BANASTHALI VIDYAPITH

Presentation on:
FINANCIAL SECTORS

SUBMITTED BY
DRISHTI SRIVASTAVA
(Priyanka’s Ma’am team)
 FINANCIAL SECTOR
The financial sector refers to the businesses and institutions that manage money and provide
intermediary services to transfer and allocate financial capital in an economy.

FINANCIAL SECTORS IN INDIA

 Stock Market
 Mutual Funds
 LIC’s
 Post Office
 Bank
 Insurance
 PPF
 Gold
 Real Estate
 STOCK MARKET
 Stock markets are venues where buyers and sellers meet to exchange equity shares of public
corporations.
 It allows buyers and sellers of securities to meet, interact, and transact and for price discovery
for shares of corporations and serve as a barometer for the overall economy.
 The first stock market was the London Stock Exchange which began in a coffeehouse, where
traders met to exchange shares, in 1773.
 A stock market is a regulated and controlled environment. In the India, the main regulator is
the Securities and Exchange Board of India (SEBI).
 Most of the trading in the Indian stock market takes place on its two stock exchanges:

 Bombay Stock Exchange(BSE) : existence since 1875

 National Stock Exchange(NSE) : founded in 1992 and started trading in 1994.

  However, both exchanges follow the same trading mechanism, trading hours, and settlement
process.
Advantages and Disadvantages of Stock Market
 Mutual Funds
 A mutual fund is a company that pools money from many investors and invests the money in securities
such as stocks, bonds, and short-term debt. 
 Owning units of a Mutual fund is like owning a small slice of your favorite stock like Alphabet (Google) or
Facebook. Investors get mutual fund units in the proportion of their investments.
Advantages and Disadvantages of MUtUAL FUNDS
 Insurance
Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected
financial losses. The insurance company pays you or someone you choose if something bad happens to you.
Insurance policies are often in place for a specific period of time. This can be referred to as the policy term. At the
end of that term, you need to renew the policy or buy a new one. With some types of insurance, you choose a
beneficiary, the person you want to receive the policy’s benefits or payments.
Advantages and Disadvantages 0F INVESTING IN INSURANCE
 BANKS
 A bank is a financial institution licensed to receive deposits and make loans.
 There are several types of banks including retail, commercial, and investment banks.
 In most countries, banks are regulated by the national government or central bank
 INVESTMENT IN GOLD

 Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-
traded funds, Gold funds, sovereign gold bond scheme, etc.

 The primary reason for investing in Gold is portfolio diversification and in that context, it is
considered to be an ideal hedge against the potential volatility of equity investments as well as
inflation.

 At present, the second most popular use of Gold worldwide that accounts for 20% of the
world’s physical Gold are investments. These are held by individuals in the form of
investments such as Coins, Bars, or as underlying assets of Gold Exchange Traded Funds, Gold
Mutual Funds, or Digital Gold.
Life Insurance Corporation of India
 The Life Insurance Corporation of India has been in the insurance space since 1956. It has a customer base of over
250 million. The company currently occupies over 60% of the market share in the insurance sector. 

 LIC policies have for long been the safest insurance scheme, given the backing of the Government of India. The
company has also consistently reported a high claim settlement ratio over the years.

 Internal rate of return offered on traditional endowment policies is only around 4% to 5%, which may not cover
inflation.

Benefits of purchasing LIC Policy:

•Government-owned

•Tax Benefits 

•Additional Returns

•Financial Security
 INVESTMENT IN PPF

 Investing in a Public Provident Fund or PPF is quite popular among investors owing to its
numerous benefits and features. It is also considered to be one of the best ways for building
long-term wealth.

 Moreover, a mix of returns, tax benefits, and safety makes it a preferred option for both
savings and investment for investors.

 To invest in PPF, an individual first needs to open a PPF account either at a post office or a
bank. Besides investing in their name, one can invest in PPF on a minor’s behalf.

 A PPF account comes with a fixed tenure of 15 years. However, it can be extended for a
period of 5 years by investors.
Advantages and Disadvantages OF PPF
 INVESTMENT IN POST OFFICE

 Savings for the future is important. It ensures that you have a safe and secure future. There
are a number of options when it comes to a savings plan, and in this article, we are going to
unfold the details about Post Office Schemes.

 There are a number of plans which fall under the Indian Post Office Schemes that offer a
risk-free return on investment. These schemes run in 1.54 lakh post offices in India.

 Indian Post offers diverse investment options to cater to the varying needs of different
investors. All Post office savings schemes guarantee returns as they are backed up by the
government of India. Moreover, most of the post office investment schemes are tax-exempt
under Section 80C, i.e. tax exemption up to Rs. 1,50,000 is allowed.
 INVESTMENT IN Real estate

 Real estate investing can be a highly profitable activity for many people. This is especially the
case if you are willing to hold onto property for an extended period of time, to take advantage
of property appreciation.

 However, it is also possible to go wrong in this area and lose your investment. The following
discussion of the pros and cons of real estate investing clarifies the benefits and risks
associated with this important asset class.