1. Liquid products are those which are least volatile and can be converted to cash easily like bank account balance and liquid and overnight funds.
2. Protection products secure the investor from a variety of events like health insurance, life insurance and other insurance products.
3. Income generating products are those which generate a regular income while preserving the capital of the investor like FD and bonds.
4. Growth products are volatile in the short term and generate inflation beating returns to generate real wealth for the investor over the long term.
5. Alternate products have low correlation to financial products and have their own cycles like real estate, gold and other commodities.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
