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Financial Investment Product




In stock market mainly there are two type of analysis for to find right shares for investment- Fundamental analysis and Technical Analysis.We have learned about investments,Equity shares But how will you choose the right company for investment at right price.Here come the importance of fundamental and technical analysis. Financial investment product is real or virtual physical or electronic document representing a legal binding having some sort of money value. In financial investment product can be classified generally as equity based(ownership of issuing entity ex equity equity shares and equity market based products like mutual fund),debt based(represents loan given to firm/body by investor),commodity based(commodity future,gold etf,silver etf etc) currency based(currency derivative) and other complex financial products like structured products which cause subprime crisis. .These financial investment have more liquidity than real asset like real estate.Another main point is they can be invested in small unit.It can be safely held in possesion than real asset for ex gold held in ETF or Derivative of Gold in commodity market are in electronic form/contracts rather than physial gold(which are prone to robbery).day to day information of their price and fundamental.Financial product can easily be Bought and Sold.The fiancial product also offer large amount of diversication with little money the investor have. For ex We cannot have land in almost every cities with 5 lakh but with real estate mutual fund we can catch the price rise in real estate with little money we have also this small amount we cant start so many business but can invested in diferent business(buying equity shares of companies in different sector). In every investment there is a risk portion.Higher the risk higher will be the return.The financial investment product have wide range of risk It offer low risk product like Debt instrument to High Risk category like Options.The major financial investment product with their risk level in ascending order .Debt Instrument Government Bond Corporate bond Gold Equity Related Product(Equity Share,Equity Mutual Fund) Derivatives Option The Derivative is other group of Fiancial product which offer wide range of risk controlling product.Simply by the introduction of derivative we can reduce the risk in normal investment product like Equity,debt,commodity,currency,real estate etc .The various risk involved in above mentioned product like volatality,interest rate,inflation,weather,index(market),Sector risk,Currency can be offsetted wholy or partially by taking opposite position in derivative and derivative are highly complex so investor should have through knowledge in hedging(process of eliminating the risk through derivative).

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