What is the meaning of investment avenues?
Investment avenues are the different ways that you can invest your money. Financial securities including equity shares are one type of investment avenues. Mutual funds, non-securitized financial securities, and real assets are investment avenues.
For a person, who can invest his money in real investment, gold/silver, bank deposits, share & securities, mutual funds, insurance, government securities, post office savings, provident funds etc. However, Investment avenues are not free from all defects. Each avenue carries its own merits and demerits.
- Direct equity. ...
- Equity mutual funds. ...
- Debt mutual funds. ...
- National Pension System. ...
- Public Provident Fund (PPF) ...
- Bank fixed deposit (FD) ...
- Senior Citizens' Saving Scheme (SCSS) ...
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- Safety of principal. Safety of funds invested is one of the essential ingredients of a good investment programme. ...
- Liquidity and Collateral value. ...
- Stable income. ...
- Capital growth. ...
- Tax implications. ...
- Stability of Purchasing Power. ...
- Legality.
- Growth investments. ...
- Shares. ...
- Property. ...
- Defensive investments. ...
- Cash. ...
- Fixed interest.
Different avenues and investment alternatives include share market, debentures or bonds, money market instruments, mutual funds, life insurance, real estate, precious objects, derivatives, non-marketable securities. All are differentiated based on their different features in terms of risk, return, term, etc.
There are three main types of investments: Stocks. Bonds. Cash equivalent.
- Fixed Deposits.
- 2· Mutual Funds.
- 3· Direct Equity.
- 4· Post Office Saving Scheme.
- 5· Bonds.
- 6· National Pension Scheme (NPS)
- 7· Unit Linked Insurance Plans (ULIP)
- Liquid Funds.
- Stocks.
- Bonds.
- Mutual Funds and ETFs.
- Bank Products.
- Options.
- Annuities.
- Retirement.
- Saving for Education.
Investment definition is an asset acquired or invested in to build wealth and save money from the hard earned income or appreciation. Investment meaning is primarily to obtain an additional source of income or gain profit from the investment over a specific period of time.
What are 3 characteristics of investment?
- Risk Factor. Every investment contains certain portion of risk. ...
- Safety. Investors expect safety for their capital. ...
- Liquidity. Liquidity means easily sale or convert the capital or investment into cash without any loss. ...
- Marketability.
Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.
- Establish a financial plan Current Section,
- Start saving and investing today.
- Build a diversified portfolio.
- Minimize fees and taxes.
- Protect against significant losses.
- Rebalance your portfolio regularly.
- Ignore the noise.
Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of interest and returns on the amount invested. This is one of the most favorite avenues of most of the Indians.
It's an easy way to calculate just how long it's going to take for your money to double. Just take the number 72 and divide it by the interest rate you hope to earn. That number gives you the approximate number of years it will take for your investment to double.
- Stocks. A stock is an investment in a specific company. ...
- Bonds. A bond is a loan you make to a company or government. ...
- Mutual funds. ...
- Index funds. ...
- Exchange-traded funds. ...
- Options.
- Busy investors. The busy investors are interested—some might say obsessed—with the markets. ...
- Casual investors. The casual investors are the opposite of the busy investor. ...
- Cautious investors. ...
- Emotional investors. ...
- Informed investors. ...
- Technical investors.
Indians can invest broadly into five categories of investments – Equity, Debt, Real Estate, Commodities and Miscellaneous. Please note that though insurance should not be considered an investment avenue, in the Indian context, we still use it as a long term savings tool – hence the inclusion of insurance below.
Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of interest and returns on the amount invested. This is one of the most favorite avenues of most of the Indians.
- Direct Equity – Stocks. ...
- Equity Mutual Funds. ...
- Debt Mutual Funds or Bond Funds. ...
- National Pension Scheme (NPS) ...
- Public Provident Fund (PPF) ...
- Bank Fixed Deposit. ...
- Senior Citizens' Saving Scheme (SCSS) ...
- Real Estate Investment.
