Investments
Stocks
A stock or share is a part of a company’s ownership. When you invest in stocks, you own a small stake in the company whose stock you purchase. Investing in stock markets can provide you with high returns. However, stocks are high risk instruments. The prices of stocks vary based on market conditions and can impact your returns. It is advisable to invest in the stock market only if you have a good understanding of the market and are aware of the risks.
Mutual Funds
Like stocks, mutual funds also allow you to invest your money in market-linked instruments and earn high returns. Mutual funds gather investments from various investors with a common investment objective and then, invest that money in instruments such as stocks, bonds, commodities, and more. Funds are managed by a fund manager who analyses the market and allocates your investments accordingly. Hence, mutual funds allow you the flexibility to invest as per your investment needs.
Bonds
Bonds are debt-based investment instruments. When you invest in bonds, you lend some money to the bond issuer, and in return, you receive periodic returns at a pre-determined rate. Bonds are issued with an expiry date. After the expiry of the bond, the invested amount is returned to you. Bonds are issued by various State and Central Governments to raise money for public services. They are also issued by corporate houses to raise money for their growth or expansion. You can invest in bonds either directly or through debt mutual funds.
ULIPS ( Unit-Linked Insurance Plans)
Unit-Linked Insurance Plans are long-term investment instruments that provide the dual benefit of life insurance and investment. They provide you with a life cover^ that secures your loved ones financially in case of an unfortunate event. Additionally, they help you grow your money with market-linked returns. You can invest in equity, debt or a mix of both funds as per your risk appetite.
Fixed Deposit
Fixed deposits are one of the safest investment options in India. They allow you to invest a lump sum amount for a specific period and earn a fixed return on it. The returns from fixed deposits are pre-determined and remain unaffected for the investment tenure. The tenure of an FD may range from 7 days to 5 years.
Digital Gold
Digital gold investment refers to the process of investing in gold in a digital format, typically via online platforms or services that allow individuals to buy, sell, and hold gold electronically. This is different from traditional gold investing, where investors physically own gold coins, bars, or jewelry. Digital gold offers the convenience of buying small amounts of gold, without the need to store physical gold.
Chit Fund
A chit fund investment refers to an investment in a unique type of financial scheme popular in some countries, particularly in India. It is a collective savings and borrowing system where a group of people contribute a fixed amount of money regularly into a pool. In return, each member of the group has a chance to receive the pooled amount at periodic intervals through an auction or lottery,
