Meet Amit. He is a supporter of diversity .

In trading too, Amit likes to invest in a variety of financial instruments apart from stocks.

Amit’s diverse investment portfolio consists of several financial instruments like bonds, mutual funds & derivatives.

Bonds are issued by companies & the government to raise money for expansion & finance a variety of projects. Returns on bonds are periodically paid to the investor, in the form of a fixed interest amount.

A mutual fund is a professionally managed trust that pools the savings of many investors & invests them in a bouquet of shares & other financial assets

A derivative is a contract between two parties & involves speculating on the price of a certain asset on a future date. The most common types of derivatives are futures & options.