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INVESTMENT PRODUCTS
There are a wide range of financial securities available in the markets these days. Financial markets can mainly be classified into money markets and capital markets. Instruments in the money markets include mainly short-term, marketable, liquid, low-risk debt securities. Capital markets, in contrast, include longer-term and riskier securities, which include bonds and equities. There is also a wide range of derivatives instruments that are traded in the capital markets.
Both bond market and money market instruments are fixed-income securities but bond market instruments are generally of longer maturity period as compared to money market instruments. Money market instruments are of very short maturity period. The equities market can be further classified into the primary and the secondary market. Derivative market instruments are mainly futures, forwards and options on the underlying instruments, usually equities and bonds.
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.INVESTMENT PRODUCTS
1. Small Saving Instruments
The Indian government has instituted a number of small saving schemes to encourage investors to save regularly.
The saving schemes currently offered by the government are:
a) Public Provident Fund (PPF)
b) Senior Citizens’ Saving Scheme (SCSS)
c) National Savings Certificate (NSC)
d) Post Office Schemes and Deposits
I. Post Office Monthly Income Scheme (POMIS)
II. Post Office Time Deposits (POTD)
III. Post Office Recurring Deposit
2. Fixed Income Instruments
a) Government Securities
b) Inflation-Indexed Bonds
c) Corporate Bonds
d) Infrastructure Bonds
e) Bank Deposits
3. Alternate Investments
1) Derivatives (Futures and Options) and Structured Products
a. Hedging
b. Speculation
c. Arbitrage
2) Real Estate
3) Gold
4) Commodities
5) Private Equity and Venture Capital
6) International Investments