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107. '' These could spread among various capital market instruments like equities , derivates and other government securities .'' In this context , explain various options to compare between two investment options.
Ans: There are a number of investment options available to an investor. While selecting an investment vehicle either for long-term or short or for both , an investor should look into three factors -liquidity , safety and return . It is essential for na investors to make informed investment decisions before selecting his/her investment vehicle option depending on his/her goals and risk tolerance. There are two kinds of comparison possible among different investment options:
i. Company the nature of the investment -i.e., comparing the returns , risk and liquidity nature.
ii. Comparing their performance in macro economic conditions.