Jagoinvestor

January 14, 2010

List of Different Asset Classes for Investing

Below is the list of different Asset classes one can consider for investing in Indian markets. For building a successful balanced portfolio one has to understand different asset classes and as per their risk appetite,Β one has to build his/her portfolio so that it’s optimal from his risk return point of view. In this post you will look at different asset classes and their sub categories with the risk potential. This is not an exhaustive list of categories, however it covers most of them. See the Chart Below

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Readers who are reading it in Email can see the chart here or visit blog article

Points to Remember

  • The above chart does not contain exhaustive list of products and asset classes. See What is Asset Allocation
  • REIT and REMF are yet to come to India, they are not there in market yet
  • Mutual funds classification is not complete. There are different ways to classify mutual funds, the one I have shown is one of the way. Here is the list if good Equity Funds and Debt oriented Mutual funds

Comments!Β I am sure I missed out somethings in this chart, please suggest me something I can add.

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milind
milind
14 years ago
ashokan arunachalam
ashokan arunachalam
14 years ago

Good work, will be nice if you could also include Nifty Linked Debentures (Structured Products) and Portfolio Management Services (PMS) as a part of this pictorial diagram.

Rahul
Rahul
14 years ago

Hi Manish..
really nice effort..
the best thing about ut posts/advice/columns is that they always have an India focus and a practical approach for the common investors. Great going..
BTW, i ve been reading for the last 2-3 months, but could understand most of the instruments..speaks a lot about ur simple and practical explanations..
thanks

Pallav desai
Pallav desai
14 years ago

Thanks for helping us lot.We will get much benifit by using ur own idea as an expert view.

Prashant
Prashant
14 years ago

Hi Manish,
nice to see very informative chart. i need to save 1 lac in next 6-7 months for House. Could you pls tell me where should i invest of 15k montly to get good return with moderate risk.
I am thinking of top debt MF to invest? Please advise.Thank you.

Rahul
Rahul
14 years ago

Manish,

Don’t you think commodities also shd be in yellow with Real Estate.

Reg’s

Rajesh
Rajesh
14 years ago

HI Manish,

Another one more excellent informative article from you. Thank you very much for that.

These days I used to heard about “ETF-Gold Funds/Investments”. If you could put some light on that topic or share some resources that would be great.

Thank Again.

Rajesh

Rajesh
Rajesh
Reply to  Jagoinvestor
14 years ago

Thanks Manish for sharing these links which are very much informative.

Rajesh
Rajesh
Reply to  Jagoinvestor
14 years ago

Okay. Got it πŸ™‚

Marshal
Marshal
14 years ago

Hi manish,

Very nice chart, but what is reason of gold coming under category of “Safe”?

Marshal

Sunil S Bhagat
Sunil S Bhagat
14 years ago

it should branch from under Mutual funds. Ofcourse they would be debt as well as equity under the category. Index funds shouls be under Mfs,

vivek
vivek
14 years ago

hi manish
can i purchase foreign mutual funds, if yes ..then how. please elaborate

Sunil S Bhagat
Sunil S Bhagat
14 years ago

Maybe to the Mutual funds u can sub categorize as Indian and foreign also.

Mahesh
Mahesh
14 years ago

Manish,

Excellent overview of the complete list of investment avenues. Amazing as usual your articles. Hope you will be writing dedicated articles on few asset classes in the list which are not more familiar to us.

Regards, Mahesh

Mahesh
Mahesh
Reply to  Jagoinvestor
14 years ago

Hi Manish,

I am holding NRI status. Looking forward to invest some amount in bonds issued by GOI with locking period more than 3 years. Can you help in sharing the list of bonds issued by GOI for which NRIs are elegible ?
And what should be the procedure for this investment.

Thanks a lot in advance, Mahesh

Anand
Anand
14 years ago

Hi,
If I may, I would like to mention something. under equity head, Mutual funds and direct equities are depicted with same level of risk. I think we need to differentiate between these 2 (probably with different shades of same color). This would further justify your post about risk level in different asset classes.
These are my 2 cents of course.

Thanks
Anand

Mukul
Mukul
14 years ago

Hi Manish, Where and how can I get gold ETFs? What is the minimum investment?is it like SIP(means monthly or yearly)?
.-= Mukul´s last blog ..Decade recap =-.

balbir2997
balbir2997
14 years ago

Thank you for such a nice details πŸ™‚

dhiraj
dhiraj
14 years ago

This is an excellent diagram i can say, Thanks for this, I am regular visitors of your blog and really enjoy reading your article.

dhiraj
dhiraj
Reply to  Jagoinvestor
14 years ago

I am just a 7 month old reader but swear I didn’t miss a single post….
As far as product is concern I understand the most of the product but one more help needed from you that if you elaborate Debt fund & Index fund little more with an examples.
Thanks

khalid
khalid
14 years ago

Dear Manish,
Nice List for investments in Indian market. I think you included all corners of the investment world.
Thanks for sharing.
.-= khalid´s last blog ..Infosys Q3 FY10 : Net up 2.8% =-.

profitshastra
14 years ago

I have provided some thoughts on asset allocation on my website:
It also has a blog on industry trends

Nikhil Shah
Nikhil Shah
Reply to  Jagoinvestor
14 years ago

Dear Manish

I have already made portfolio rebalancing – Calculation Excel Sheet ……if you interested pl write…

Pl note my e-mail Id :

[email protected]
[email protected]

Nikhil Shah

vivek
vivek
Reply to  Nikhil Shah
14 years ago

hi nikhil
please send ur excel sheet to my id:
[email protected]
thanx

Nikhil Shah
Nikhil Shah
14 years ago

Dear Manish

WOW …Excellent diagrom. Can you add the following products in the diagrom

1). Whole Life Insurance policies …
2). Govt.Bonds / RBI Taxable Bonds..
3). Deep Discount Bonds / Fixed Deposit..

all above mentioned items Should include In Debt Part Only…
Good Job…

Nikhil

Nikhil Shah
Nikhil Shah
Reply to  Jagoinvestor
14 years ago

Dear Manish,

Here I am sending some basic information about Deep Discount Bonds…

Typically, a deep-discount bond will have a market price of 20% or more below its face value. These bonds are perceived to be riskier than similar bonds and are thus priced accordingly.

These low-coupon bonds are typically long term and issued with call provisions. Investors are attracted to these discounted bonds because of their high return or minimal chance of being called before maturity.

I am also sending URL
http://www.raagvamdatt.com/Understanding-Deep-Discount-Bonds/229/

Thanks
Nikhil Shah

Nikhil Shah
Nikhil Shah
Reply to  Jagoinvestor
14 years ago

Dear Manish

I have invested for my son in ICICI Bank – Deep discount bond for a long term period …This bonds are tradeable in nse – Debt market…with thin volume..it should be invested in to vary financially sound companies only…At present this plans is not available….may come in future..

Nikhil

Nikhil
Nikhil
Reply to  Jagoinvestor
14 years ago

Manish

Yes ..You can buy those deep discount bonds through Demat account as its tradable From NSE Or BSE Stock Exchange…Debt Market module…

Nikhil

Amit Kumar
Amit Kumar
14 years ago

My first impression on seeing the chart was WOW! A well thought off thing.
I guess it covers most of assets for common man.
You can have a miscellaneous High risk category which would have Forex, Structured Products etc. which are usually invested in by HNI.
As far as Silver is concerned I think its going to give better returns than gold because gold to me seems already overbought commodity while we are still to see ETFs & other such convenient products for Silver. Moreover Silver has a lot more industrial use than Gold.
.-= Amit Kumar´s last blog ..How to keep track of Mutual Fund Investments? =-.

Amit Kumar
Amit Kumar
Reply to  Jagoinvestor
14 years ago

Yeh there were talks of launching Silver ETF by Benchmark MF, but I don’t know why its delayed. About structured products last year ICICI Pru came with debt investment option – SMART Fund – whose returns were linked to NIFTY performance, but I am not sure how was it received by Retail Investors. You can find some details about the same here – http://www.moneycontrol.com/news/mf-interview/will-icici-pru-smart-fund-appeal-to-retail-investors_353397.html
But then its a complex thing!
.-= Amit Kumar´s last blog ..Invest Rs 63,000 and save full Income Tax on Rs 1,00,000 under Sec 80C! =-.