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Product Notes

Mutual fund
A mutual fund is an investment security type that enables investors to pool their money together into one
professionally managed investment. Mutual funds can invest in stocks, bonds, cash and/or other assets.

Mutual funds can be considered baskets of investments. Each basket holds dozens or hundreds of security
types, such as stocks or bonds. Therefore, when an investor buys a mutual fund, they are buying a basket of
investment securities. However, it is also important to understand that the investor does not actually own the
securities--the holdings--but rather a representation of those securities; investors own shares of the mutual
fund, not shares of the holdings.

Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution
in any profits, if any are declared, in the form of dividends.

A share is an indivisible unit of capital, expressing the ownership relationship between the company and the
shareholder. The denominated value of a share is its face value, and the total of the face value of
issued shares represent the capital of a company, which may not reflect the market value of those shares.

A monetary asset that is held by countries as part of their international reserves and used to finance balance
of payments deficits.

Formerly, many countries operated a gold standard system under which gold was used as the basis of a
country's domestic money supply as well as being used to finance payments deficits. Gradually, however, the
‘pure’ gold standard gave way to domestic monetary systems based on paper money and other metallic coins
and, internationally, the gold-exchange standard in which foreign currencies such as sterling and the
american dollar were used alongside gold as reserve assets.

Real state
Real estate is the property, land, buildings, air rights above the land and underground rights below the land.
The term real estate means real, or physical, property. Real comes from the latin root res, or things. Others
say it’s from the latin word rex, meaning royal, since kings used to own all land in their kingdoms.

Four types of real estate

There are four types of real estate:

1. Residential real estate includes both new construction and resale homes. The most common
category is single-family homes. There are also condominiums, co-ops, townhouses, duplexes, triple-
deckers, quadplexes, high-value homes, multi-generational and vacation homes.

2. Commercial real estate includes shopping centers and strip malls, medical and educational buildings,
hotels and offices. Apartment buildings are often considered commercial, even though they are used
for residences. That's because they are owned to produce income.

3. Industrial real estate includes manufacturing buildings and property, as well as warehouses. The
buildings can be used for research, production, storage, and distribution of goods. Some buildings
that distribute goods are considered commercial real estate. The classification is important because
the zoning, construction, and sales are handled differently.

4. Land includes vacant land, working farms, and ranches. The subcategories within vacant land
include undeveloped, early development or reuse, subdivision and site assembly. Here's more at land
broker transactions.

Public provident fund

the public provident fund, popularly known as ppf is the long-term saving scheme introduced by the ministry
of finance (mof) in 1968. The purpose of the ppf is to mobilize the small savings of individual by offering them
investments that carry a reasonable return along with the income-tax benefits.

The public provident fund is a tax saving instrument backed by the government of india on which regular
interest is paid. The deposits made in the ppf can be claimed for the tax deductions and also the interest
accrued on the deposits is tax-free. Public provident fund is one of the most lucrative avenues available in

A bond is a long-term debt instrument indicating that a corporation has borrowed a certain amount of money
and promises to repay it in the future under clearly defined terms.

Bonds are debt papers that represent borrowing or loan. These are a kind of direct claim security whose value
is secured by some real assets which are owned by the issuer of that security. The money borrowing party
issues bond to the lending party in exchange of cash. These borrower & lender may be companies, individual
persons or governments. The bonds are issued for fix amount of cash & for fix period of time. The bondholder
purchases bond and pays certain amount of money to the borrowing party. He will receive fix regular interest
payments on his lending money till the maturity of the bond. At the maturity date the borrower gets back his
principal amount as well. Examples of bonds are defense saving certificate (dsc issued by government) term
finance certificate (tfc issued by public listed companies) & t-bill (issued by government) etc.
Systematic investment plan
Systematic investment plan is an investment strategy where in an investor needs to invest the same amount
of money in a particular mutual fund at every stipulated time period.

Investing in sip enables an investor to take part in the stock markets without actively timing them and he/she
can benefit by buying more units when the price falls and less units when the price rises. This scheme helps
reduce the average cost per unit of investment through a method called rupee cost averaging.

Non-convertible debenture
Non-convertible debentures (ncd) are fixed-income instruments, usually issued by high-rated companies in
the form of a public issue to accumulate long-term capital appreciation. They offer relatively higher interest
rates when compared to convertible debentures.