PPT ON FINANCIAL SECTORS

NAME - ABHISHEK KUMAR SINGH

COURSE- MBA ( MARKETING)
COLLEGE- IMS LUCKNOW
INTERNSHIP COMPANY -THE LEADING SOLUTIONS
SUBMITTED TO – MS. PRIYANKA MA`AM
 Share Market

 What is the Share Market?

 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 ‘share market’ and ‘stock
market’ interchangeably. However, the key difference between the two lies in the fact that while the former
is used to trade only shares, the latter allows you to trade various financial securities such as bonds,
derivatives, forex etc.
 The principal stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE).
 Types Of Share Markets
 Stock markets can be further classified into two parts: primary markets and secondary markets.
 1. Primary Share Markets
 When a company registers itself for the first time at the stock exchange to raise funds through shares, it
enters the primary market. This is called an Initial Public Offering (IPO), after which the company
becomes publicly registered and its shares can be traded within market participants.
 2. Secondary Market
 Once a company’s new securities have been sold in the primary market, they are then traded on the
secondary stock market. Here, investors get the opportunity to buy and sell the shares among
themselves at the prevailing market prices. Typically investors conduct these transactions through a
broker or other such intermediary who can facilitate this process.
Pros And Cons Of Share Markets

 Pros  Cons:
 Probability of high returns over the  Risk
short-term  Volatility
 High liquidity  Lack of knowledge.
 Ownership stake in the company.  Time-consuming
 Your rights are well protected by
SEBI
 Mutual Funds

 WHAT ARE MUTUAL FUNDS?

 A mutual fund is a pool of money managed by a professional Fund Manager.
 It is a trust that collects money from a number of investors who share a
common investment objective and invests the same in equities, bonds,
money market instruments and/or other securities. And the income / gains
generated from this collective investment is distributed proportionately
amongst the investors after deducting applicable expenses and levies, by
calculating a scheme’s “Net Asset Value” or NAV. Simply put, the money
pooled in by a large number of investors is what makes up a Mutual Fund
Pros And Cons Of Mutual Funds

 Pros:  Cons:
 Advanced Portfolio  High Expense Ratios and
Management Sales Charges
 Dividend Reinvestment  Tax Inefficiency
 Risk Reduction (Safety)  Poor Trade Execution
 Convenience and Fair  Mutual Funds Lack
Pricing Liquidity.
 GOLD

 What are Gold Funds

 By investing in gold funds, you invest in stocks of companies operating in
gold and gold-related activities. Gold mutual funds include silver, platinum,
and other metals in their investment basket. A mutual fund manager on
behalf of an asset management company manages the gold fund, unlike
gold ETFs. They make use of the fundamental trading analysis to buy and
sell stocks to maximise returns for investors. Returns from gold funds
depend on market conditions to an extent. Gold mutual funds eliminate the
risk of returns considerably by distributing investments over a wide range
of investment options. In other words, mutual funds work on the principle
of diversifying, i.e. not putting all eggs in one basket. Investors need to
weigh their risk appetite and goals before choosing such a mutual fund.
Pros And Cons. Of Gold

 Pros:  Cons:
 Liquidity  Gold is not a passive investment
 Divercification  Gold is difficult to store
 Most desired commodity  Price Correction can lead to
 losses
Holds its value over a long period
of time  Gold price also fluctuates over
time
 Bank FD

 What is a fixed deposit?


A fixed deposit, also known as an FD, is an investment instrument offered by banks, as
well as non-banking financial companies (NBFC) to their customers to help them save
money. With an FD account, you can invest a sizeable amount of money at a
predetermined 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.
 You can choose a fixed deposit for a period ranging from minimum 7-14 days to maximum
10 years. This is why an FD is sometimes called a term deposit. When you open a fixed
deposit account at a specific interest rate, it is guaranteed, for the rate of interest remains
the same, irrespective of any changes, which happen due to market fluctuations.
 The interest you earn is either paid at maturity or on periodic basis depending on your
choice. You are not allowed to withdraw the money before the maturity. If you want to, you
have to pay a penalty.
Pros And Cons Of Bank FD

 Pros:  Cons:
 Safe Investment  Low Returns
 Fixed Tenor  Liquidity
 Low against FD  Tax Returns
 Deposit Insurance  Taxable
 Provident Fund

 What is a provident fund?

 A provident fund​ is an investment fund that is voluntarily
established by Employer and employees to serve as long
term savings to support an employee’s retirement.
 Sources of fund:
1. Employee’s contribution:  The amount deducted from the
employee’s salary at a rate of 2% – 15%.
2. Employer’s contribution: Besides the usual salary
payment made to the employer, an employer will also pay
2% - 15% of employee’s salary into the fund. It is also
considered a part of employment welfare.
 Pros And Cons of PF

 Pros:  Cons:
1. Interest earned is tax free unlike  Liquidity
interest on FD
 Company Reputation and
2. Secure investment.
Financial Position
3. You become eligible For pension
after 10 years, though its a  Cant be withdrawn before
different story how much pension retirement
you will get.
4. Can be considered as something
saved for retirement.
 Real Estate

 What Is Real Estate?

 Real estate is the land along with any permanent improvements attached to the
land, whether natural or man-made—including water, trees, minerals, buildings,
homes, fences, and bridges. Real estate is a form of real property. It differs from
personal property, which are things not permanently attached to the land, such as
vehicles, boats, jewelry, furniture, and farm equipment.
 Types of Real Estate
 Residential real estate: Any property used for residential purposes. Examples
include single-family homes, condos, cooperatives, duplexes, townhouses, and
multifamily residences with fewer than five individual units.
 Industrial real estate: Any property used for manufacturing, production,
distribution, storage, and research and development. Examples include factories,
power plants, and warehouses.
 Pros And Cons of Real Estate

 Pros:  Cons:
 Real Estate Appreciates Over  Real Estate Requires Money
Time  Real Estate Takes a Lot of
 Real Estate Has Unique Tax Time
Benefits  Real Estate Is a Long-term
  Real Estate Lets You Use Investment
Leverage  Real Estate Can Be
 Real Estate Gives You Control Problematic
 Post Office

 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, which vary by country.
 These include providing and
accepting government forms (such
as passport applications), and
processing government services and fees (such as road
tax, postal savings, or bank fees). The chief
administrator of a post office is called a postmaster.
Pros and Cons of Post Office

 Pros:  Cons:
 Easy investment  Post Office Savings Schemes
are not digitized
 Long–term investment
  Unfriendly Post office Staff
gain
 Post Office Agents Rule the
 Tax exemption Roost
 A wide array of options
 Insurance

 What Is Insurance?
 Insurance is a contract, represented by a policy, in which an
individual or entity receives financial protection or reimbursement
against losses from an insurance company. The company pools
clients' risks to make payments more affordable for the insured.
 Insurance policies are used to hedge against the risk of financial
losses, both big and small, that may result from damage to the
insured or her property, or from liability for damage or injury caused
to a third party.
Pros And Cons Of Insurance

 Pros :  Cons:
  Provides Protection  Tricky terms and
  Provides Certainty conditions
 Value of Risk  Lengthy legal formalities

 Capital Generation  Potential crime incidents