(NSE’s Certification In Financial Market)

 It is the employment of funds on assets with the aim

of earning income or capital appreciation.

 The money you earn is partly spent and the rest saved
for meeting future expenses.

 Instead of keeping the savings idle you may like to

use savings in order to get return on it in the future.

 It has two attributes

1 TIME
2 RISK
 Invest early

 Invest regularly

 Invest for long term and not short term

 Taking up the business risk in the hope of
getting short term gain
 Ex :>

1 Buying stock for dividend

2 Buying stock when prices are low
Time
 Horizon
 Risk
 Return
 Decision
 Funds
 It is game or chance
 Very short time
 No calculation
 Different from investment and speculation
 Investment policy ;
1 investible fund
2 objective
3 knowledge
 Analysis;
1Market
2 Industry
3Company
 Valuation
1Intrinsic value
2Future value
 Portfolio construction
1Diversification
2 Selection and allocation
Portfolio evolution
1 Appraisal
2 Revision
 1 Physical Assets
 Real estate
 Gold
 Commodity

2 Financial Assets
 Equity & Preference shares
 Debenture Bonds or Fixed income securities
 Money Market instrument
 Insurance policies
 Precious object
 SHORT TERM  LONG TERM
 Money Market or  Post Office Savings
Liquid Funds
 Public Provident Fund
 Saving bank A/C  Company Fixed
Deposits
 Fixed Deposits with
Banks (For 6-12  Bonds
month)
 Mutual Funds
 Measured
 Reluctant Investors
 Competitive Investors
 Unprepared Investors
 Don’t measurable financial risk

 Make financial decision without

understanding the market
 Confusion in financial planning
 Not revaluated their financial plan periodically
 Expect unrealistic returns on investment
 Believe that financial planning is primarily tax

planning
 Returns
 Risk
 Liquidity
 Hedge against inflation
 Safety
 Securities
(1) Debenture
 Secured and Non-Secured
 FCB
 PCB
 NCB

(2) Bond
 Secured and Non secured Bond
 Perpetual and Redeemable Bonds
 Fixed interest rate and floating interest Bond.
 Zero coupon Bond
 Deep discount Bonds
 Capital indexed bond
 Non- Securities
 Equity shares
 Sweat equity
 Non voting shares
 Right shares
 Bonus shares
 Preference stock
 International Affairs
 National Affairs
 Industry Information
 Company Information
 Stock Market Information
 Types Of Interest Rates -
 Banks Interest Rates.
 Government Bond/Government Securities

interest rates offered to investors in small.

 NSC, PPF, rates at which companies issue fixed

deposits etc.
FACTORS
 Demand for money
 Level of government borrowings.
 Supply of money
 Inflation rate
 RBI & Government Of India policies
 Money Market
 It is the market for dealing in monitory assets of
short term nature.

 Money market instrument have the characteristics

of liquidity. (quick conversation into cash.)

 Money market provide access to providers and

users of short term fund to fulfill their borrowings
and investment requirement at an efficient market
clearing price.
 Capital Market
 Capital market is very important segment in
financial system. Its create a securities for long term
purpose to investors. Ex debenture, shares
(Preferences & Equity).
 Investors gets a reasonable return during initial
years/ followed by equity participation on
conversation.
Capital Market

Primary Market Secondary / Stock

(IPO) Exchange
 Equity shares
 Debt instruments
 In the Indian securities markets, the term ‘bond’ is
used for debt instruments issued by the Central and
State governments.

 In public sector organizations the term debenture is

used for instruments issued by private corporate
sector.
 “Derivative”
 Derivative is a product whose value is derived from
the value of one or more basic variables, called
underlying.
 The underlying asset can be equity, index, foreign

exchange (forex), commodity or any other asset.

 Mutual Fund
 A Mutual Fund is a body corporate registered with

SEBI (Securities Exchange Board of India)

 Collect money from individuals/corporate and

invests the same in a variety of different financial

instruments.
 Index.
 An Index shows how a specified portfolio of share
prices are moving in order to give an indication of
market trends.
 It’s movement upwards or downwards.
 BSE ( Sensex ) NSE (NIFTY)
Depository.
 A depository is like a bank where in the deposits are
securities (shares, debentures, bonds, government
securities, units etc.) in electronic form.
 Dematerialization.
 Dematerialization is the process by which physical
certificates of an investor are converted to an
equivalent number of securities in electronic for and
credited to the investor’s account with his
Depository Participant (DP). (NSDL & CDSL)
 THANK YOU & WELCOME FOR

?
Prof. Laxman Pawar.
9742194303