An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund. Systematic investment plan is one of the best investment options in India.

Mortgage is a type of loan taken from the bank by lodging with the banker title deeds of immovable assets like land and building; Business people raise loans by depositing the title deeds of the properties with the bank.

Loan is a direct advance made in lump sum which is credited to a separate loan account in the name of borrower. The borrower can withdraw the entire amount in cash immediately. It can be repaid in one or more installments. But the interest on loans and advances is calculated on the whole of the amount borrowed right from the date of sanction. It may be secured or unsecured. Loans and advances are usually sanctioned by pledge of specific assets like Fixed Deposit Receipts, Document of Title to the Goods, Shares, Debentures, etc.,

Leasing here refers to the owning of an asset by any individual or a corporate body which will be given for use to another needy business enterprise on a rental basis.

Commercial paper (CP) is an unsecured money market instrument in the form of a promissory note. It was introduced in India in 1990 under Section 45W of the Reserve Bank of India Act.

An individual investor who wants to invest in equities and bond with a balance of risk and return generally can invest in mutual funds. Nowadays people invest in stock markets through a mutual fund.

The Indian Companies Act 2013 defines a share as "To be a share in the share capital of a company".

The firm which owns the asset is called 'Lessor' and the business enterprise which hires the asset is called 'Lessee'. The contract is called 'Lease'. These are the three important terms used in the process of Lease Financing.

(i) Commercial - Paper is an unsecured money market instrument in the form of promissory notes.
(ii) It was introduced in India in 1990 by the Reserve Bank of India.
(iii) It is issued by the firm to raise funds for a shorter period, varying from 90 days to 364 days. It can be issued in denominations of Rs.5 Lakhs or multiples there of.

(i) Factoring is one of the methods of raising Business Finance through sale or mortgage of book debts.
(ii) Under this method, business concerns sell the Accounts receivables to a Finance Company called a factor at a discount.

1. Cost:
Business enterprises have to analyse the cost of mobilising and utilizing the funds.
2. Financial Capacity of the Firm:
Financially sound enterprises have capacity to pay interest promptly and return the capital at the stipulated time.

Internal Sources includes all those sources generated from within the business enterprises.
1. Trade debtors
2. Bills receivable

The sources of funds can be grouped into two categories based on generation:
1. Internal sources
2. External sources

1. Companies invite public deposits by giving advertisement in the media.
2. It offers deposit schemes for a longer tenure.
3. Person interested in making public deposit has to undergo a simple formality.

1. Debentures are an important instrument for raising long term debt capital.
2. A company can raise funds through issue of debentures which bear a fixed rate of interest.