Write briefly on any four of the following: Call Option; Shares/Stocks and Bonds; Mutual Funds; Gold Monetisation; Investment Portfolio

Call Option

A call option is a financial derivative that gives the holder the right, but not the obligation, to buy an underlying asset (like shares) at a predetermined price within a specific time. It’s widely used in stock and commodity markets for hedging and speculation.

Example: If an investor buys a call option on Reliance shares at ₹2,500, they gain if the market price rises above ₹2,500.

SEBI (2023) regulates derivatives trading to ensure transparency and investor protection.

Shares/Stocks and Bonds

Shares (or stocks) represent ownership in a company and provide dividends and voting rights, while bonds are debt instruments offering fixed interest and capital safety.

Shares carry higher risk but higher return, whereas bonds offer stable income.

Example: PSUs like NTPC and ONGC issue bonds for infrastructure projects.

Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) issued green bonds (2022) to fund renewable energy parks, showcasing responsible financing.

Mutual Funds

Mutual funds pool money from investors to invest in diversified portfolios of equity, debt, or hybrid assets, managed by professional fund managers. They offer low risk and liquidity, regulated by SEBI.

India’s mutual fund AUM crossed ₹50 lakh crore in 2024, doubling in five years (AMFI Report).

In Haryana, Sahakar Pragati Scheme promotes rural financial literacy and encourages small investors to invest in mutual fund SIPs for stable returns.

Gold Monetisation

Launched in 2015, the Gold Monetisation Scheme (GMS) encourages citizens to deposit idle gold in banks to earn interest (0.5–2.5%) and reduce gold imports.

Gold is melted, refined, and reused for domestic demand. India holds over 25,000 tonnes of household gold, but only 5% is monetised (NITI Aayog, 2023).

Haryana’s rural women SHGs under DAY-NRLM have been encouraged to deposit gold assets through cooperative banks, enhancing formal savings and reducing gold hoarding.

Investment Portfolio

An investment portfolio is a mix of financial assets such as equity, bonds, mutual funds, and real estate designed to balance risk and return.

Diversification reduces volatility and enhances long-term growth. NPS, PPF, and equity mutual funds form part of a balanced portfolio.

Haryana’s Investor Education & Protection Programme (2023) promotes awareness among youth about diversified portfolios and responsible investment through state financial literacy drives.