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Topic : Investment options for Middle Class
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Started by : Ekta Dutta, Hedge Fund Analyst/Trader, ING Vysya Bank   11 11 2009 13:57:09 +0000
Industry : Asset ManagementFunctional Area : Personal Finance(Personal Interests)
Activity:  18 views;  last activity : 07 06 2010 20:18:09 +0000

Small investors  like middle class people are individuals who purchase small amounts of stocks for themselves, as opposed to institutional investors. Small investors can deposit money in banks and building societies to earn interest on their savings. Although it has been the traditional belief that money deposited in a bank or building society is safer than an investment in stock, the recent crises experienced by these High Street institutions have eroded that trust.  Investments in company stock involves risk, but the rewards can be much greater than from a deposit or savings account.

So How can we attract these middle class people to invest in Share, Stocks, Mutual Funds etc.?

 
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1 Turn workers into shareholders
2 Sell Company Bonds to investors

Turn workers into shareholders

idea posted by Ekta Dutta Hedge Fund Analyst/Trader, ING Vysya Bank

This is a way of creating small investors from salaried people. Keeping small investors interested in saving and investing is vital for the protection of the financial interests of companies. CEOs and CFOs are advised to implement various incentives to keep existing investors and attract new ones. It is therefore important to create a stable and conducive environment that encourages people to save and prosper.

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Sell Company Bonds to investors

idea posted by Esha Johar Risk Analyst, Irevna

Companies can raise money by selling bonds to these middle class salaried people. Although in theory, small investors could buy corporate bonds and hold them, they play little role in these market.

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