FINANCIAL SECTORS

Made by:- Lakshya Nahar

 SHARE MARKET

• Share market or stock market refers to the platform where sellers and buyers
trade on publicly listed companies shares on specific hours on weekdays.
• It remains closed on weekend .
• Two main stock exchanges are NSE and BSE.
• Its timings on weekdays is from 9:30 in morning to 3:30 pm in evening.
 Pros and Cons of Investing in Share Market

• PROS:-
 Liquidity
 Stay ahead of Inflation
 Easy to Buy
 Income from dividends and Price Increase .

• CONS:-
 Risk
 Taxes on profitable sale
 Takes Time to Research.
 MUTUAL FUNDS

• It is a pool of money managed by a fund manager collected from

various investors.

• The money is invested in Equity , Bonds , Money Market

Instruments and other securities.
 Pros and Cons of investing in Mutual Funds

• Pros:-
 Diversification
 Easy Access
 Professional Oversight

• Cons:-
 Taxes
 Slow Trading
 GOLD

• Gold is a portfolio diversifier and is used to hedge against

Inflation.

• It is a safe asset at the time of recession and when prices of stocks

and bonds fall.
 Pros and Cons of investing in Gold

PROS:-
• Hedge against Inflation
• Diversification
• Safe haven through economic changes.

 Cons:-
• Performance over Time
• Complexities
 Bank/FD

• Bank is an institution that accepts deposits from public and grants

loans to borrowers.

• It makes earning through charging high interest rates on loans

provided and low interest rate on deposits accepted.
 Pros and Cons of investing in Banks

PROS:-
• Assured return on investments
• Protection in the form of deposit cover.

 CONS:-
• Fails to counter Inflation Risk
• Fixed Rate of Interest.
 PPF

• It stands for Public Provident Funnd.

• It is a long-term investment scheme popular among individuals

who want to earn high but stable returns.

• Interest rate is 7.1 % p.a. and tenure is 15 years.

 PROS AND CONS OF INVESTING IN PPF

• PROS:-
 Safest Investment Avenue
 Assured Returns
 Tax Benefits

• CONS:-
 Longer lock-in period
 Accumulated Corpus may not be high.
 REAL ESTATE

• Investing in Real Estate includes REITs ( Real Estate Investment

Trusts) , REIGs ( Real Estate Investment Groups ) and Rental
Properties.
 Pros and Cons of Investing in Real Estate

• Pros:-
 Generates Cash Flow
 Home Loan Tax Benefit
 Property Appreciation

• Cons:-
 Professional Help Required
 Time Commitment
 Less Liquidity
 POST OFFICE

• There are various ways of investing in Post Office like Post Office
Savings Account , Post Office Recurring Deposit etc.

• Post Office Savings Account provides 4% interest on savings

account deposit and is fully taxable.

• Minimum balance which needs to be maintained is Rs. 50

Pros and Cons of Investing in Post Office

• PROS:-
 Low Minimum Amount
 High Interest Rates
 Premature withdrawal

• CONS:-
 Maximum tenure of FD is 5 years.
 If opt for premature withdrawal , you may be charged a fee.
 INSURANCE

• Insurance is a financial protection policy in which the insured i.e.

the policyholder pays certain amount called premium to insurance
company against which company provides insurance cover.

• The insurers provide financial coverage or reimbursement in many

cases to policy holder.
 Pros and cons of investing in Insurance

• PROS:-
 Benefit of compensation
 Tax benefits

• CONS:-
 Lengthy legal formalities
 Potential Crime Incidents