6. Company deposits

Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions, Non-Banking Finance Companies (NBFCs) and Manufacturing companies also accept such deposits. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the documents to recover his capital, thus making them a risky investment option.

Invest only in safe and sound companies. Unknown companies or non reputed companies offering high interest rates should be strictly avoided. Make sure you review the ratings provided by rating companies before investing your money in company deposits.

7. New Fund Offer

Like how the companies conduct Initial Public Offer to raise the capital to extend the company operations, NFO is conducted by Assent Management Company to raise the capital from the public. AMC’s are the mutual fund companies. They raise capital to buy the securities from the market.

People think Net Asset Value 10 is cheaper than 50. The agents get a bigger commission for marketing NFO. Investors have lots of Myth about NFO.