Investment products
In this chapter: Equity, debt, mutual funds, alternatives · Insurance, retirement products, gold and property
Investment products span asset classes (equity, debt, real estate, gold, alternatives) and structures (direct, mutual funds, ETFs, AIFs, ULIPs, NPS). RIAs must understand each product's risk-return profile, taxation, liquidity, and cost structure. The right product depends on client goals, time horizon, and risk profile — not on what the adviser is most familiar with.
Equity: direct stocks, equity mutual funds, ETFs, sector/thematic funds. Debt: government bonds, corporate bonds, debt mutual funds (across categories), bank FDs. Real estate: direct property, REITs, real estate mutual funds. Gold: physical, sovereign gold bonds (SGBs), gold ETFs/funds. Alternatives: AIFs (Cat I/II/III), PMS, structured products. Insurance-investment hybrids: ULIPs, endowment, money-back. Retirement: NPS, EPF, PPF, annuities. Each product's suitability varies by goal, horizon, and tax bracket.
A subtle nuance: SGBs (Sovereign Gold Bonds) provide exposure to gold price + a fixed 2.5% per year coupon, capital gains on maturity tax-free, and no storage cost — they dominate physical gold and gold ETFs for long holdings. RIAs must know the issue calendar (typically 4-6 tranches per year) and recommend SGBs over alternatives where the client's holding period matches the 8-year tenure. Most distributors don't actively recommend SGBs because there's no commission — RIAs must.