Don’t put all your
eggs in one basket. Diversify your investments in a wide range of financial
products and ensure safety and growth of your portfolio.
WHAT ARE FINANCIAL PRODUCTS?
Securities and investments created to
provide buyers and sellers with short term or long term financial gains are
known as financial products. These allow liquidity to circulate in an economy
and risk to be spread. Many of the financial products are in the form of
contracts that you can negotiate on financial markets. The contracts stipulate
cash movement at present and in future, depending on conditions stated.
Financial products can help us grow the
amount of money we have to meet various financial goals, such as retirement,
children’s education, marriage and so on.
Before you invest in any financial product,
you should learn about any potential risks, limitations, costs as well as other
characteristics of the products.
TYPES OF FINANCIAL PRODUCTS
The number of financial products and
services in India has increased multifold. It requires a lot of patience and
skill to pick up the best suited option from this huge list of financial
products available with us. Here are some of them:
MUTUAL FUNDS
A mutual fund is a professionally managed
type of collective investment scheme that pools money from many investors and
invests it in stocks, bonds, short-term money market instruments, and/or other
securities. By investing in Mutual Funds, one can have benefit of diversification.
Since they are managed by professionals, one need not track the markets
regularly. It is regulated by SEBI, so the investor interests are also
protected. It also offers flexibility of choosing the products from various
categories like Equity, Gold, Debt and Money Markets. Most schemes being open
ended, they also offer liquidity. One can invest in Mutual Funds either in
Lump-sum (at one go) or through Systematic Manner (SIP).
NPS
National Pension System (NPS) is a
voluntary, defined contribution retirement savings scheme designed to enable
the subscribers to make optimum decisions regarding their future through
systematic savings during their working life. NPS seeks to inculcate the habit
of saving for retirement amongst the citizens.
CORPORATE FIXED DEPOSITS
There are various companies which offer
Fixed Deposits and the rates on offer are generally higher than the rates
offered by Banks. These instruments can be considered based on their rating,
interest rates and the cash flows. The corporate fixed deposits are available
for various tenures with Interest being paid Monthly, Quarterly, Half Yearly,
Annually or at Maturity. Investors looking at regular cash flows and interested
in fixed rate of interest can invest in these deposits.
CAPITAL GAIN BONDS
Capital gain bonds are another type of
bonds available, where any person can avail exemption in respect of long-term
capital gains (arising from the sale of long term capital asset other than
equity shares and securities) if the capital gain is invested in Capital Gain
bonds u/s 54EC. The exemption will be the amount of capital gain or the amount
of investment made, whichever is less. Interest rate offered on these bonds is
around 6% per annum.
HOW WE MANAGE YOUR FINANCIAL PRODUCTS
The paradigm shift from pure selling to
knowledge-based selling drives the business today. With our wide portfolio of
financial product offerings, we occupy all segments in the retail financial
services industry. A highly qualified and dedicated team of professionals,
drawn from the best of academic and professional backgrounds, are committed to
maintaining high levels of client service delivery. This has propelled us to
become one of the top distribution houses for equity and debt issues, with an
estimated market share of 15% in terms of financial product applications and
amount mobilized.
Read more at - https://www.karvy.com/distribution-of-financial-products
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