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  • Investors PDF

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    Rajat Agrawal
    14 views11 pages
    This document discusses how individuals choose whether to spend disposable income or save/invest it. It notes that saving provides delayed utility through investments like bank deposits, funds, shares, real estate, or gold. Spending provides immediate utility. Delayed utility is discounted over time, so individuals must consider factors like time value, uncertainty, and opportunity cost when deciding how to allocate funds between spending and saving/investing. The document also outlines the investment transaction process and factors like expected returns, risk exposure, and financial vs. non-financial returns that influence individuals' investment decisions.

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    Investors PPT.pdf

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    This document discusses how individuals choose whether to spend disposable income or save/invest it. It notes that saving provides delayed utility through investments like bank deposits, funds, shares, real estate, or gold. Spending provides immediate utility. Delayed utility is discounted over time, so individuals must consider factors like time value, uncertainty, and opportunity cost when deciding how to allocate funds between spending and saving/investing. The document also outlines the investment transaction process and factors like expected returns, risk exposure, and financial vs. non-financial returns that influence individuals' investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    14 views11 pages

    Investors PDF

    Uploaded by

    Rajat Agrawal
    This document discusses how individuals choose whether to spend disposable income or save/invest it. It notes that saving provides delayed utility through investments like bank deposits, funds, shares, real estate, or gold. Spending provides immediate utility. Delayed utility is discounted over time, so individuals must consider factors like time value, uncertainty, and opportunity cost when deciding how to allocate funds between spending and saving/investing. The document also outlines the investment transaction process and factors like expected returns, risk exposure, and financial vs. non-financial returns that influence individuals' investment decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 11

    New Venture Investors

    Use of Cash in hand/disposable income

    Tradeoff

    ● Spend

    ● Save

    Saving = Investments(Bank/FD/ Shares/Real

    estate/Gold)

    Spend = Immediate utility


    Save/Investment = Delayed utility

    Delayed utility is discounted, thus create

    expectation.
    Utility

    Can you eat


    dosa/chicken/paneer every day
    every time
    Time value
    Uncertainty
    How you choose?
    Opportunity Cost
    ● Opportunity cost is the potential forgone profit from a missed opportunity—the
    result of choosing one alternative and forgoing another.
    Investment Transaction Process

    ● Potential to deliver
    ● Assure returns beyond the
    expected return to at least
    minimum required levels.
    compensate for delayed
    ● Within investor’s expected risk
    utility.
    exposure
    ● Within my expected risk
    exposure
    Expected Utility/Returns

    ● Financial

    ○ Time value of Money

    ○ Risk premium

    ○ Opportunity Cost

    ● Non Financial

    ○ Cause

    ○ Associate

    ○ Set up an example/Ideology
    Venture Stage and Investment
    Stage, focus and growth elements

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