Impact of Demographic Factors on Investor's Investment Decision
INTRODUCTION
Various investment options available in India: • Savings Bank Account
The first banking product used by people, it offers low interest, making them only marginally better than safe deposit lockers. • Money Market Funds (also known as liquid funds)
It offers better returns than savings account without compromising on the terms of liquidity. These liquid funds are a specialized form of mutual funds invested in extremely short-term fixed income instruments. Unlike most mutual funds, they are primarily oriented towards protecting the capital and then later maximizing the returns. • Bank Fixed Deposit (Bank FDs)
For investors, who are ready to take low risk, Bank FDs are best for 6-12 months investment period. Also known as term deposits, Bank FDs would be offered by all banks. Minimum investment period for them is 30 days. • Post Office Savings Schemes (POSS)
POSS are popular because they typically yield a higher return than bank FDs. The monthly income plan could suit a retired individual or the one's having regular income needs. The Post Office offers various schemes that include National Savings Certificates (NSC), National Savings Scheme (NSS), Kisan Vikas Patra, etc. • Company Fixed Deposits (FDs)
FDs are instruments used by companies to borrow from small investors. Typically FDs are open throughout the year. Invest in FDs only if you have surplus funds for more than 12 months. Select your investment period carefully as most FDs are not encashable prior to their maturity. • Bonds and Debentures
These are option for large investments or to avail of some capital gains tax rebates. Besides company FDs, bonds and debentures are the other fixed-income instruments issued by companies. As a result of an illiquid secondary market and a lack-lusture primary market, investment in these instruments is largely skewed towards issues from financial institutions.
• Mutual Fund
Mutual funds are like investments made in partnership
Various investment options available in India: • Savings Bank Account
The first banking product used by people, it offers low interest, making them only marginally better than safe deposit lockers. • Money Market Funds (also known as liquid funds)
It offers better returns than savings account without compromising on the terms of liquidity. These liquid funds are a specialized form of mutual funds invested in extremely short-term fixed income instruments. Unlike most mutual funds, they are primarily oriented towards protecting the capital and then later maximizing the returns. • Bank Fixed Deposit (Bank FDs)
For investors, who are ready to take low risk, Bank FDs are best for 6-12 months investment period. Also known as term deposits, Bank FDs would be offered by all banks. Minimum investment period for them is 30 days. • Post Office Savings Schemes (POSS)
POSS are popular because they typically yield a higher return than bank FDs. The monthly income plan could suit a retired individual or the one's having regular income needs. The Post Office offers various schemes that include National Savings Certificates (NSC), National Savings Scheme (NSS), Kisan Vikas Patra, etc. • Company Fixed Deposits (FDs)
FDs are instruments used by companies to borrow from small investors. Typically FDs are open throughout the year. Invest in FDs only if you have surplus funds for more than 12 months. Select your investment period carefully as most FDs are not encashable prior to their maturity. • Bonds and Debentures
These are option for large investments or to avail of some capital gains tax rebates. Besides company FDs, bonds and debentures are the other fixed-income instruments issued by companies. As a result of an illiquid secondary market and a lack-lusture primary market, investment in these instruments is largely skewed towards issues from financial institutions.
• Mutual Fund
Mutual funds are like investments made in partnership