Investment alternatives

Introduction There are many ways by which a investor can enter the market. It is very difficult for the investor to choose the best alternative because he himself is not aware of investment alternatives. It may be:

Negotiable instruments

• Equity shares• Growth• Income• Defensive• Cyclical• Speculative

Variable

income securiti

es

• Preference shares• Debentures• Bonds• IVP and KVP• Govt. securities• Money market securities• Treasury bills• Commercial papers• Certificate of deposit

Fixed income securiti

es

Non-negotiable securitiesBank deposit Post office deposit NBFC deposits

• period: 3 to 5 years in current scenario

• Maximum limit: at least 25 lakhs of owned funds otherwise not in capacity to accept deposits.

• Interest rates• Security : % of

liquid assets is 15 %

Tax shelter saving schemes

PPF

NSS

NSC

LIFE INSURANCE

• Protection• Easy payments• Liquidity• Tax relief

Advantages of

life insuranc

e

Mutual fundsOpen ended

fundsClosed ended

fundsOther

classification• Growth• Income• Balanced• Money

market scheme

• Tax saving scheme

• Index scheme

Real assetsGold

Silver

Real estate

Art

Antiques