Financial Products in India

India offers a wide range of financial products across different sectors, catering to various investment, savings, and insurance needs. Here’s a breakdown of some major categories and products available in the Indian market

Banking Products

  • Savings Accounts: Basic accounts to park funds, earn nominal interest, and provide liquidity.
  • Fixed Deposits (FDs): Term deposits offering fixed interest rates over a set period.
  • Recurring Deposits (RDs): Allow regular deposits over time, earning a fixed interest.
  • Current Accounts: Designed for businesses, offering higher transaction limits with no interest.

Investment Products

  • Stocks/Equity: Shares of listed companies traded on stock exchanges like BSE and NSE.
  • Mutual Funds: Pooled investment vehicles that invest in various securities like equity, debt, or hybrid.
    • Equity Mutual Funds
    • Debt Mutual Funds
    • Hybrid/Balanced Funds
    • ELSS (Equity Linked Savings Scheme): Tax-saving mutual funds.
  • Exchange-Traded Funds (ETFs): Mutual funds traded like stocks on an exchange.
  • Real Estate Investment Trusts (REITs): Investments in income-generating real estate assets.
  • Bonds: Debt securities issued by governments or corporations, offering fixed returns.
    • Government Bonds
    • Corporate Bonds
    • Tax-Free Bonds

Retirement Products

  • Employees’ Provident Fund (EPF): Mandatory savings for salaried employees in the formal sector.
  • Public Provident Fund (PPF): Long-term, government-backed savings scheme with tax benefits.
  • National Pension Scheme (NPS): Government-backed retirement savings plan.
  • Atal Pension Yojana (APY): Social security scheme aimed at the unorganized sector.

Insurance Products

  • Life Insurance
    • Term Insurance: Provides coverage for a specific term, paying benefits only in case of death.
    • Endowment Plans: Combines insurance and savings, with maturity benefits.
    • Unit Linked Insurance Plans (ULIPs): Insurance products linked to investments in equity or debt.
    • Whole Life Insurance: Provides lifelong coverage.
  • Health Insurance: Policies covering medical expenses for individuals or families.
  • Motor Insurance: Mandatory for vehicles, offering third-party or comprehensive coverage.
  • Home Insurance: Protects against damages to the home and contents.
  • Travel Insurance: Covers unexpected events while traveling, like medical emergencies or lost luggage.

Tax Saving Products

  • ELSS (Equity Linked Savings Scheme)
  • PPF (Public Provident Fund)
  • National Savings Certificate (NSC): Fixed-return savings bond from the Indian Post Office.
  • Sukanya Samriddhi Yojana (SSY): Government-backed scheme for the girl child.
  • Senior Citizens Savings Scheme (SCSS): Investment option for senior citizens offering regular interest.

Loans and Credit Products

  • Home Loans: Loans for purchasing real estate or homes.
  • Personal Loans: Unsecured loans for personal expenses.
  • Car Loans: Loans for purchasing vehicles.
  • Education Loans: For financing higher education in India or abroad.
  • Gold Loans: Loans backed by gold as collateral.
  • Credit Cards: Revolving credit facility for day-to-day purchases.

Government Schemes

  • Sovereign Gold Bonds (SGB): Bonds linked to the price of gold, offering fixed interest.
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY): A pension scheme for senior citizens.
  • Kisan Vikas Patra (KVP): Savings scheme aimed at farmers, with fixed returns on maturity.

Commodities

  • Gold & Silver: Investments in physical gold, silver, or gold ETFs.
  • Commodities Trading: Futures and options in commodities like gold, crude oil, and agricultural products, traded on exchanges like MCX (Multi Commodity Exchange).

Digital and Alternative Products

  • Digital Payments: UPI, mobile wallets (e.g., Paytm, PhonePe), and payment banks.
  • Cryptocurrencies (currently unregulated): Bitcoin, Ethereum, etc., though subject to legal scrutiny.
  • Peer-to-Peer (P2P) Lending: Online platforms allowing individuals to lend/borrow directly.

Real Estate Investments

  • Physical Property: Residential, commercial, or agricultural real estate investments.
  • REITs: Indirect investment in real estate via listed Real Estate Investment Trusts.