INDIAN FINANCIAL MARKETS

AGENDA
 Introduction to Markets

 Composition of Markets

 Instruments for Investment

 Types of Insurance Products

 Comparison of Insurance with other Asset Classes

 Q&A
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Indian Financial Markets
 Financial markets refer broadly to any marketplace where the trading of securities
occurs, including the stock market, bond market, forex market, and derivatives market,
among others

 It includes the primary market, FDIs, alternative investment options, banking and
insurance and the pension sectors and asset management segment

 Financial markets are vital to the smooth operation of capitalist economies

 Indian financial markets are one of the oldest across the globe

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Markets
1) Equity :
This refers to investment in listed equities

2) Debt instruments :
This refer to investment in fixed income securities such as Government Bonds,
Rated Corporate Bonds (AA and above) etc.

3) Money Market and Cash :

These include investment in instruments like Commercial paper, Certificate
of Deposits, Short term Bank Deposits and Money market instruments

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Indian Stock Markets
In India the two main Stock Exchanges are:

• Established in 1992
NATIONAL STOCK EXCHANGE • Located in Mumbai
(NSE) • Benchmark Index- Nifty50 is a collection of
top performing 50 equity stocks that are
actively trading in the index

• Established in 1875
• Located in Mumbai
BOMBAY STOCK EXCHANGE
• It is the oldest stock exchange in Asia, and also
(BSE) the tenth oldest in the world
• Benchmark Index- SENSEX which comprises 30
of the largest and most actively traded stocks
on the BSE

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Benefits Of Investing In Stocks
 Helps build your savings
 Protects your money from inflation as historically, long-term equity returns
have been better than returns from cash or fixed-income investments
 Maximize income from your investments
 Hassle free trading
 Liquidity
 Flexibility of Investing in smaller amounts
 Dividend Benefits
 An Ownership Stake in the Company
 Transparency
Risks Of Investing In Stocks
 Lack of Knowledge

 Lack of Time

 Company-specific Risk

 Volatile with no guarantee on returns

 Liquidity risk

 Taxation
Mutual Funds
Mutual Funds
 A mutual fund is a company that pools money from many investors and invests the
money in securities such as stocks, bonds, and short-term debt.

 The combined holdings of the mutual fund are known as its portfolio. Investors buy
shares in mutual funds.

 Each share represents an investor’s part ownership in the fund and the income it
generates. The value is denoted by Net Asset Value (NAV)

NAV = (Assets - Liabilities) / Total number of outstanding shares

Advantages Of Funds
 Professional Expertise

 Good Returns

 Diversification

 Tax Benefit

 Affordability

 Liquidity
Risk In Funds
 Fluctuating Returns

 No control as FM manages
the fund

 Risk of over diversification

 Cost

 Past Performance

 Fund Evaluation
Life Insurance Products

Life Insurance Products

Traditional Unit Link

Products Products

Participating
Products Non Participating Products

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Insurance Vs Other Assets
 Protection

 Tax Benefit

 Affordable

 Guaranteed returns

 Planning for long term/different stages of life

cycle

 Peace of mind-Create & Save

THANK YOU

Q&A??

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