Types of Financial Services
Financial services are those services which helps people in management of their finance related problems in a well-organized manner and therefore eliminating the worry of people regarding their money. Given below are the various types of financial services which one can expect getting from financial institutions –
- Banking – Under this an individual can deposit his or her money and can get return in the form of interest and also borrowers can get loan by paying interest to bank periodically.
- Insurance – By using this one can get peace of mind as one can buy insurance policies like life insurance, fire, marine, health and general insurance which ensures that person in the event of any mishap can get his or her money back from insurance company.
- Stock Market – One can invest his or her funds into stock market also where one gets dividends and also capital appreciation, if one makes right investment decision than return from equity markets are much greater than that of fixed deposits parked in banks.
- Treasury or Debt instruments – Under this one can invest his or her money into government bonds and also debt instruments of private and public firms.
- Wealth Management – There are many firms where one can jus park their money and then these companies invest money across different assets classes like commodity, derivatives, money market, currency etc… in order to generated superior returns for their clients.
- Mutual Funds – These funds track asset class and generate returns accordingly so a debt fund will track returns of debt and money market, an equity mutual fund would give returns according to performance of stock market and so on.
- Tax consultants and audit firms – These organizations help people in determining their tax liability, advising their clients on how to save tax and also filing of their tax returns on time.