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What are the types of investment avenues?

By Robert Guerrero

What are the types of investment avenues?

Avenues of investing money in India

  • Fixed Deposits. Fixed deposits are regarded as one of the most popular investments in India.
  • Mutual Funds.
  • Recurring Deposits.
  • Public Provident Fund.
  • Employee Provident Fund.
  • National Pension Scheme.

What do you mean by avenues of investment?

Investment avenues are the different ways that a person can invest his money. It also called investment alternatives or investment schemes.

Which is the financial investment avenues?

Public Provident Fund (PPF) Public Provident fund or PPF is a long term investment plan with a long tenure of 15 years. The Government of India governs it. It is generally a tax saving instrument cum Investment avenue. It has an interest rate that is revised on a quarterly basis by the government.

Which is the best investment avenue?

Here is a look at the 10 investment avenues Indians look at while saving for financial goals.

  • Direct equity.
  • Equity mutual funds.
  • Debt mutual funds.
  • National Pension System.
  • Public Provident Fund (PPF)
  • Bank fixed deposit (FD)
  • Senior Citizens’ Saving Scheme (SCSS)
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY)

How many investment avenues are there in India?

Indians can invest broadly into five categories of investments – Equity, Debt, Real Estate, Commodities and Miscellaneous.

How is capital market an investment avenue?

New Investment Avenue: Capital markets usually demand for long time investments by the public therefore creating a new investment avenue for them. Instruments such as bonds, equities, units of mutual funds, insurance policies, etc. provide options for investors to invest and earn more.

What is the tax benefits of investment avenue?

PPF enjoys a favourable tax status, i.e. Exempt-Exempt-Exempt (E-E-E). This means, contributions are eligible for tax deduction under Section 80C, the interest earned is tax-free, and maturity proceeds are exempt from tax. However, money invested in PPF is subject to a lock-in period of 15 years.

What are three types of funds?

There are three major types of funds. These types are governmental, proprietary, and fiduciary.