Different types of Investments

1. Direct equity
The investment equity directly the investor involves in high risk by investing in direct
equity that is you are the part of the company that means you are also apart of the ownership
of the company, the investment in direct equity is uncertain that is due to high volatility.
You directly alone cannot invest in direct equity where as you need to open an demat
the account whereby using you can enter into the secondary market and sometimes to IPO. The
investmet in direct equity sometimes leads to high returns and some times heavy losses
depends upon the company performance and market situation such that direct equity can
also be one of the investment option to the investors.
2. Equity mutual funds
The Equity mutual funds involves in investing only in equity shares. As per the rules of
Securities and Exchange Board of India (Sebi) open-end investment
company Regulations, an equity open-end investment company scheme must invest a
minimum of 65 percent of its assets in equities and equity-related instruments. The
equity mutual funds are those that are exchange-traded funds where these mutual funds
are directly traded in the stock exchange these type of mutual funds does not involve in
any other type of investments such that these are indexed treaded equity finds the
investment in equity mutual funds involves in high risk and high return and sometimes
higher losses that the investor should be careful by investing in these type of funds.
3. Debt mutual funds
The debt mutual funds concentrate on iv=investing the money in the debt instruments the
debt instruments are less volatile in nature compared to the equity traded funds the debt
mutual fund is an option for an investor who is willing to get descent steady returns. The
debt mutual funds will invest in fixed income securities which are generating fixed rate of
intrest and these bonds are treasury bills government bonds and other money market
instruments the period of these investment is about 0-5 years commonly 1-3 years.
4. Nationali PensioniuSystemi (NPS)
The national pension scheme it is an investment option to the people who are willing to
get an retirement benefits this is periodic investment by the investor for certain period of
time where some money as a part of the salary is been invested in this type of scheme and
this is less risky and fetch you a steady return it is only for saving money for future with
less returns and high safety. This type of scheme is owned by the pension fund
regulatory and development authority PFRDA. This investment is mixed type of
investment where they invest in all type of liquidity funds
5. Public Provident Fund (PPF)
The public provident fund is also an investment option where that provides a tax
benefits under sec 80c for making an investment in this type of fund the investor can get
the tax benefits up to the maximum limit of 1.5 lakh. The public provided fund is also
called as saving and tax-saving fund which is introduced by the national saving
institute of ministry of finance in the year 1968 with the min intention of increasing
savings in public.
6. Bank fixed deposit (FD)
The investment in bank deposit is not such a great investment option where it provides
very less returns and people also think that money invested in the bank is safe but the
only insured amount is only up 2.5 lakh only but also people think bank deposit is safe
the bank deposit will fetch you a return quarterly, semiannually and annually.
7. RBI Taxable Bonds
These are the type of bonds these are also called as government of India bonds or RIB
bonds. These bonds are available through the year in all type of public sector bonds and
some private sector banks for the purpose of investment such as axis HDFC, ICICI banks
for these type of bonds the interest is payable at 7.75% every half yearly and there is no
maximum investment limit in this type of bonds and interests these bonds are taxable
under the income ax act 1961.
8. Real Estate
The real estate consist of the any kind of property such as land, building and any other
property there are three types of property collective property, public property and private
property. The investment in real estate involves in the ownership, purchase, rental or sale,
management of the property for the sake of profit. The real estate is also a type of
investment option the investment in real estate will leads to high risk and also high
returns and sometimes heavy losses. There is no major tax benefits in investment in real
estate where as expenses like property tax insurance can be deducted and expenses
incurred for investment can also deducted.
9. Gold
The gold is also an type of investment t just like equity, bonds real-estate etc. the
investment in gold is most popularly known as traditional investment the investment in
the gold has less risky and also diversifies the risk the gold market is also similar to the
other markets such as functionality volatility risk etc the gold investment will come under
the commodity market the investment in the gold can best option at the time of inflation
and deflation.

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