There are various investment options available in the Capital Market like Stocks, Bonds, Debentures,
Various types of Funds, etc. Out of these different options, every investment has some difference and has its own benefits depending on your investment needs.

Investing in Stocks

• You become a part owner of the company for which you buy shares
• Company’s performance enhances the shares profits
• You can choose the stocks you want to invest in
• You can also earn quick profits if you are doing Intraday Trading in stock market
• It can be either long term of short term investment depending upon your goals
• You need to keep a tab of the stock’s performance from time to time

Investing in stocks is highly profitable but needs attention with skills due to risk involved in the market. Hence, it’s advisable to have a good Financial Advisor and Mentor who can guide you from time to time so that you continue to sustain the ups and downs of the market yet making good returns on your investments.

Investing in Index Funds
Investing in Index Funds is all about investing in stocks which are a part of that particular Index. Earlier days, we use to make index in books which was to define that particular chapters being part of that book. In the same manner we have Index of various Exchanges which consist of highly liquid stocks which are put together from various companies and sectors to form a combine index of that Exchange.

Index funds are also known as passive funds because they passively track the performance of a
particular index.

• Index funds are long term investments
• You don’t have to track the index on an ongoing basis
• Index Funds are low cost funds due to less management
• Index funds include stocks from all sectors of the country
• The risk involved in these funds is between medium to high depending on the index

3 options are available in India for investing in Index Funds

• The Sensex having 30 companies
• The Nifty having 50 companies
• An Index Plus Fund consists of a mixer of both investing in index as well as partially in actively managed assets.
To conclude we can say that investing in either Stocks or Index Funds is an individual choice and
depends mainly on 3 parameters.
• Duration you can invest for depending upon your financial goals
• Current Financial condition
• Choice of Investment portfolio you want to create

For more information visit www.prajinvestments.com or write to us at guidance@prajinvestments.com