A Peek into Different Types of Investment Securities

Investment Securities is a frequently asked question. Before planning to invest your hard earned money in any type of investment plan, one thing that passes your mind is how secure will your money be with any finance organization.

What is investment Securities:

Investment securities refer to documents or statements that indicate that you have lent or invested your money with a company or a government entity. Investment securities are basically of two types – Equity Securities & Debt Securities. And, the entity or corporation that issues investment securities is known as the issuer. There are many different securities where you can invest your money. Here’s a quick refresher on some of the most popular security investments.

Stocks:

Stocks are the best known equity security. By buying stock you choose to purchase an ownership interest in a company. However, stock prices can fluctuate greatly. They have a higher investment risks than most other securities. Also, stocks hold the potential of bringing you the greatest results.

Inter-Corporate Deposits:

Inter-Corporate deposit is a debt instrument issued by a company. In other words, you are extending loan to the company by choosing to invest with it. You are entitled to receive interest every month from the company until you withdraw your money or the loan is paid off. ICDs are comparatively safer and more stable than stocks. You are guaranteed a steady income from them.

Mutual Funds:

A mutual fund is made of a variety of securities. It is known to focus on stocks, bonds or a collection of the both. Here, the money invested by you will be pooled with other investors. An investment company chooses the securities and manages the mutual fund. This diversity helps decrease the investment risk.

Thus, the world of finance can be quite puzzling and intimidating at times. But, the concept of investment is inherently simple once you become familiar with the different types of investment plans, their benefits and the risk involved. In this blog we have tried to educate the current as well as the potential investors on the practice of investing without keeping even an ounce of fear in their heads about losing their money to a lucrative investment plan offering organization.

The Importance of Choosing Investment Companies in Delhi

Investment Companies in Delhi are highly reliable options if you are thinking of starting an investment program. It is pretty obvious that you might be concerned with how to meet your increasing money bills. However, if you can manage to pull together even a small sum of money for starting an investment program, chances are you’ll be landing on a much rosier financial landscape in the years to come.

Putting your Money to Work:

Investing allows you to help your money grow under the protective incubation of full proof security. The return on investment that you gain on your invested money along with the magic of compound interest help you earn additional money without you having to lift even a finger. And, the result of scooping out your idle lying money will only result in multiplying your funds with every passing day.

Financial Support:

Some of the investment options available in the Investment Companies in Delhi can fulfill more than one financial purpose and serve as a valuable resource. For example, when you invest in property, it is likely that it may appreciate in value and give you a handsome profit when you sell it. Additionally, when you invest in a monthly return assuring investment plan, you get the ROI every month which acts as a second source of income to cover your expenses.

Saving for Retirement:

Choosing to depend on social security benefits for your retirement won’t help you much, unless your company promises to offer you a sizable pension plan. Thus, if you’re planning to have a comfortable retirement period, you are recommended to create a profitable investment portfolio today. IRAs offer an easy way to invest for retirement and also provide certain tax benefits. If your employer offers a lucrative plan, you can benefit from the matching funds that many companies will deposit in your account on your behalf.

So, if you are a new investor and are building a portfolio from scratch, you need to develop a diversified portfolio all at once on day one. Investing money is more like a marathon, rather than a sprint.  It’s extremely important that you stay calm and positive over a long-term portfolio and wait for the results to show!

Top 5 Investment Options in India

Investment Plans available in the Indian capital market is a great blend of risk-reward transactions. And, it’s very important for every investor to acquire detailed understanding of the economic trends. This will not only help him in decision making, but also in creating a diversified investment portfolio depending on the different investment plans in India.

Here, we are going to discuss the 5 most credible investment plans available in the Indian Capital market. But, you need to keep in mind that very investment plan come with some risk.

Fixed Income Instruments:

This is the type of investment that delivers a fixed amount of return to the investor after a certain period of time. Compared to other form of investment plans fixed income instruments are low risk options. Some of the examples of fixed Income Instruments are – Public Provident Fund, Post Office Savings Scheme, Certificate of Deposits, Corporate Fixed Deposit, Corporate Bonds & Debentures, and Government Bonds.

Equity:

Equities are shares of companies and are offered through Initial Public Offerings (IPO) and Follow On Public Offerings (FPO). You can invest in equities either in the primary market or the secondary market. Return on equities come in two forms, dividends paid to the shareholders and capital gains from the increase in share price of the company.  Returns from shares are not guaranteed and they are mingled with high amount of risk.

Mutual Funds:

Mutual funds have different lock-in periods and before investing in mutual funds, you are recommended to check the return history of funds say about them. There are many websites that provide detailed analysis about the performance of mutual funds. On an average Mutual Funds can get you returns between 12 – 30% percent depending on market risk.

Gold & Silver:

Due to ever rising value of precious metals, gold and silver have become attractive investment options. However, these types of investments are definitely not free from risks. At the time when you want to claim your deposited gold 0r silver the price associated with them may not be moving upwards in the price ladder.

Real Estate:

Property has always been a great investment option. Ever since the price of property sky rocketed in the Indian Market, more and more people are getting interested in it. Improved facility of home loans and smaller area apartments being available, you can now invest in property with much lesser funds than what was required earlier.

Investment Firms in Delhi - Flourishing at a Faster Rate

Investment firms in Delhi have surfaced up as one of the most upcoming investment platforms in Delhi/NCR. In the recent times, the finance industry of the sector has witnessed a boom due to better norms made alive by the Reserve Bank of India. Many entrepreneurs as well as professionals are willingly coming forward to invest in the investment firms in Delhi because the city is a house to some of the highest return providing Non-Banking Financial companies. Also, there are a lot of working professionals in the city who find a secondary source of monetary help in the form of the ROI obtained from their investments every month.

The uplift of Non-Banking Financial Companies has come about due to a number of reasons. Organizational flexibility allows them to offer tailor-made services relatively faster than banks and other financial institutions resulting in a better response mechanism. They also play a crucial role in the rural and social sectors of the economy as financing in both the rural as well as urban areas provide a spin-off benefit by helping both entrepreneurs and professionals financially. The core strength of Non-Banking Financial Companies lays in their strong customer relationships, excellent understanding of regional dynamics, and well-developed collection systems and personalized services.

In the past decade, NBFCs have played an important role in the expansion of the consumer durables, housing & transport sectors. However, the industry is now witnessing a paradigm shift, as competition is increasing in the retail market space, which was previously dominated by NBFCs. These companies have started gaining momentum in the last few decades with a wide variety of products and services. Main function of Non-banking Financial Companies is to collect public funds and provide loan to the loan seekers. There has been a significant increase in such companies since 1990 and they are playing a vital role in financial development of the country. Now, they are focusing on retailing sector, housing finance, personal loans and marketing of insurance. 

Many of the NBFCs have ventured into the domain of mutual funds and insurance. Thus, NBFCs can be interpreted as “Financial Institutions” that are in the process of converting themselves into “Financial Super Markets”.

Just a Small Piece of Earning to Plan for the Future!

Finance Investment Companies in Delhi, these days, are bringing great benefits to all the investors who want to gain good returns without bearing any risk on their money. People now know that investing with Non-Banking Financial Company is far better than buying expensive stuff like car, Jewelry etc. because they tend to lose their value over a certain period of time.

High-end jewelry from premium as well as generic brands tend to lose their price over a certain period of time. All vehicles lose their value the moment you lay your hands on them as the owner. Thus, all professionals who want to retire early in their life with an impressive financial portfolio are recommended to invest some amount of money in high return offering registered finance investment companies for a secured future.

Inter-Corporate Deposits(ICDs) are certainly better than equities that are subjected to market risks. This type of investment plan can actually bring you higher return on your money - about 18% - 20% annually. According to a survey, in 2014 many foreign companies came forward to invest millions of rupees in the Non-Banking Financial Companies of India. The change, however, did not take place overnight. With Reserve Bank of India carving out some specialized NBFCs like Core Investment Companies (CICs), NBFC- Infrastructure Finance Companies (IFCs), Infrastructure Debt Fund- NBFCs, NBFC-MFIs and NBFC-Factors being the most recent one, it became easier for the investors to rest their faith on these companies without any fear.

However, before proceeding further, you need to understand about fixed deposit done with a Non-Banking Financial Company. The prevailing interest rate for FD investment in an NBFC is around 20% annually. It means if you invest 1 Lakh in FD then every month you will get an interest of Rs. 2000, which can again be reinvested further or can be used for meeting a part of your monthly expenses.

Every financial planner advices not to keep your money idle, even a small chunk of your earning can attract great returns for a secured future. In fact, separating a certain amount of your savings for practising investment in profitable deals is something that can multiply your savings in the blink of an eye without toiling with any type of mental stress.