Navigating the world of investments can seem complex, but understanding the core features of different avenues can empower your financial decisions. Here's a brief overview of Mutual Funds, Corporate Fixed Deposits, Bonds, and Investment in Unlisted Equities.
Mutual Funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, and other securities. They are managed by professional fund managers.
Corporate FDs are term deposits offered by companies, allowing you to invest a lump sum for a fixed period at a pre-determined interest rate.
Bonds are debt instruments issued by governments or corporations to raise capital. When you buy a bond, you're essentially lending money to the issuer in exchange for regular interest payments and the return of your principal at maturity.
This involves buying shares of companies that are not yet traded on public stock exchanges. These are typically private companies, often in early to growth stages.