various investment categories

8/7/2019 Various Investment Categories

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Presentation by

Vikas Bhatt

Ankush Jain

Rahul Goyal

Faculty: Ms Gayatri Mohanty


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1. Non-Marketable Financial Asset

2. Money Market Instrument

3. Bond or Fixed Income Securities

4. Equities

5. Mutual Funds

6. Financial Derivatives

7. Life Insurance8. Real Estate

9. Precious Objects


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Bank Deposit

Post Office Time Deposits (POTDs)

Monthly Income Scheme of the Post

Office(MISPO)

Kisan Vikas Patra

National Savings Certifate

Company Deposits Employee Provident Fund Scheme

Public Provident fund Scheme


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Bank Deposit-mainly 3 kind of A/c: current, saving & fixed a/c

-in current a/c no interest

-loan can be raised against bank deposits-bank calculate interest b/w 10th & last date of the month

Post Office Time Deposits

-it similar to fixed deposit of commercial bank-it can be multiple of Rs.50 without any limit.

-Interest rate higher than bank deposits & calculated yearly or half yearly-after 6 months withdrawal permitted

-can be pledged& deposits 10 to 15 yrs

-tax deductible u/s 80c

Monthly income scheme of post office

-popular scheme of post office which provide regular monthly income-term=6yrs min limit 1000 and maximum 500000 and interest rate 8% PA

-no TDS

-can withdrawal after 1 year


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Company deposit-many co. Solicit fixed deposits from the public.

-FD mobilized by manuf. Co. are regulated by the company law board and

finance co. regulated by RBI-1-3 years & NFC b/w 25 months to 5 yrs

-interest rate higher than bank fixed deposit.

-no tax benefit

Employee Provident fund-saving for salaried employees & each employee has separate PF Account.

-contribution by employer fully tax exempt & employee get benefit u/s 80 C

-current interest rate 9.5%


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Public Provident fund-individual & HUF can participate.

-it stated to be 15 yrs-minimum deposit 100 & maximum 70000 PY

-tax benefit u/s 80 c

-current rate -8%

Kisan Vikas Patra-a post office scheme

-minimum amount Rs.1000 & no maximum limit.

-investment double in 8yrs & 7 months & rate 8.4%

-no TDS

-it can be pledged

-Withdrawl facility after 2.5 yrs


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National Saving Certificate

-issued at Post office.-it comes denomination of Rs.100, 500,1000,5000 & 10000

-it can term of 6 yrs.over this period Rs.100 becomes Rs.160.1(int is 8.16%)-tax benefit u/s 80c

-no TDS

-It can be pledged as a colateral for raising loan.


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Treasury Bills

Certificates of Deposits

Commercial Papers

Repos


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Treasury bills

-negotiable debt obligation issued by government

-its maturity is one year or less.-they are sold at a discount & redeemed at par.

Certificates of deposits

-it represent short term deposit which are transferable from1 party to another

-maturity 3 month to 1 year.

-higher rate of interest than T-bills

-risk free


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Commercial paper:

-unsecured promissory note with fixed maturity of 1-270 days.-money security issued by large bank or corporation to get money to

meet short term debts-maturity period 90 to 180 days

-sold at discount and redeemed at par.

Repos

-repurchase agreement or ready forward

-sale security together with an agreement for the seller to buy backthe security at a later date.

-The repurchase price will be greater than the original sale price


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Government Securities

Saving Bonds

Private Sector Debentures

Public Sector Undertaking Bond

Preference Share


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Equity capital represents ownership capital.

Equity shareholders collectively own the

company. They bear the risk and enjoy the

rewards of ownership. It is a source of permanent capital Claim on income

-dividends

-retained earnings Claim on assets

Right to control

Voting rights


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It difficult or cumbersome to invest directly

in equity shares and debt instrument, you

can invest in these financial assets indirectly

through a mutual fund. It represent a vehiclefor collective investment.

Mutual fund invest in three broad categories:

stocks, bonds and cash.

Mutual funds in India are comprehensivelyregulated under the SEBI.


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A derivative is an instrument whose value

depends on the value of some underlying

asset. According to the portfolio managers,

future and options are the two mostimportant financial derivatives. They are

used of hedging and speculation. Trading in

these derivatives has begun in India.

-Futures-Options


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A future contract is an agreement betweentwo parties to exchange an asset for cash at apredetermined future date for a price that aspecified today.

An option gives its owner the right to buy orsell an underlying asset on or before a givendate at a predetermined price. There are 2

basic type of options: call options and putoptions.

A call option gives the option holder the rightto buy a fixed number of share of a certainstock, at a given exercised price on before theexpiration date.

A put option gives the option holder the rightto sell a fixed number of shares of a certainstock at a given exercise price on or before

the expiration date


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Endowment Assurance

Money back plan

Whole Life Assurance

Unit Linked Plan

Term Assurance

Immediate Annuity

Deferred Annuity Riders


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The most affluent investors are likely to be

interested in other types of real estate, like

commercial property, agricultural land, semi-

urban land, and time share in a holidayresort.

-Residential house

-Commercial Property

-Agricultural Land

-Suburban Land

-Time share in a Holiday Resort


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Gold and Silver

Advantage: Disadvantages:

-a store of value -no regular income

-Durable -no tax advantages

-own anonymously -cheated possibility

-subdivide -not up with inflation

-Interchangeable


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Precious Stones

Diamond, rubies, emaralds, sapphires & pearls

Art Objects

Paintings, Antiques.


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various investment categories

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