Few Investment options available in India
1. Fixed deposit - Money placed with banking institutions for a fixed tenure.
2. Bond fund - An investment fund that invests primarily in bonds or other debt securities.
3. Capital guaranteed product - A product that provides a return while at the same time provide capital guarantee at the end of maturity.
4. Corporate bond - A debt instrument for a loan which is issued by a borrower to an investor who is the buyer of the bond and lender of the money. In return for the money, the issuer agrees to pay regular interest to the bondholder for the term of the loan and the principal sum borrowed upon maturity.
5. Equity fund - An investment fund that invests primarily in shares.
6. Investment linked insurance - A life insurance plan that combines investment and protection. The premiums paid will partly be used to pay for life insurance cover and partly for investment in specific investment funds of the policyholder's choice.
7. Listed large capital stock - Companies whose shares are listed on BSE or NSE with market capitalization of generally above Rs 5000 cr.
8. Listed small capital stock - Companies whose shares are listed on BSE or NSE with market capitalization of generally below Rs 5000 cr
9. Option/warrant - An instrument that gives the holder the right but not the obligation, to subscribe for a particular instrument, e.g. new ordinary shares, at a pre-determined exercise price within a stipulated validity time frame (exercise period). The warrant becomes worthless after the expiry of the exercise period.
10. Separately managed equity portfolio - A portfolio managed by fund manager where investors own the securities individually.
11. Mutual Funds - Pools of money managed by an investment company. They offer investors a variety of choice, depending on the fund and its investment objective.
12. Gold funds- Gold is a liquid form of investment and is usually incorporated in investment portfolios to hedge against other market positions. This is especially true when you have exposures in the currency and stock markets. But if you are planning to invest in gold as a primary investment vehicle, then timing is the key - as they say “Buy Low, Sell High”. But then again, it is not as simple as that. Lows and highs happen every hour – minutes even.
There are many gold investment products to choose from and they are primarily classified as “physical” and “paper” gold investment products. The appropriate gold product to invest in depends on how much you are willing to invest in, and how long you are committed to stay in the market. Deciding on your gold investment plan needs careful study - if not, an expert’s advice. Whichever step you take, starts with knowing the different gold investment products available in the market today.
