Podcast
Questions and Answers
What is the trade-off between when considering a product with a lock-in period?
What is the trade-off between when considering a product with a lock-in period?
Why is real estate considered a popular asset class?
Why is real estate considered a popular asset class?
What is a key aspect to consider when evaluating the liquidity of an investment?
What is a key aspect to consider when evaluating the liquidity of an investment?
What is an important consideration when evaluating an investment product?
What is an important consideration when evaluating an investment product?
Signup and view all the answers
What is the primary purpose of investing, according to the definition of investments?
What is the primary purpose of investing, according to the definition of investments?
Signup and view all the answers
What can affect the liquidity of an investment?
What can affect the liquidity of an investment?
Signup and view all the answers
What is a characteristic of real estate investments?
What is a characteristic of real estate investments?
Signup and view all the answers
What is a trade-off to consider when investing?
What is a trade-off to consider when investing?
Signup and view all the answers
What is a benefit of considering multiple factors when evaluating an investment product?
What is a benefit of considering multiple factors when evaluating an investment product?
Signup and view all the answers
Why might an investment have a lock-in period?
Why might an investment have a lock-in period?
Signup and view all the answers
What are the four broad asset categories or asset classes?
What are the four broad asset categories or asset classes?
Signup and view all the answers
What is a consideration when evaluating the convenience of an investment?
What is a consideration when evaluating the convenience of an investment?
Signup and view all the answers
What can reduce the returns on an investment?
What can reduce the returns on an investment?
Signup and view all the answers
What should be considered when evaluating the tax implications of an investment?
What should be considered when evaluating the tax implications of an investment?
Signup and view all the answers
What is an important factor to consider while evaluating an investment option?
What is an important factor to consider while evaluating an investment option?
Signup and view all the answers
Why is it necessary to consider taxability of income while investing?
Why is it necessary to consider taxability of income while investing?
Signup and view all the answers
What is the significance of minimum investment amount in investment decisions?
What is the significance of minimum investment amount in investment decisions?
Signup and view all the answers
Why is it important to consider tax deductions while investing?
Why is it important to consider tax deductions while investing?
Signup and view all the answers
What happens if an investor sells an investment before the maturity period?
What happens if an investor sells an investment before the maturity period?
Signup and view all the answers
What is the significance of convenience in investment options?
What is the significance of convenience in investment options?
Signup and view all the answers
Why is it important to consider multiple factors while evaluating an investment option?
Why is it important to consider multiple factors while evaluating an investment option?
Signup and view all the answers
What should an investor avoid while selecting an investment option?
What should an investor avoid while selecting an investment option?
Signup and view all the answers
Study Notes
Investment Evaluation Factors
- Convenience: ability to invest, withdraw, and monitor investment value
- Ticket size: minimum investment amount required, varying from ₹50 to ₹1 crore or more
- Taxability of income: considering taxation of earnings and its impact on returns
- Tax deduction: availability of deductions on investments, effectively increasing returns
Safety and Liquidity
- Safety: ensuring capital investment and income security
- Risks involved in understanding investment safety
- Liquidity: ease of converting investments to cash, varying across categories and products
- Divisibility: possibility of partial liquidation or need for full sale
- Operational features: lock-in periods, penalties, and exit charges affecting liquidity
Returns and Asset Classes
- Returns: current income (periodic) and capital appreciation (capital gains)
- Asset classes: categorizing investments based on similar characteristics
- Four broad categories: Real Estate, Commodities, Equity, and Fixed Income
- Real Estate: most popular asset class, often considered an expense rather than an investment
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Evaluating investment opportunities based on convenience, ticket size, and other factors. Learn about the key considerations for investing in different avenues.