The goal of any investment is to augment wealth and create a sizeable fund for future spends. We present five investment opportunities to achieve these objectives.
Investors in India are well versed with current market trends and they are sufficiently savvy to capitalise on them. There are several opportunities for investing in the market when trends change, for example, when interest rates fluctuate. Similarly, they realise the importance of pooling in their money in high quality equity securities for stable, long term returns.
While seasoned investors are quick to tap new investment opportunities, new or rising investors might need guidance in the right direction so that they may realise their financial goals. Premier banks in India help these individuals in the arena of investment banking with five investment options for them to consider. These are broadly divided under ‘Equity Funds’ and ‘Money Market Funds’:
- Investment Grade bonds: This is one the best investment plans available today. It provides a stable and sustained source of income through interest earned. The investor receives the primary value of the bond on maturity or on redemption, and it is relatively low risk than speculative grade bonds. These bonds are safe to invest in since they receive a minimum credit rating of ‘A’ by CRISIL, CARE or ICRA.
- Yield Enhancement Notes: These are recommended for investors with a higher appetite for risk. The investor makes an assessment of a current market situation and earns higher returns from the Notes based on how the underlying financial instrument (equities, credit, market index, Forex, interest rates, etc.) performs at that time.
- Fixed Income Funds: These allow for a high degree of diversification among investments. Investors receive a fixed income with capital appreciation while reducing risk with diversification. It is one of the best investment options when entrusted in the hands of an experienced fund manager from the bank.
- Participating Notes: These are also high-risk investment plans that work on the principle of possible high returns by assessing the financial instrument (such as equities, credit, Forex, interest rates, fixed income tools, etc.) The investor may express a bullish or bearish outlook depending on the Notes’ structure.
- Short dated Investment Grade Bonds: These are deemed to be conservative bonds, with the ability to generate a stable stream of income on interest between one to five years tenure. They are relatively low risk Bonds rated ‘A’ and above by such agencies as CRISIL, CARE or ICRA. Like Investment Grade Bonds, they are less volatile than speculative bonds.