Modes of Investment

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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