POWER POINT

PRESENTATION ON
FINANCIAL SECTORS
What is Share Market?

 A stock market, equity market, or share market is the

aggregation of buyers and sellers of stocks (also called
shares), which represent ownership  claims on businesses;
these may include securities listed on a public stock
exchange, as well as stock that is only traded privately,
such as shares of private companies which are sold
to investors through equity crowdfunding platforms.
Investment is usually made with an investment strategy in
mind.
Pros & Cons Of Share Market

Pros Of Share Market Cons Of Share Market

 Takes advantage of a growing  Risk
economy  Common stockholders paid last
 Best way to stay ahead  Time
of inflation
 Taxes
 Easy to buy
 Emotional roller coaster
 Don't need a lot of money to
start stock investingMake  Professional competition
money in two ways
 Liquidity
What is Mutual Funds?
 A mutual fund is a pool of money managed by a professional
Fund Manager. 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.

 A mutual fund is a professionally managed investment fund that

pools money from many investors to purchase securities. The
term is typically used in the United States, Canada, and India,
while similar structures across the globe include the SICAV in
Europe and open-ended investment company in the UK.
Pros & Cons Of Mutual Funds

Pros Of Mutual Funds Cons Of Mutual Funds

 Liquidity  Cost of Managing the mutual funds
 Diversification  Exit Load
 Expert Management  Dilution
 Less cost for bulk transactions
 Invest in smaller denominations
 Suits your financial goals
 Cost-efficiency
What is Gold Sector

 Gold fund as the name suggests invest in the various forms of gold. Kit
can be in the form of physical gold. Or stock of gold mining companies.
Gold funds which invest in physical gold offers investors the convenience
of buying pure gold at low prices. There is no possibility of theft and you
can sell these units at market linked price anytime.

 Gold stocks are publicly traded investments focused on gold. The industry
consists of the following types of entities: Mining companies: These
companies mine and sell gold.
Pros & Cons Of Gold Sector

Pros Of Gold Sector Cons Of Gold Sector

 Safe Haven  Cost
 Potential Inflation Hedge  Storage Issues
 Low Long-Term Volatility  Liquidity
 Simplicity  High Short-Term Volatility
 Portfolio Diversification  Speculative
 Cost  No Yield
What is Banking Sector

 A bank is a financial institution that accepts deposits from the public and
creates a demand deposit while simultaneously making loans. Lending
activities can be directly performed by the bank or indirectly through
capital markets. 

 Banking is the business of protecting money for others. Banks lend this
money, generating interest that creates profits for the bank and its
customers. A bank is a financial institution licensed to accept deposits and
make loans. But they may also perform other financial services
Pros & Cons Of Banking Sector

Pros Of Banking Sector Cons Of Banking Sector

 Safety of Public Wealth  Chances of Bank going bankrupt
 Availability of Cheap Loans  Risk of Fraud And Robberies
 Propellant of Economy  Risk of Public Debt
 Economies of Large Scale
 Development in Rural Areas
 Global Reach
What is PPF

 The Public Provident Fund is a savings-cum-tax-saving instrument in India,

introduced by the National Savings Institute of the Ministry of Finance in
1968. The main objective of the scheme is to mobilize small savings by
offering an investment with reasonable returns combined with income tax
benefits.

 Public Provident Fund Scheme is a Central Government scheme, framed

under the PPF Act of 1968. Thus we can say PPF is a government backed,
long term Small Savings Scheme. The Scheme offers an investment avenue
with decent returns coupled with income tax benefits.
Pros & Cons Of PPF Sector
Pros Of PPF Sector
• The Safest Plan. PPF is initiated by
the government, so there is no
possibility of someone running
away with your money
• Great Returns
• Compound Returns
• No Tax on Interest Earned
• Flexible Investment
• No tax on Maturity Amount
Cons Of PPF Sector
• The lock-in period is long-term, i.e., for 15
years.
• Joint accounts are not permitted, i.e., one
person can only handle one account except
it is of a minor.
• NRIs and HUFs cannot open an open
account.
• There is a maximum limit of Rs. 1.5 lakhs
laid for depositing in a PPF account.
• There is no liquidity
What is Real Estate

 Real estate is property consisting of land and the buildings on it, along with its
natural resources such as crops, minerals or water; immovable property of this
nature; an interest vested in this an item of real property, buildings or housing
in general. 

 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.
 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 & Cons Of Real Estate

Pros Of Real Estate Cons Of Real Estate

 Real Estate Can Be Purchased at Below-  Real Estate Investing is a Long Grind
Market Prices
 Real Estate Income Can Be Variable
 Real Estate Generates Steady Cash Inflows
 Real Estate Requires Maintenance
 Real Estate Provides a Depreciation Tax
Shield  Real Estate is Impacted by Rent
Control
 Real Estate Appreciates in Value
 Real Estate Provides an Inflationary Hedge
 Real Estate Requires Your Time
 Real Estate Financing Creates Leverage
 Real Estate Transaction Costs are High
Benefits
What is Post Office

 India Post is a government-operated postal system in India, part of the

Department of Post under the Ministry of Communications. Generally known
as the Post Office, it is the most widely distributed postal system in the world.

 A post office is a public facility and a retailer that provides mail services,
such as accepting letters and parcels, providing post office boxes, and selling
postage stamps, packaging, and stationery.
Pros & Cons Of Post Office
Pros Of Post Office
 It is a convenient means of transport where the
quantity is small and the volume is low.
 Post Offices are located mostly near market places.
Hence dispatch of parcels can be arranged easily.
 Parcels are delivered at the doorstep of the
addressee’s.
 The parcel may also be sent under VPP (Value
Payable Post) and the amount due from the
consignee can be realized by the sender through the
post office.
 Main advantage of the speed post service is the
assured and speedy delivery of goods
Cons Of Post Office
 Sending large quantities of goods by parcel
post is more expensive than rail or sea
transportation.
 The maximum weight of a parcel permitted
is 20 kg. The packages should not to be
more than one-meter long. Thus, heavy and
bulky goods cannot be sent by parcel post.
 The main disadvantages of speed post
service are that it is very expensive and is
available at selected places only.
What is Insurance Sector

 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. An entity which provides insurance is known as an insurer, an
insurance company, an insurance carrier or an underwriter.

 The insurance sector is made up of companies that offer risk management in

the form of insurance contracts. The basic concept of insurance is that one
party, the insurer, will guarantee payment for an uncertain future event.
Meanwhile, another party, the insured or the policyholder, pays a smaller
premium to the insurer in exchange for that protection on that uncertain future
occurrence.
Pros & Cons Of Insurance Sector

Pros Of Insurance Sector Cons Of Insurance Sector

 Perfect cover for your family after you  Tricky terms and conditions
are gone  Lengthy legal formalities
 Benefit of compensation  Potential crime incidents
 Tax Benefits
 Financial support post retirement
 For specific purposes
 For smooth business operation
THANK YOU
PPT BY – AAKASH MITTAL (G.L. BAJAJ GREATER NOIDA)