More about Investment Industry

The investment sector is a key player in economic growth. It puts people and businesses’ money into various financial products which in turn we see returns over time. In recent years in India we have seen great growth in the investment sector as more people have turned to mutual funds, shares, bonds, exchange traded funds (ETFs), fixed income products and retirement plans.

Today investment is a reality for all. With the growth of mobile apps and online platforms which have made it easy to trade, people are able to begin with small sums and save at the same time. This in turn has brought investment into the reach of many Indians.

What is the Investment Industry?

In the investment industry which is made up of companies and institutions that assist individuals in putting out their money. We see a range of products and services which are based on financial goals, risk tolerance and investment time frames. The industry consists of:

• Asset Management Companies (AMCs)
• Mutual Fund Companies
• Stock Broking Firms
• Wealth Management Companies
• Portfolio Management Services (PMS)
• Investment Advisory Firms
• Pension Fund Managers
• Insurance Investment Providers

Importance of the Investment Industry

The economy and investors see benefits from the investment industry.

For people, investment grows wealth, pays for retirement, covers future expenses and also protects savings which may be affected by inflation. For companies investment is a tool which they use for growth, innovation and to create jobs.

Popular Investment Options in India

Mutual Funds
Mutual funds combine resources of many investors which they put into shares, bonds and other securities. We have professional fund managers to take care of them and they are for both new and experienced investors.

Stocks
In the stock market you can purchase shares of companies which in effect gives you equity. Outcomes for the investment play out based on how the companies do and also overall market performance.

Fixed Deposits
Fixed deposits are a favorite with those investors that are conservative. They provide guaranteed returns for a set period.

Bonds
Government and corporate bonds pay out fixed interest and also are of the opinion that they are a lower risk choice when compared to stocks.

Growth of the Investment Industry in India

In India we have seen a large growth in investments from rising levels of financial literacy, growth of digital investment tools and increased availability of a wide range of products. We also see a great increase in participation from people in Mutual Fund SIPs, stock exchange investment and retirement planning.

Young professionals, salaried employees and business owners that are putting in money for the future. Also we are seeing a trend of growth in the use of smart phones and online investment applications which is making investment a much easier task.

Popular Investment Companies in India

HDFC Asset Management Company
HDFC Asset Management Company which is a large and very trusted player in India. They manage a wide range of mutual funds which include equity, debt, hybrid and index funds. They serve retail and institutional investors and have developed a strong reputation through their presence in the Indian financial sector for a long time. Many investors turn to HDFC Mutual Fund for long term wealth creation and Systematic Investment Plans (SIPs).

SBI Funds Management
SBI Mutual Fund is a subsidiary of State Bank of India and is a well known name in the Indian investment market. We provide a large array of mutual fund schemes which include equity, debt, hybrid, exchange traded funds (ETFs) and retirement based investments. Also we have a large reach in both urban and rural areas which has helped to get millions of Indians into the investment market.

Kotak Mahindra Asset Management Company
Kotak Mahindra Asset Management provides a large choice of investment products in equity, debt, hybrid and liquid fund categories. The company is into helping investors build up long term financial security via professional investment solutions. Kotak Mutual Fund has become a popular choice among investors looking for diversified investment options.

Tata Asset Management
Tata Asset Management which is a part of the trusted Tata Group that which we put our faith in also brings to the table a great many mutual fund products. We see this company as a go to for investors that are looking at long term wealth creation, income generation and financial planning solutions. Also what we see in Tata Asset Management is that they have a very strong brand value and have built up great trust with their customers which in turn has made them a recognized name in the investment space.

Factors to Consider Before Investing

The investment goal should be very much put forth clearly. Also investors should have a knowledge of what their risk tolerance is and also what their investment horizon is. Into different types of assets, which is what we mean by diversification, investors should put in various assets to which will in turn reduce risk. Also of equal importance is the regular review of investment performance and making of changes as they go along.

Investors should look at fees, fund performance history and the reputation of the investment company before investing.