SWOT ANALYSIS

Strength
• Fixed rate of interest.
• Interest expenses are tax free.
• Government bonds are secured.
Weakness
• Interest rate is lower than that of equities.
• Principal not returned even when the debt holder
demands.
Opportunities
• Some bonds are tax free
• Low risk in government bonds
• Can retain ownership
• If the rate of interest high then we get higher rate of
return.
Threats
• If the interest rate is high bond price will also
increase.
• If the party defaults payment we face the risk of losing
both interest and principal.
2.
 SWOT ANALYSIS

STRENGTH
• They provide higher dividend.
• Shareholders are the real owners of the company
• They have voting rights.
• They provide higher capital appreciation.
• They are also entitled to get right shares.
• Good liquidity position.
Weakness
• There is no guarantee of return.
• It is a risky investment.
• Leads to speculation
• Dilution of control
• Share value changes according to the market situation.
• Residual claim on company’s assets.

Opportunities
• Dividends from equity are tax free.
• Right to vote
• Higher rate of return
Threats
• Highly volatile in nature.
• Chances of loss is present
• Global factors also affect the share price.
3.

SWOT ANALYSIS
STRENGTH
• It has ready marketability.
• It can be stored.
• It is also liquid.
• It is used as a hedge against economic or political crisis.
Weakness
• It has no regular return profile.
• There is cost in storing gold like the insurance.
• Prices are volatile.
Opportunities
• It can be used as a collateral in financial institutions.
• The value of gold increases with the increase on
population.
Threats
• Gold market is subject to speculations.
• Price of gold is also determined by demand and supply.
• Prices are volatile in nature.
4.

SWOT ANALYSIS
STRENGTH
• The value is sure to increase overtime.
• Safest investment as compared to other assets.
• Owner has the authority to use the land
. • It protects the investor from inflation
• It can also be used as a collateral in a financial
institution.
Weakness
• Difficult to transfer ownership as it involves a lot of
procedures and persons
. • It is not a liquid asset.
• Huge capital is required for investment.
• Limited supply of potential lands.
Opportunities
• It has a global demand across different countries.
• It is rapidly growing.
• It finds new ways to attract investors like the modern
architectural designs.
Threats
• Economic recession has a direct impact on real estate
. • It is not a moveable asset therefore it faces
competition
. • Low liquidity compared to other assets.
• Prices fall when the demand is low.
 PRODUCT NOTES
In 5W1H Method
5. Direct equity analysis
Who:
a. Investors: Individuals, institutions, or entities seeking to invest directly in a
company's stocks.
b. Companies: Entities offering shares to raise funds.
What:
Investing in stocks means purchasing shares of a company, granting partial
ownership to the investor.
Investors aim to profit from dividends and potential stock price appreciation
for selling at a higher value.
When:
Trading shares on stock exchanges is typically limited to specific hours,
varying by region and exchange.
Timing investments is influenced by market conditions, personal financial
objectives, and thorough research.
Where:
Direct stock investments occur through recognized stock exchanges like
NYSE, NASDAQ, LSE, TSE, etc.
Investors also have the option to buy shares online via brokerage platforms.
Why:
Investors opt for stock investments due to the potential for superior returns,
portfolio diversification, industry growth participation, inflation hedging, and
decision-making autonomy.
How:
Investing in stocks involves researching companies and sectors, establishing a
brokerage account, executing buy orders through the platform, and
monitoring investments for strategic decisions on buying, selling, or holding
stocks.
 6. NON-COVERTIBILE DEBENTURES
7. Who:
a. Issuers: Companies or institutions requiring capital without reducing
ownership through equity shares.
b. Investors: Individuals, institutions, or entities seeking fixed income options
with higher returns compared to traditional bonds.
8. What:
a. Definition: Non-convertible debentures (NCDs) are debt instruments used
by companies to secure long-term funds from the public.
b. Comparison: Unlike convertible debentures, NCDs lack the conversion
option into equity shares.
9. When:
a. Timing: Companies opt for NCDs when in need of long-term capital for
expansion, project financing, or debt restructuring.
b. Availability: Investors can access NCDs during the issuance period, with
variances in tenure from months to years.
10. Where:
a. Issuance: NCDs are issued through public offerings, private placements, or
listing on stock exchanges for trading.
b. Acquisition: Investors can obtain NCDs from various sources, including
stockbrokers, banks, or financial institutions.
11. Why:
a. Reasoning: Issuers select NCDs as they provide a viable long-term
financing option without share dilution.
12. How:
a. Process: Companies release NCDs by submitting a prospectus to
regulatory bodies, outlining terms like interest rates, maturity periods,
redemption choices, and credit ratings.
b. Investment: Investors subscribe to NCDs during issuance by completing
application forms and providing funds.
 7. PUBLIC PROVIDENT FUND
1. Who:
o Individuals: Any Indian citizen residing in the country has the opportunity
to open a Public Provident Fund (PPF) account, including minors who
require a parent or guardian as a joint account holder.
o Government: The PPF scheme was introduced by the Government of India
with the aim of promoting long-term savings and investments among
individuals.
2. What:
o The Public Provident Fund (PPF) is a savings scheme supported by the
government in India, designed to offer financial security and income post-
retirement to individuals.
o This scheme provides appealing interest rates, tax advantages, and a 15-
year investment period that can be extended in increments of 5 years.
3. When:
o PPF accounts can be initiated at specified branches of authorized banks or
post offices at any time during the year.
o The minimum duration for investing in a PPF account is 15 years, with the
option to continue indefinitely in 5-year blocks post maturity.
4. Where:
o PPF accounts are accessible for opening at designated branches of
authorized banks such as SBI, ICICI Bank, HDFC Bank, and designated post
offices across the nation.
5. Why:
o People choose PPF for various reasons such as long-term savings, tax
benefits under Section 80C of the Income Tax Act (with contributions up to
₹1.5 lakh eligible for deduction), and the security of guaranteed returns
from the government.
6. How:
o To open a PPF account, individuals need to complete an application form,
provide identity and address proof, and make an initial deposit (minimum
of ₹500).
 o Contributions can be made through cash, cheque, demand draft, or online
transfers, and account holders can make annual deposits (up to ₹1.5 lakh
per financial year) in addition to smaller installments, not exceeding 12
transactions annually.

8. NATIONAL PENSION SCHEME

• Who:
o Individuals who are citizens aged between 18 and 65 are eligible to
participate in the National Pension Scheme (NPS).
o The NPS is overseen by the Pension Fund Regulatory and Development
Authority (PFRDA), an autonomous body established by the Indian
government.
• What:
o Introduced by the Indian government, the National Pension Scheme (NPS)
is a voluntary retirement savings initiative.
o It enables individuals to save and build a retirement fund throughout their
careers.
• When:
o Eligible individuals can enroll in the NPS at any point between the ages of
18 and 65.
o Regular contributions can be made during employment, with withdrawals
allowed upon reaching the retirement age of 60, subject to certain
conditions.
• Where:
o Individuals can enroll in the NPS through authorized entities known as
Points of Presence (POPs), including banks, financial institutions, and
online platforms.
o Contributions to the NPS are invested in various pension funds managed
by designated fund managers.
• Why:
 o The NPS is chosen by individuals seeking financial security in retirement.
o It offers tax benefits under Section 80CCD of the Income Tax Act, allowing
deductions on contributions of up to ₹1.5 lakh in a financial year.
• How:
o To open an NPS account, individuals need to complete an application
form through a Point of Presence (POP).
o They must select the investment option (Auto or Active choice) and
choose a pension fund manager based on their risk appetite and
investment preferences.
o Contributions can be made regularly or as a lump sum via electronic
transfer or cheque.

9. Senior citizen savings

Who:
• Individuals: Tailored for individuals aged 60 and above, particularly senior
citizens.
• Government: The Senior Citizen Savings Scheme is a government-supported
savings program available through India Post and authorized banks.

What:
• The Senior Citizen Savings Scheme (SCSS) caters to the financial needs of senior
citizens in India by offering them a reliable source of income and financial
stability.
• It presents a secure investment option with fixed interest rates and convenient
accessibility.

When:
• SCSS accounts are accessible for senior citizens upon reaching the age of 60.
• The account has a maturity period of 5 years but can be extended up to an
additional 3 years, totaling a duration of 8 years.

Where:
 • SCSS accounts can be initiated at designated post offices and recognized banks
nationwide, including India Post Offices and various bank branches like State
Bank of India (SBI), ICICI Bank, HDFC Bank, etc.

Why:
• Senior citizens opt for SCSS due to:
o Regular income: Quarterly interest payments ensure a stable cash flow.
o Safety: Being government-backed, the scheme guarantees the security of
investments.
o Higher interest rates: SCSS generally offers superior interest rates
compared to alternatives like fixed deposits.

How:
• Senior citizens can open an SCSS account by visiting a designated post office or
bank branch and completing the application form.
• They must provide proof of identity and age, along with an initial deposit.
• The minimum investment required is ₹1,000, while the maximum limit stands at
₹15 lakh.

10. SUKANYA SAMRUDDHI YOJANA

Who:

• Parents or legal guardians of a girl child under 10 years old.

• Government: The Sukanya Samriddhi Yojana (SSY) is an initiative by the
government to support the well-being of young girls in India.

What:

• The Sukanya Samriddhi Yojana (SSY) is a savings plan designed to secure the
financial future of girls.
• It provides a stable long-term investment opportunity with appealing interest
rates and tax advantages.

When:
 • Parents or legal guardians can establish an SSY account for a girl child before she
turns 10.
• The account reaches maturity after 21 years from opening or upon the girl child's
marriage, whichever comes first.

Where:

• SSY accounts can be opened at specified post offices and authorized banks
nationwide.
• These include India Post Offices and branches of various banks like State Bank of
India (SBI), ICICI Bank, HDFC Bank, and more.

Why:

• Parents choose the Sukanya Samriddhi Yojana to:

1. Safeguard the future: Building funds for the girl child's education and wedding
expenses.
2. Competitive interest rates: SSY provides attractive annual compounded rates.
3. Tax benefits: Contributions to SSY qualify for tax deductions under Section 80C of
the Income Tax Act.
4. Security: Government support ensures the safety of investments.

How:

• Parents or legal guardians can set up an SSY account by visiting a designated

post office or bank branch and completing the application form.
• Required documents include proof of identity and address, along with the girl
child's birth certificate.
• The minimum annual deposit is ₹250, while the maximum is ₹1.5 lakh.

11. Mutual funds

Who:

• Investors: Individuals or entities who combine their capital to participate in a

diversified range of securities overseen by professional fund managers.
• Asset Management Companies (AMCs): Entities overseeing mutual funds and
making investment choices on behalf of investors.
What:

• Mutual funds serve as investment tools that pool finances from numerous
investors to invest in a varied combination of stocks, bonds, or other securities.
• Each investor holds shares in the mutual fund, representing a fraction of the
fund's assets.

When:

• Investors have the flexibility to buy or sell mutual fund units during market hours.
• Mutual funds provide options for short-term, medium-term, or long-term
investments, catering to various investment horizons.

Where:

• Mutual funds are provided by Asset Management Companies (AMCs) and

accessible through multiple avenues, including banks, online platforms,
registered distributors, or directly through the AMC.

Why:

• Investors opt for mutual funds due to factors like diversification, as they invest
across various securities to mitigate risks, professional management by
experienced fund managers, and convenience of hassle-free investment without
direct portfolio management.

How:

• Investors can engage in mutual funds through selecting a fund aligned with their
investment goals, risk tolerance, and investment horizon, opening an account
with the AMC or a registered distributor, and investing either a lump sum or
through systematic investment plans (SIPs) for regular contributions.
12. EQUITY BASED MUTUAL FUNDS
Who:
Investors: Individuals or entities interested in investing in stocks or equities via
mutual funds to potentially achieve higher returns compared to other investment
options.
Asset Management Companies (AMCs): Entities responsible for managing equity-
based mutual funds by choosing stocks and overseeing the portfolio on behalf of
investors.
What:
Equity-based mutual funds primarily focus on investing in stocks or shares of
publicly traded companies.
These funds aim to provide diversification by investing in a variety of stocks from
different sectors and market sizes.
When:
Investors have the opportunity to buy or sell units of equity-based mutual funds
during market hours, typically on any business day.
The investment horizon for equity funds can vary from short-term (less than a year)
to long-term (several years).
Where:
Equity-based mutual funds are offered by various Asset Management Companies
(AMCs) and can be accessed through:
Banks
Online platforms
Registered distributors
Directly through the AMC
Why:
Investors choose equity-based mutual funds for various reasons, including:
Potential for high returns: Historical data shows that equity markets have generated
superior returns over the long haul compared to other asset classes.
Diversification: Mutual funds help spread investments across different stocks,
lessening the risk associated with investing in individual stocks.
Professional management: Experienced fund managers strategically make
investment decisions, conducting research and analysis to enhance returns.
Liquidity: Investors can easily buy or sell mutual fund units, providing liquidity
compared to directly investing in individual stocks.
How:
Investors can engage in equity-based mutual funds by:
 Conducting research and choosing funds based on their investment goals, risk
tolerance, and investment time frame.
Establishing an account with the AMC or via a registered distributor.
Investing a lump sum amount or utilizing systematic investment plans (SIPs) for
consistent investments.

13. DEBT BASED MUTUAL FUNDS

Who:

• Investors: Individuals or entities looking for steady returns by investing in fixed-

income securities.
• Asset Management Companies (AMCs): Organizations overseeing debt-based
mutual funds, which include bonds, government securities, and other fixed-
income instruments.

What:

• Debt-based mutual funds primarily focus on fixed-income securities like bonds,

government securities, treasury bills, and corporate bonds.
• These funds aim to offer regular income and protect capital by investing in low to
medium-risk securities.

When:

• Investors have the flexibility to purchase or sell units of debt-based mutual funds
during market hours, typically on any business day.
• The investment horizon for debt funds varies from short-term (less than a year) to
medium-term (1-3 years) or long-term (3+ years).

Where:

• Debt-based mutual funds are available through different Asset Management

Companies (AMCs) and can be accessed via banks, online platforms, registered
distributors, or directly through the AMC.

Why:

• Investors opt for debt-based mutual funds due to several reasons, such as:
 o Consistent returns: Debt funds offer a predictable income through interest
payments on the underlying securities.
o Reduced risk: Debt funds generally exhibit lower volatility and risk in
comparison to equity-based mutual funds.
o Diversification: Mutual funds distribute investments across various fixed-
income securities, mitigating the risk linked with investing in individual
bonds.

How:

• Investors can enter into debt-based mutual funds by:

o Researching and choosing funds aligned with their investment goals, risk
tolerance, and investment horizon.
o Establishing an account with the AMC or through a registered distributor.
o Investing a lump sum amount or through systematic investment plans
(SIPs) for regular contributions.

14. HYBRID MUTUAL FUNDS

Who:- Investors: Individuals or organizations looking for a balanced investment
strategy that incorporates both stocks and bonds.

• Asset Management Companies (AMCs): Entities tasked with overseeing hybrid

mutual funds, which offer a combination of equity and debt securities to
investors.

What:

• Hybrid mutual funds, referred to as balanced funds, distribute investments

among both stock and bond instruments.
• These funds aim to deliver diversification and moderate risk by blending the
growth potential of stocks with the stability of bond securities.

When:

• Investors can purchase or sell shares of hybrid mutual funds during market hours,
usually on any regular business day.
 • The investment time frame for hybrid funds can range from short-term (less than
a year) to medium-term (1-3 years) or long-term (3+ years).

Where:

• Hybrid mutual funds are provided by various Asset Management Companies

(AMCs) and can be accessed through banks and online platforms.

Why:

• Investors opt for hybrid mutual funds for several reasons, including:
o Balanced risk-return profile: Hybrid funds offer a blend of stocks and
bonds, presenting potential for growth alongside stability.
o Diversification: Investments are diversified across multiple asset classes,
diminishing the risk associated with investing solely in one asset class.
o Convenience: Investors gain exposure to both stocks and bonds through a
single fund, eliminating the need to manage multiple investments
separately.

How:

• Investors can invest in hybrid mutual funds by:

o Researching and selecting funds based on their investment objectives, risk
tolerance, and investment horizon.
o Setting up an account with the AMC or through an authorized distributor.
o Investing a lump sum amount or through systematic investment plans
(SIPs) for regular investments.

15. Mutual fund Index

• Who:
o Investors: Individuals or entities looking for a cost-effective investment
option that closely mirrors a specific stock market index.
o Asset Management Companies (AMCs): Entities accountable for
overseeing index funds and monitoring the performance of the underlying
index.
• What:
 o Index funds refer to mutual funds crafted to emulate the performance of a
designated stock market index such as the S&P 500 or the Nifty 50.
o Contrary to active management, index funds passively invest in identical
stocks or securities featured in the index they aim to replicate.
• When:
o Investors have the flexibility to buy or sell units of index funds during
market hours, typically on any business day.
o The investment timeframe for index funds ranges from short-term to long-
term, depending on the investor's financial objectives.
• Where:
o Index funds are provided by various Asset Management Companies
(AMCs) and are accessible through:
1. Banks
2. Online platforms
3. Registered distributors
• Why:
o Investors opt for index funds due to several reasons, including:
▪ Cost-effectiveness: Index funds generally boast lower expense
ratios in comparison to actively managed funds as they don't
necessitate extensive research or portfolio management.
▪ Diversification: By offering exposure to a wide array of stocks or
securities within the chosen index, index funds help mitigate
individual stock risk.
▪ Transparency: Since index funds strive to mirror the index's
performance, investors can easily grasp the fund's holdings and
strategy.
• How:
o Investors can partake in index funds by:
▪ Researching and selecting funds that mirror their preferred index.
▪ Establishing an account with the AMC or through a registered
distributor.
▪ Investing either a lump sum amount or through systematic
investment plans (SIPs) for regular investments.
 16. EXCHANGE TRADED FUND
Who:
Investors: Individuals or organizations seeking to invest in a broad range of assets
like stocks, bonds, or commodities.
Authorized Participants: Financial institutions or market makers tasked with
creating and redeeming ETF units.

What:
Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges
akin to individual stocks.
ETFs gather funds from multiple investors to acquire a diversified portfolio of assets,
including stocks, bonds, or commodities.

When:
ETFs are traded on stock exchanges during market hours, permitting investors to
trade shares anytime throughout the trading day.
The investment horizon for ETFs can vary from short-term trading to long-term
investing, depending on the investor's strategy.

Where:
ETFs are exchanged on stock markets such as the New York Stock Exchange (NYSE)
or NASDAQ, just like individual stocks.
Investors can trade ETF shares through brokerage accounts, online trading platforms,
or financial advisors.

Why:
Investors opt for ETFs for various reasons, including diversification, lower costs
compared to mutual funds, and liquidity providing flexibility to buy and sell
throughout the trading day.
 How:
Investors can engage in ETFs by opening a brokerage account, conducting research,
selecting ETFs based on their objectives, and purchasing shares through the
brokerage account, akin to buying individual stocks.

17. PORTFOLIO MANAGEMENT SERVICE

Who:

• Investors refer to individuals or entities with substantial investable assets in

search of expert management and tailored investment strategies.
• Portfolio Managers are financial experts or firms that provide Portfolio
Management Services (PMS) to oversee client portfolios according to their
investment goals and risk preferences.

What:

• Portfolio Management Services (PMS) are customized investment management

services aimed at high-net-worth individuals or institutional investors.
• PMS includes professional management of investment portfolios such as asset
allocation, security selection, and portfolio rebalancing, all personalized to meet
the client's financial objectives and risk appetite.

When:

• Investors have the flexibility to access PMS at any time based on their financial
requirements and investment objectives.
• PMS generally entails a long-term investment approach, but adjustments to
strategies and portfolios may be made periodically to align with changing market
conditions or client goals.

Where:

• Portfolio Management Services are provided by certified Portfolio Managers,

which can range from individual financial advisors to wealth management firms
or specialized investment entities.
 • Clients can access PMS either by directly engaging with Portfolio Managers or
through financial institutions that offer PMS within their wealth management
services.

Why:

• Investors choose Portfolio Management Services for reasons that include:

1. Professional expertise: PMS grants clients access to seasoned portfolio
managers who leverage their skills to effectively manage portfolios.
2. Customization: PMS allows for personalized investment strategies and
tailored portfolio management based on individual client objectives, risk
tolerance, and financial circumstances.
3. Diversification: PMS portfolios are usually diversified across various asset
classes, sectors, and securities to minimize risk and optimize returns.

How:

• Investors can participate in Portfolio Management Services by:

o Selecting a Portfolio Manager or firm based on their track record,
reputation, and investment approach.
o Engaging in discussions regarding investment objectives, risk tolerance,
and preferences with the Portfolio Manager to craft a customized
investment strategy.
o Transferring funds or securities to the PMS account managed by the
Portfolio Manager.

18. SYSTEMATIC INVESTMENT PLAN

Who:

• Investors: Individuals seeking to invest regularly in mutual funds to achieve their

financial objectives gradually.
• Asset Management Companies (AMCs): Organizations overseeing mutual funds
and presenting SIP as an investment possibility to investors.

What:
 • Systematic Investment Plan (SIP) serves as an investment approach where
investors consistently allocate a fixed sum of money into mutual funds at set
intervals, usually on a monthly basis.
• Through SIP, investors can leverage rupee cost averaging and compounding
benefits by investing incremental amounts at regular intervals.

When:

• Investors have the flexibility to initiate a SIP at any point, aligning with their
financial aspirations and investment timeline.
• Although SIPs commonly entail a long-term commitment, investors hold the
discretion to adjust the duration based on individual requirements.

Where:

• SIPs are accessible through various mutual fund providers via:

1. Banks
2. Online platforms
3. Registered distributors

Why:

• Investors favor SIPs for various reasons, including:

o Fostered discipline in investing
o Capitalizing on rupee cost averaging to mitigate average unit costs over
time

How:

• To commence a SIP, investors undertake the following steps:

o Selecting a suitable mutual fund scheme aligning with their investment
targets, risk appetite, and investment horizon.
o Specifying the investment amount and frequency, typically on a monthly
basis.
o Establishing automated deductions from their bank account to the
designated mutual fund scheme.
19. GOLD INVESTMENT
What:
Gold investment entails acquiring gold various forms, such as physical gold (bars, coins,
jewelry), gold ETFs (Exchange-Traded Funds), gold mutual funds, and gold futures
contracts. Investors choose to hold gold as a way to store value, protect against
inflation, or secure assets during economic downturns.

Who:
Investors, whether individuals or entities, look to invest in gold to diversify their
investment portfolio or safeguard against economic uncertainties. Sellers, including
entities and institutions, offer a range of gold investment options like physical gold, gold
ETFs, gold mutual funds, and gold futures.

When:
Investors have the flexibility to buy and sell gold investment options during market
hours based on their chosen investment form. The timing of gold investment is
influenced by factors such as market conditions, economic forecasts, and individual
investment objectives.

Where:
Gold investments can be executed through different channels, like bullion dealers and
jewelry stores for physical gold, or stock exchanges for gold ETFs and gold futures.

Why:
Investors opt for gold investment for reasons such as diversifying their portfolios,
protecting against inflation, and seeking a safe haven asset during economic and
geopolitical uncertainties.

How:
Investors can engage in gold investment by purchasing physical gold from dealers or
jewelry stores, investing in gold ETFs traded on stock exchanges representing ownership
of physical gold, or participating in gold mutual funds that invest in gold-related assets
like ETFs, mining companies, and gold bullion.