Bond | Mutual Funds | SIP | Derivatives

Different Types of Securities 

Most of the People thoughts that in Stock Market only shares can be sell and buy, but that is not correct. There are many other securities like share are also traded in Stock Market. Lets find out about them.

Bond | Debentures

•  Bond/Debentures are like a loan. When tcompany needs money for any project they can take loan from bank or they take loan from public/people and issues bonds/debentures,
• Companies pay interest at fixed rate that decide before deal.
• After the completion of the bond period company repay the investors in return for the bonds/debentures.
• Bond/Debentures are secure investment option for any investors comparison to shares. Because in this interest paid in time to time at fixed rate by company and  repayment is done after the completion of bond period.

Mutual Funds

• Mutual Funds are indirect investment in shares and bond.
  
• Mutual funds are type of trust or institution that issues their own shares, which people buy and invest in mutual funds.
•  In this funds invested in variety of shares and other securities by professional manager of mutual funds.They invest based on their knowledge, experience, understanding and analysis.
• The benefit of investment in mutual funds is that you will get good return most of the time.
• In mutual funds you have to pay some fees to that trust or institution.

SIP (Systematic Investment Plan)

• This is also a one way to invest in Mutual Funds.
• In this a certain amount is invested in Mutual fund every month and that amount are fixed based on different SIP available.
• The bank account of investors is linked to the SIP scheme, so that certain amount can be transferred from the bank account to the mutual fund every month and mutual funds of that amount are added into the account of investor..
• SIP are popular nowadays due to  hassle free,simple and automatic.

Derivatives

• Derivatives means to determine future transactions today.
• Which are done by Futures and Options in Stock Market.
• Under futures trading you can execute future transactions today at fixed price.
• Important thing is that Actual Delivery is not given in it and settlement is done on the basis price difference.

Hope Now you understand the terms of Share Market and wanting to start invest.

If you have any query than ask in Comment Box.

Thank You.