features of investment avenues

With the increasing value of gold, investors take profit from it. Guide To Have a Smart & Secure Financial Year, No public clipboards found for this slide. Corporates and individuals have different needs. Whether you’re saving to buy a home, to fund a college education, to pad your retirement or simply trying to grow your personal wealth, a variety of avenues offer investment options.

Investment in any of the alternatives depends on the needs and requirements of the investor. INVESTMENT AVENUES 3.1 INTRODUCTION This chapter tries to bring out the various investment channels and avenues that are available to the investors. Derivatives means indirect investments in the assets. What’s your view on this? A good understandable information in simple language it was very helpful. In that case there is a risk of reinvesting coupon at a lower interest rate from end of year 1 to end of year 5 and there is a price risk for increase in rate of interest at the end of fifth year, in which price of security falls. Safety of funds invested is one of the essential ingredients of a good investment programme. On real time basis, investors are informed about performance of investment. There are equity shares for which there is a regular trading, for those investments liquidity is more otherwise for stocks have less movement, liquidity is not highly attractive. Safety of principal signifies protection against any possible loss under the changing conditions. Though hedge funds are also a pool of assets, they are different from Mutual Funds due to several reasons. The magic of diversification can be seen when assets are assessed in a portfolio. The private companies use these funds for their expansion, like acquiring another company or buy a new asset. One thing should be clear to you that the more you are able to take the risk, the more return you will able to get. Derivatives include: Non-marketable securities are those securities which cannot be liquidated in the financial markets. These alternatives play an important role in building a portfolio. looking forward to more posts. Evans holds a Master of Library and Information Science and a Master of Arts in anthropology. ADVERTISEMENTS: Some of the Important Features of an Investment Programme are as follows: In choosing specific investments, investors will need definite ideas regarding features which their portfolios should possess. When you purchase stocks, also called shares or equity, you’re essentially buying a piece of a company’s assets and earnings.

Different avenues and alternatives of investment include share market, debentures or bonds, money market instruments, mutual funds, life insurance, real estate, precious objects, derivatives, non-marketable securities. There are the variety of options available in the equity market. Investors in their 20s and 30s or other investors with a long time horizon should consider stocks. Sorry, your blog cannot share posts by email. Both time and goals play important roles in investment decisions; investors in their 20s and 30s may have very different goals than those nearing retirement. However, investment in long term debentures or bonds, there are risk in terms of interest rate risk and price risk. Safety of principal. Investment in real estate is also a good example of such an asset class. Part of a group of investments known as fixed-income securities, bonds essentially represent a loan to a government or company that, in return, agree to pay you a fixed interest rate, or coupon, at regular intervals over the life of the loan before repaying you the initial purchase price, or face value, when the bond reaches maturity. Some of the money market instruments are.

Such securities include: Investment alternatives for any person are divided into a real asset and financial asset. I’ve tried to choose the best plans of all. He is passionate about keeping and making things simple and easy. He is passionate about keeping and making things simple and easy. Equity shares of companies can be classified as follows: Debentures or bonds are long-term investment options with a fixed stream of cash flows depending on the quoted rate of interest. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Other investment avenues include the foreign exchange market or Forex. Apart from these, others include: Precious objects include gold, silver and other precious stones like the diamond. Investment in NSE is not as easy as investing in a lottery as you have to complete many formalities in the process and hence is time consuming.. Money is nothing but a medium of exchange which entirely depends on value. Based in the Southwest, Linsay Evans writes about a range of topics, from parenting to gardening, nutrition to fitness, marketing to travel. Most investors prefer to invest in less riskier securities. This will alert our moderators to take action.

This quick-moving market is based on the purchase and sale of foreign currencies. They face fewer regulations, and hence, can invest in an array of assets. An investment in an asset is a sacrifice of current consumption to get some return in future. People are now encouraged to make investments in their educations, their cars, and even their flat-screen TVs. 3. Just like equity investors can invest for commodity also. Alternative investments usually involve high minimum investments when compared to stocks or mutual funds. Here, in this field, the more knowledgeable you are, the more successful you will be.

Here is a look at the top 10 investment avenues Indians look at while saving for their financial goals. Return expectation is the main objective of investment. group member roll no. Share it in comments below. Since they have little correlation to the equity market, they help in diversifying portfolio risks. While selecting an investment avenue, you have to match your own risk profile with the risks associated with the investment product before investing in it. However, a better return can be achieved, if one believes and follow the process of investment management. Though the majority of retail investors still have limited availability to most of the alternative assets, opportunities to invest in commodities and real estate is widely available now via ETF’s. Are you searching for investment alternatives for parking idle funds?

All are differentiated based on their different features in terms of risk, return, term etc. Bonds represent little to no risk, especially when issued by a stable government or corporation, but the trade-off is that they tend to pay less than other, more risky, investments.

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