SWOT ANALYSIS OF ASSET CLASSES
1) REAL ESTATE:
 Value multiplies over time
 Less volatile
 Preferred collateral/ security
 Hedge against Inflation risk
 Traded at auctions or open market
 Global Demand is high and strong
 Rapid growth
 Potential to diversify
STRENGTH
OPPORTUNITIES
2) DEBT/BOND:
STRENGTHS
 Rate of Interest is fixed
 Tax free interest expenses
 Secured govt bonds
 Cash flow at maturity are known
 High interest rates get higher rate
of returns
 Tax free bonds
 Retain the ownership
 Provided as collateral
 Difficult to transfer Ownership
 Highly Illiquid asset
 Huge Capital requirement
 Low supply
 Period of recession
 Competition with other asset
classes
 Seasonal demand
 Demographic shifts
 Price fall due to less demand
WEAKNESS
THREATS
WEAKNESS
 Principal amount is not refundable
 Low rate of return
 Suitable for risk averse investors
 No early withdrawal
 Fixed Deposits (more liquid than
govt securities)
 RBI relief bonds (offer higher
interest rates)
 Part at default, may lose interest
as well as Principal
 Interest rate high leads to increase

OPPORTUNITIES
3) EQUITY INVESTMENT:
STRENGTHS
 High rate of Return
 Aggressive Growth
 Provides Ownership
 Suitable for Risk seekers
 Shareholders entitled to Profit
 Voting rights
 Right shares
 Higher return
 Capital Appreciation
 Right in Liquidation
OPPORTUNITIES
4)GOLD:
STRENGTHS
in bond price.
THREATS
WEAKNESS
 Very risky Investment
 Volatile rate of return
 No security
 Security transaction tax to be paid
 Uncertain returns
 Cost of Equity
 Fluctuations in market
 Chances of loss
THREATS
WEAKNESS
  Ready marketability and Liquidity
 Worldwide value is high
 Multiple usage
 Good hedge against Equity market
 Provide balance in Investment
Portfolio
 Preferred collateral/security
 Demand increase results in increase
in the Price
OPPORTUNITIES
5) MUTUAL FUNDS:
STRENGTHS
 Stable average rate of return
 High liquidity
 Tax free- long term capital gains
 No charges for early withdrawal
 Regulated by SEBI
 Volatility to bank interest rates
 High Prices
 Illiquid at times
 Offers low rate of return
 Cost and security threat
 Other precious metals
 Price fluctuations
 Chances of getting below standard
gold
THREATS
WEAKNESS
 Not a preferred collateral
 Rate of return fluctuates
 Payment of entry and exit load
 High maintenance charges
 Lack of Focus
 Under-Performance
  High level of savings
 Online mode of Trading systems
 Liberalized Business Environment
 Fixed deposits are safer and more
stable regulated by RBI
 Investors prefer Equity market for
higher returns
 High level of volatility
 Increasing competition

OPPORTUNITIES THREATS

PRODUCT NOTE
1.DIRECT EQUITY
● Equity shares are long-term financing sources for any company.
● Investors in such shares hold the right to vote, share profits and claim assets of a company.
● The value in case of equity shares can be expressed in various terms like par value, face
value, book value and so on.
● The dividend rate relies upon the obtainability of the surfeit capital. However, there is no
fixed rate of dividend on the equity capital.
● Equity share capital remains with the company. It is given back only when the company is
closed.
● Gives High Return with High Risk.

2.GOLD INVESTMENT

● Maintain its purchasing power over time

● Gold has ready marketability and Liquidity
● Gold storage has costs, including cost of insurance
● Gold cannot be destroyed
● The value of Gold is not dependent on a counterparty

3.PORTFOLIO MANAGEMENT

● Allocation of assets
● Diversification of investment
● Used to form liquid and more stable investments.
● Used to diversify the risks of the asset classes by proper asset allocation.
● Maximizes the return on your investment

4. SYSTEMATIC INVESTMENT PLAN

● Small and regular investment

● Power of compounding
● Ease of investing
● Ideal for investors not eager to make lump sum payments
● Flexible mode of investment for mutual funds investors

5. EXCHANGE TRADED FUNDS

● Exchange Traded Funds are a good investment option for the small investors
● they offer greater tax benefits than the usual mutual funds.
● The ETF has a low annual fee as compared to traditional mutual fund.
● The Exchange Traded Funds are designed to replicate the performance of the commodity or
the underlying index

6. NCD (Non-Convertible Debentures)

● financial instrument that is used by companies to raise long-term capital. This is done
through a public issue.
● debt instrument with a fixed tenure and people who invest in these receive regular interest
at a certain rate.
● done through a public issue
● High interest rates
● Listed on stock exchange and are easy to withdraw

7.PUBLIC PROVIDENT FUNDS(PPF)

● It is a long-term investment scheme popular among individuals who want to earn high but
stable returns
● ideal for individuals with a low-risk appetite
● plan is mandated by the government; it is backed up with guaranteed returns
● provide the benefit of availing loans against the investment amount

8. NATIONAL PENSION SCHEME(NPS)

● National Pension Scheme (NPS) is a government-sponsored pension scheme.
● The scheme allows subscribers to contribute regularly in a pension account during their
working life
● calculated by using the principle of power of compounding.
● NPS makes for a great retirement savings scheme
● Both NPS and PPF are stable investment options with guaranteed returns.

9.SENIOR CITIZEN SAVING SCHEME

● Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India.
● scheme offers a regular stream of income with the highest of safety and tax saving benefits
● The interest rate on SCSS is currently 7.4%
● An individual can open multiple Senior Citizen Savings Scheme (SCSS) accounts either
individually or as a joint investor.
● The tenure of this scheme is 5 years; therefore the deposits mature after 5 years from the
date of account opening.

10. SUKANYA SAMRIDDHI YOJANA

● You can open an SSY account for your girl child at any time until she is 10 years of age.
● You have to make a minimum deposit of Rs 250 a year. If the minimum amount is not
deposited, you have to pay a fine of Rs 50.
● The maximum amount that can be deposited in a year is Rs. 1.5 lakh.
● Amounts invested in SSY can be deducted from taxable income up to Rs. 1.5 lakh per year
under Section 80C of the Income Tax Act.
● Interest earned, and the amount on maturity are also tax-free.
● SSY accounts can be transferred to any branch of the post office or bank.

11. EQUITY MUTUAL FUNDS

● Great for first-time investors

● No minimum investment amounts
● Systematic Investment ● invests principally in stocks
● Equity funds are also known as stock funds.
● If you have a long-term goal, then it is better to invest in equity funds.

12. DEBT MUTUAL FUNDS

● Lowest Risk
● Low Capital Appreciation
● Underlying Debt Securities are Rated for Credit Quality
● Safer Investment Offer
● Tax Efficiency

13.HYBRID MUTUAL FUNDS

● Can invest in more than one asset class

● LTCG taxed at 10-20%
● Hybrid Funds don't offer guaranteed returns
● Automatic Rebalancing
● Caters to various risk profiles

14.INDEXED MUTUAL FUNDS

● can be taken as a long-term, less risky form of investment

● success of these funds depends on the choice of index and low volatility
● Due to the passive management of these funds, they involve lesser expense ratio and thus,
low expenses
● known to provide broad market exposure and low portfolio turnover to the investors
● Low cost
● Effective market hypothesis

Submitted by:
Anjali Kanwar
Junior Research Analyst
22BM60 B2