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FINANCIAL SECTORS.
 SHARE MARKET
INTRODUCTION

• The share market is a platform where buyers and sellers come

together to TRADE on publicly listed shares during specific hours of
the day. People often use the terms ‘SHSRE MARKET’ and ‘STOCK
MARKET’ interchangeably.
 MERITS DEMERITS
• Grow with economy. • Risk
• Stay ahead of inflation. • Takes time to research
• Easy to buy. • Taxes on profitable stock sales
• Doesn’t need a lot of money to start • Stockholders of broke companies get
investing. paid last.
• income from price appreciation and • emotional ups and downs
dividends. • Competing with institutional and
• Liquidity. professional investors.
 MUTUAL FUNDS
INTRODUCTION
• A mutual fund is a collective investment vehicle that collects and pools
money from a number of investors and invests the same in equities , bonds
government securities , money market instruments. The money collected
in mutual fund scheme is invested by professional fund manager in stocks
and bonds etc.
 MERITS DEMERITS
• Liquidity • High expense ratio and sales
• Diversification charges.

• Expert management • Management abuses

• Less cost for bulk transactions • Tax inefficiency
• Convenience and fair pricing • Poor trade execution
• Dividend reinvestment
 REAL ESTATE
INRODUCTION

• Real estate is real property that consists of land and improvements which
include buildings, fixtures, roads, structures, and utility systems. Property
rights give a title of ownership to the land , improvements, and natural
resources such as minerals, plants, animals, water, etc
 MERITS DEMERITS
• It is easier to be understood • Higher transaction cost
• Improvable • Low liquidity
• It is hedge against inflation • It requires management and
• Efficient maintenance

• It can be financed and leveraged • Inefficient

• It creates liabilities
 INSURANCE
INTRODUCTION
• Insurance is a contract in which an insurer indemnifies another against
losses from specific contingencies or perils. It helps to protect the insured
person to their family against financial loss. There are many types of
insurance policies. Life, health, homeowners and auto are the most
common forms of insurance.
 MERITS
• Provides economic protections
• Share risks
• Maintains standard of living
• Encourages savings
• Grants loan
• Eliminates dependency
DEMERITS
• Long legal formalities
• Fraud agency
• Not for all people
• Temporary and termination
• can be expensive
• Annoying and frustrating
 BANK’S FD
INTRODUCTION
• With an FD account you can invest a sizeable amount of money at a pre
determined rate of interest for a fixed period. At the end of the tenure ,
you receive the lump sum , along with an interest , which is a good money
saving plan. Banks offers different rates of interest for a fixed deposit
account.
 MERITS DEMERITS
• Safe investment • Low returns
• Fixed tenor • Liquidity
• Loan against FD • Tax returns
• Flexible interest rate pay-outs
 PROVIDENT FUNDS
INTRODUCTION
• A provident fund is an investment that is voluntarily established by
Employer and Employees to serve as long term savings to support an
employee’s contribution: the amount deducted from the employee’s salary
at a rate of 2% - 5%
 MERITS DEMERITS
• Safest investment avenue • Upper limit
• Assured returns • Longer lock-in period
• Tax benefits • Accumulated corpus may not be
high.
 POST OFFICE
INTRODUCTION
• A post office is a public facility and a retailer that provides mail services,
such as accepting letters and parcels, providing post office boxes and
selling postage stamps, packaging and stationery. Post offices may offer
additional services. Post offices may offer additional services, which vary
by country.
 MERITS DEMERITS
• Assured and speedy delivery • It is more expensive to send large
• Convenient quantity of goods

• Addressee receives the parcel at • Speed post service is expensive

his doorsteps • Heavy and bulky goods can not be
• Parcel can be easily dispatched posted
 GOLD
INTRODUCTION

• A gold fund type of investment fund that holds assets related to gold . The
two most common types of gold fund are those holding physical gold
bullion, gold futures contracts, or gold mining companies . Gold funs are
popular investment vehicles among investors who wish to hedge against
perceived inflation risks.
 MERITS DEMERITS
• Gold is a hedge against inflation • Gold is not a passive investment
• Liquidity • Gold is difficult to store
• Diversification • Price correction can lead to losses
• Most desired commodity
• Holds its value over a long period
of time.