Various types of investments - by Pawan Bansal, M.D, Altius Finserv

The most perplexing decisions that we make in our lives are related to financial investments. This is one area where a minor error from our end can make the sums go wrong. Altius Finserv and its Managing Director would like to introduce you to various types of investments that you must know of:

1. Bonds 

Bonds are also referred to as debt but a debt that you lend and not borrow. Purchasing a bond basically means that you are lending your money to some company or government at times. In return, they agree to give interest on your money timely and eventually pay you the principal amount. The best thing about bonds is that they are relatively safe. It is as if your investment will earn you guaranteed profit. However, since the risk factor is less, the profit or interest given to you is also less. So what you get in return isn’t very much, but nonetheless confirmed.

Types of Investment

2. Stocks 

Buying stocks, also referred to as equities, allows you to be a shareholder of the company with which you are investing. The company in return gives you profits, if any, depending upon the percentage of stocks you purchased. This profit which is divided among the shareholders is called dividend. If you hold a large number of stocks, then you get decisions making power in the company. (Although that depends upon the company’s policies).That means you will be able to vote at the shareholders’ meetings. Stocks offer you good amount of return but they are highly volatile. They fluctuate on daily basis and hold high risk factor. There are times when the stocks in turn cause you loss. Therefore one needs to be careful while investing in stocks.

3. Mutual Funds 

As the name suggests, mutual funds refer to the funds that are created collectively by a group of people and then given to a banker for investing them in rewarding schemes. People generally prefer hiring a banker to handle this.

4. Deposits

People can deposit their money in banks. They will be offered suitable return on their investment. But in this case as well, returns aren’t much. Example – fixed deposits.

Altius Finserv carefully advises you to sort your priority and choose the right form of investment. If in doubt, then contact us. Our acquaintance with the financial sector and its intricacies is extensive. 

Pointers for entrepreneurs to manage their finance - Karan Bagga, Executive Director Altius Finserv

It won’t be wrong to call this eon an eon of entrepreneurs. The advent of social media and widespread use of internet and the allied benefits have brought us to a belvedere which allows us a liberty to innovate and re-invent. This digital age is doing a remarkable job in bringing people out of the closet and letting them experiment with their ideas. No wonder this has led to numerous entrepreneurs flocking the market with their ideas. Some of them stay and some don’t. But there are a large number of entrepreneurs who shelve their ideas just because they get their sums wrong. In the end, it’s the finance that decides the trajectory your business would take. Here are a few tips from Altius Finserv that would help the entrepreneurs in managing their money:

1. Don’t mix business with pleasure:
The first advice from our end would be that don’t be an imbecile and spend the money meant for business on your luxuries. Draw the line. The money meant for business is a ‘no touch’ asset. Use it only for business purposes. This would allow you to make the most of the money and use it optimally.

2. Cut your travel and living cost”
So you made a good amount of profit in the first financial year of your business. Now what? You straightaway go and buy yourself a decent house and a nice ride to the office? Drop the idea. You have just begun. Don’t go that extravagant. Simplicity is the art my friend. Cut your travel and living expenses if possible. Believe us, this saving would come in handy.

3. Get a little help from family:
Well, as they say, blood is thicker than water. This is somewhat true when you have a brilliant idea and need investors to back it up. Let’s accept it that a family member won’t exploit you as much as an outsider investor would.

4. Hire a financial firm :
This might sound clichéd coming from us, but the fact is that you need to depend upon experts to look after your business proceedings. The taxes and so many other regulations and intricacies involved are unnerving. An investment firm would not only handle all these overheads, but would also streamline the operations.

     Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings.