The past, present and future of money

BFSI SECTOR
BANKING, FINANCIAL SERVICES AND INSURANCE

Prepared by:
Jay Janani
Ahmedabad University
SHARE MARKET
A platform for buyers and sellers of
shares of the company which is
publicly listed on a recognized stock
exchange and trade during the TWO RECONGNIZED
specified hours of the day STOCK EXCHANGES
IN INDIA
Two types of share 1. National Stock Exchange (NSE)
markets 2. Bombay Stock Exchange (BSE

1. Primary market: A market with no physical

TWO STOCK
existence and for companies who want to go
INDEXES
for an IPO.
1. NIFTY for NSE
2. Secondary market: A market with a physical
2. SENSEX for BSE
existence; for the companies whose shares
are sold in the primary market.
 PROS OF
INVESTING
1. Less need of capital
2. Highest form of liquidity
3. Buyer and seller convenience
4. Ownership stake in the company
5. Regulatory body protection of SEBI
CONS OF
INVESTING
1. Taxes on sales of profitable stocks
2. High volatility and therefore competitive
risk factor
3. Competition with Professional and
Institutional investors
4. Research is time consuming
5. Emotional roller coaster
 MUTUAL FUNDS

COMMON INVESTMENT OBJECTIVE

A mutual fund is a company that brings together money

from many people and invests it in stocks, bonds or other
assets. The combined holdings of stocks, bonds or other
assets the fund owns are known as its portfolio. Each
investor in the fund owns shares, which represent a part of
these holdings.

DIVIDENDS TAX FREE

 PROS OF CONS OF
INVESTING INVESTING

1. Advanced portfolio management 1. High expense ratios and sales charges

2. Less risky than share market 2. Less control over the portfolio
3. Very easy diversification 3. Capital gain taxes
4. Low cost 4. Cash drag
5. Safe and transparent 5. Lock-in period
 GOLD

HIGH LIQUIDITY INVESTING BEATING CAPACITY

Gold is one of the most preferred investments in India. High liquidity and inflation-beating
capacity are its strong selling points, not to mention charm, prestige, and so on. Gold prices
shoot up when the markets face turbulence. Though there are phases when markets witness
a fall in gold prices, it won’t last for long, and always makes a strong comeback.
 PROS OF CONS OF
INVESTING INVESTING

1. Long price holding 1. High cost

2. Most desired commodity in India 2. High short term volatility
3. Hedge against inflation 3. Non passive investment
4. Liquidity 4. Speculative
5. Tangibility 5. No yield
 Fixed deposits are the most
popular investment instruments
in India. For years, investing has
been synonymous with FDs since
this product is considered safe,
provides guaranteed returns over
a period of time, and is also
flexible in its duration.

TYPES OF FD
BANK OR There are 7 types of FD prevalent in India:
1.Standard Term Deposit
FIXED DEPOSIT 2. Senior citizen FD
3. Tax saving FD
4. Recurring Deposit
5. Flexi FD
6. FD for NRI
7. Corporate FD
 PROS OF CONS OF
INVESTING INVESTING

1. Assured return 1. Low returns

2. Benefits of compounding 2. Old and conservative instrument
3. Easy process 3. Tax returns
4. Higher rates for senior citizens 4. Penalty on pre mature withdrawal
5. Loan against FD 5. Fails to counter inflation risk
 PUBLIC PROVIDENT
FUND (PPF)

PLANNING
STRATEGY CAREFULLY

PPF full form, Public provident fund is a popular

investment scheme among investors courtesy its
multiple investor-friendly features and associated
benefits. It is a long-term investment scheme
popular among individuals who want to earn high but
stable returns. Proper safekeeping of the
principal amount is the prime target of individuals
opening a PPF account
 PROS OF
INVESTING
1. Guaranteed returns
2. Central government backing
3. Numerous tax benefits
4. Partial withdrawal allowed from 7th
year
5. Anyone can open a PPF account
CONS OF
INVESTING
1. Long lock-in period
2. Not permissible to NRIs and HUFs
3. Joint account is not permitted
4. No liquidity
5. Maximum price ceiling for deposit
50

40
REAL ESTATE
30 Our Infographic

20
Real estate investing involves the purchase,
management and sale or rental of real estate for
profit. Improvement of realty property as part of a
10 real estate investment strategy is generally
considered to be a sub-specialty of real estate
investing called real estate development.
0 Someone who actively or passively invests in real
Item 1 Item 2 Item 3 Item 4 Item 5 estate is called a real estate entrepreneur or a
real estate investor.
 PROS OF CONS OF
INVESTING INVESTING

1. Steady cash in flows 1. Long grind

2. Depreciation tax shield 2. Too much variability
3. Can be purchased at below market prices 3. Requires maintenance
4. Active investment control 4. Transaction costs are high
5. Creates leverage benefits 5. No liquidity
BFSI SECTOR - THE MOST EMERGING SECTOR

THANK YOU

Credits:
Jay Janani
Ahmedabad University