FINANCIAL MARKET

AGENDA

What is investment ?

Why invest ?

Where invest ?

An Introduction to Financial Market

Types of Financial Market

Conclusion

What is Investment ?

Money we earn is partly spent and rest saved for meeting future

expenses. Instead of keeping the savings idle we like to use savings in order to get return on it in the future. This is called Investment.

Why Invest ?

Earn Return on idle resources

Generate sum of money for specified goal in life

Make provision for uncertain future

To meet the cost of inflation

A Introduction to Financial Market

In economics, a financial market is a mechanism that allows people to easily buy & sell (trade) financial securities ( such as stocks & bonds ), commodities ( such as precious metals or agricultural goods ).

Types of Financial Market

Financial Market

Capital market

Money Market

Commodity Market

Derivatives Market

Insurance Market

Foreign Exchange

Market

Options for Retail Investor

EquityDebtMutual FundsFixed Deposits with BanksPost office schemesGoldReal EstateInsurance

Equity Shares

• It commonly referred to as ordinary share represents the form of fractional ownership in a business venture.

• Equity shareholders have the right to get dividends as declared.

DEBT

This instrument represents contract whereby one party lend money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principle amount by the borrower to the lender.

Classification of DEBT

BONDS: Issued by Govt.(Central and State),Public Sector Organisation

DEBENTURES: Issued by Private Corporate Sector.

Mutual Fund

A Mutual fund is a collective investment vehicle that pools together investor money. This collective pool of money is invested in accordance to stated objective.

Mutual Funds are :A large pool of resources Managed by professionals Diversified investment for lower risk & better return

Fixed Deposits with Banks

It allows an investor to deposit a lump sum of money for a fixed period ranging from a few weeks to a few year and earn a pre-determined rate of interest.

Guaranteed Returns depends upon term.Safe and Secured Investments

Post Office Schemes

Offered by Govt. of IndiaSafe, secure and risk-free InvestmentNo Tax deduction at source (TDS)Transferable to any post office in IndiaAttractive Rate of InterestPost office monthly income schemeKisan Vikas PatraNational Savings certificatePublic Provident Fund

GOLD

Physical Gold in the form of bars and coins

Gold accounts in banks where units in the gold a/c in the banks are backed up by physical gold held in the bank and bank gives assurance that the investor can convert the gold back to cash anytime.

Real Estate Investment

Financial instrument that invests primarily in the real estate such as offices, apartments, shopping centres, hotels etc.

Tend to pay high returns( often as high as 10%)

Attractive investment opportunity when the stock market is falling.

Insurance

A promise of compensation for specific potential future losses in exchange for a periodic payment. Now it is considered as a investment tool also:

ULIPs

Traditional Plans

Conclusion

Investors looks at superior returns and measured risk therefore he has to select a dynamically balanced asset allocation mix consisting of the different investment options available in the Financial Market.

THANK YOUFor More InformationVisit Our Website …