Various methods of investment for investors

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Following are some investment options which are helpful for new investors or beginners. These are not only for beginners but for all investors. But this is given for the information of beginners in investment field. These are only a brief explanation for each type of investment products and if you need to know more about any item use the search box below or search with any other search engines.

401 K

This is a type of investment where year use deduct money from the employee's salary and deposited in various investment options as per the option of the employee and the part of salary invested in 401 K is exempted from tax and interest earned for the same aussi exempted from Tax till it is withdrawn. The 401 K is in United States and the use also contribute almost same amount. This invested amount can be utilized for the retirement needs of the employee.

Employees Provident Fund

This is also just like 401 K and a percentage of the salary deducted and deposited in the Fund or any registered trust for the retirement or any important financial goals of the employee. The use also invest the same and both the amount deducted from the salary and the interest earned also exempted from Income Tax.

Voluntary Provident Fund

The employee can direct the use to deduct an additional amount from his salary other than provident fund and deposit in the same fund as provident fund. No. tax will be levied for the VPF amount and interest thereof.

Life Insurance

Life Insurance policies ensures a certain amount at maturity or the death/disability of the insurer. This cannot be considered as an investment but it is a deemed investment. Insurance Companies allowed bonus or any other type of profits for each policy as per the terms of the policy. The premium amount deposited in Life Insurance policies, the maturity value and the claim amount are also exempted from tax with some limitations.

Shares of companies

Shares or stocks are small units of the shared ownership of a company. One can invest in stocks and can earn a part of profit of the company as dividends. You can sell the shares to the share market and can fetch profit from the changing market value of shares. One can trade with shares to get more profit.

Bonds

Bond is also an investment instrument where you can invest money and can earn a guaranteed pre determined interest. This can be done with government or any companies. Bond is a safe or low risk investment and the guaranteed interest can be periodically collect gold lump sum with post dated cheques or Electronic clearance (ECS) as per the terms of each bonds.

Mutual Funds

Mutual funds are also investment option where the pooled money of a set of investors investing in shares, securities and other money market instruments by fund houses.  Mutual Fund is a good investment option for the investors, those who do not know how to invest in shares and also wish to earn money from share markets. An expert fund manager will handle the money and investment portfolio.

Money Market Funds (Money Market Mutual Fund)

This type of funds is issued by Mutual funds, banks or brokerage firms. Normally this is a short term investment and the fund holders get interest. This money is invested in high quality securities, liquid and debt instruments. This is a low risk investment option.

Unit Linked Insurance Plan

ULIPs are financial products of insurance companies which have dual effects as insurance and the units are act as mutual funds. You will get the insurance protection and growth of your investment from shares, securities and money market instruments.

Annuities

Annuities are onetime payment to the insurance company to get back a regular income for a fixed period of time or till the death of the investor whichever is earlier.  Good for retired people to get a fixed amount just like pension.

Certificates of Deposit (CDs)

Certificates of Deposits are a type of deposit where you can deposit money and can earn interest a little bit higher than savings account. This also may call fixed deposits and a very safe method of investment. You can withdraw the money after the time period or whenever you require money.

Investment in Properties

You can purchase house property; land etc. and can get rent for letting out gold can make profit from resale of the property. You will get a regular rental income or profit from the price escalated. Real estate investment is a better option of investments.

Gold and Precious metals

You can purchase gold, silver and other metals and can sell it off when you need money or when the price is high in the market. The price of gold shows only an upward trend and you will not lose your money. When you buy gold for investment purpose, buy pure gold (24 K) in the form of bullion, coins or bars. When it will in the form of ornaments the purity may be compromised.

Currency Trade (forex)

Currency exchange is also a method of making profit and you should be experienced for the same. Some forex sites allow you to start a free demo account with virtual money and after getting enough experienced, you can shift to real trade.

Antiquities

Precious Old and ancient arts, crafts and other equipments can be collected and sold for profit. But always check with concerned government departments, because some ancient items cannot be purchase gold sold legally.

All the above options are good for making more money through investments, but remember that the profit or loss is in the hands of the investor. Remember the universal rule of investment is that "do not put all your eggs in one basket". Markets your investments and play with your hard earned money wisely after enough research and analysis.

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Fund of funds (FOF) is the best option for mutual fund investors.

You must have heard many mutual funds and most of our readers are already mutual fund investors. You know that the mutual funds are the easiest way to invest in the stock market, bonds and other money market instruments. Portfolio diversification, professional management expertise low transaction fees low factor risk, .safety high liquidity and convenience to manage etc., are some of the benefits of mutual funds. But there are also some disadvantages of mutual funds investment. The main disadvantage is the difficulty to choose a perfect and appropriate the funds mutual among many mutual funds available in the market. The solution is to fund of funds.

Fund of funds is also a mutual fund, but invest funds pooled investors in mutual funds selected by expert fund managers to get more benefit from better performance of the mutual funds. Normally the mutual funds invest in shares and other money market instruments. But funds of funds invest in different schemes of mutual funds for maximum benefit. It reduces difficulty the saver to choose the right mutual funds.

This Fund of funds reduces the risk of investing in various funds low performing. It helps an investor to obtain the greatest diversity of their investment. All these diversities are unified in Fund of funds. The investor must switch not mutual funds of funds and can reduce the difficulty of testing all the mutual funds, that it has invested to know the return on its investment. As it might reduce the number of systems it can reduce investment also costs. The investor can get benefited from high-level mutual funds can be invested by institutional investors or investors large scale. The investor can get expert performance of various fund managers where investments are made by funds of funds.

There are also some disadvantages in funds of funds. The main drawback is that cost more than the other mutual funds may be because it has a cost concealed of other mutual funds that the funds invested in. The opportunity to invest in same actions repeatedly by various mutual funds subscribed by the Fund of funds that can invest in the same stock. Involvement of tax funds of funds is the same as the Taxability of the funds of the debt, not the Taxability of equity, even if the mutual funds invested by funds of funds are plans of fairness.

AIG World Gold Fund, the Fund of the Mirage active DSP BlackRock global funds of funds, Fund benefit China Gold (regular plan) and Kotak Equity quantum FOF are examples of Fund of funds

If you are not able to choose the right mutual funds, Fund of funds is the best option for you. Expert fund managers will select for you and you can enjoy the best fruits of mutual funds.

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Stock market investors lose 11 lakh crore rupees in 2 months!

The Indian stock market is a bubble that burst every few months holds. By rising to 21000 then fall to 8000, and then again risen, it thrives on speculation. Of North Korea's relatively restrained attack on South Korea main problems as recession in the United States, Europe and the world has everything to affect the power of the Indian stock market.

After months of rising on the back of the happy feelings about the economy, steering through the recession and the strong FII, the stock market to its lowest level threw tributaries in five months. It is closed to 18,396 points which has a jump of about 2600 points for Diwali on Friday That's a lot in just about 60 days. What is even more scary that investors about 11 lakh crore for Diwali including 3 lakh crore have lost wiped out in the past three days itself.

So what is happening suddenly? Where have you gone green shoots of the economy? Why do investors and traders worried again seem? If we analyse, there are three views that you can remember.

Galloping inflation was a major problem for the Government. Rising food prices of commodities like vegetables along with petrol has kerosene and even many manufactured items pressure great on our growth rate. The growth rate to be expected even IMF of India on 8-8, is 5% of a previous 9% has revised.

The cost for borrowing has greatly increased has great pressure on stocks. Scandals have been spread so far in the period of the present Government, that you wonder if life without a scandal. On a serious note caused hundreds of scandals to lose the Treasury millions of taxpayer's money have.

More than anything else has this led to lose confidence in the economy and thus very high percentage of FII outflows. There is also a matter of black money that the Government evasion by talk contracts and not directly to the point. We had all been very excited to cross almost the hurdle of the recession, when the European crisis hit, and it has taken the global economy, these many steps backwards when it had come forward.

The second view of the whole issue is that this happens a natural tendency where cooling market. Markets in India for a while with everything what is excessive speculation have been heated. And with this, the area between 13000 15000 could be set. This is likely if that could happen best buys.

Although different people different views may, although a lot of money in the markets in the last lost few months, people know that you can win twice so much here in less time. And until then, the mystery of the stock market continues.

What do you think?

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