5 Types of Investments You Should Invest In

5 Types of Investments You Should Invest In

As lucrative as it sounds, investment is quite overwhelming for people, especially beginners that are new to this industry. With a plethora of options to choose from, it may get a little tough for you to select an option that fits your preference and budget. The current pandemic has made it quite essential for everyone to set a small portion of their income aside for investment. Before we discuss different types of investment products, note that the best way to reduce your risk of investment is by diversification. Try to add different financial products to your investment portfolio to minimize your risk of investment.

Instead of depositing the money into your savings account, you can grow your income by investing in the right financial products. In this post, we will walk you through the 5 common types of investments that can bring the best returns and help you develop your investment portfolio. Let’s get started.

  • Certificates of Deposit (CDs)

Issued by financial institutions and banks, certificates of deposits are known for offering a high interest than other accounts. The CDs come with a certain maturity date that varies from a few weeks to several years. The best product for you depends on your risk tolerance. The only issue with the CDs is that you can’t really withdraw money until it has reached maturity. If you send a withdrawal request, you will end up with a high penalty.

You will keep earning interest on the Certificated of Deposit until the contract reaches maturity. The principal amount will be returned to you once the contract expires. This investment makes an ideal choice for retirees who do not mind keeping their money in bank accounts for a while. It is a safe investment option that can result in a stable income. However, you may not be able to make a good income from CDs if the interest rates drop.

  • Corporate Bond Funds

Companies might raise funds for their expansion and other development projects by issuing bonds. If you are planning to get corporate bond funds, consider short-term bonds as they offer you a maturity period of up to 5 years, and they are less likely to experience interest rate fluctuations as compared to other types of bonds. It is the best choice for those who are looking for a stable cash flow but don’t want to face the portfolio risk.

  • Stocks

The simplest and most popular type of investment for beginners and experienced investors is stocks. Commonly referred to as equities, you get a small percentage of the ownership right of the company you are buying the shares of. You can sell these stocks when the prices increase and make a profit from your investment. You could buy stocks through brokerage firms. Nowadays, many companies offer online share trading platforms and advanced apps that are designed to help you get started with share trading. These apps present to you detailed instructions on how to trade stocks, what factors to consider when selecting the right company for share trading, and so on.

  • Mutual Funds

Mutual funds has become another popular investment option for employees, retirees, and other aspiring investors. Mutual funds are often seen as an attractive investment option for all types of investors out there. The money collected from different investors is used for multiple securities. This amount is invested in different types of securities. The best part is that the cost of investment in mutual funds is comparatively lower than the money you’d spend on other forms of investment. It gives you an opportunity to diversify your investment portfolio while making significant profit from your investment.

Convenience is another reason why people prefer mutual funds. Think about it – you no longer need to go through the hectic decision-making process. You don’t have to spend hours researching the company, their plans, and how they intend to use your money. You could simply invest your money into mutual funds and leave the decision-making process to others. Even though there is no guarantee that mutual funds will generate the best returns or it will grow your money significantly over time, it saves you the hassle of contacting different researchers and brokers when buying shares.

  • Commodities

Last but not least, commodities make another great investment product. While commodities are quite lucrative for investors, they might not always be a suitable option. That’s because the price of the commodities tends to fluctuate abruptly. For instance, certain political changes in the country can have a significant impact on the prices of oil and other commodities, which is why it’s important that you conduct proper research and invest in the commodities only if you are certain your investment will generate decent profits.

The four common types of commodities that are in high demand these days are:

  • Agricultural products
  • Meat and livestock
  • Crude oil and petroleum products
  • Metals


So, these were the top 5 investment products. Some products are useful for beginners, while others require a fair amount of experience. Each investment product mentioned above come with their share of risks and rewards. It’s better to consider the risks associated with the investment before making any decision.

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The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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