An Investment is an asset or object obtained with the purpose of producing earnings or growing in terms of value. When we purchase any instrument as an investment, the purpose behind it is to create wealth for the future, not the consumption
There are arguably endless opportunities to invest; in any case, upgrading the tires for your vehicle is probably visible as an investment that enhances the usefulness and future fee of the asset. Below are the broad categories of investments to park fund
EQUITY – Investment in Equity is like buying a portion of a Company, becoming a co-owner of a company. We can invest in Equity through various instruments some of which listed below
Stock – A portion of ownership in a public or private corporation is represented by a share of stock. An investor may be eligible to receive dividend payments from the company’s net profit if they own stock. Its value may also increase and it may be possible to sell it for a profit when the business expands and more investors want to purchase its shares
Mutual Fund – A mutual fund is a collection of funds from numerous investors that are widely spread among numerous businesses. Both active and passive management are possible for mutual funds. A fund manager chooses which securities to invest clients’ money in when managing an actively managed fund. Investing in stocks that will beat a predetermined market index is a common strategy used by fund managers to beat the index. All that an index fund, or passively managed fund, does is follow a significant stock market index, such as the Nifty50 or the Sensex. Mutual funds have access to a wide range of instruments, including derivatives, stocks, bonds, commodities, and currencies
ETF – Exchange-traded funds (ETFs) are collections of investments that track an index of the market, much like mutual funds. Shares of exchange-traded funds (ETFs) are bought and sold on stock exchanges, as opposed to mutual funds, which are bought through a fund organization. The value of mutual funds is derived from the net asset value of your assets, which is determined at the conclusion of each trading session. In contrast, their price varies during the trading day.
DEBT – As the name suggests these investment is like giving an amount as debt and getting fixed return on the same, these are secure in nature.
Fixed Deposit – Among the safest investment alternatives available to investors are bank fixed deposits (FDs). These are provided by banks and other NBFCs, and they let investors park their excess money for a predetermined amount of time at a predetermined interest rate. The interest rate is fixed and not impacted by changes in the market, thus the investments are safer. Risk-averse investors benefit greatly from fixed deposits due to their ease of flexibility and variety of possibilities.
Bond – A bond is a financial instrument that symbolizes a loan made by an investor to a business or the government. Bonds are sometimes referred to as fixed-income securities. By purchasing a bond, you give the bond issuer permission to use your capital in exchange for a fixed interest rate. Treasury bills, corporate bonds, municipal bonds, government securities, etc. are a few types of bonds.
Debt Mutual Fund – Debt funds make investments in a variety of money market instruments, including government securities, corporate bonds, treasury bills, commercial papers, and many more that produce fixed income. The term “fixed-income securities” refers to the fact that all of these instruments have predetermined maturity dates and interest rates that the buyer can earn. Generally, market swings have no effect on returns. Debt securities are therefore seen as low-risk investment choices.
REAL ESTATE – These investments are often broadly defined as investments in physical, tangible spaces that can be utilized.
Residential Real Estate – Residential real estate includes all kinds of dwellings, including apartments and single-family homes. The best kind of home for you will depend on a number of criteria, including your family’s needs, budget, and location. Typical kinds include of Raw House, Flat, Tenement, Bungalow Etc.
Commercial Real Estate – Commercial real estate is any non-residential real estate that produces revenue, such as retail centers, office buildings, and other similar structures. Revenue from commercial real estate can be derived from two sources: either the owner operates a business out of the building or charges rent to companies or individuals who lease the space.
Industrial Real Estate – Land and structures utilized by industrial firms for operations including manufacturing, mechanical production, R&D, construction, transportation, logistics, and warehousing are referred to as industrial real estate.
REITs – This is new mode of investment in Real Estate for those who are not having sufficient fund, can be a co-owner of a Real Estate through this mode. REITs further invest in various types of property listed above.
COMMODITIES – These are physical products which one can invest in. These are the oldest modes of investment & are tangible in nature, refer below examples:
Agriculture Products – Wheat, Rice, Cotton, Corn are some example of this category.
Livestock – Domestic animals such as Cow, Goat, Horse etc are of this category.
Metals – Gold, Silver, Bronze are some example. These are investment goods as well as consumable products.
Energy – This category includes – Crude oil & Natural Gases.
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