The document discusses various types of investments including stocks, mutual funds, real estate, gold, fixed deposits, insurance schemes, and foreign exchange. It provides advantages and disadvantages of stocks, mutual funds, real estate, and fixed deposits. It also gives an example of how one person who only used savings accounts had 1.3 crore after 25 years, while another who invested in stocks, deposits, and real estate had 4 crore over the same time period, showing the benefits of diversifying investments.

1. Investments

2. Types of Investments
•Stocks
•Mutual Funds
•Real Estate
•Gold and other commodities
•Fixed Deposits
•LIC and other Insurance Schemes
•Foreign Exchange

3. Stocks
Advantages
• Easy to liquidate
• High returns in the long run
• Easy to trade
• Settlement is done on the
day itself
• Brokers are available easily
Disadvantages
• No guaranteed returns
• Can lead to loss of all
money

4. Mutual Funds
Advantages
• Professional Management
• Profitable in the long run
• The dividend received is
tax-free
• Various schemes available
that invest in debt, equity,
commodity instruments
• Easy settlement
• Easy to invest
Disadvatages
• Can be risky at times
• No guaranteed returns

5. Real Estate
Advantages
• Steady long term returns
• Rental Income
• Can give various tax
benefits
• Highest returns in recent
times
Disadvantages
• Settlement requires time
• No guaranteed returns
• If proper documentation is
not there, it may lead to
trouble

6. Fixed Deposits
Advantages
• Fixed return
• Safe
• Easy settlement
Disadvantages
• Return is less when
compared to other
instruments
• You are bound to a time
frame which if you break,
you are penalized.

7. Consider two persons
Person 1:
Salary is 10lac/annum
He deposits only in savings account
His wealth is about 1.3 cr after 25 years
Person 2:
Salary is 8 lacs/annum
He invests in stocks, deposits and real
estate
His wealth is about 4cr after 25 years