Shares, Stocks, Bonds: Where All Can You Invest in The Market?

When it comes to market investments, most people immediately think of stocks and shares. But there’s a whole spectrum of investment options you could explore. This video breaks down several such types of investments, each with their unique characteristics, benefits, and risks.

First, we’ll cover the basics, starting with shares and stocks, which refers to holding partial ownership in companies. Next, you’ll dive into bonds, which tend to have lower risk but also offer lower returns. For those seeking diversification, mutual funds and Exchange-Traded Funds (ETFs) can be suitable options. They offer professional management and flexibility.

We’ll also explore gold investments, including digital gold, Gold ETFs, and Sovereign Gold Bonds. They can be suitable for those looking to hedge against inflation. If you're interested in realty without actually owning property, Real Estate Investment Trusts (REITs) might be an ideal choice.

The video further covers derivatives, government-backed securities, and even opportunities to invest in international markets. These diverse asset classes can serve different investment needs, from those seeking high returns to those looking for stability.

No matter your risk appetite or financial goals, there’s an investment type that aligns with your strategy. Tune in to Academy for more such insights on building a diversified portfolio!

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Key Takeaways

Shares and Stocks: Represent ownership in a company and can offer dividends

Bonds: Lend money to governments or corporations for periodic interest payments

Mutual Funds: Pool money from multiple investors for diversified investments

ETFs: Trade like stocks but provide diversification, often at a lower cost than mutual funds

Gold Investments: Options like Digital Gold, Gold ETFs, and Sovereign Gold Bonds for hedging against inflation

Commodities: Invest in physical goods such as metals, oil, and agricultural products

REITs: Real Estate Investment Trusts allow you to invest in property without owning physical real estate

Derivatives: Complex financial contracts based on underlying assets like stocks and commodities

Frequently Asked Questions
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Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets, managed by professionals. ETFs, like mutual funds, offer diversification but trade like stocks on exchanges. They are typically more flexible, with lower fees, making them a suitable choice for cost-effective diversification.
You can invest in gold through Digital Gold, Gold ETFs, or Sovereign Gold Bonds. Digital gold allows you to buy gold online, while Gold ETFs trade like stocks, tracking gold prices. Sovereign Gold Bonds, issued by the government, offer interest income and capital appreciation, making them a considerably safe investment option.
Real Estate Investment Trusts (REITs) pool funds to invest in real estate that can generate income. They can offer investors a method to earn from real estate without owning physical properties. REITs are traded on stock exchanges, offering liquidity, and provide regular dividends from rental income and property sales.
Derivatives can be classified as financial contracts which derive their value from an underlying asset’s price, like stocks or commodities. Futures and Options are common types of derivatives. They are more complex and carry higher risk. Hence, they could be more suitable for experienced investors aiming to hedge or speculate on price movements.
Government-backed securities like Treasury Bills, Government Bonds, and Sovereign Gold Bonds are low-risk investments issued by the government. They offer fixed returns over a set period, making them suitable for risk-averse investors. These securities provide stable income and often come with tax benefits, making them a versatile investment option.
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