Sectors of

investment
Nidhi Dholakia _ Durgadevi Saraf Institute of Management
Studies
Share Market

• Share market is a marketplace where stocks of

publicly traded companies are bought and
sold.
• It is known for high-risk & high-reward
potential
• It allows companies to raise money by selling
shares to the public and allows investors to
buy and sell shares in those companies.

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PROS OF INVESTING IN SHARE MARKET
 Investing in the share market include the
potential for high returns
 Helps to diversify your portfolio
 Opportunity to invest in companies you
believe in.
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CONS OF INVESTING IN SHARE MARKET
 Investing in the share market include the
potential for high volatility
 Possibility of losing money
 The need for a significant amount of
knowledge and research to make informed
investment decisions.
Mutual Funds

• Mutual funds are investment vehicles that

pool money from multiple investors to invest
in a diverse range of assets such as stocks,
bonds, and money market instruments
• Mutual funds fall into one of four main
categories –
 Money market funds
 Bond funds, stock funds
 Target date funds.

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PROS OF INVESTING IN MUTUAL FUNDS
 Investing in mutual funds include the ability to
diversify your portfolio with a single investment
 Access to professional fund management
 Ability to invest with relatively small amounts
of money.
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CONS OF INVESTING IN MUTUAL FUNDS
 Investing in mutual funds include the fees
and expenses associated with them
 Potential for lower returns compared to
direct stock investing
 Inability to directly control the assets in the
fund.
Bank Fixed Deposits (FD)

• Bank fixed deposits (FDs) are popular

investment options that offer a fixed rate of
interest over a predetermined period
• Fixed deposit is a safe investment option that
guarantees consistent interest rates
• Special interest rates for senior citizens
• Various interest payment options along with
income tax deductions without any market-
related risks.

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PROS OF INVESTING IN FIXED DEPOSITS
 Investing in bank FDs include the safety and
security of the investment
 Predictability of returns
 Availability of a variety of tenures to choose
from
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CONS OF INVESTING IN FIXED DEPOSITS
 Investing in bank FDs include the relatively
low rate of return compared to other
investment options
 Inability to withdraw funds before the
maturity period without incurring
penalties
 Impact of inflation on the real value of the
investment.
Real Estate

• Real estate investing involves buying and

selling properties to generate income or
capital gains
• Four Major Types Of Real Estate Properties In
India
 Residential Real Estate.
 Commercial Real Estate.
 Industrial Real Estate
 Investing in Land.

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PROS OF INVESTING IN REAL ESTATE
 Investing in real estate include the potential
for significant returns
 Ability to generate passive income through
rental properties
 Hedge against inflation.
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CONS OF INVESTING IN REAL ESTATE
 Investing in real estate include the
significant upfront investment required
 Lack of liquidity compared to other
investments
 High maintenance and management costs
associated with rental properties.
Post Office

• Post office schemes such as

 National Savings Certificate (NSC)
 Public Provident Fund (PPF)
 Kisan Vikas Patra (KVP)
are popular investment options offered by the
Indian government.

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PROS OF INVESTING IN POST OFFICE
SCHEMES
 Investing in post office schemes include the
safety and security of the investment
 Availability of tax benefits
 Predictable returns
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CONS OF INVESTING IN POST OFFICE
SCHEMES
 Investing in post office schemes include
the relatively low rate of return compared
to other investment options
 Long lock-in periods
 Limitations on the amount of investment.
Insurance

• Insurance is a means of protecting yourself or

your assets against unforeseen events such as
accidents, illness, or loss of property.
• Different Types of Insurance Policies Available
in India
 Health Insurance.
 Motor Insurance.
 Home Insurance.
 Fire Insurance.
 Travel Insurance.
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PROS OF INVESTING IN INSURANCE
 Investing in insurance include the peace of
mind that comes from knowing you are
protected against unexpected events
 Tax benefits
 Availability of a wide variety of insurance
products to choose from
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CONS OF INVESTING IN INSURANCE
 Investing in insurance include the relatively
high premiums
 Need to carefully read and understand the
policy terms and conditions
 Possibility of not receiving the expected
benefits in case of claim rejection
Provident Fund

• Provident Fund (PF) is a retirement benefit

scheme that is mandatory for most salaried
employees in India.
• A provident fund is a compulsory, government-
managed retirement savings scheme. Both the
employee and employer contribute to a fund
that aims to provide financial support to the
employee when they reach retirement.

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PROS OF INVESTING IN INSURANCE CONS OF INVESTING IN INSURANCE

 Investing in PF include the guaranteed  Investing in PF include the inability to

returns withdraw funds before retirement without
 Tax benefits, and the potential for long- incurring penalties
term wealth creation  Limitations on the amount of investment,
and the relatively low rate of return
compared to other investment options.

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Gold

• Gold investment can be done in many forms

like buying jewelry, coins, bars, gold exchange-
traded funds, Gold funds, sovereign gold bond
scheme
• Gold Rate 10g (24k) – Rs, 63,200

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PROS OF INVESTING IN GOLD CONS OF INVESTING IN INSURANCE

 Gold is considered a safe haven  Storage issue

 It can protect your wealth during financial  Gold does not pay dividends
crisis  Commisions and premiums on gold are
 Owning gold is a status symbol high
 Has an inflation hedge  Not a good short term investment

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