This document compares key features of different types of financial instruments, including their expected returns, safety, volatility, liquidity, and convenience. Equity instruments like stocks provide high returns but low safety and high volatility, while bonds offer lower returns but greater safety and moderate volatility. Other instruments like fixed deposits, bank deposits, and public provident funds provide moderate returns with varying levels of safety, volatility, liquidity, and convenience.
This document compares key features of different types of financial instruments, including their expected returns, safety, volatility, liquidity, and convenience. Equity instruments like stocks provide high returns but low safety and high volatility, while bonds offer lower returns but greater safety and moderate volatility. Other instruments like fixed deposits, bank deposits, and public provident funds provide moderate returns with varying levels of safety, volatility, liquidity, and convenience.
This document compares key features of different types of financial instruments, including their expected returns, safety, volatility, liquidity, and convenience. Equity instruments like stocks provide high returns but low safety and high volatility, while bonds offer lower returns but greater safety and moderate volatility. Other instruments like fixed deposits, bank deposits, and public provident funds provide moderate returns with varying levels of safety, volatility, liquidity, and convenience.
eatures of dif erent types of financlal Instruments
Returns Safety Volatility LiquidityConvenience
Equity High Low High High Moderate Bonds Low High Moderate ModerateHigh Co. Debentures Moderate Moderate Moderate | Low Low
FDs Moderate Low Low Low Moderate
Bank Deposits Low High Low High High PPF Moderate High Low ModerateHigh Life Insurance Low High Low Low Moderate Gold ModerateHigh Moderate Moderate Moderate