The time was when Indian investors used to spend their money in physical assets like real estate and gold. Today, investors love investing the money in equities and other financial instruments. According to the recent report, 57.25% of the total capital in India was included in financial assets. The money in financial assets grew 19% while comparing to the negative growth (2.3%) in physical assets. Those financial assets include equity, cash, bonds, mutual & pension funds. On the contrary, physical assets include gold, silver, diamond, platinum, and real estate.
Equities are a kind of security that describes the ownership in a corporation. Spending in equities is a productive long-term investment as the yields on equities over a long period are higher than other investment avenues. Equities are bought or sold in stock markets and later they can be purchased through the “Initial Public Offering” or directly from the company. Where you can see the growth of your money.
A mutual fund empowers people to merge their money together and make it invested in a predetermined investment objective or property. Mutual funds are popular due to its cost-efficiency, risk-diversification, and sound regulation. There are several thematic mutual funds to choose from.
The physical assets have been important modes of investments for Indian investors for several years. It shows the new growth of India, where more people are investing their valuable money in return-oriented assets. The investment in physical assets is decreasing due to the lack of appreciation and success in the value of investments. If an individual wants to earn money, then he/she can invest in equity or bond markets.