Professional Documents
Culture Documents
Finalpresentation Sapm 121127063530 Phpapp02
Finalpresentation Sapm 121127063530 Phpapp02
Group Members
1. Elita Almeida
2.Sangeeta Bandekar
3. Nainaz Bi
4. Aniksha Braganza
5. Asleema D’Costa
6. Jonlen DeSa
Presentation Path
Meaning of Investment
Speculation and Gambling
Objectives of Investment
Features of Investment
Needs of Investment
Types of Investments
Types of Investors
Comparative study on types of investment
Investment Avenues
Investment Process
Conclusion
INVESTMENT
Definition
In finance, the purchase of a financial product or other
item of value with an expectation of favorable future
returns.
Meaning
Investment is the employment of funds on assets with the aim of earning income
or capital appreciation
Investment has two attributes namely time and risk.
Present consumption is sacrificed to get a return in future.
SPECULATION
Speculation means taking up the business
risk in the hope of getting short term gain.
1.Return
Rate of Return defined as the total income that the
investor receives during the holding period.
Stated semi-annually or annually.
Return =
End period value – Beginning period value + Dividend
___________________________________________
Beginning period value
For Ex. If a particular share is purchased in 1998 at Rs.50,
disposed at Rs.60 in 1999 and the dividend yield is
Rs.5, then the return would be calculated as;
2. Risk
Related with the probability of actual return
Investment risk is as important as measuring its expected rate of
return.
3. Liquidity
Marketability of the investment.
Depends on the marketing and trading facility
5. Safety
Investment avenues should be under the legal and regulatory
framework.
Approval of law itself adds a flavour of safety.
FEATURES OF INVESTMENT
1. Safety of Principal-
• The safety sought in investment is not absolute or
complete.
• Diversify the securities.
• Limiting investment.
• Holding different media at the same time.
3. Stability of income-
• Security of Principal
• An investor must consider stability of monetary income
and stability of purchasing power of income.
4 Capital growth-
Principle of capital appreciation.
Seeking “Growth Stocks”
5 Tax benefits-
Tax status costly to the investors.
Investment
Financial Investment
Unplanned Investment
Gross Investment
Net Investment
Types of investors
A. Individual investors
Individual investors purchase securities in their individual capacity. They
have surplus money and are interested in investing the same in the
corporate sector.
Private
Public
a. Private Investors
Commercial Banks: A commercial bank is one
which transacts the business of banking such as
the accepting deposit for the purpose of lending.
MUTUAL FUND
open ended schemes
close ended schemes
FIXED DEPOSITS
Itrefers to a savings account or certificate of deposit
that pays a fixed rate of interest until a given maturity
date.
EQUITY SHARES
Investing in equities is a good long term options
as the returns on equity over a long time horizon
are generally higher than most other investment
avenues.
National Savings Certificate
National Savings Certificate is available for
purchase or issue of at all Post Offices in India.
There is no maximum limit for purchase of the
certificate.
Mutual Fund
open ended schemes
close ended schemes
DEBENTURES
Itis a written instrument acknowledging a
debt under the common seal of the
company
GOLD
Investors generally buy gold as a hedge or
safe haven against any economic,
political, social or fiat currency crisis.
INVESTMENT PROCESS
1.Investment Policy
The investor formulates the policy for
systematic functioning. Its essential
ingredients are:
Websites
www.sharetipsinfo.com
www.younginvestor.com
www.ameritrade.com
www. moneycentral.msn.com