New Financial Products & Services 📋

The Indian financial market has moved beyond just Fixed Deposits and Shares.

1. Mutual Funds (MF) 🥗

• Pool of money managed by professionals.
• Invests in stocks/bonds.
• SIP (Systematic Investment Plan): Investing small amounts monthly.

2. Exchange Traded Funds (ETFs) 📊

• Like a Mutual Fund, but traded on stock exchange like a share.
• Low cost.
• Example: Nifty BeES (Invests in Nifty 50 companies).

3. Derivatives 📉

• Contracts whose value is derived from an underlying asset.
• Types: Futures, Options, Swaps.
• Use: Hedging (Protection) and Speculation (Betting).

4. Securitization 📦

• Process of converting illiquid assets (like Home Loans) into tradable securities.
• Bank bundles 1000 home loans and sells "Pass Through Certificates" (PTCs) to investors.
• Bank gets cash immediately to lend again.

5. Credit Cards & Debit Cards 💳

• Plastic Money.
• Credit Card: Buy now, pay later (Unsecured loan).
• Debit Card: Pay from bank balance.

6. Insurance Products 🛡️

• ULIPs: Insurance + Investment.
• Health Insurance: Cashless hospitalization.

Quiz Time! 🎯

💡 Final Wisdom: "From SIPs to ETFs, the menu of financial products is vast. Choose what suits your appetite (risk profile)!" 🍽️

Next up: Innovative Financial Instruments - Deep dive into features! 🔍