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Modes of Investment

Mutual Funds directs he savings of individual investors into bonds, stocks, and money market securities. Recommended by MCX intraday tips researchers for starters.

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Modes of Investment

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  1. Mutual Funds, Insurance Companies, Finance Companies, and Other Financial Mediums Money and Capital Market Modes Of Investments

  2. Mutual Funds • Mutual Funds directs he savings of individual investors into bonds, stocks, and money market securities. Recommended by MCX intraday tips researchers for starters. • A small saver who buys mutual fund shares gains opportunities for capital gains and indirect access to higher yielding securities that can be purchased only in large blocks, and yet still enjoys price stability, low risk, and high liquidity. • Mutual funds buy back (redeem) their shares any time the investor wishes, and sell shares in any quantity demanded.

  3. Mutual Funds • Mutual Funds Investment companies adopt many goals. • Growth funds invest mainly in common stocks offering strong growth potential to achieve long-term capital appreciation. • Income funds typically purchase stocks and bonds paying high dividends and interest to gain current income. • Balanced funds acquire bonds, preferred stock, and common stock that offer both capital gains (growth) and current income.

  4. Life Insurance Companies • Insurance Companies offer their customers a hedge against the risk of earnings losses that often follow death, disability, or retirement. • Policyholders receive risk protection in return for their payment of policy premiums. • Additional funds to cover claims and expenses are provided by the earnings from the investments made by the insurance companies.

  5. Life Insurance Companies • The principal kinds of policies sold by life insurance companies include ordinary or whole life, term life, endowment, group life, industrial life, universal life, variable life, adjustable life, and credit life insurance. • Many policies combine financial protection against death, disability, and retirement with savings plans to help the policyholder prepare for some important future financial need.

  6. Finance Companies • Finance companies grant credit to businesses and consumers for a wide variety of purposes, including the purchase of business equipment, automobiles, vacations, and home appliances. • As such, they are sometimes called department stores of consumer and business credit.

  7. Finance Companies • Consumer finance companies make personal cash loans to individuals, such as home equity loans and loans to support the purchase of passenger cars and home appliances. • Sales finance companies make indirect loans to consumers by purchasing installment paper from dealers selling consumer durables. • Commercial finance companies focus mainly on extending credit to business firms.

  8. Others • Pension Funds individuals and families against loss of income in their retirement years by allowing workers to set aside and invest a portion of their current income. • Commodity segment in capital market is another mode, commodity market tips make the investments easy and profitable here.

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