Stock markets have historically given superior returns as compared to other asset classes and thus, offer an ideal avenue to invest your money in. But investing in stocks also comes with an inherent risk. The volatile nature of equities may not be suitable for a section of investors like retired people, investors who need to park their treasury surplus for a few days or few weeks, etc. since equity investments do not assure capital protection. Alternate investments compliment equity by acting like a diversification tool for risk takers as well providing capital protection options to the risk averse.

At Emkay, we focus on providing financial and investment solutions rather than selling investment products to the investors. Our wide array of products is well suited for different types of investors, irrespective of their financial needs and risk profiles. We constantly guide and advise you through our team of well qualified investment advisors, who are backed by a strong and competent research team. Our research team conducts detailed market analysis and uses its expertise to arrive at sound investment decisions for investors.

Structured Products

Structured products are a combination of various investment products such as equities, fixed income products and derivative products. Two or more investment options are clubbed together to arrive at a single product in order to reduce the risk or to increase the potential returns. Various permutations and combinations can be used to devise different structured products from time to time. You can invest in products which best suit your financial needs.

Primarily there are two types of structured products available with Emkay.

• Fixed coupon products: Fixed coupon products assure a basic rate of return on the investment. Using such products helps in better financial planning since the rate of return is pre-defined. Fixed coupon products are ideal for people seeking capital protection along with a steady rate of return on their investments. Typically, these structured products provide better returns than the fixed income options available in the market. However, like most investment avenues, these products too, have a risk attached with them. A fixed coupon product usually has an interest rate risk associated with it. Though the risk of underlying investment may remain, it is mitigated by suitably diversifying across various instruments.
  
  Before investing, you need to assess the factors such as credit quality of the underlying security, fund management and the upfront charges associated with the product. Also, don’t forget to keep in mind the minimum coupon assured while taking an investment decision.
• 100 per cent Capital Protected Non-Fixed Coupon: Another interesting option available in this category assures 100 per cent capital protection, but there is no minimum guarantee on the rate of return. The rate of return may vary depending on market conditions. Generally, both the downsides as well as the upsides in such a product are capped. In case the market moves in a favourable direction, the potential returns are substantially better than the returns from fixed income products. Also, since the downside is capped, the capital invested is safe and the investor will always get the invested amount back.
  
  This product is most suitable for investors who seek wealth creation and are ready to take a limited risk. These risks emerge because the returns depend on the performance of the market. Thus, this product is always subject to the associated market risks.
  
  Before investing in such a product, you should check if the investment objective of the product matches with yours. Also, the investment horizon and various charges need to be checked before investing.

Fixed Deposits

Company Fixed Deposits: Company deposits are a very lucrative option for investors seeking fixed returns on their investment. There are a host of corporates which accept fixed deposits at attractive rates of interest for their working capital needs. The rate offered differs from company to company, but are generally better than the rates offered by banks on their fixed deposits. These deposits come in various terms, ranging from six months to five years.

Though the returns from company fixed deposits are better than those of most banks, the associated risk may also be greater. You should be very careful while investing in company fixed deposits due to the risk of default on the part of the company. However, if the company has a consistent financial track record, then the risk is minimised to a great extent.

Bond Investments

• Company Bonds: Bonds are debt instruments with a fixed coupon rate. They are backed with sufficient assets and bond holders have the right to claim the assets of the company if it goes into liquidation. In case of company bonds, there are two types of bonds viz. convertible and non convertible bonds. Convertible bonds, on maturity, are converted into equity shares in a predefined conversion ratio. In case of non convertible bonds, the principal amount is refunded to the bond holder at maturity along with the interest due.
• PSU Bonds: Bonds issued by companies in which the government holds more than a 50 per cent stake are called PSU bonds. These bonds are perceived to be safer than company bonds as the issuing company has government support and the chances of going into liquidation for such companies are quite low.
• Government Bonds: Bonds issued directly by the Government of India are called government bonds. These are more commonly referred to as G-Secs or Government securities. These are perceived to be the most secured investment options for investors as the default risk in G-secs is virtually zero.

To invest in an alternate investment avenue you can reach us on 022 – 6612 1342