TYPES OF INVESTMENTS AND INVESTORS
The investment market is a vast and confusing sector; one needs good knowledge and experience to navigate through, without getting lost. There are two main asset classes that exist, which are the Public and the Private sector. The public sector is one which is available to the general public at all times, which means that the shares, stocks and bonds are out and are ready to be bought and sold by anyone who has the means to do so. Thus, the public sector is open to all, and if one has the right amount of money they can invest in a company open on such a platform.
On
the other hand, the Private sector is one where investing is not that easy, as
this sector is not open to the general public. Private sector or as it is
usually called, the alternative asset class includes, various kinds of areas
within it like; Private equity, commodities like gold, wine and art, Real estate fund India is big market
for investors who want to invest their money in the private sector. The main
reason why the private sector is held in such high regard is because it
generates high returns in a short period of time.
Businesses
in order to keep up with their expenses and expansion plans usually require
investors from both the asset classes, as each of them work in different ways
and have their own benefits. Apart from this, there are different kinds of
investors in the market too. Below is a list of few of the investors present in
the market:
These types of investors usually work for a private equity firm and are a part of various kinds of funds. They do not spend money from their own pocket, but also do not restrict themselves to just providing the capital, these investors are involved in the management, administration and the general overhaul of the company and its working. Companies like Everstone capital, headed by Atul Kapur, have setup PE funds in India.
ANGEL INVESTORS
The name itself explains what kind of investors they are, like angels they are on the side of the business owner. Angel investors invest their own money and personal funds in a company. They are usually wealthy individuals who are looking to invest in companies with high potential.
BANKS
Apart from the investors mentioned above, banks have always been the most known kind of investors, for almost all sorts of businesses, entrepreneurs and new start-ups. One can always take a loan from the bank at the time of need, and return the money as soon as the revenue starts to come in.
Comments
Post a Comment