Sowing the MoneyPlant

 

                       



        Various investment avenues exist to help you invest your savings and earn the highest possible returns with the lowest potential risk. These are broadly categorized as asset classes and some examples include, but are not limited to, cash and cash equivalents, bonds, derivatives, equities, real estate, gold, commodities, and alternative investments.


Let us understand in details about each one.

1.Fixed-income asset class:

One of the most popular investment options among Indians, the fixed income asset class is one of the oldest forms of investment. It includes corporate and government bonds, corporate debt securities, money market instruments, etc. Such asset class typically invest in debt securities that endeavor to pay investors interest until maturity

2.Equity asset class:

Equity or stock are shares of ownership issued by companies. Equity has gained popularity over the last decade. Equity funds are further sub-categorized into small-cap funds, mid-cap funds, large-cap funds, large and mid-cap funds, multi-cap funds, dividend yield funds, thematic funds, contra funds, value funds, focused funds, sectoral funds, and Equity-linked Savings Schemes (ELSS) etc.

3.Real estate asset class:

This asset class focuses on apartments, plots, industrial areas, villas, commercial buildings, etc. The tangibility of real estate investments is a crucial characteristic and makes it different from securities that exist only in virtual or dematerialized forms.

4.Cash and cash equivalents asset class:

Cash and cash equivalents are suited for short-term investing. The primary advantage of such investments is their liquidity. Cash equivalents, such as money market instruments, commercial papers, treasury bills, etc., are highly liquid instruments with maturity upto 1 year. Thus, money invested in cash and cash equivalents is easily accessible.

Summing up ..


    Now the question arises , how should one decide ,how much money to put in each class & or which asset classes are suitable for him? This depends on indivisual's earning, age, goals, liabilities etc. This is called Financial Planning. Some standard financial plans are given below. One can utilize those as a base model & customize to suit to his needs for achieving his financial goals.


                        


                                                    Let us define Agewise






Hope this information was helpful to manage your investments..


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Comments

  1. BenApril 29, 2023 at 3:53 PM

    Thanks for sharing such a great information.. It really helpful to me Private tutor near Bethesda The way you have tell everything is amazing

    ReplyDelete

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