Swot Analysis On Investment Product

SWOT ANALYSIS
Strengths Opportunities
 They provide higher capital  Dividends from the equity funds are
appreciation. tax free.
 If the investor gets return, then it  Equity shareholders have voting
will be higher than the other funds. rights in the company.
 They are the real owners of the  Best investment option if you are
company. seeking for higher return.
Weakness Threats
 There is no security or guarantee of  They are highly volatile i.e., small
returns. change in the economy leads to
 There will be high risk if the investor high impact on the returns.
did not get any return from the  The global factors will also affect
company. the share prices.
EQUITY FUNDS:
DEBT/BONDS:
 The rate of interest is fixed.  As the rate of interest is high we will
 Interest expenses are tax free. get higher rate of returns.
 Government bonds are secured.  Some bonds are tax free.
 We can retain the ownership.
Weakness Threats
 Principal is not returned whenever  If the party defaults payment, then
it is been asked by the bond holder we may lose interest as well as
or the debt holder. principal.
 Interest rates will not be as high as  If the interest rate is high, then
Equities. bonds price will increase.
BANKS:
 It contributes a lot to the GDP.  Modern technology is used.
 Government mainly supports  If the interest rates are high,
this sector. then the investor gets higher
rate of return.
Weakness Threats
 There is lack of product  Rise of monopolistic structures.
differentiation in banking sector.  Some of the banks are
 Many banks are operated to unorganized but they are
limited area. lending money to the
customers.
GOLD:
 It is a good hedge against the equity  Gold value increases as the
market. population increases.
 There is no risk involved in this kind  It can be used as collateral security
of investment. for loans.
Weakness Threats
 People don’t sell gold easily which  There are many vendors who sell
makes it illiquid. low quality of gold.
 There is security threat to store  The price of gold fluctuates quit too
gold. much.
 Successful open house events.  Possibility of extending area of
 Large asset base. households.
 More advertising can be done.
Weakness Threats
 Lack of good asset management  Adequate investment not secured.
data.  Failure of members to exchange
 Inconsistent standards in buildings. and view issue strategically.
NON-CONVERTIBLE DEBENTURES:
 Debenture can be redeemed when  Interest on debentures is allowable
there is surplus expenditure expenditure.
 It helps company to raise funds.  Holders are entitled to a fixed rate
of interest.
Weakness Threats
 These debentures cannot be  Cost of raising funds through
converted into shares. debentures is difficult to the
 Common people cannot by them as company.
they are of high denominations.  Holders don’t have voting rights as
they are not the real owners.
PUBLIC PROVIDENT FUNDS:

 It is a classic tax saving option.  Specialization leading to increased
 PPF rates will be set in every output.
quarter.  Lower price and increased choice.
Weakness Threats
 People can invest only up to 1.5  PPF lacks liquidity.
lakhs.  There is a probability of interest
 The returns provided by PPF are less rates to go down rather than grow
when compared to others. up.
NATIONAL PENSION SCHEME:

 Benefit of diversification i.e. with  Through NPS we have active choice
the help of NPS one can invest in that allows you to select the asset
Equity and debts. allocations per your age and risk
 Most authorized banks now profile.
allowing people to apply for NPS  Government backed NPS is one of
account online the top options for investors aiming
to build a retirement corpus
Weakness Threats
 No withdrawals till maturity.  There is only partial tax exemption
 There is a limit on Equity in the case of NPS.
investments through the option of  Your pension won’t grow with any
NPS. market gains like Equities
SENIOR CITIZEN SAVING SCHEME:

 Superior returns-higher rates  Long term saving option
 Government backed scheme
Weakness Threats
 If an individual has investment  Interest rates are likely change
saving scheme, he cannot claim in each and every quarter.
deduction  Penalties
SUKANYA SAMRIDDHI YOJANA

Strength Opportunity
• Safe option since it is • Currently, only one SSY
Indian government- A/c can be opened for
sponsored investment one girl child, up to a
scheme. maximum of two girl
• Very good rate of return children in total. There’s
(8.6%) compared to no restriction on opening
savings or FD account any other A/c on her
name. So, if one wants to
open PPF A/c on the
name of the girl child
along with SSY A/c, both
can be simultaneously
maintained
weakness Threat
• The scheme does not  Many banks provide loan
permit opening the against various deposits
account for an NRI girl such as PPF or fixed
child. If the account was deposit. But in the case
opened for a girl’s child of SSY, banks do not
while she was an Indian provide a loan against its
resident but later on deposit
acquires an NRI status
because of moving out of
the country to abroad
then the account shall
cease and no interest can
be earned from thereon
MUTUAL FUNDS
 Offer liquidity to the investors at  Huge untapped market in semi-
any time. urban and rural areas.
 Volatility of bank interest rate.  High level of savings habit
among the people.
Weakness Threats
 Distribution network confines  High level of volatility in the
only to metro cities. stock market.
 Lack of focus, under  Stringent regulations by the
performance and poor service government…
conditions
EQUITY BASED MUTUAL FUND
 Capital appreciation  Varied category of options
 Small systematic payments  Non-taxable returns in long term
 ROI is high
 Higher cost  Higher risk

 Lock in period
DEBT BASED MUTUAL FUND

 Provide high liquidity  Diversified investment options
 Are Tax efficient  Beneficial for new investors
 Transferable .
 Immune to market volatility
Weakness Threats
 Low ROI as compared to other  Less control
modes .
 Various costs involved
HYBRID MUTUAL FUND

 Higher returns-these funds is  Balanced risk and return-equity
having outperformed equity proportion will earn better
funds. returns and debt part returns at
 Lower expensive-expense ratio lower risk.
will be on lower side  Diversification-when share
prices go down the debt
component ensures stability.
Weakness Threats
 Lack of focus-not having enough  Difficult in comparision
expertise in managing needs
and equity needs.
MUTUAL FUNDS INDEX FUNDS

 Costs in index funds are much  Problem with diversified equity
lower funds is the strong element of
 It has tax advantages discretion given to fund
managers.
Weakness Threats
 There is no flexibility  Tracking errors -the lower the
 Limited exposure tracking error the better is the
fund.
EXCHANGE TRADED FUND

 Lower expense ratio than  Instant diversification
mutual funds  Tax efficiency-investors will have
 Flexibility in trading more control when they incur
taxes
Weakness Threats
 Lack of rebalancing  International competitors
 Weak cost structure  Volatile costs
opportunities
PROTFOLIO MANAGEMENT SERVICE

 Easy procedure involved for  Branch expansion
purchasing and selling of shares  Untapped rural market
 Direct investment  Untapped retail investors
Weakness Threats
 Market risk-high volatile  New entrants
 No control over costs  Tough competition because so
many companies is offering now
a days
SYSTEMATIC INVESTMENT PLANS

 Disciplined savings  Long term growth
 Easy to invest
Weakness Threats
 It may be not turn good option  Unpredicted future
at consistently growing markets.  People with unequal income
 Flexibility
GOLD INVESTMENT
 Good hedge against the equity  Collateral for loans.
markets.  Gold demand usually increases
 Invest gold in physical and paper as population increases
format.
Weakness Threats
 It doesn’t generate yield  Fluctuate in prices
 Cost and threat involved in  Spurious vendors
storing gold

Swot Analysis On Investment Product

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SWOT ANALYSIS

PUBLIC PROVIDENT FUNDS:

NATIONAL PENSION SCHEME:

SENIOR CITIZEN SAVING SCHEME:

SUKANYA SAMRIDDHI YOJANA

 Higher cost  Higher risk

DEBT BASED MUTUAL FUND

HYBRID MUTUAL FUND

MUTUAL FUNDS INDEX FUNDS

EXCHANGE TRADED FUND

PROTFOLIO MANAGEMENT SERVICE

SYSTEMATIC INVESTMENT PLANS

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