INVESTMENT PRODUCTS

1. Equity : Equity investment refers to participation in ownership of a business. Equity

investors purchase shares of a company with the expectation that they’ll rise in value
in the form of capital gains, and/or generate capital dividends. If an equity
investment rises in value, the investor would receive the monetary difference if they
sold their shares, or if the company's assets are liquidated and all its obligations are
met. Equities can strengthen a portfolio’s asset allocation by adding diversification.
Even though equity has the potential of high growth but is also considered a high-
risk investment as compared to debt or fixed income investments. Hence, it is
important to carefully choose the company before investing.

2. Non-Convertible Debenture : Debentures are long-term financial instruments issued

by a company for specified tenure with a promise to pay fixed interest to the
investor. Debentures are of two types, namely convertible debentures and non-
convertible debentures. Non-convertible debentures are those which cannot be
converted into shares or equities. NCD interest rates depend on the company issuing
the NCD. NCD investment can be held by individuals, banking companies, primary
dealers’ other corporate bodies registered or incorporated in India and
unincorporated bodies. NCDs may offer monthly, quarterly, half-yearly, annual and
cumulative options on interest pay-outs. Investors may choose as per one’s regular
income needs but keep the taxation into context while selecting the option. The
interest income gets added to one’s income and is fully taxable as per one’s income
slab. PPF account is one of the best investment options for individuals who have a
low-risk appetite. PPF is a government-backed scheme, and the investment is also
not market-linked. Due to this, it offers guaranteed returns to protect the
investment needs of many people. As the returns from PPF accounts are fixed, they
are used as a diversification tool for the investor’s portfolio. Additionally, they also
offer tax-saving benefits. Investors can also take a loan against their PPF account
between the 3rd and 6th year. The maximum tenure of the loan is three years. The
loan amount can be a maximum of 25% of the total available amount. As per rule,
one can fully withdraw the PPF account balance only upon maturity i.e. after
the completion of 15 years. Upon completion of 15 years, the entire amount
standing to the credit of an account holder in the PPF account along with the
accrued interest can be withdrawn freely and the account can be closed.

3. Public Provident Fund : Public Provident Fund scheme is a long-term investment

option that offers an attractive rate of interest and returns on the amount invested.
The interest earned, and the returns are not taxable under Income Tax. One has to
open a PPF account under this scheme and the amount deposited during a year will
be claimed under section 80C deductions. The minimum lock-in period for a PPF
account is 15 years, the actual tenure of the PPF account. PPF account is one of the
 best investment options for individuals who have a low-risk appetite. PPF is a
government-backed scheme, and the investment is also not market-linked. Due to
this, it offers guaranteed returns to protect the investment needs of many people. As
the returns from PPF accounts are fixed, they are used as a diversification tool for
the investor’s portfolio. Additionally, they also offer tax-saving benefits.

4. National Pension Scheme : The National Pension Scheme is a social security initiative
by the Central Government. This pension programme is open to employees from the
public, private and even the unorganised sectors except those from the armed
forces. The scheme encourages people to invest in a pension account at regular
intervals during the course of their employment. After retirement, the subscribers
can take out a certain percentage of the corpus. As an NPS account holder, you will
receive the remaining amount as a monthly pension post your retirement. The NPS is
a good scheme for anyone who wants to plan for their retirement early on and has a
low-risk appetite. A regular pension in your retirement years will no doubt be a
boon, especially for those individuals who retire from private-sector jobs. A
systematic investment like this can make a massive difference to your life post-
retirement. In fact, Salaried people who want to make the most of the 80C
deductions can also consider this scheme.

5. Senior Citizen Savings Scheme : A Senior Citizens’ Saving Scheme is a government-

backed retirement benefits programme. Senior citizens resident in India can invest a
lump sum in the scheme, individually or jointly, and get access to regular income
along with tax benefits. Retirement benefits means any payment due to the account
holder on account of retirement on superannuation or otherwise. It includes
provident fund dues, retirement or superannuation gratuity, commuted value of
pension, leave encashment, savings element of Group Savings Linked Insurance
Scheme payable by the employer on retirement, retirement-cum-withdrawal benefit
under the Employees’ Family Pension Scheme and ex-gratia payments under a
voluntary or a special voluntary retirement scheme.

6. Sukanya Samriddhi Yojana : Individuals who are planning to invest in the SSY
scheme can check the amount they will receive at the time of maturity by using the
SSY calculator. In order for individuals to use the SSY calculator, they must meet the
eligibility criteria of the scheme. Currently, the rate of interest offered by the scheme
is 7.6%. The account matures on completion of 21 years from the date of creation of
the account. The complete maturity amount along with the interest accrued can be
withdrawn on maturity. If the girl, for whom the account was opened, gets married
before the completion of the maturity period, she can withdraw the balance
amount, provided she is 18 years old at the time of such withdrawal. The girl has to
produce an affidavit that states that she is 18 years of age at the time of withdrawal.
 If the girl attains the age of 18 and gets married before the completion of 14 years of
the term, the account cannot be operated. Further deposits to the account cannot
be made even if the mandated deposited were not made earlier.

7. Mutual Funds : Mutual funds pool money together from a group of investors and
invest that capital into different securities such as stocks, bonds, or short-term
securities. Each mutual fund has a different investment objective which drives the
strategy and selection of investments within the fund. Each fund has a money
manager responsible for the fund, and the manager's objective is to generate
income for investors by investing portfolio assets and protecting the portfolio's
value. Mutual funds can hold many different securities which makes them very
attractive investment options. The primary reasons why an individual may choose to
buy mutual funds instead of individual stocks are diversification, convenience, and
lower costs.

8. Equity Based Mutual Funds : An equity mutual fund invests largely in the stocks of
various companies to generate returns. Equity fund investments are linked to higher
risk as compared to other types of mutual funds. Equity mutual funds invest major
corpus in equity shares of various companies in particular proportions. This asset
allocation is based on the type of equity fund and its alignment with the investment
objective. Depending on the market conditions, the asset allocation can be made
purely in stocks of small-cap, mid-cap, or large-cap companies. After allocating a
significant proportion to the equity segment, the remaining amount is invested in
debt and other money market instruments. This helps bring down the element of
risk and take care of sudden redemption requests. If you have a long-term goal, it is
advised to invest in equity funds. It will provide your funds the much-needed time to
combat market movements and fluctuations.

9. Debt Based Mutual Funds : A debt fund is a Mutual Fund scheme that invests in
fixed income instruments, such as Corporate and Government Bonds, corporate debt
securities, and money market instruments etc. that offer capital appreciation. Debt
funds are also referred to as Fixed Income Funds or Bond Funds. A few major
advantages of investing in debt funds are low cost structure, relatively stable
returns, relatively high liquidity and reasonable safety. Debt funds are ideal for
investors who aim for regular income but are risk-averse. Debt funds are less volatile
and, hence, are less risky than equity funds. If you have been saving in traditional
fixed income products like Bank Deposits, and looking for steady returns with low
volatility, debt Mutual Funds could be a better option, as they help you achieve
your financial goals in a more tax efficient manner and therefore earn better returns.
In terms of operation, debt funds are not entirely different from other Mutual Fund
 schemes. However, in terms of safety of capital, they score higher than equity
Mutual Funds.

10. Hybrid Mutual Funds : Hybrid mutual funds are types of mutual funds that invest in
more than one asset class. Most often, they are a combination of Equity and Debt
assets, and sometimes they also include Gold or even Real estate. Since the sources
of risk and factors affecting returns are similar for the investment options within an
asset class, they tend to exhibit a high level of correlation in returns, whereas
investment options across asset classes show little correlation in returns. Portfolio
risk can be reduced by combining assets that have a low correlation. Hybrid mutual
fund schemes diversify the investment within multiple asset classes to try and
achieve maximum returns at minimum possible risk.

11. Index Funds : An index fund is a type of mutual fund that purchases similar stocks as
in a particular market index. This implies that the scheme will perform in tandem
with the benchmark index it tracks. An index is a group of securities that define a
particular market segment. Since index funds track a specific index, they fall under
passive fund management. Under passively fund management, the securities traded
are dependent on the underlying benchmark. Additionally, passively managed funds
do not require a dedicated team of research analysts to identify opportunities and
pick the most-suited stock. Contrary to an actively managed fund that strives
increasingly to time and beat the market, an index fund is designed to match the
performance of its index. Thus, index funds returns are aligned to their underlying
market index. The returns are more or less equal to the benchmark, except a small
difference known as tracking error. The fund manager often tries to dial down this
error as much as possible.

12. Exchange Traded Funds : ETFs are not mutual funds.  Generally, ETFs combine
features of a mutual fund, which can be purchased or redeemed at the end of each
trading day at its NAV per share, with the intraday trading feature of a closed-end
fund, whose shares trade throughout the trading day at market prices. Unlike with
mutual fund shares, retail investors can only purchase and sell ETF shares in market
transactions.  That is, unlike mutual funds, ETFs do not sell individual shares directly
to, or redeem their individual shares directly from, retail investors.

13. Portfolio Management Services : Portfolio management refers to managing an

individual’s investments in the form of bonds, shares, cash, mutual funds etc so that
he earns the maximum profits within the stipulated time frame. A portfolio manager
is one who invests on behalf of the client. A portfolio manager counsels the clients
 and advises him the best possible investment plan which would guarantee maximum
returns to the individual. A portfolio manager must understand the client’s financial
goals and objectives and offer a tailor-made investment solution to him. No two
clients can have the same financial needs.

14. Systematic Investment Plan : Systematic Investment plan or SIP is the best way to
invest in mutual funds. Mutual Fund offers SIP plans that let investors save a
certain amount on a regular interval like weekly/ monthly/ quarterly. Since the
money is invested at a regular period, it also minimised the impact of market
volatility. With SIP Plan, investors can stay invested for a longer period to build a
financial corpus. This makes sure of regular savings and gives different benefits
including power of compounding. With SIP plan, you can invest for a longer
period of time to maximize your wealth. Also, market volatility impact is reduced
as you invest the amount at regular intervals. SIP plans provide an opportunity to
the investors, even those who are new in the market to invest a small amount of
money per month for a fixed period of time and gain high returns on investment.
SIP plans help investors to create a financial cushion so that they can achieve
their long-term and short-term financial goals of life.

15. Gold Investment : Investors can invest in gold through exchange-traded funds,

buying stock in gold miners and associated companies, and buying a physical
product. Gold is seen as a hedge against inflation and a store of value through thick
and through thin. Holding gold, however, comes with unique costs and risks.
Investing in gold is worthwhile because it is an inflation-beating investment. Over
time, the return on gold investment has been in line with the rate of inflation. Gold
has an inverse relation with equity investments. For example, if the equity markets
start going down, gold would perform well. Considering gold as an investment option
in your investment portfolio will be a buffer to the overall volatility of your portfolio.