PPT PRESENTATION ON FINICIAL SECTORS

NAME- SIMARJEET SINGN

COMPANY NAME- INSPLORE
 FINANCIAL SECTORS

The financial sector is a section of the economy made up of firms and

institutions that provide financial services to commercial and retail
customers. This sector comprises a broad range of industries including
banks, investments companies, insurance companies, real state firms.
Different Financial Sectors-:

1. Share Market
2. Mutual Funds
3. Gold
4. Bank/FD
5. PPF
6. Real Estate
7. Post Office
8. Insurance
 SHARE MARKET

The share market is a platform where buyers and sellers come together to trade on publicly listed
shares during specific hours of the day. It assists companies in acquiring funds for advancement
and promotion. It is also designated as a “stock market”, the investment incorporates live trading
of the companies shares.

The financial instruments traded in stock market constitute shares, mutual funds, bonds and
derivatives.
 Pros and Cons in investing Share Market.

Pros Cons
1. Grow with economy 1. Risk
2. Stay ahead of inflation 2. Stockholders of broke companies
get paid last
3. Easy to busy
3. Takes time to research
4. Don’t need a lot of money to
4. Taxes on profitable stock sales
start investing
5. Emotional ups and downs
5. Liquidity
 Mutual Funds

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that
collects money from a number of investors who share a common investment objective and invests
the same in equities, bonds, money market instruments and/or other securities. And the income /
gains generated from this collective investment is distributed proportionately amongst the
investors after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset
Value” or NAV. Simply put, the money pooled in by a large number of investors is what makes up
a Mutual Fund.
 Pros and Cons in investing Mutual Funds

Pros Cons
1. Liquidity 1. High Cost Associated
2. Portfolio Diversification 2. Fluctuating Returns
3. Professional Management 3. Dilution
4. Convenient Management 4. Exit Load
5. Transparency 5. Lock in Periods
 Gold

Of all the precious metals, gold is the most popular as an investments. Investors generally buy gold
as a way of diversifying risk, especially through the use of future contracts and derivatives. The
gold market is subject to speculation and volatility as are other markets. Compared to other precious
metals used for investment, gold has been the most effective safe haven across a number of
countries. Gold fund, as the name suggests, invests in various forms of gold. It can be in the form of
physical gold or stocks of gold mining companies. Gold funds which invest in physical gold offer
investors the convenience of buying pure gold at low cost. There is no possibility of theft and you
can sell these units at market linked prices anytime.
 Pros and Cons in investing in Gold

Pros
1. Gold is a hedge against inflation
2. Holds it’s value for a long period
3. Most desired commodity
Cons
1. Gold is not passive investment
2. Gold is difficult to store
3. Price correction can lead to
losses
 Bank/FD

A bank is a financial institution that is licensed to accept checking and savings deposits
and make loans. Banks also provide related services such as individual retirement
accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit
boxes.

A fixed deposit (FD) is a financial instrument provided by banks or non-bank financial

institutions which provides investors a higher rate of interest than a regular savings
account, until the given maturity date. It may or may not require the creation of a
separate account
 Pros and Cons in investing in Bank/FD

Pros
1.Safely storing the public wealth
2. Propelling the economy forward
3. Interest pay outs
4. Tax saving FD
Cons
1.The chances of going bankrupt
2. The risk of fraud and robberies
3. Fails to counter inflation risk
4. Penalty on premature closure
 PPF
The PPF account or Public Provident Fund scheme is one of the most popular long-term saving-
cum-investment products, mainly due to its combination of safety, returns and tax savings. The
purpose of the Public Provident Fund (PPF), which was first implemented in India in 1968, was to
mobilize small contributions for investment and return. It can also be referred to as an investment
vehicle that enables one to accumulate retirement funds while reducing yearly taxes.
Public Provident Fund (PPF) scheme is a long-term investment option that offers an attractive rate
of interest and returns on the amount invested. The interest earned and the returns are not taxable
under Income Tax. One has to open a PPF account under this scheme and the amount deposited
during a year will be claimed under section 80C deductions.
 Pros and Cons in investing in PPF

Pros Cons
1. Safest investment avenue 1. Accumulated corpus may not be
2. Assured returns high

3. Options to invest in PPF 2. Longer lock in period

4. Tax Benefits 3. Upper limit
 Real Estate

• Real estate is considered real property that includes land and anything permanently attached to it
or built on it, whether natural or man-made.
• There are five main categories of real estate which include residential, commercial, industrial,
raw land, and special use.
• Investing in real estate includes purchasing a home, rental property, or land.
• Indirect investment in real estate can be made via REITs or through pooled real estate
investment.
 Pros and Cons in investing in Real Estate

Pros
1. Real estate appreciates over time
2. Real estate has unique tax
benefits
3. Real estate provides steady cash
flow
4. Real estate lets you use leverage
Cons
1. Real estate requires lot of money
2. Real estate takes lot of time
3. Real estate is not short term
investment
4. Real estate can be problematic
 Post Office
The Post Office savings bank is the oldest and by far the largest banking system in the country,
serving the investment need of both urban and rural clientele. These services are offered as an
agency service for the Ministry of Finance, Government of India. There are various investment
schemes available for an individual and their choose the best suitable for them. The various
financial institutions are present like commercial banks, cooperative banks, post office savings
banks, life insurance corporation public limited company.

The various schemes provided by the post offices like the Savings Account Schemes, Recurring
Deposit Schemes, Time Deposit Schemes, Public Provident Fund Schemes, Monthly Income
Schemes. National Savings Certificates, Kisan Vikas Patras, and Senior Citizens Savings Scheme.
 Pros and Cons in Post Office

Pros Cons
1. Low minimum amount 1. The maximum tenure of a post office FD is five years,
and you cannot opt for a longer tenure.
2. High interest rate
2. If you opt for a premature withdrawal, you may be
3. NBFCs gives you assured high returns charged a fee.
3. Most services rendered are not online, and this may be a
4. Premature withdrawa l disadvantage to many.
4. Banks offer more flexible tenures of FDs than post office
FDs, offering only tenures of 1, 2, 3 and 5 years.
5. Interest payout is only annually, whichever tenure you
choose.
 Insurance
A financial risk management tool in which the insured transfers a risk of potential financial loss
to the insurance company that mitigates it in exchange for monetary compensation known as the
premium. A financial risk management tool in which the insured transfers a risk of potential
financial loss to the insurance company that mitigates it in exchange for monetary compensation
known as the premium.
Insurance is a legal agreement between two parties – the insurer and the insured, also known as
insurance coverage or insurance policy. The insurer provides financial coverage for the losses of
the insured that s/he may bear under certain circumstances.
 Pros and Cons in Insurance

Pros Cons
1. Financial support 1. Insurance has many terms and
2. Insurance decreases risk conditions

3. The stability of living standard 2. Long and costly procedures

4. Motivation for savings 3. Fraud agency
5. Job opportunities 4. Not for all people