Investors and Their Types

The field of investment is a vast and elaborate one, which requires extensive knowledge and experience to effectively navigate without losing your way in the numerous pathways within it. Primarily, every investor needs to know about the two asset classes that exist within the market, there is the public sector and then the private sector. The public sector is openly available to the general public, indicating that the shares, stocks, bonds and other securities are all available to be bought and/or sold by anyone from the public with sufficient means to do so. The public sector is open to investments from all, and if an investor has the right amount of money, they can invest their money to a certain limit in a company available on such a platform. The private sector on the other hand is not openly available to the common man. Private sector or as it is commonly known, the alternative asset class includes various kinds of assets within it, namely private equity, commodities like gold, wine, art and real estate. India has a huge private sector market for investments. The primary reason why these assets are held in such high regard is the fact that they generate high returns in a less time. In order to cope with their expenses and expansion plans, every business requires investors from both the asset classes. Each of these classes works in a unique way, but more importantly, there are also various kinds of investors. Here are a few of the investors that one should know about:

1. Institutional Investors:

Institutional investors work for a private equity firm that invests in equity and various different kinds of funds. These types of investors do not invest money from their own pocket, but they do not restrict themselves to just providing the capital. Along with that, these investors are also involved in the management, administration and general overhaul of how the company works.

2. Angel Investors:

The name is self explanatory. It tells us what kind of investors they are, that is, like angels for a businessman. Unlike institutional investors who invest the firm’s funds, angel investors invest their own funds into a company. These are usually wealthy individuals who are looking to make profits by investing in companies with huge potential to succeed but don’t have the funds to function efficiently and generate revenue. Angel investors may also invest in growth capital. India has a lot of potential in this market.

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