Top Five Financial Assets

Assets
With latest trends and various investment avenues as a retail investor rarely gets time to invest and look for various financial assets. To explain the term of financial assets below the details to be considered while making any type of investment.

What is Asset and its types?

- Asset classification whoes values are drived out of contractual claims like bank deposits , fully paid up equity share i.e listed in stock Indices eg NASDAQ, NSE or BSE, bonds, debentures, commercial property , Agriculture land, industrial units and so on.


Brief understanding.
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They are classified as Tangible and Intangible assets.

Tangible assets drives values from the substances or property such as precious metals , commercial property agriculture land or cash crops or commodities like jute crops, palm fruits , soy beans , ground nuts, rice wheat , jowar , reat l estate like land , commercial property and row houses.

Intangible assets are not available in physical form but exist on the contractual terms and conditions of the issuer stating the values on the period of time.Entities like public company , government bodies issues share bonds and debentures with a price value of the non physical Asset mostly in paper or in electronic format with invention of Dmat Account. 

Thus financial assets drives its values from its underlying assets with a contractual terms and condition dully accepted by each parties.

Type of Financial Assets.

A)Tangible Assets

1. Cash - a most liquid form of Financial Asset. One who holds in hand is the owner of the Asset. Saving accounts , post office saving schemes, JAN DHAN YOJANA, KISAN Account and lastest fintech companies saving accounts allowing to opened to keep in bank account traditional way. Online using UPI transfer and simple Kyc documentations. Paytm, phonepe, BharatPe are some of fintec examples. Nominal interest are paid to account holder of cash saving account. Less Rate of return and low risk on keep in electronic format's but in cash in hands may welcome burglary , theft or mutilated by rodan or rats.




2.Bills of Exchange - another form of liquid financial assets and also can be discounted by holder before its maturity . Its also known as near money. Drawer is the one who draws the bill of exchange in the name of drawer with an instructions to pay a sum of amount on period of time.Any drawer is in need of money can get bills of exchange discounted with a nominal commission on financial institutions like bank and get the money , while drawee will pay fund to banks when due date arrives.




3.Fully paid up equity and preference shares - Values are drived out of stock exchanges and stored in electronic format under Dmat account . Highly transferable and risk averse asset class due its high value of returns in the market. It can be bought from primary and secondary market. Dividends are paid to share holders on the companies performance in the given economic conditions which is directly related to value for holding number of shares . At time of liquidating or dissolution of any companies equities holder are given last preference after clearing dues to preference shares holders.

4. Bonds and debentures are debts capital issued by government bodies , Central banks and Public limited companies respectively. Interest is paid to debt holders . Debt capital are paid before preference and equity shares at time of liquidating the company.

5.Commodities like iron and steel , precious metals like gold and silver , lentils , Rice Wheat Jowar. Prices are quoted as per demand and supply in the given place time and climate conditions. 

6. Real Estate are commercial properties , land and building , house and industrial units . They are valued as per given amenities and surrounding neighborhood which will appreciates or keeps prices stagnant .



7. Commercial vg cv g ehicle and cars and containerRrr grrs including ships and cargo planes plant and machinery are alsovgv f tangible assets. Their values are directly related in relationship of demand and supply das well as speed of transportatfrfrion and quantities it can load inside. They aret rgf. f.  tgrggrr ff r gr usually  cvgvaff in course of time period and then sold in scrape .Trrfime is the risk factor for such type of tangible assets. Hence when they are kept idle without anu use will reduce the value in given period of time.




B) Intangible Asets

An intangible asset do not have physical existence. Examples are patents, copyright, franchises, gxeoodwcwezill, trademarks, and trade names, as well as software like whatsapp was takeover by Facebook for its user base. This is in contrast to pzsWRhysical assets and financial assets. An intangiblbvbggtbbbe asset is usually very difficult to evaluate.
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