FINANCIAL INSTRUMENTS IN INDIA

In India, there are many families who save money on monthly basis from their income to make their future more secure. Money kept aside to meet the future need is called savings. Investments of savings help them to meet their long term needs and larger financial goals. The main reason why people refrain from investing is that there is some amount of risk attached to it. The higher the risk, the higher is the return on investment and investing smartly can multiply their savings. For investments there are many financial instruments that are available in India where the investor can invest to get the best returns. Choosing the right type of instrument is very essential. The Indian financial market consists of mainly three pillars i.e. equity, debt and derivatives. Every category has its own importance in the development of financial market. A financial instrument is a document or contract that can be traded in a market, which represents an asset to one party and a liability to the other. The purpose of the study is to know about various financial instruments which are available for investments in India. This paper provides a brief description of all of these.