ASSIGNMENT-3

FINANCIAL SECTORS
 INTRODUCTION
O Financial sector is a section of the economy
made up of firms and institutions that provide
financial services to commercial and retail
customers. This sector comprises a broad
range of industries including Banks,
Investment companies, insurance companies,
and real estate firms.
Categories of financial sectors
O Share market
O Mutual funds
O Real estate
O Insurance
O Banks FD
O Provident fund
O Post office
O Gold
 Share
market
Share market is where
buying and selling of
share happens. The stock
market consists of
exchanges in which stock
shares and other financial
securities of publicly held
companies are bought
and sold.
 BSE/NSE

BROKERS

INVESTO
RS
 Components
O NSE=The NSE or National Stock Exchange is the
leading stock exchange of India.
O BSE=The BSE or the Bombay Stock Exchange is a lot
older than its cousin.
O BROKERS=A broker is a person or firm who
arranges transactions between a buyer and a seller
for a commission when the deal is executed.
O INVESTORS= A person who invest money in share
markets.
 MUTUAL FUNDS
O A mutual fund is a pool of money managed by a
professional Fund Manager.
O It is a trust that collects money from a number of
investors who share a common investment objective
and invests the same in equities, bonds, money market
instruments and/or other securities. And the income /
gains generated from this collective investment is
distributed proportionately amongst the investors after
deducting applicable expenses and levies, by
calculating a scheme’s “Net Asset Value” or NAV.
Simply put, the money pooled in by a large number of
investors is what makes up a Mutual Fund.
 Benefits Outweigh Risks in
Mutual Funds
Benefits Risks
O Regulatory oversight O Fund manager risk
O Transparency O Market risk
O Diversification O Interest rate risk
O Liquidity
 Real estate
O Real estate is defined as the land and any
permanent structures, like a home, or
improvements attached to the land, whether
natural or man-made.
O Real estate is a form of real property . It
differs from personal property, which is not
permanently attached to the land, such as
vehicles, boats, jewelry, furniture, and farm
equipment.
Pros and cons of real estate
O PROS O CONS
O Increase in value over O Need a big down
time payment
O Tax breaks O One borrow
O Less volatile O Not liquid
O A potential steady O Not maintain easily
cash flow
 Insurance
Insurance is a means of protection from
financial loss. It is a form of 
risk management, primarily used to hedge
 against the risk of a contingent or uncertain
loss.
Fixed deposit
What are fixed deposits?
A fixed deposit allows you
to invest your funds for a
fixed term and earn
returns at a fixed interest
rate.
Advantages and disadvantages of
FD

Advantages Disadvantages
O Simplified transaction O Can’t access money
O Assured returns O Can’t make extra
O Tax relief deposit
O High interest rate O Less flexibility
O Won’t rises benefits
Provident fund & post office
Provident fund Post office

O Provident funds O the national

are retirement organization that is
savings plans into responsible for
which employees collecting and
contribute portions dealing with letters,
of their salary. packages, etc.
 Gold
O A gold fund is a type of investment
fund that holds assets related to gold.
The two most common types of gold funds
are those holding physical gold bullion,
gold futures contracts, or gold mining
companies. Gold funds are popular
investment vehicles among investors who
wish to hedge against perceived inflation
risks.
 Thank you

Submitted by: Mansi gupta