k FINANCIAL INSTRUMENT FOR INVESTMENT

k FINANCIAL INSTRUMENT FOR INVESTMENT :-

I) Equity Share :
B No maturity date.
B No guarantee of returns.
B Traded on Stock exchange & high liquidity.
B Market Prices go op & down.
B Does not provide regular income.
B Good for capita growth over long term.
B Can deliver 15 to 20 % returns over longer time horizons

II) Government Securities :
B Issued by Central/State Govt.
B Has fixed maturity date – 2 to 30 yrs.
B Provides regular income
B Principal & interest payment guaranteed by GOI
B High Liquidity
B Guaranteed returns 7 to 8 %
B Low volatility

III) Infrastructure Bonds :
B Issued by IDBI, IDFC, SIDBI
B 3 years lock in period
B Section 80 C benefit
B No liquidity
B Return of 6 %

IV) Corporate Bonds :
B Has fixed maturity date
B Provides regular income
B Market price Sensitive to interest rate & credit rating changes
B Return higher than Govt. Bonds
B Low Liquidity B Low Volatility