AVENUES OF INVESTMENT

INVESTMENT
• An Investment is a sacrifice of current
money or other recourses for future
benefits.
 Why should you invest?
• You should invest so that your money
grows and shield you against raising
inflation. The rate of return on investments
should be greater than the rate of
inflation ,leaving you with a nice surplus
over a period of time.
 What are the different avenues
of investment ?
1. High risk high gain modes of investments
2. Fixed interest most secured mode of
investment
3. Investment into house property and
jewellery
 High risk high gain modes of investments

A. Shares
B. Derivatives
C. Mutual funds
 Shares
The capital of the company usually divided
into certain indivisible units of a fixed
amount known as shares.
 Types of shares
• Preference share
• Equity shares
 Preference share

• Preference shares are tose shares which

have :
a) a preferential right of payment of
dividend at a fixed rate during the life time
of the company
b) a preferential right to repaid of capital
when the company goes into liquidation
 Types of preference shares
1. Cumulative and non cumulative
preference shares
2. Participating and non-participating
preference shares
3. Redeemable and irredeemable
preference shares
4. Convertible and non-convertible
preference shares
Equity shares (ordinary shares)
• An Equity share represent ownership
capital.equity shareholder collectively
owns the company.
• Dividend on these shares is paid at a rate
recommended by the directors and
declare by the company at the general
meeting
 Classification of equity shares
• Stock market classification of equity
shares
• Classification of shares on the basis of
value , growth, and income
 Stock market classification of
equity shares
1. Blue chip shares
2. Growth shares
3. Sweat equity
4. Promoters equity
5. Income shares
6. Defensive share
7. Speculative shares
 Classification of shares on the
basis of value , growth, and
income
• Growth stock
• Value stock
• income
 Mutual fund
• Mutual fund is a mechanism for pooling
the resource by issuing units to the
investors and investing funds in securities
in accordance with objectives as disclosed
in offer document.
 Different types of mutual fund
schemes
1. Schemes according to maturity period
a)open ended fund schemes
b)close ended fund schemes
2. Schemes according to investment
objectives
a)growth/equity oriented schemes
b)income/debt oriented schemes
c)balanced fund
 Contd…
3. Money market or liquid fund
4. Guilt fund
5. Index funds
6. Sector specific funds/schemes
7. Tax saving schemes
8. Load or no load fund
 Derivatives
• Derivatives is a product whose value is
derived from the value of one or more
basic variables , called bases(underlying
asset , index , or reference rate), in a
contractual manner. The underlying asset
can be equity , forex , commodity or any
other asset.
 Fixed interest most secured
mode of investment
• Debenture
• Bonds
• Government instruments
• Fixed deposits
• Life insurance
 Debenture / Bonds
• A debenture is basically a loan . All
companies , financial institutions ,
government bodies generally borrow
money through the means of debentures.
• In case the issuer is a government or
quasi government institution ,the
instrument is called bond , otherwise the
same is termed as debenture .
 Types of debenture
1. Fully convertible
debentures/bonds(FCDs)
2. Partly convertible
debentures/bonds(PCDs)
3. Non convertible
debentures/bonds(NCDs)
 But again Bonds can be
• Fixed rate bonds
• Floating rate bonds
• Zero coupon bonds
• Inflation index bonds
• Securities bonds
• Sovereign bonds
• Gilts
• Bunds
 Government instrument
• PPF
• Indira & kisan vikash patra
• National saving certificate
 Deposits
1. Bank Fixed Deposits
2. RECURRING DEPOSITS
3. GOVERNMENT TAX SAVINGS
4. POST OFFICE SAVINGS
 POST OFFICE SAVINGS

• Post Office Time Deposits

• Post Office Recurring Deposits
• Post Office Monthly Income Scheme [Post
office MIS]
• National Savings Certificates [NSC]
• National Savings Scheme [NSS]
• Kisan Vikas Patra– [KVP]
• Public Provident Funds[PPF ]
 Insurance
• An insurance policy offers much more than
just tax saving and investment returns .it
offers the ability to plan for unforseen
events that could affect ones family
financial profile adversely
1. Children's policy
2. Endowment policy
3. Joint life policy
4. Money back policy
5. Pension plan and annuity
6. Term plan
7. Whole life policy
8. Women policy
Investment into house property and
jewellery
• Page no -1 to 4 sujoy
• Page no 5 to 16 biplob
• Page no 17 to 24 dhrubo
• Page no 25 to 28 jayjeet
• Thik ase ni dhekia janis ….u need to
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