Investment Products Available In Indian Financial Market
While making an investment, first you have to know and understand the available investment products. The right selection of product is important to make the most out of your money and to achieve your financial goal.
Before choosing the investment product find out your required initial or monthly investment and the yearly returns you need to achieve your financial goal.
Use this calculator to find out how you can reach your financial goal.
There are two buckets in investment products
- Financial
- Non-Financial
Non-financial assets are most bought by many Indians investors due to lack of awareness on other investment products — Physical Gold and Real Estate.
Popular fixed income products such as Public Provident Fund, Bank fixed deposits, National Pension Scheme falls under financial products but they are not market linked and are mostly comes with a lock-in period.
There are many financial products with no lock-in period and better flexibility, to put together a portfolio for your investments.
EQUITY
Equity Investment is the well-known and most popular financial product all over the world due to its potential to provide higher returns. Liquidity and diversified industry sectors make equity investment solid than any other asset classes.
EQSIS Invest helps you to invest directly in Equities. EQSIS Invest is the investment advisory tool bridging the knowledge gap and guides you to invest and be motivated to do investing.
EQUITY INDICES ETF (Exchange-Traded Fund)
Equity Indices ETF is an investment security that tracks an underlying benchmark index, such as the NIFTY50 and NIFTY100
ETF’s have lower average costs compared to Mutual Funds and are passively managed since they track an index. Buying ETF’s are similar to equity and traded on an exchange just like stocks.
GLOBAL EQUITY INDICES ETF
Investing in Global market is now based easier with global equity indices ETF which track the global equity index such as NASDAQ and S&P
BONDS
A bond is a debt instrument in which the bond issuer borrower’s money from an investor. Bond issuers are typically government and corporate entities. The Bond investor receives an interest on the scheduled date until the maturity date when the loan is repaid
- G-SEC
- T-BILLS
- Corporate Bonds
G-Sec
Government Security (G-Sec) is debt instrument issued by the Central Government or the State Governments. G-Secs carry practically no risk of default and, hence, are called risk-free instruments.
T-BILLS
Treasury bills or T-bills, which short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day.
Corporate Bonds
Corporate bonds are issued by a corporation and usually considered to have a higher risk than government bonds. As a result, interest rates are almost always higher on corporate bonds. Corporate bonds are assigned with a bond rating given by the independent rating services evaluated on a bond issuer’s financial strength.
BOND ETF
Bond ETFs exclusively invests in a basket of bonds in the underlying index
SOVEREIGN GOLD BONDS
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. SGB investors also get a interest.
GOLD ETF
The underlying benchmark for the Gold ETF is the gold price. Gold ETF trade on the stock exchange similar to other ETF and stock. Initial buying charges, Purity of gold doesn’t make a sense in Gold ETF.
Why Mutual Funds is not listed above in financial products?
Mutual fund is not a asset it is a fund actively managed by an entity.
When your funds are invested in any of the above financial products and when it is managed by the entity such as ICICI, HDFC, AXIS then it is mutual funds. The returns are largely dependent on a fund manager’s ability to generate returns.
Now It’s Your Turn To Select Right Product
Are you setting yourself up for Investing in financial markets? Or do you need a little help figuring out how to do it?
EQSIS is here to help. EQSIS Capital Market Research Firm provides highly efficient and financially empowering solutions to its esteemed beneficiaries with utmost passion.
Visit Website: https://www.eqsis.com/
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