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Financial Markets and Risk
Finance & Accounting
Pages 4 (1004 words)
Introduction Financial sector has seen magnificent changes since last few decades. Though, unregulated financial inventions had put the world to one of the worst financial crisis ever, it still offers a variety of products for investments. Unlike few decades ago, where investments were limited to very few instruments, there are a lot of investment avenues at present.
For investors who are moderate on their risk taking mentality have hybrid products to choose from. This report will deal with various investment products that are provided by financial institutions and the implications of market interest rates on investors and banks. Long term savings and investment products provided by Retail banks and Non Banking Financial Intermediaries or NBFC’s Some of the popular long term investment products provided by retail banks and NBFC’s are as follows. Fixed Deposits: Fixed deposits, as the name signifies, have a fixed tenure during which the investments cannot be withdrawn. Withdrawal is possible in between the tenure, but in such a case the investor will have to forgo certain benefits as early withdrawal charges. Bonds: Bonds are debt instruments that are issued by government or corporate. Bonds are fixed income securities that provide a fixed rate of return over a period of time. As a result, it is less risky too. Debentures: Debentures are similar to bonds in its nature with the only difference being they are issued only by corporations. Debentures provide fixed rate of interest and comes with a lock in period of usually more than 2 years. ...
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