Financial and investment products will help you save, invest and get insurance get a mortgage. These products are issued by banks, insurance companies, financial institution, stock brokerages companies and government entities.
If you invest in shares or in mutual fund the risk is very high, depending on the market status, but liquidity is also very high. At any moment you can sell out your shares and get proceedings. If you want savings than you can choose insurance where you get your return with some bonus on the maturity. To get fixed rate of interest you can choose fixed deposit or bonds. In fixed deposit and bonds your invested money is safe and secure and you will get fixed rate of interest.
Types of Financial Products
• Shares: These represents that you purchase an ownership of a company. A company issues shares when they need finance in the interest of company’s growth. To invest in shares is subject to risk factor. You may have to bear heavy loss or gain high returns. Returns you can get in the form of dividend or profits on the sale of shares in the stock market.
• Insurance: Insurance is used for both savings and investment purpose. It provides security and financial stability against the uncertainties of your life and supports your family to grow after your death.
• Bonds: These are a kind of security which has fixed rate of interest, associating lower risk than shares have. Bonds are issued by government companies and by companies for funding to meet their infrastructure cost. At the time of maturity its face value is recovered.
• Fixed Deposits: This kind of investment is very safe to investor because banks are operated under the rules and guidelines of Reserve Bank of India. The bank can offer varying interest rates in fixed deposits with different maturity time. Interest is compounded quarterly, leading to a higher return.
• Mutual Funds: It is a pool of funds collected from a large number of investors who are interested to invest into different instruments such as stocks, bonds and short term instruments. These are maintained by fund managers.
If you invest in shares or in mutual fund the risk is very high, depending on the market status, but liquidity is also very high. At any moment you can sell out your shares and get proceedings. If you want savings than you can choose insurance where you get your return with some bonus on the maturity. To get fixed rate of interest you can choose fixed deposit or bonds. In fixed deposit and bonds your invested money is safe and secure and you will get fixed rate of interest.
Types of Financial Products
• Shares: These represents that you purchase an ownership of a company. A company issues shares when they need finance in the interest of company’s growth. To invest in shares is subject to risk factor. You may have to bear heavy loss or gain high returns. Returns you can get in the form of dividend or profits on the sale of shares in the stock market.
• Insurance: Insurance is used for both savings and investment purpose. It provides security and financial stability against the uncertainties of your life and supports your family to grow after your death.
• Bonds: These are a kind of security which has fixed rate of interest, associating lower risk than shares have. Bonds are issued by government companies and by companies for funding to meet their infrastructure cost. At the time of maturity its face value is recovered.
• Fixed Deposits: This kind of investment is very safe to investor because banks are operated under the rules and guidelines of Reserve Bank of India. The bank can offer varying interest rates in fixed deposits with different maturity time. Interest is compounded quarterly, leading to a higher return.
• Mutual Funds: It is a pool of funds collected from a large number of investors who are interested to invest into different instruments such as stocks, bonds and short term instruments. These are maintained by fund managers.
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