Investments are the purchase of goods that are not consumed today but are used in the future to create wealth to achieve financial goals.
MUTUAL FUND, POSTAL DEPOSITS, NPS are the more significant Investment avenues.
Whenever there is access savings or surpluses or intention of future wealth creation, it forms an idea of INVESTMENTS. Investments are the purchase of goods in the form of financial schemes or properties that may not consume today, but they help achieve future financial obligations.
Different types of investment avenues maximize the principal's value with a different rate of growth and liquidities.
Investments are classified as long-term investments and short-term investments. They depend upon the financial position and need of the Investor. Consulting with an investment services provider can lead to a better asset selection from a border financial market, e.g., Mutual funds, Stocks, Real Estate, etc.
Different types of investment avenues participate in the field of their expertise. Changing market dynamics, economic cycles, and Govt. policies bring differences in performance.
Few types of Investment avenues are discussed here.
The financial market presents various and flexible investment options that include time, amount, objectives, and risk to cater to all investor categories to meet all their Investment needs and covers their tax savings.
The property market is also known as the REAL ESTATE market. It may require a vast and lumpsum fund to invest in.
Its location and size measure the liquidity and prices of the property.
The financial market's function is to ensure that economic activity is enabled by providing access to funds to those that need it for consumption or productive activity. They provide a way for aggregation of funds from many investors and make it available for productive economic activity. In the absence of financial markets, such collection may not be possible. An efficient financial market ensures that the transfer of funds happens at a cost that makes it attractive for savers to save lend and for users to borrow funds.
The financial market is flexible in choosing investment tenor and amounts such as monthly, lump sum, switching, etc. This flexibility invites investors as the investments can be started and closed at any point in time.
Every investment can be represented as a set of inflows and outflows. Return is the comparison of inflow and outflow and, therefore, the investor's benefit from investing.
Different avenues and investors follow another method of calculation to measure their scheme performance, such as,
Annualized Return is a standardized measure of return on investment in which the return is computed as percent per annum (% p. a.).
The CAGR of an investment is the underlying compound interest rate that equates the investment's end value with its beginning value.
A tax-adjusted return is the return earned after taxes have been paid by the investor.
This return represents the amount that is earned over and above the inflation.
Taking out money from any investment is a significant advantage of investing in the financial market. Its various payout systems such as Maturity, survival, cashback, surrender, Loans, etc., benefits, and Monthly income in the form of MIS (Monthly Income Scheme) Annuities enable investors to liquidate their fund at any time to use the fund in a time of needs.
Investments into the financial market minimize tax burden to investors at the time of investing and maturity. Maximum tax savings schemes are offered from the financial market, which qualifies for deductions under the Income-tax's various section, e.g., 80C, 80D, 80CCD, 24EE 30 to 37, etc.
The financial market is a very well regulated industry by various Govt bodies. The idea of regulating the industry is to optimize all its stakeholders' benefits while protecting consumers' interests. Several regulatory authorities regulate the financial sector in India.
Some head of those are:
The primary functions of SEBI are "to protect investors' interests in securities and promote the development of, and to regulate the securities market and for matters connected in addition to that or incidental thereto."
IRDAI regulates, promotes, and ensures orderly growth of the insurance sector, including the re-insurance business while protecting policyholders' interests.
RBI regulates the issue of Bank Note and keeping of the country's currency and credit system to its advantage and supervision of the financial system.
The PFRDA regulates the NPS (National Pension System) to protect PRAN Holders' interest and promote it as old age income security by establishing, developing, and regulating pension funds.
Financial Industry is full of potential schemes from various sectors with unique features and options, e.g., investment tenor, amount, liquidity, tax treatment, etc. Investment aspects may differ from person to person depending upon investors Financial Position, Investment Objectives, Tax liabilities, Risk appetite, etc. So we recommend a consultation with all financial matters to reach the right selection of financial schemes and industry that may perfectly fit into meet the investors' investment requirements.
Here is a look at various financial Industries and schemes.
The mutual fund industry presents different set asset classes, schemes, and flexibility in investment such as SIP, LUMPSUM with various systematic transactions...
Insurance is one of the most popular savings/Investment vehicles in India. Schemes like Endowment, Money back, ULIP Plans are the key plan for investment and tax savings ...
Post office savings/Investment schemes present small savings to cater to all categories of peoples' investment needs and offer a sovereign guarantee of maturity...
The NPS is a defined contribution scheme launched in May. 2009 by the government of India for all citizens voluntarily. It also gives tax benefits in addition to IT section 80c.....
TAX-FREE BOND, CAPITAL GAIN BOND, INFRASTRUCTURE BOND, GOLD BOND, etc., are Called Government Securities (G-sec) Issued by the RBI (Reserve bank of India) are the renowned BONDS in the Market...
Recognized company's shares are traded in national stock exchanges like BSE, NSE, S&P, and other INDICES where investors can Invest/trade them as equity through a Demat account.....
Our horizontal and vertical financial service portfolio from the financial industry enables investors to select the right scheme and service that meets their investment objectives.
The property market is also known as the REAL ESTATE market. Investment in the Land is one of the traditional destinations. Real estates are immovable property that can be defined as an asset consisting of land and natural resources such as soil, gravel, minerals, etc. Real estate can be categorized into LAND, Apartments and Commercial Premises from the business or investment perspective.
The real-estate investment option is one of the favorite investment options for many investors who look at this area for regular income by way of putting it on rent and realizing profit from the appreciation. Even if the intention is not for generating extra earnings, it saves income from tax deductions.
Everyone dreams of a home; without an own house, life needs to be spent in a rented house, which costs a monthly rent and remains a temporary resident. Multiple financers make buying a home easy. There are various Govt—schemes such as HOUSING FOR ALL, PRADHAN MANTI AWAAS YOJNA, etc. offers tax benefits and exemptions for purchasing a house.
REAL ESTATE PROPERTIES also can be considered as investment portfolio diversification. Buying and holding property may even potential of capital appreciation with various incentivized tax treatment.
Income tax offers various sections of exemptions from taxable income of the assessee for the payment of different components, such as Interest on Home loan, principal, capital gain with Indexation, the cost involved in property development, etc.
Real estate has a set of disadvantages if it is not in use for the self resident. A few of those are.
We are summarizing here the pros and cons and the normal flow involve with property dealings. The Actual scene may vary as per need, budget, location demand, and supply. Tax treatment is subject to property holding, buying, and tax profile. We recommend a personal consultation with us before reaching to end up the deal.
Our real estate sales service offers a basket of available options from GUWAHATI and across the country.
We are also partnered with SBI Home loans for making available loans quickly for buyers to make an easy buying process.