4.1. Shares/equity

Equity investors acquire firm shares with the anticipation that they will appreciate in value
as capital gains and/or provide capital dividends. If the value of an equity investment
increases, the investor would get the financial gain upon selling their shares or if the company’s
assets are converted into cash and all its debts are settled. Equities may enhance the asset
allocation of a portfolio by introducing diversification.

1.2 Debt Securities

A debt security is a financial asset that arises from a lending transaction between two
parties. Corporate bonds are debt instruments that corporations issue and sell to investors.
Investors provide loans to firms and get a certain number of interest payments, as well as the
repayment of their initial investment when the bond reaches its maturity date.
Debt securities encompass various financial instruments such as government bonds,
corporate bonds, certificates of deposit (CDs), municipal bonds, and preferred stocks. Debt
securities can also be in the form of collateralized securities, including collateralized debt
obligations (CDOs), collateralized mortgage obligations (CMOs), mortgage-backed securities
(MBSs) issued by the Government National Mortgage Association (GNMA), and zero-coupon
securities.

4.3. Government Securities

These are gold-backed government securities. They serve as alternatives to physically
possessing gold. Investors are required to make payment for the issue price in cash, and the
bonds will be repaid in cash upon reaching maturity. The Bond is issued by the Reserve Bank
on behalf of the Government of India. A real estate investment trust (REIT) is a type of financial
vehicle that primarily focuses on investing in real estate assets. REITs are entities that possess
real estate holdings and provide financial support for their growth in the real estate industry.
This allows investors to get income from real estate investments without the need to own,
oversee, or provide funding for any properties.