MAJOR FINANCIAL SECTOR

Assignment:-3
Presented By:- Kishan Agrawal
Student Of:- Quantum University
Content of Presentation:-

• Banking Sector
• Stock Market
• Mutual Fund
• Real Estate
• Gold
• Life Insurance Company
• Government Bond
• Provident Fund
Banking Sector (FD,RD)

• Bank is a financial institution that undertakes the banking activity i.e.

it accept deposit and then lends the same to earn certain profit.
• It is a financial instrument where a sum of money given to a bank,
financial institution or company whereby the receiving entity pays
interest at a specified percentage for the time duration of the
deposit.
• A recurring deposit means making regular deposits. It is a service
provided by many banks where people can make regular deposits
and earn decent returns on their investment.
Merit & Demerit of banking sector

MERITS DEMERITS
• Safety and Security • Low returns
• Easy liquidity • No tax benefits
• Loan facility • Penalties on premature
• Flexible Investment withdraw
• Digitalization
Stock Market

• A stock market or equity market is a market for the trading of

company stock ( shares) and derivates at an agreed price.
• The size of the world stock market was estimated at about $ 36.6
trillion USD at the beginning of October 2008.
Merit & Demerit of Stock Market

MERITS DEMERITS
• High chance of return • Highly volatile
• Flexible investment • No tax benefits
• Digitalization • Huge market knowledge
• Easy liquidity required
• Ownership perks • Necessity of demat account
• Inside trading
Mutual Fund

• A mutual fund is a common pool of money into which investors place

their contribution that are to be invested in different types of
securities in accordance with the stated objective
• An equity fund would buy equity assets _ ordinary shares, preference
shares, warrants etc.
• A bond fund would buy debt instrument such as debenture bonds, or
government securities/ money market securities.
• Mutual Fund shareholder or a unit holder is a part owner of the
fund’s assets.
Merit & Demerit of Mutual Fund

MERITS DEMERITS
• Moderately high return • No control over investment
• Regulatory sector
• Moderate liquidity
• Variety of option available upto
30 option
Real Estates

• The term ‘Real Estate’ is defined as land, including the air above it
and the ground below it, and any building or structure on it . It is also
known to as reality.
• Real estate involved the purchase, sale ,and development of a land,
residential and non- residential building.
• The activities of the real estate sector encompass the housing and
construction sectors also
• The real estate sector is a major employment driver, being the
second largest employer next only dependent on the real estate
industry.
Merit & Demerit of Real States

MERITS DEMERITS
• Secondary income • Huge capital requirement
• Inflation cover • Low return
• Loan facility • Brokerage charges
• No tax benefits
• Maintenances charges
Gold

• Gold is a transitional metal . In its purest form have

reddish yellow color, soft, malleable, and ductile metal.
Atomic number : 79
Atomic mass : 196.9u
Density : 19.32g/cm
Melting point : 1,064 C
Boiling point : 2,700 c

Founded in different from associated with different rock

type in different tectonic setting.
Discovered from earlier time and used for multi
purposes.
Merit & Demerit of Gold

MERITS DEMERITS
• Easy liquidity • Low return
• Inflation cover • No tax benefit
• Loan facilities • Storage issues
• Protection against uncertainty • Maintenances charge
Life Insurance Company

• Life insurance is a contact between the policy holder and the insurer,
where the insurer promises to pay a designated beneficiary a sum of
money (the “benefits”)upon the death of the insured person.
• Depending on the contract, other events such as terminal illness or
crucial illness may also trigger payment.
• In return, the policyholder agree to pay a stipulated amount (the
“premium”) at regular intervals or in lump sum. In some countries,
death expenses such as funerals are included in the premium;
however, in the united states the predominant form simply specifies
a lump sum to be paid on the insured’s demise.
Merit & Demerit of LIC

MERITS DEMERITS
• High return • It promotes crime
• Extra income
• Easy liquidity
• Loan facility
• Tax benefits
• Life cover
Government Bond

• A government bond is a form of security sold by the government . It

is called a fixed income security because it earns a fixed amount of
interest every year for the duration of the bond.
• The purpose of a government bond is to raise money to operate the
government and to pay down debt.
• The government bond market are the most important in terms of
volume of trading , and as a benchmark against which all other debt
capital market instrument are priced.
Merit & Demerit of Government Bond

MERITS DEMERITS
• Risk Free • Low Returns
• Good Returns • High Interest rate
• Easy liquidity
• Regular Income
Provident Fund

• A provident fund is an investment fund that is jointly established by

the employer and employee to serve as a long term savings to
support a employee upon retirement. It also represent job welfare
benefits offered to the employee.
• Provident fund is to provide benefits for its members when they
retire from employment. The fund also usually pays benefits when a
member dies while still working, or is unable to work because of
illness, or is retrenched.
Merit & Demerit of Provident Fund

MERITS DEMERITS
• Tax benefits • Lack of Liquidity
• Great Returns • No Tax Benefit
• Safety And Security
• Flexible Investment