A financial market is a market in which people and entities can trade
financial securities, commodities, and other fungible items of value at
low transaction costs and at prices that reflect supply and demand.
Securities include stocks and bonds, and commodities include precious
metals or agricultural goods.
The project “Investment in Financial Markets” gives a brief idea
regarding the various investment options that are prevailing in the
financial markets in India. With lots of investment options like banks,
Fixed Deposits, Government bonds, stock market, real estate, gold and
mutual funds the common investor ends up more confused than ever. Each
and every investment option has its own merits and demerits.
Any investor before investing should take into consideration the safety,
liquidity, returns, entry/exit barriers and tax efficiency parameters.
We need to evaluate each investment option on the above-mentioned basis
and then invest. Today an investor faces too much confusion in analyzing
the various investment options available and then selecting the best
suitable one. In the present project, investment options are compared on
the basis of returns as well as on the parameters like safety,
liquidity, term holding etc. thus assisting the investor as a guide for
investment purpose.
This is a project about analysis of investments which is modernizing or
modifying day by day in financial markets. The sooner one starts
investing the better. By investing early, you allow your investments
more time to grow, whereby the concept of compounding increases your
income, by accumulating the principal and the interest or dividend
earned on it, year after year.