There are not many of us who are actually efficient at Index Calculation. Similarly very few people have the required knowledge about the Index Maintenance while planning to invest in funds. However, for all of us there is one way or the other to make investments in the market with a hope or earning good profits in time to come. Irrespective of the amount of knowledge one has about these, one can always take little steps to make investment. Here we are going to discuss about the most popular investment options for you.
It is not a cake walk to invest in stocks for all and sundry because of the fact that these are a volatile asset class having no guarantee of any returns. In addition to this, it is also a cumbersome task to pick the appropriate and the right type of a stock. Other than this, things that are important here include the timing of your entry as well as the exit and determining this timing is again not that easy. The only thing that attracts people to such an investment is the fact that in long term, it is equity that has the potential to actually deliver higher than the inflation-adjusted returns in comparison to other types of asset classes. It is not a cake walk to invest in stocks for all and sundry because of the fact that these are a volatile asset class having no guarantee of any returns.
Equity mutual funds
Equity mutual funds imply investing in the equity stocks. In the words of current Securities and Exchange Board of India Mutual Fund Regulations, it has become mandatory that an equity mutual fund scheme invests at least 65 percent of the assets it has in equities as well as equity-related instruments. There are two ways of managing the equity funds, actively or passively. In case of former the returns are greatly dependent on the ability of the fund manager to generate the returns. For instance, Index funds as well as exchange-traded fund (ETFs) are managed passively.
Debt mutual funds
Debt funds are primarily meant for the investors who actually want the steady returns as these are considered to be less volatile thereby less risky in comparison to the equity funds. These are the funds that basically make an investment in the fixed interest generating securities. These include corporate bonds and government securities in addition to the treasury bills as well as the commercial paper apart from other money market instruments.
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is undoubtedly one of the best products which is looked up to by many people. It has a long tenure of around 15 years, implying that the impact of the compounding of tax-free interest is enormous especially in the years to come. Due to the interest that is earned as well as the principal that is invested is backed by the sovereign guarantee, it is considered to be a safe investment.
All in all, these are the most popular investment options for you that you must know as well as explore. These are suitable for people who have varying needs as far as investment is concerned.
Author is a person who knowledge about Index Calculation prior to stepping into the investment pool. Other than this the knowledge about Index Maintenance helps make a better decision and earn better.