Financial Sectors

Submitted to – Mr. Chinmay Tiwari

By Greeshma Sharath
Marketing & HR Intern
SDMIMD
Share Market

o A share market is a place where shares are either issued or traded.

o A stock exchange is like a share market. The main distinction is that a stock market allows you to exchange financial
products such as bonds, mutual funds, derivatives, and company shares.
o Only shares can be traded on a stock exchange.

WHY INVEST IN THE SHARE MARKET?

o Individuals invest in stocks to increase our wealth over time.
o While some people consider stocks to be a riskier investing, several studies have shown that investing in the appropriate
stocks for a lengthy period of time (five to ten years) may deliver inflation-beating returns — and be a superior
investment alternative than real estate and gold.
o When it comes to investing in stock markets, people have both long-term and short-term approaches.
o While stocks can be volatile in a short period of time, investing in the appropriate stocks can help traders achieve rapid
returns.
Pros of Share Market

• Grow alongside the economy

• Keep ahead of inflation.
• Purchase is simple.
• You don't need a lot of
money to begin investing.
• Profits from price increases
and dividends
• Liquidity
 Cons of Share Market

Risks

Stockholders of bankrupt enterprises are paid last.

It takes time to conduct research.

Profitable stock sales are taxed.

Ups and downs in emotions

Having to compete with institutional and professional investors

 o A mutual fund is a firm that collects money from several
investors and invests it in securities such as stocks, bonds, and
short-term loans. The mutual fund's portfolio is made up of all
its holdings.
o Mutual funds are purchased by investors. Each share reflects

Mutual Funds an investor's stake in the fund and the revenue generated by it.

Types of Mutual funds –

o Money Market funds
o Bond funds
o Target Data funds
o Stock funds
• Diversity at every financial level.
• Costs of investing are shared.
• Economies of scale and operational efficiency
• It is now easier to invest in specialist market Pros of Mutual
areas.
Funds
• Simple to access and track.
• Portfolio management has been streamlined.
• Access to skilled money managers.
• Low trading expenses.
 Lock in period
Cons of
Mutual
Dilution
Funds
Costs to manage the
mutual funds
 o Gold's long-term worth reflects its steadiness and allure across
time.
o Investors see it as one of the safest investments since it quickly
recovers its value during economic downturns.
Gold o Its value fluctuates regularly in the opposite direction of stock
market or economic fluctuations.

o For governments and central banks, gold is a valuable financial

asset.
o It's also used by banks as a strategy to protect themselves
against government loans and as a gauge of economic health.
o Gold, like the euro, yen, or US dollar, should be seen as a
currency in a free-market economy.
Pros of Gold

Hedge Against Inflation

Asset Protection

Simplicity

Diversification of your portfolio as a

hedge against a disaster
Cons of Gold

• The actual gold is kept in storage.

• Premiums and taxes 
• Premium costs and taxes 
• Gold does have a poor track record in terms of historical gains
 o A bank is a type of financial institution that is permitted to accept
deposits and provide loans.
o Financial services such as wealth management, currency
exchange, and safe deposit boxes may be offered by banks. Retail
banks, commercial or corporate banks, and investment banks are
among the several types of banks.
o Banks are governed by the national government or central bank in
most nations.
o Banks also offer credit to both individuals and businesses.

Bank o The bank lends the short-term cash you deposit to others for long-
term debt like auto loans, credit cards, mortgages, and other debt
vehicles.
o This process aids in the creation of market liquidity, which
generates money and keeps the supply flowing.
o A bank's purpose, like any other company, is to make a profit for
its owners.

Types of banks – Retail banks, Commercial Banks, Community

development banks, Investment banks, Credit Unions, Online banks
Pros of Bank

• Safety storing the publics wealth

• The widespread availability of
affordable loans
• Propelling the economy forward
• Economies of Large Scale.
• Development in Rural Areas.
• Global Reach.
Cons of Bank

• The Chances of going bankrupt

• The risk of fraud and robberies
• Commissions are high.
• Savings incentives are low.
• There isn't a permanent ATM network.
• Online or virtual banking has many
limitations.
 o A Public Provident Fund (PPF) is a popular long-term
savings system that encourages tiny contributions like
investments and earns dividends on them.
o PPF is a government-sponsored savings plan that offers a
PPF – reasonable rate of interest and returns on investments.
o This strategy is typically used as a prerequisite for meeting
PUBLIC financial obligations upon retirement.

PROVIDEN o It has a 15-year term that can be extended in 5-year

increments upon the subscriber's request. In rare

T FUND circumstances, partial withdrawal is also permitted.

o PPF provides several advantages in terms of interest rates,

security, and taxation. After just a few years after starting
the account, it also permits loans and partial withdrawals.
 Safest Plan

Pros of PPF Great Returns

No tax on interest earned

Online maintenance

Flexible investment
 Lacks in liquidity

Cons of Lengthy tenure

PPF Interest rate is unstable

Interest on the Lowest Amount Only

 o The real estate industry is one of the most well-known on a
worldwide scale. This is split into 4 sectors: housing, retail,
hotel, and business.
o This sector's expansion is largely supported by the expansion of
the business environment and the need for office space, as well
Real Estate as urban and semi-urban housing.
o Across terms of direct, indirect, and induced impacts in all
sectors of the economy, the construction industry ranks third
among the 14 key industries.
o After the agriculture industry, the real estate sector generates
the most jobs in India. This industry is also likely to attract
greater non-resident Indian (NRI) investment, both in the short
and long term.
o This sector also requires RERA which is mandatory for the
owners and agents to pass in this to whether to start a business
or construct apartments.
Pros of Real Estate

Can be purchased at Generates steady cash

below market prices inflows

Provides a depreciation Provides inflationary

tax shield hedge
Cons of Real Estate 

• Requires maintenance
• Impacted by rent control
• investing is a long grind
• Transaction costs are high
• Value of the property can be
declined.
Insurance

o Insurance is a contract, represented by a policy, in which an individual or entity receives financial

protection or payment from an insurance firm in the event of a loss.
o The firm pooled the risks of its clients in order to make payments cheaper for the insured.
o Insurance plans are intended to protect against the risk of financial losses, both large and minor,
that may occur because of damage to the insured or her property, or liability for damage or injury
caused to a third party.
o Insurance coverage come in a variety of forms. The most prevalent types of insurance are life,
health, homeowners, and vehicle.
o The deductible, policy limit, and premium are the three main components of most insurance
contracts.
Pros of Insurance

• Covers Business Property

• Protects Against Liabilities
• Replaces income
• Financial Protection
• Job Opportunities
• Encouragement of savings
Cons of insurance

• Denies Claims or pays slowly

• Adds expenses
• Fraud agency
• Potential crime incidents
• Rise in Subsequent Premium
 Post Office
A post office is a public institution and shop that offers postal services such as taking letters
and packages, providing post office boxes, and selling postage stamps, packing, and stationery.

Post offices may provide extra services, which differ by nation.

These include offering and accepting government forms (such as passport applications) and
processing government services and taxes .

A postmaster is the post office's main administrator.

Pros of Post Office

• With the aid of speed post service, it is possible to

ensure and expedite the delivery of products.
• The parcels are delivered to the addressee's door.
He doesn't have to travel far to find his deliveries.
• When the number and volume are small, such a
convenient means of transportation can be
adopted.
• Parcels may be quickly delivered because post
offices are typically placed near market centers.
• The parcel can be shipped via VPP, and the sum
owed by the consignee can be collected by the
sender through the post office.
 • Sending huge volumes of products by parcel
Cons of Post post is more costly.
• Because the maximum weight of a parcel
Office authorized is 20 kg, it is not feasible to ship
big and bulky products via parcel post.
Packages should be no more than one meter
long.
• Speed post is believed to be quite costly, and
it is not available everywhere. It is only
offered in a few locations
THANK YOU