance schemes
Sector schemes
Floating rate schemes

Insurance

Insurance is also a form of investment but I don't prefer them. As a piece of advice don't mix investment and Insurance.

Different types of insurance investments are;

Endowment assurance policy
Moneyback policy
Whole Life policy
Term assurance policy
Unit Linked Policy – ULIP

Financial Derivatives

These are financial instruments that are formed from value addition of the financial assets used for investment.

Two types are there;

Options
Futures

Important Comparisons

List of Indian companies and their group

http://stockinventor.blogspot.in/2014/06/details-of-indian-comapnys-their-group.html

Google Sites

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