Wealth Management

Assignment-2

Group-5

Aishwarya Sahai 19A1HP048

Amitrojit Dan 19A1HP033
Chinmay Bhatt 19A2HP456
Debanjan Mukherjee 19A1HP032
Naman Chahal 19A3HP654
Saguna Chopra 19A2HP409
Siddharth Singh 19A1HP055

Submitted to:
Prof. (Dean) Sriharsha Reddy
What- Detailing the features of the investment option
Why- Purpose of the investment option
How- Process of investing in the option

Investing Option What? Why? How?

Shares A share is a 1.Limited Liability- Shares are traded in
fractional ownership Shareholders are the exchanges
in a company, or a only liable to through a traditional
business and the financial obligations or an online
holders have right on till the extent of their stockbroker. Demat
the distributed holding. account is essential
profits. The two 2.Capital Gains – for share trading.
main types of shares Potential of gains is
are Common Shares unlimited while the
and Preference extent of loss is only
Shares till the amount
invested
3.Dividend Income
4.Tax Advantages
Preference Shares Preference Shares 1.Priority on Preference Shares
are those shares Dividends are exchange traded
which have a 2.Fixed rate on instruments. They
preferential right dividends declared can be traded
over the ordinary irrespective of the through a Demat
shares in regard of amount of profit. account involving a
receipt of dividend 3.Preferential claim stockbroker within
and a preferential in case of liquidation the transaction.
claim on the amount 4.Less Volatile than
of capital of the common stock
company in case of
liquidation. These
shares do not have
voting rights. The
types of Preference
Shares are:
1.Cumulative
2.Non-Cumulative
 3.Participating
4.Non-Participating
5.Convertible
6.Non-Convertible
7.Redeemable
8.Non-Redeemable
Gol Bonds GoI Bonds are 1.Very Low Risk GoI Bonds are
unsecured debt 2.Higher Interest exchange traded and
instruments but not Rates than other require a Demat
an in secured asset asset classes in Account for
in terms of interest category. operation. The
rates with maturities 3.No TDS paid exchanges open a
more than 1 year. 4.Guranteed non-competitive
Returns, guaranteed bidding window
by the GoI. every week. After
5.Semi Annual successful bidding,
coupon payments in the bonds get
general. allotted. For exiting,
the GoI Bonds can
be sold like stocks.
Corporate Bonds Corporate Bond is a 1. Safer than equity Investment in
debt instrument with investment. Corporate Bonds
a Face Value, 2. Flexible Tenure – requires a Demat
Coupon Payments, There are bonds with Account for
Maturity and Term short as well as long transaction. Bond
Structure. It is issued maturities. Trading Institutions
by a company as an 3. Greater Yield in provide platform to
alternate source for some cases than GOI buy and sell bonds
raising capital other Bonds. (High rated both in primary as
than equity. Bonds) well as secondary
Generally Corporate 4. Liquidity markets.
Bonds are generally
unsecured
instruments. There
are different types of
Bonds:
 1.Coupon Bonds
2.Zero Coupon
Bonds
3.Callable Bonds
4.Putable Bonds
5.Convertible Bonds
6.Fixed Rate Bonds
7.Floating Rate
Bonds
8.Perpetual Bonds
Debentures Debenture is a type 1.Fixed Rate of Debentures are
of bond or a debt Return exchange traded and
instrument issued by 2.Better return than thus Demat Account
a company or a equity investments is required for
government that is 3.Have higher order buying or selling.
generally secured. of preference of Brokers are required
Debentures usually claims in the event in the process of the
have longer maturity of liquidation of the transaction.
periods than bonds. company
There are different 4.Irrespective of
types of Debentures: Profit or Loss
1.Secured Debenture holders
2.Unsecured get their portions
3.Redeemable
4.Iredeemable
5.Convertible
6.Non-Convertible
T-Bills
Money Market MF
Growth MF
Income MF
Balanced MF
Index Fund
Public Provident
Fund
National Saving
Schemes
Kisaan Vikas Patra
Bank Fixed
Deposits
Certificate of
Deposit
Corporate Public
Deposits
Commercial Paper
REITs
Bullion Markets
Currency
Commodities
Derivatives
Private Equity
Funds
Warrants
Investing Option Best Performing assets Returns (Rate or Amount)
Shares Infosys 29.94%
Wipro Ltd. 23.83%
Maruti Suzuki Ltd. 23.42%
HCL Technologies 28.73%
Above increments as on 21/08/2020
Preference Shares Tata Capital Preference Shares 7.50% on Face Value
[Fully paid up Non-Convertible FV – Rs.1000
Cumulative Redeemable Non- Tenure – 7 years
Participating Preference Shares
Gol Bonds 7.75% GOI Savings Bond 7.75%
Corporate Bonds BOB - 8.50% PP T-I B III Sr-VI 11.49% Last traded Yield
Debentures Magma Fincorp Ltd. 11.65% change as on 26th Aug 2020
T-Bills
Money Market MF
Growth MF
Income MF
Balanced MF
Index Fund
Public Provident Fund
National Saving Schemes
Kisaan Vikas Patra
Bank Fixed Deposits
Certificate of Deposit
Corporate Public Deposits
Commercial Paper
REITs
Bullion Markets
Currency
Commodities
Derivatives
Private Equity Funds
Warrants
Client Profile Recommendation Reason
IT Consultant aged 40,
married, with annual salary
of Rs 30 lacs in Mumbai
living in a rented house. He
stays with parents, wife and
schools going kid.
Doctor aged 50, with
daughter and son aged 21 &
18 respectively, with annual
income of Rs 60 lacs in
Chennai living in own
house.
Retired Executive Engineer
aged 60 with kids settled in
US in Lucknow living in
own house.
HR Manager aged 28 living
alone away from family in
Hyderabad with annual
salary of Rs 12 lacs.
Businessman aged 48 from Ahmedabad

with average annual income of 1

crore living with family in own
house