Other Investment Solution

Equity

When a company issue shares to the investors in return for money, these shares are called equities. The equity meaning in share market is nothing but these shares which investors can buy or sell. The equity market is also called a stock market where traders buy or sell shares.

Investors with good knowledge and enough research can earn huge profits in the longer run.

Investors can generate steady income in the form of dividends. Dividends are paid to shareholders from the profits earned by the company.

Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off.

We can also think of equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset.

Equity represents the shareholders’ stake in the company, identified on a company's balance sheet.

The calculation of equity is a company's total assets minus its total liabilities, and it's used in several key financial ratios such as ROE.

Home equity is the value of a homeowner's property (net of debt) and is another way the term equity is used.

Demat Account

Demat Account is an account that is used to hold shares and securities in electronic format. The full form of Demat account is a dematerialized account.

The purpose of opening a Demat account is to hold shares that have been bought or dematerialised (converted from physical to electronic shares), thus making share trading easy for the users during online trading.

Bonds & Debentures

A bond is a debt security. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.

There are different types of bonds like,

1. Government bonds

2. Tax savings bonds

3. Corporate & institutional bonds

Bond is loan from an investor to a borrower such as a company or government. The borrower uses the money to fund its operations, and the investor receives interest on the investment. The market value of a bond can change over time.

While less exciting perhaps than stocks, bonds are an important piece of any diversified portfolio.

Bonds tend to be less volatile and less risky than stocks, and when held to maturity can offer more stable and consistent returns.

Interest rates on bonds often tend to be higher than savings rates at banks, on CDs, or in money market accounts.

Bonds also tend to perform well when stocks are declining, as interest rates fall and bond prices rise in turn.

Fixed Deposite

Fixed Deposits is the most popular form of investment in any set of customers.

Majority of Banks have this facilities but apart from that Big NBFC likes Bajaj , HDFC etc.. also have their Corporate Fixed Deposits.

We need to invest particular amount in fixed deposit and we will get return some percentage for that particular time. In case of Liquidate before described time you got pre-closure charges 0.5% on your respective amount.