Decoding Global Financial

Markets

Investment alternatives
 1 Overview of financial markets
2 Participants in financial markets
3 Financial Institutions

Sections 4

5
Stock exchanges

Investment alternatives

6
FX &Commodity

7 Factors affecting financialmarkets

8 Nuances of financial markets
5 Investment alternatives

A. Different investment products

B. Types of mutual funds

C. Regulatory bodies in different countries

Global Investment Market: Equity

Source : https://www.statista.com/statistics/242745/volume-of-global-equity-trading/
Global Investment Market: Bonds

Source : JP Morgan : Guide to markets

Indian Mutual Fund Statistics
Overview of investments

Risk-Return profile of Major Asset Classes

Objective of the
function
• Earn yield on surplus
cash
• Ensure safety of
principal amount and
liquidity of funds
• Ensure credit risk is
monitored and
corrective steps are
taken to mitigate it

Factors affecting choice of investment

Return Risk Liquidity Internal External

Time horizon
Objective tolerance needs policies regulations
 Investment instruments
What are the different categories of investment instruments

Fixed income Equities Mutual Funds Alternative

Government Corporate Common Preferred Debt Digital Real

Equity Commodity Hedge Funds
Currency estate
Overnight
T-bill NCD Public Public Large cap Physical land
Precious metal Bitcoin SPACs
Liquid
Mid cap
Treasury bonds Tax free bond Private Private Base metal Others REIT/ INVIT
Money Market
Small cap
State bonds Investment grade Right issue
Duration

Municipal bond Junk bond

 Investment products in global markets

Management of the real estate 4.

Management
3. Money 1. Ownership of services
real estate Sponsor’s
Sponsor
3. REIT units SPV 4. Lease
payment s
Real Estate 5. Lease
2. REIT units payments after
Investment deductions
6. Dividend tounit
holders Trust (REIT)

Global REITs market

Who can invest in REIT in India
➢ Mutual funds (within definedlimit)
➢ Insurance cos (with somerestrictions)
➢ Banks (with some restrictions)

Page 9 16 March 2021 Presentation title

5 Investment alternatives

A. Different investment products

B. Types of mutual funds

C. Regulatory bodies in different countries

 India: Types of Mutual Funds

Types of Mutual Funds

Based on Based on Asset Based on Based on

Maturity Period Class Investment Themes
Objective

Open Equity Debt Funds Hybrid Growth Tax Savings

ended Funds Funds Funds Fund
Funds
Large-cap Liquid Fund
Close Fund Balanced Index /ETF
ended Fund
Funds
Mid & Short term
Interval SmallCap bond Dynamic Sectoral
Funds Fund Fund

Diversified Income
Fund Fund Multi-asset
Fund
ELSS Fund Duration
Fund Arbitrage
Fund
Arbitrage Gilt Fund /
Funds Corp Bond

Source: SEBI Investor Education Programme - Investment in Mutual Funds

5 Investment alternatives

A. Different investment products

B. Types of mutual funds

C. Regulatory bodies in different countries

Page 3 16 March 2021 Draft- For discussion purposes only

Regulatory bodies in differentcountries

India Singapore

Securities and Exchange Monetary Authority of

Board of India Singapore

USA Canada

Canadian Securities
U.S. Securities and Exchange Administrators
Commission

United Kingdom

Financial Industry Regulatory Financial Conduct

Authority Authority
Ernst & Young LLP
EY |Building a better working world

EY exists to build a better working world, helping to create

long-term value for clients, people and society and build trust
in the capital markets.
Enabled by data and technology, diverse EY teams in over
1 5 0 countries provide trust through assurance and help
clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and
transactions, EY teams ask better questions to find new
answers for the complex issues facing our world today.
EY refers to the global organization, and may refer to one or
more, of the member firms of Ernst & Young Global Limited,
each of which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not
provide services to clients. Information about how EY
collects and uses personal data and a description of the
rights individuals have under data protection legislation are
available via ey.com/privacy. EYG member firms do not
practice law where prohibited by local laws. For more
information about our organization, please visit ey.com.

Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For
more information about our organization, please visit www.ey.com/en_in.

Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability
Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor,
Block C, Kolkata – 700016

© 2021 Ernst & Young LLP. Published in India.

All Rights Reserved.

This publication contains information in summary form and is therefore intended for general
guidance only. It is not intended to be a substitute for detailed research or the exercise of
professional judgment. Neither EYGM Limited nor any other member of the global Ernst &
Young organization can accept any responsibility for loss occasioned to any person acting or
refraining from action as a result of any material in this publication. On any specific matter,
reference should be made to the appropriateadvisor.