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