VIJAYANAGAR COLLEGE OF COMMERCE

VIJAYANAGAR COLONY HYDERABAD - 500 057

TITLE : INVESTMENT OPPOURTUNITY FOR YOUNGSTERS

TEAM :
Project Leader : T Mohamed Ammar
Team Members : T Mohamed Ammar
Parasara Bhatter Vishnu Vardhan
Achyuth Kumar
Sai Tanay

INTRODUCTION:

An Investment is an asset or item, acquired with an intent of creating future wealth.

In Recent years, there has been a rapid increase in number of youngsters investing in Stock market. It
can be noted that Discount brokers like Zerodha, Upstox and Angelone, and Traditional brokers like
HDFC Securities, ICICI Securities, Geojit etc,, also claimed to have doubled their users, since the pandemic.

OBJECTIVE:

To make youngsters aware of multiple investment opportunities and basics of stock market, which
therefore can increase their ability to invest and also reduce their risk of loss.

CAUSE OF TAKING THIS TOPIC:

Most of the youngsters are investing in stock market, without even having a basic knowledge on the
market, resulting in them loosing their capital. A Proper knowledge on stock market can decrease their
risks and can also increase their gains.

DIFFERENT OPPORTUNITIES OF INVESTMENT FOR YOUNGSTERS:

If you start investing at the age of 25 and plan to retire at 60, you have 35 years to plan, save, and
accumulate wealth. On the contrary, if you start investing at 40, you will have only 20 years left. This
pushes the burden of financial stress to a later stage in your life. Here are some of the opportunities
of investment:

1. Short-Term Bond Funds

 

These are a type of mutual funds that invest in short-term bonds or debt instruments such
as commercial papers, certificates of deposit, government securities, etc.
2. National Pension Scheme (NPS) 
 

NPS is a retirement scheme backed by the Government of India and governed by the Pension Fund
Regulatory and Development Authority (PFRDA). To private, public, and unorganized sectors.

3. Individual Direct Stocks

 

 Stocks, also known as equity and shares, represent ownership of a company. Publicly listed
companies have stocks that can be traded on stock exchanges

4. Exchange-Traded Funds (ETFs)

  

ETFs are a basket of stocks traded on the stock exchanges, just like stocks. Similar to index mutual
funds, ETFs track an index like the CNX Nifty or BSE Sensex and mimic their performance.

5. Mutual Funds 
 

Another excellent investment option, mutual fund schemes take money from multiple investors and
invest it in the market. Every mutual fund has an objective according to which the fund manager may
buy and sell securities.

6. POST OFFICE SAVING SCHEME

The post office savings scheme includes saving instruments, offering several reliable and risk-free
returns on investments.

7. FIXED DEPOSITS

Fixed deposit is an investment tool offered by banks and non-banking financial institutions (NBFCs).
Through it customers can invest their money for a specific amount of time at a fixed interest rate.

8. GOVERNMENT BONDS

A government bond is a debt instrument issued by the Central and State Governments of India.
Issuance of such bonds occur when the issuing body (Central or State governments) faces a liquidity
crisis and requires funds for the purpose of infrastructure development.
INVESTMENTS LOCK IN PERIOD Risk RETURNS PER ANNUM

1.Short-Term Bond Funds No lock in period Low risk 4.68%

2.National Pension Scheme 60 years of age Low risk 8% to 10%

(NPS)

3.Individual Direct Stocks No lock in period High risk  inflation in last 20 years is
7% per annum then
average return of stock
market will be 11%

4.Exchange-Traded Funds No lock in period Moderate 3.66%-10.35%

(ETFs) risk

5. Mutual Funds 1yr, 3yrs & 5yrs Moderate & 9.47% to 26.87%
High

6.POST OFFICE SAVING 5yrs Safe 4% to 8%

SCHEME

7.FIXED DEPOSITS 5yrs Low risk Monthly7.39% p.a.

Quarterly7.44% p.a. Half-
Yearly7.51% p.a.

8.GOVERNMENT BONDS Tax free bonds Low risk 7.244% - 3.77%

10yrs, 20yrs

CONCLUSION:
Investing is an effective way to put your money to work and potentially build wealth. Smart investing
may allow your money to outpace inflation and increase in value. The greater growth potential of
investing is primarily due to the power of compounding and the risk-return trade off.