PRESENTATION ON FINANCIAL

MANAGEMENT

PRESENTED BY:- SAGAR SINGHA

GURPREET BACHHAL
 MUTUAL FUNDS
A Mutual Fund is a trust that pools the savings of a
number of investors who share a common financial
goal. The money thus collected is then invested in
capital market instruments such as shares,
debentures and other securities. The income earned
through these investments and the capital
appreciation realised are shared by its unit holders
in proportion to the number of units owned by
them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an
opportunity to invest in a diversified,
professionally managed basket of securities at a
relatively low cost. The flow chart below describes
broadly the working of a mutual fund:
The flow chart below describes broadly the working of a mutual fund:
 PUBLIC PROVIDENT FUND
Public Provident Fund (PPF) is supported by
the Indian government. An investment of
minimum Rs 500 and maximum Rs 70, 000 is
required to be deposited in a fiscal year. The
prospective investor can create a PPF account
in a GPO or head post office or in any sub-
divisions of the centralized bank.

PPF also falls under Section 80C of IT Act so

investors could gain income tax deduction of
up to Rs 1, 00,000. The rate of interest of PPF
is evaluated yearly with a lock in tenure of
maximum 15 years. The basic rate of interest
in PPF is 8%.
 INVESTMENTS IN GOLD

Controlled by SBI, Gold Deposit Scheme was instigated in the year 1999.
Investments in this scheme are open for trusts, firms and HUFs with no
specific upper limit. The investor can deposit invest minimum of 200 gm in
exchange for gold bonds holding a tariff free rate of interest of 3% - 4% on
the basis of the period of the bond varying with a lock in period of 3 to
7years.

Moreover, Gold bonds are not entitled of capital gains tax and wealth tariff.
The sum insured can be accrued back in cash or gold, as per the investor's
preference.
GOLD PRICE IN INDIA
CITIES GOLD PRICE 10GM

CHENNAI 20865

MUMBAI 20770

DELHI 21070

KOLKATA 21O55
 FIXED DEPOSITS
In a Fixed Deposit Saving Scheme a certain sum of money is
deposited in the bank for a specified time period with a fixed rate of
interest.

When you want to invest your hard earned money for a longer period
of time and get a regular income, Fixed deposit scheme is ideal. It is
safe, liquid and fetches high returns.

Now many banks don’t charges for premature withdrawal.

 Investments in Real Estate

Indian real estate industry has huge prospects in sectors like

commercial, housing, hospitality, retail, manufacturing, healthcare
etc. Calculated realty demand for IT industry in 2010 is estimated
at 150m sq.ft. around the chief Indian cities. Termed as the "money
making industry", realty sector of India promises annual profits of
30% to 100% through real estate investments.
 RBI RELIEF BONDS

RBI Relief Bonds are

instruments that are issued by
the RBI, and currently carry an
8.5 per cent rate of interest,
which was reduced from 9 per
cent early this year. The
interest is compounded half-
yearly. Maturity period of RBI
Bonds is three years, and
interest received is tax-free in
the hands of the investor.
INVESTING IN
STOCK
MARKETS
 SAIL

Steel Authority of India Limited -

Steel Authority of India Limited (SAIL) is the leading
steel-making company in India. It is a fully integrated
iron and steel maker, producing both basic and special
steels for domestic construction, engineering, power,
railway, automotive and defence industries and for sale
in export markets. SAIL is also among the four
Maharatnas of the country's Central Public Sector
Enterprises.
 STOCK HISTORY OF SAIL Ltd

Weekly H/L 159.50 / 151.50

Monthly H/L 168.25 / 151.50

52 Weeks H/L 258.55 / 151.50

( 6 Apr 10 ) ( 28 Feb 11 )
 UNITECH

Established in 1972, Unitech is today a leading real

estate developer in India. Known for the quality of its
products, it is the first developer to have been
certified ISO 9001:2000 in North India and offers the
most diversified product mix comprising residential,
commercial/IT parks, retail, hotels, amusement parks
and SEZs.
Unitech Scrip is one of the most liquid
stocks in the Indian stock markets and
was the first real estate company to be
part of the National Stock Exchange's
NIFTY 50 Index. The company has over
600,000 shareholders.
 UNITECH Stock History

Stock History

Weekly H/L 35.80 30.70

Monthly H/L 47.15 30.70

52 Weeks H/L 98.45 30.70

( 7 Oct 10 ) ( 25 Feb 11)
 DLF Ltd

DLF Limited, is India's largest

real estate company in terms of
revenues, earnings, market
capitalisation and developable
area. It has over 60 years of track
record of sustained growth,
customer satisfaction, and
innovation. The company has
399 msf of planned projects with
56 msf of projects under
construction.
 DLF
DLF STOCK
STOCK HISTORY
HISTORY

Stock History

Weekly H/L 224.00 209.00

Monthly H/L 252.90 209.00

52 Weeks H/L 397.35 209.00

( 4 Oct 10 ) ( 25 Feb 11 )
BGR ENERGY SYSTEMS LTD

The Company was originally incorporated in 1985, as a joint

venture between GEA Energietechnik GmbH, Germany and
the Promoter, Mr. B. G. Raghupathy, to manufacture and sell
On-line Condenser Tube Cleaning Systems, Debris Filters
and Rubber Cleaning Balls used in Thermal and Nuclear
Power Plants. In 1993 Mr. B. G. Raghupathy and members of
his family became the sole shareholders of the Company and
began to expand the range of product and services range in
the Power and Oil & Gas industries. On June 28, 2007 the
Company name was changed from GEA Energy System
(India) Limited, to BGR Energy Systems Limited.
 BGR ENERGY SYSTEMS Ltd..

STOCK
HISTORY
Weekly H/L 482.8 402.10

Monthly H/L 578.85 402.5

52 Weeks H/L 871.5 402.10

 Total Investment In Stock Markets

Company Current share No. of shares to Total Amount

price be purchased

SAIL 150 220 35000

Unitech Ltd 35.20 2286 80000
DLF 222.65 157 35000
BGR Energy 429.55 116 50000
System
Total 200000
IDBI Fixed Deposit

We are
investing Rs.
100000 in
IDBI fixed
deposits
 PLAN SUMMARY OF IDBI FD
Tenor Upto 15 Lac (%) Above Rs.15 lakh upto Rs.1 cr
(%)

15-45 days 4.50 4.50

46-90 days 6.00 6.00
91 days < 6 months 7.50 7.50

6 months- 269 days 7.75 7.75

270 days- 1 year 8.00 8.00

1 year 1 day-499 days 8.75 8.75

500 days 9.00 9.00

>500 days -1099 days 9.00 9.00

1100 days 9.25 9.25

> 1100 days - 5 yrs 9.00 9.00

> 5 yrs-7 yrs 9.00 9.00

>7 yrs - 10 yrs 8.75 8.75
Investing in Insurances
LIC Bima Account:-

LIC Bima Account (Plan No. 805) is a without profit Variable

Insurance Product wherein the proposals will be accepted under Non-
medical Scheme only. Under this plan there will be a Policyholder’s
Account maintained separately for individual policyholder, which
shall consist of two parts;

Policyholder’s Regular Premium Account

Policyholder’s Top-up Premium Account.

The Policyholder’s Account will earn an annual interest of 6% p.a.

provided the policy is inforce and 5% p.a. if the policy is paid-up.
The interest rate will be guaranteed for the whole of the policy term.
LIC Bima (Regular Premium Account ) a Glance

An Endowment Plan with guaranteed return

Premium Top up facility

A plan with Guaranteed Interest of 6% for Whole Term

A very high Risk cover

Short Term policy (5-7 years)

Loan Available after 1 Year : 60% of amount in Policyholder’s account

Surrender Available after 1 year but money will be given after 3 years

No Surrender Charges

BENEFITS:
a) Benefits payable on death:
In case of death of the Life Assured during the policy term, when the policy is
inforce, the nominee shall get the Sum Assured along with the balance in the
Policyholder’s Account.

b) Benefits payable on maturity:

On life assured surviving the date of maturity an amount equal to balance in the
Policyholder’s Account is payable.

c) Guaranteed Interest:
Guaranteed interest rate shall be applicable on Policyholder’s Account and not
on the gross premium paid by the Policyholder.

d) Additional Interest:
The LIC of India may also declare an additional interest rate on Policyholder’s
Regular Premium Account for inforce policies based on the experience under
this plan
 Premium Plan
Mode Yearly Half- Yearly Quarterly Monthly

Min Premium 7000 4000 2000 600

Max Premium 14000 7000 3500 1100

We are investing Rs 35000 in this plan

with Min premium
 INDIAN POST OFFICE
What is Time Deposit?
A Post-Office Time Deposit Account is a banking
service similar to a Bank Fixed Deposit offered by
Department of post, Government of India at all post
office counters in the country. The scheme is meant for
those investors who want to deposit a lump sum of
money for a fixed period; say for a minimum period of
one year to two years, three years and a maximum
period of five years. Investor gets a lump sum
(principal + interest) at the maturity of the deposit.
Time Deposits scheme return a lower, but safer,
growth in investment.
Features
Time Deposits can be made for the periods of 1 year, 2
years, 3 years and 5 years. The minimum investment in
a post-office Time deposit is Rs 200 and then its
multiples and there is no prescribed upper limit on your
investment.
Interest is payable annually but is calculated on a
quarterly basis at the prescribed rates. Post maturity
interest will be paid for a maximum period of 24
months at the rate applicable to individual savings
account.
Returns
This investment option pays annual interest rates between 6.25
and 7.5 per cent, compounded quarterly. Time deposit for 1
year offers a coupon rate of 6.25%, 2-year deposit offers an
interest of 6.5%, 3 years is 7.25% while a 5-year Time Deposit
offers 7.5% return.

Duration of Quarterly Compound Interest

Account
1years 6.25%
2 years 6.5%
3 years 7.25%
5years 7.5%

We are investing Rs 20000 in Indian post office

 INVESTMENT IN RBI RELIEF BONDS

YEARS INVESTMENT INTEREST INTEREST

RATE

1 10000 8.5% 850

2 10000 8.5% 850

3 5000 8.5% 425

TOTAL 25000 8.5% 2125

 INVESTMENT IN GOLD

We are investing Rs 70000 in Gold bonds holding

a tariff free rate of interest of 3% - 4% on the
basis of the period of the bond varying with a
lock in period of 3 to 7 years.
 TOTAL INVESTMENT
CAPITAL 500000
SHARE MARKET 200000
GOLD 70000
LIC BIMA POLICY 35000
RBI RELIEF BONDS 25000
POST OFFICE 20000
FIXED DEPOSIT 100000
TOTAL 450000
BALANCE 50000
With the balance amount of Rs
50000 we have opened a saving
account in SBI @ 3.5% Interest
rate . We can use this amount for
any emergency in future.
 HA N K
T
YO U