INVESTMENT ALTERNATIVES INTRODUCTION MEANING INVESTMENT ALTERNATIVES MEANS VARIOUS OPTIONS AVAILABLE TO AN INVESTOR IN THE MARKET. TYPES OF INVESTMENT ALTERNATIVES NEGOTIABLE SECURITIES NON NEGOTIABLE SECURITIES NEGOTIABLE SECURITIES VARIABLE INCOME SECURITIES FIXED INCOME SECURITIES GROWTH SHARES SPECULATIVE SHARES CYCLICAL SHARES INCOME SHARES DEFENSIVE SHARES GROWTH SHARES • THAT HAVE HIGHER RATE OF GROWTH THAN THE INDUSTRIALTHE INDUSTRIAL GROWTH RATEIN PROFITABIKITY ARE REFERRED TO AS GROWTH SHARES. FIXED INCOME SECURITIES PREFERENCE SHARES DEBENTURES BONDS IVP AND KVP GOVT. SECURITIES TREASURY BILLS COMMERCIAL PAPERS CERTIFICATE OF DEPOSIT NON NEGOTIABLE SECURITIES DEPOSITS TAX SHELTER SAVING SCHEMES LIFE INSURANCE MUTUAL FUNDS REAL ASSETS REAL ESTATE DEPOSITS BANK DEPOSIT POST OFFICE DEPOSIT SECURITY NBFC DEPOSITS POSOFFICE SAVING ACCOUNT INT.RATE 3.5% INT. IS TAX EXEMPT AMT SHOULD BE RS.20 FOR ORDINARY ACCOUNT MAX. BAL 50000 AND 100000 POST OFFICE TIME DEPOSITS DEPOSIT CAN BE MULTIPLE OF 50 HIGH INT. RATE AS COMPARE TO BANK DEPOSIT NO WITHDRAWL UPTO 6 MONTHS IT CAN BE PLEDGED TAX DEDUCTION WITHDRAWL AFTER 6 MONTH TO ONE YEAR .,NO INT. IS PAYABLES MONTHLY INCOME SCHEME OF POST OFFICE TERM SCHEME IS 6 YEARS INT.RATE IS 8% PER ANNUM FACILITY OF PREMATURE WITHDRAWL AFTER ONE YEAR. NO MAX LIMIT ,MIN.IS 1000 8.4% INT. RATE CAN BE PLEDGED TAX SHELTER SCHEMES PPF NATIONAL SAVING SCHEMES NATIONAL SAVING CETIFICATES MUTUAL FUND OPEN ENDED SCHEMES CLOSE ENDED SCHEMES REAL ASSET RESIDENTIAL HOUSE GOLD ART OBJECTS AGRICULTURE FARM COMMERCIAL PROPERTY AGRICULTURE LAND SECOND HOUSE RESORT HOME SEMIURBAN LAND COMMERCIAL PROPERTY PRECIOUS OBJECTS GOLD AND SILVER PRECIOUS STONES ART OBJECTS BENEFITS OF MAKING INVESTMENT INREAL ESTATE HIGH CAPITAL APPRECIATION AVAILABILITY OF LOANS TAX REBATE PSYCHOLOGICALLY SECURE FEELING LEGAL APPROVAL POSSIBILITY OF CAPITAL APPRECIATION ORIGINALITY OF TITLE DEEDS CREDIBILITY OF BROKER CRITERIA FOR EVALUATION RATE OF RETURN CONVENIENCE TAX SHELTER RISK MARKETABILITY Money market instrument • DEBT INSTRUMENT WHICH HAVE A MATURITY OF LESS THAN ONE YEAR AT THE TIME OF ISSUE ARE CALLED MONEY MARKET INSTRUMENT. ART AND ANTIQUES • PAINTINGS ARE THE MOST SOUGHT AFTER FORM OF ART. PRICES ARE RISING AND IN WESTERN COUNTRIES INVESTMETN IN ANTIQUES IS MORE COMMON THAN IN INDIA. THE ANTIQUE IS AN OBJECT OF HISTORICAL INTEREST.