BY : TAKHAT PATELROLL NO : 38TO : LECT. RUTVI SARANG

INVESTMENT ALTENATIVES

SUB : SAIM

Defination

An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash.

This broad definition makes it impossible to list all alternative strategies, but the most important areas are real estate, private equity, venture capital,commodities, and hedged or absolute return strategies. Wine, art and antiques, indeed any business of value, might also be considered as an alternative investment.

One common theme to alternative investments is that they are often hoped to have modest correlations with traditional investments and so to increase the diversification of investor's portfolios.

NEGOSIABLE SECURITIES

VARIABLE INCOME SECURITIES

Equity SharesGrowth SharesIncome SharesCyclical SharesSpeculative Shares

FIXED INCOME SECURITIESPreference SharesDebentures BondsIVPs and KVPsGovernment SecuritiesMoney Market Securities

NON - NEGOSIABLE SECURITIES

DEPOSITSBank depositsPost office dpositsNBFC deposits

TAX SHELTERED SAVING SCHEMEPublic provident fund schemeNational savings schemesNational savings certificate(6 yrs.)-3

LIFE INSURANCEProtectionEasy paymentsLiquidityTax relief

MUTUAL FUNDAn alternative investment is an investment

product other than traditional investments such as stocks, bonds or cash.

This broad definition makes it impossible to list all alternative strategies, but the most important areas are real estate, private equity, venture capital,commodities, and hedged or absolute return strategies. Wine, art and antiques, indeed any business of value, might also be considered as an alternative investment.

One common theme to alternative investments is that they are often hoped to have modest correlations with traditional investments and so to increase the diversification of investor's portfolios.

Closed-end funds are like mutual funds, except that they have a fixed number of shares and are traded on a stock exchange.

They are traded all day during regular market hours and the price changes continuously throughout a trading session.

Closed-end funds may trade at a premium or discount to the net asset value of the underlying portfolio. There are likely many reasons for this, but there is currently no complete explanation for the phenomenon.

Funds that continually trade at a discount to NAV are occasionally liquidated and the money returned to shareholders. This gives shareholders an immediate gain equal to the amount of the discount.

CLOSED-END FUNDS

REAL ASSETSGoldSilverPresious metals

REAL ESTATEEquity investments in real properties Major property types include: Office, Industrial,

Retail and Multi-FamilyManager strategies

Core – high quality properties which are fully leased; stable income streamValue Add – properties which are not fully leased and in need of repositioning in order to enhance value of the asset Opportunistic – New construction or complete

renovation of existing properties

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