Equity represents ownership in a company acquired through contribution of capital, which is required to set up or run a business. This capital is raised through issue of shares to the public or a group of private persons, where each share represents a proportion of the stake on the assets and profits of the company. These shares are either bought directly from the company through an offer, or traded (bought and sold) on the stock exchanges
Despite the risk involved, investment in equities is known to offer investors high returns in the long run. Equities investment not only helps an individual in wealth creation over time, but also builds the nation’s capital in the process.
For the investor, equity offers numerous benefits such as:
You can either invest in equity for the long-term, or trade daily with the intention to profit from market fluctuations. The prerequisite is a demat account with a Depository and Trading account with a recognized broker.IIFL offers both the services: of a depository participant as well as a recognized and a well-established broker in India.
Commodities Trading involves trading in every kind of movable property other than actionable claims, money and securities. These include gold, silver and other metals and select agricultural commodities such as grains, pulses, spices, oils and oilseeds. It usually involves trading of commodities futures contracts.
Commodities prices are relatively less affected by factors influencing the stock markets, and hence, offer an excellent avenue of portfolio diversification for investors. Along with diversification and predictability, an investor can also take advantage of the leverage and the liquidity that the market offers
Commodities' trading offers the following benefits:-
Currency trading refers to the exchange of currencies, where the difference in the currency value is used to make profits. It is a huge market, with traded value being higher than equities. A few years ago, currency trading was restricted to large banks and corporations. Now, advancement in technology has equipped retail investors with easy access to currency trading and even individual investors consider it to be an attractive avenue for investment.
Currency market has a huge level of liquidity and is open for 24 hours per day. It is relatively resilient to factors affecting stock markets and hence, can act as an effective means to expand one’s portfolio. However, currency trading is risky in nature, and requires careful planning and thorough risk-benefit analysis
The advantages that currency trading offers are:-
A derivative is an instrument which derives its value from the underlying asset. The asset can be equity, a commodity, a currency or even an index. Derivatives are usually in the form of a contract, where the buyer is under an obligation to buy or seller is under an obligation to sell the underlying asset at a specified price on a specified date in the future.
Derivatives have traditionally been used by businesses to hedge against different types of risks, and have been in existence for decades. With well-planned strategies based on a thorough study of the markets, individual investors and traders can earn handsome returns through derivatives trading.
Investment in derivatives has the following advantages:-
Derivatives are generally short-term trading instruments, and are traded on the exchanges. Similar to stocks, to buy or sell derivatives on the exchange, you need to place orders with your broker, who then executes the order on your behalf.
IPO is a means for the company to get listed on the stock exchange, and allow its shares to be traded on the exchange. When a company offers its equity to the public for the first time, it is called "Initial Public Offering (IPO)". If the company offers its shares to the public, but not for the first time, then it is called a follow-on public offer (FPO).
One needs to collect the subscription form available at collection centres, syndicate members and bankers to the issue. After filling the form, it is to be submitted to the collection centres or the collecting bankers to the issue. Shares are allotted through bidding process and deposited in the demat account of the investor.
As the name suggests, fixed-income instruments provide fixed income to the investor. The payout may be received at fixed, regular intervals or at the end of a specified time period. On maturity of the instrument, the principal is repaid to the investor. Examples of fixed-income instruments are bonds, debentures, fixed deposits, Public Provident Fund, Post Office deposits and so on.
Fixed-income instruments have long been used by people in India to park their savings and earn returns through interest rates higher than that offered by a savings account.
The benefits offered by fixed-income instruments are:-
Depending on the type of instrument, you can buy them directly from the issuer, or from the capital market. Some instruments such as bonds and debentures are traded on exchange, and you can buy them through a broker. You have to approach the issuer such as banks, post-offices to invest in instruments such as fixed deposits, PPF and Post Office Deposit schemes.
|Agri Commodities||10:00 a.m. to 5:00 p.m.|
|Bullion, Metals, Crude Oil and Internationally linked Agri Commodities||10:00 a.m. to 11:30 p.m.|