The World of Investment

One needs to save and invest for the future to take care of sudden and bigger expenditures like education, healthcare, housing etc. There are many options to invest one’s money and the market is full of products for investment.

Types of Investments

Broadly there are only two types of products for investment viz deposits of fixed or near-fixed rate of return and investments with market based variable rate of return. The ones with fixed rate of return offers lower rate of return but are generally considered safe. The ones with variable rate of return are investments in Financial market, particularly the share market, gold, land etc where the rate of return may be high but are generally considered risky. Basically, one needs to choose between these two types of investments.

                            THE WORLD OF INVESTMENT

DEPOSIT MARKET                                 FINANCIAL MARKET

BANK                                                         MONEY MARKET     

-         SB,(short term)

-         FD,RD (long term)                              (short term - Institutional)

                                                                 

-         T-bills (Government)

-         Certificate of Deposit (Public  sector)

-        Commercial Paper  (Private      sector)

POSTAL SAVINGS                              CAPITAL MARKET (long term)
             

     SB(short term)                                             

     TD,NSC,MIS,SCSS,PPF
     (long term)                        

     -      Share Market (retail and        Institutional)

  -Primary IPOs

  -Secondary market

-          Debt Market
     - G-secs (institutional)

- Retail (Debentures, Bonds and Corporate FDs