Types of financial investing

  • Posted By : reliancesmartmoney.com
  • Friday Dec 21, 2018

You might have a list of financial goals to fulfill in your lifetime. These goals can be for yourself or for others. For this, backing your savings with investments can be a good idea.

You can invest in either physical assets or financial assets.

Physical assets include gold, real estate etc.

Financial assets are investment products like mutual funds, Exchange Traded Funds (ETFs), direct equity investments, fixed deposits, etc.

While investing in financial assets, you may want to look at a product that offers high returns.

Here are a few financial investment options you could consider: 

Bank Fixed Deposits (FDs)

Bank FDs are popular investment options. These deposits offer fixed returns. Fixed deposits provide you a wide range of tenures to invest in. However, if you withdraw your money before the maturity date, you may have to pay a fee. You can obtain tax benefits if you invest in an FD of at least five years tenure.

Direct Equity Investment

To get higher returns on your invested money, you may invest in the stock market . Stock markets are volatile (wide and quick price fluctuations). But they can bring attractive returns on your investments if you are well versed with market swings. However, if you are risk-averse, you may want to avoid directly investing in equities. 

Mutual Funds

Mutual funds are investments where you invest in a basket of diversified assets (stocks, bonds, treasuries etc.). Mutual funds offer a plethora of schemes to choose from, based on your appetite for risk. Here, you can invest in equities, bonds or a combination of both. You can invest in mutual funds  through Systematic Investment Plan (SIP). Mutual funds offer built-in diversification. You can do goal-based planning through investment in these funds.

Mutual fund investments like Equity Linked Savings Scheme (ELSS) are high-return and tax saving mutual funds. These funds have a lock-in period of three years.  

Thus, if you are looking for convenient, economical, professionally managed, quick-building and diversified investment solutions, mutual funds can be the right investment vehicle for you. Start investing in mutual funds now to realise your goals and achieve financial security.

Exchange-traded Funds

ETFs are investment funds that are traded like any other stocks on a stock exchange. Stock markets experience fluctuations, due to buying and selling of stocks that happen throughout the day. Just like mutual funds, Exchange Traded Funds  track a basket of assets. ETFs can also follow an index. These funds are similar to mutual funds concerning diversification and transparency.

Financial investments can help you save and control your spending pattern. Well-planned investments can help you achieve your financial security goal. Use reliancesmartmoney.com to #makeasmartmove to reach your goals and prepare yourself for future.


Invested Money
in 1986

as in July 2018

as in August 2018





Fixed Deposits




Index mutual fund





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