2. AGENDA
What is investment ?
Why invest ?
Where invest ?
An Introduction to Financial Market
Types of Financial Market
Conclusion
3. What is Investment ?
Money we earn is partly spent and rest saved for meeting future
expenses. Instead of keeping the savings idle we like to use savings in
order to get return on it in the future. This is called Investment.
4. Why Invest ?
Earn Return on idle resources
Generate sum of money for specified goal in life
Make provision for uncertain future
To meet the cost of inflation
5. An Introduction to Financial Market
In economics, a financial market is a mechanism that
allows people to easily buy & sell (trade) financial
securities ( such as stocks & bonds ), commodities
( such as precious metals or agricultural goods ).
6. Types of Financial Market
Capital Commodity Money
market Market Market
Financial Market
Derivatives Insurance Foreign
Market Market Exchange
Market
7. Options for Retail Investor
Equity
Debt
Mutual Funds
Fixed Deposits with Banks
Post office schemes
Gold
Real Estate
Insurance
8. Equity Shares
• It commonly referred to as ordinary share
represents the form of fractional ownership in a
business venture.
• Equity shareholders have the right to get
dividends as declared.
9. DEBT
This instrument represents contract whereby one
party lend money to another on pre-determined
terms with regards to rate and periodicity of
interest, repayment of principle amount by the
borrower to the lender.
10. Classification of DEBT
BONDS: Issued by Govt.(Central and State),Public
Sector Organisation
DEBENTURES: Issued by Private Corporate Sector.
11. Mutual Fund
A Mutual fund is a collective investment vehicle that
pools together investor money. This collective pool of
money is invested in accordance to stated objective.
Mutual Funds are :
A large pool of resources
Managed by professionals
Diversified investment for lower risk & better return
12. Fixed Deposits with Banks
It allows an investor to deposit a lump sum of money for a
fixed period ranging from a few weeks to a few year and
earn a pre-determined rate of interest.
Guaranteed Returns depends upon term.
Safe and Secured Investments
13. Post Office Schemes
Offered by Govt. of India
Safe, secure and risk-free Investment
No Tax deduction at source (TDS)
Transferable to any post office in India
Attractive Rate of Interest
Post office monthly income scheme
Kisan Vikas Patra
National Savings certificate
Public Provident Fund
14. GOLD
Physical Gold in the form of bars and coins
Gold accounts in banks where units in the gold a/c in
the banks are backed up by physical gold held in the
bank and bank gives assurance that the investor can
convert the gold back to cash anytime.
15. Real Estate Investment
Financial instrument that invests primarily in the
real estate such as offices, apartments, shopping
centres, hotels etc.
Tend to pay high returns( often as high as 10%)
Attractive investment opportunity when the stock
market is falling.
16. Insurance
A promise of compensation for specific potential
future losses in exchange for a periodic payment.
Now it is considered as a investment tool also:
ULIPs
Traditional Plans
17. Conclusion
Investors looks at superior returns and measured
risk therefore he has to select a dynamically
balanced asset allocation mix consisting of the
different investment options available in the
Financial Market.
