3 Comments to “What type of investments exist and what are most popular investment types in india?”
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sam said:
On October 1st, 2008 at 12:19 pm
there are lots of options in finance sector:
Fixed but low returns
1.fixed deposits
2.Gov Bonds
3.traditional insurance plans
variable and high returns
1.Mutual Funds
2.ULIP insurance plans
sandevyl said:
On October 2nd, 2008 at 7:24 pm
If you are looking for safe returns then Fixed Deposits is better.
Mutual Funds are also good.
Ashwin said:
On October 3rd, 2008 at 7:23 pm
There are basically 3 broad types of investment options:
1. Debt – Low risk, 6 – 12% returns
2. Equity – High risk, returns linked to market performance
3. Commodities/bullion and such – Low risk, low returns
Under debt you have:
Bank Fixed Deposits/Recurring Deposites – good if you are in lower tax brackets
Fixed Maturity Plans (FMP’s)- good for high income people, better than FD’s
Provident Fund/NSC/Government Bonds – not recommended due to long lock in periods
Under Equity there are-
Mutual Funds, ETF’s, Index Funds, Stocks
Bottom line is – If you want to preserve your capital and earn modest returns and plan to withdraw money in a year or two, invest in Debt funds, Invest into Equity if you can stomach the risk for higher returns, and don’t plan to touch the investments for long time (> 3-5 years)
And please don’t make the mistake of mixing investments with insurance. Don’t by ULIP’s as an investment option – you will only repent later.
On October 1st, 2008 at 12:19 pm
there are lots of options in finance sector:
Fixed but low returns
1.fixed deposits
2.Gov Bonds
3.traditional insurance plans
variable and high returns
1.Mutual Funds
2.ULIP insurance plans
On October 2nd, 2008 at 7:24 pm
If you are looking for safe returns then Fixed Deposits is better.
Mutual Funds are also good.
On October 3rd, 2008 at 7:23 pm
There are basically 3 broad types of investment options:
1. Debt – Low risk, 6 – 12% returns
2. Equity – High risk, returns linked to market performance
3. Commodities/bullion and such – Low risk, low returns
Under debt you have:
Bank Fixed Deposits/Recurring Deposites – good if you are in lower tax brackets
Fixed Maturity Plans (FMP’s)- good for high income people, better than FD’s
Provident Fund/NSC/Government Bonds – not recommended due to long lock in periods
Under Equity there are-
Mutual Funds, ETF’s, Index Funds, Stocks
Bottom line is – If you want to preserve your capital and earn modest returns and plan to withdraw money in a year or two, invest in Debt funds, Invest into Equity if you can stomach the risk for higher returns, and don’t plan to touch the investments for long time (> 3-5 years)
And please don’t make the mistake of mixing investments with insurance. Don’t by ULIP’s as an investment option – you will only repent later.