Friday, February 26, 2010

Angel Broking: Various Investment Options | Facebook

Angel Broking: Various Investment Options Facebook:

"Various Investment Options"


There are many investment options which are available in the market today. But, first you need to understand how to start investing and what to invest in.

Equities: Equities are a type of security that represents the ownership in a company. Equities are traded in stock markets. Investing in equities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk.

Mutual funds: A mutual fund allows a group of people to pool their money together and have it professionally managed, in keeping with a predetermined investment objective. Mutual Funds are popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. You can invest as little as Rs 100 per month in a mutual fund.

Bonds: Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.

Deposits: Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the lowest end of the risk-return spectrum.

Real estate: With the ever-increasing cost of land, real estate has emerged as a profitable investment proposition.

Gold: The ‘yellow metal’ is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products like gold futures and gold exchange traded funds, which derive their value from the price of gold, are available for investment.

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