There are many investment products in India and they are divided into many categories. Firstly, let us list them according to their popularity along with latest rate of returns.
List of Investment products in India
- Fixed Deposits – 4% to 7%
- Fixed Maturity Plans – 5%
- Life Insurances – Traditional Plans excluding term insurances at the most – 5% to 6%
- Public Provident Funds or EPF – 7.1%
- Pension Schemes like National Pension Scheme – Past return range since inception till 2019 – 10% to 10.50% – Source Paisa Bazaar
- Government Bonds and Government Debt Funds – 5% to 6.8%
- Corporate Bonds, Commercial Papers, debentures, Private Debt Funds – 6% to 20%
- Paper Backs – Traditional Currencies – 10% to 20%
- Mutual Funds – Equity, debt, Hybrid, small cap, mid cap, large cap, thematic, sectoral, index funds, ETFs etc – 15% to 50%
- Equities – Primary – IPO and Secondary Market – 15% to 100%+
- Commodities – Futures and Deliveries – Trading – 40 – 100%+
- Derivatives – Hedge Funds, Futures and Options etc 100%+
- Crypto Currencies – 100%+
- Betting – 100%+
Secondly, If you can find any other products suggest us in the comment section to expand the list. Thirdly, there are so many different types of financial instruments. How can we as an investor decide what is best for us?
Expectations X Responsibilities
Firstly, we need to have a balance between our Expectation and Responsibility. Because they both are contradictory in nature. Our expectation is make the maximum return. Our responsibility is to reduce the risk on the amount we save.
Risk ∝ Returns | Higher the Risk Higher the Returns
Basically, when you’re taking risk, you should also take into account your resposibility. Then calibrate accordingly for the right mix of exposure to risk and return.
How to time the Investment Products?
If you enter in an investment product at the right time the returns can multiply. Therefore, timing of investment product is very important. There are two approaches of creating an entry.
- Traders Timing – Trend is my friend. A trader will keep on buying the asset if the prices are going up thereby chasing the prices.
- Investor Timing – Contrary to the trader’s behavior an investor invests in the falling markets. Downtrends are very carefully tracked by investors.
- Financial Planner