Professional Documents
Culture Documents
Various Investment Categories
Various Investment Categories
Various Investment Categories
INVESTMENT
CATEGORIES
Presentation by
Vikas Bhatt
Ankush Jain
Rahul Goyal
Faculty: Ms Gayatri Mohanty
INVESTMENT CATEGORIES
1. Non-Marketable Financial Asset
2. Money Market Instrument
3. Bond or Fixed Income Securities
4. Equities
5. Mutual Funds
6. Financial Derivatives
7. Life Insurance
8. Real Estate
9. Precious Objects
1. NON-MARKETABLE FINANCIAL
ASSET
Bank Deposit
Post Office Time Deposits (POTDs)
Monthly Income Scheme of the Post
Office(MISPO)
Kisan Vikas Patra
National Savings Certifate
Company Deposits
Employee Provident Fund Scheme
Public Provident fund Scheme
Bank Deposit
-mainly 3 kind of A/c: current, saving & fixed a/c
-in current a/c no interest
-loan can be raised against bank deposits
-bank calculate interest b/w 10th & last date of the month
Post Office Time Deposits
-it similar to fixed deposit of commercial bank
-it can be multiple of Rs.50 without any limit.
-Interest rate higher than bank deposits & calculated yearly or half yearly
-after 6 months withdrawal permitted
-can be pledged& deposits 10 to 15 yrs
-tax deductible u/s 80c
Monthly income scheme of post office
-popular scheme of post office which provide regular monthly income
-term=6yrs min limit 1000 and maximum 500000 and interest rate 8% PA
-no TDS
-can withdrawal after 1 year
Company deposit
-many co. Solicit fixed deposits from the public.
-FD mobilized by manuf. Co. are regulated by the company law board and
finance co. regulated by RBI
-1-3 years & NFC b/w 25 months to 5 yrs
-interest rate higher than bank fixed deposit.
-no tax benefit
Certificates of deposits
-it represent short term deposit which are transferable from
1 party to another
-maturity 3 month to 1 year.
-higher rate of interest than T-bills
-risk free
Commercial paper:
-unsecured promissory note with fixed maturity of 1-270 days.
-money security issued by large bank or corporation to get money to
meet short term debts
-maturity period 90 to 180 days
-sold at discount and redeemed at par.
Repos
-repurchase agreement or ready forward
-sale security together with an agreement for the seller to buy back
the security at a later date.
-The repurchase price will be greater than the original sale price
3. BOND OR FIXED INCOME
SECURITIES
Government Securities
Saving Bonds
Private Sector Debentures
Public Sector Undertaking Bond
Preference Share
4. EQUITY SHARES
Equity capital represents ownership capital.
Equity shareholders collectively own the
company. They bear the risk and enjoy the
rewards of ownership.
It is a source of permanent capital
Claim on income
-dividends
-retained earnings
Claim on assets
Right to control
Voting rights
5. MUTUAL FUND SCHEMES
It difficult or cumbersome to invest directly
in equity shares and debt instrument, you
can invest in these financial assets indirectly
through a mutual fund. It represent a vehicle
for collective investment.
Mutual fund invest in three broad categories:
stocks, bonds and cash.
Mutual funds in India are comprehensively
regulated under the SEBI.
6. FINANCIAL DERIVATIVES
A derivative is an instrument whose value
depends on the value of some underlying
asset. According to the portfolio managers,
future and options are the two most
important financial derivatives. They are
used of hedging and speculation. Trading in
these derivatives has begun in India.
-Futures
-Options
A future contract is an agreement between two
parties to exchange an asset for cash at a
predetermined future date for a price that a
specified today.
An option gives its owner the right to buy or sell
an underlying asset on or before a given date
at a predetermined price. There are 2 basic
type of options: call options and put options.
A call option gives the option holder the right
to buy a fixed number of share of a certain
stock, at a given exercised price on before the
expiration date.
A put option gives the option holder the right to
sell a fixed number of shares of a certain stock
at a given exercise price on or before the
expiration date
7. LIFE INSURANCE
Endowment Assurance
Money back plan
Whole Life Assurance
Unit Linked Plan
Term Assurance
Immediate Annuity
Deferred Annuity
Riders
8. REAL ESTATE
The most affluent investors are likely to be
interested in other types of real estate, like
commercial property, agricultural land,
semi-urban land, and time share in a holiday
resort.
-Residential house
-Commercial Property
-Agricultural Land
-Suburban Land
-Time share in a Holiday Resort
9. PRECIOUS OBJECTS
Gold and Silver
Advantage: Disadvantages:
-a store of value -no regular income
-Durable -no tax advantages
-own anonymously -cheated possibility
-subdivide -not up with inflation
-Interchangeable
Precious Stones
Diamond, rubies, emaralds, sapphires & pearls
Art Objects
Paintings, Antiques.
THANKING YOU