Financial

sectors of india
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Introduction
 Share Market is a platform where buyers and sellers come together to 
trade on publicly listed shares during specific hours of the day.
 It provides many opportunities for individuals to grow their wealth
and
build savings.
 The principal stock exchanges in India are the National Stock Exchange
(NSE) and the Bombay Stock Exchange (BSE).
 Types of Share Market:
Primary Market and Secondary Market.
PROS
Higher Liquidity.
Better long term returns.
Extra dividend income.
Helps in diversification.
Convenience.
Acquire ownership and Right to Vote.
Hedge against inflation.
CONS
Risk involved.
Time consuming.
Emotional ups and down.
Stockholders of broke companies get paid last.
Volatile investment.
High brokerage and low margin.
Impulsive investment.
 Gold funds are investment vehicles that offer exposure to gold.

 They come in variety of forms ,but 3 popular varieties are

those  investing in physical gold, gold future contracts and gold
mining  companies.

 Investors interested in hedging against inflation generally opt for gold 

funds that hold gold futures, whereas investors who are particularly 
bullish on gold tend to also incorporate gold mining companies.

 Investors owning a gold fund could help counterbalance any potential 

decline in USD, based on the premise that investors will turn to gold
as  a safe heaven if the dollars begin to fall.
PROS CONS

Lowest interest rate. High margin required.

Highest rate per gram. Loss of your gold.

Flexible loan tenure. Only for short tenures.

Minimum documentation. Lower loan-to-value ratio.

Special rate offer. Impact on CIBIL score.

Faster processing. Weight and purity is compromised.

z Introduction
 A mutual fund works by pooling money
from  multiple investors and then
investing it  amongst different securities.

 It provides greater liquidity,

diversification,  lower risk, etc.

 To invest money in mutual funds

is 
convenient, tax saving and low
investment.
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Introduction
 The PPF account or Public Provident Fund scheme is one of the most popular
long  term saving-cum-investment products, mainly due to its combination of
safety,  returns and tax savings.

 Investors use PPF as a tool to build a corpus for their retirement by putting aside
sums of money regularly, over a long period of time.

 It is the safest investment products i.e., the government of India guarantees your 
investments in the fund.
PROS CONS

Partial withdrawals. The lock-in period is long term.

Tax exemption. Joint accounts are not permitted.

Compound interest. No liquidity.

Multiple modes for depositing money. NRI’s and HUF’s can’t open account.

Secure and trustworthy. Lowest interest rate.

Easy to access. Drawbacks with respect to withdrawals.

z Introduction
 Insurance is a cooperative device to spread the laws caused
by a particular risk over a number of persons who are
exposed to it and who agree to insure themselves against the
risk.

 It is the way to manage your risk and protection against

unexpected financial losses.

 There are many types of insurance policies: Life, health,

home owners, and auto are the most common forms
of insurance.
PROS CONS

Protects your family. Have to pay premiums.

People are risk averse. Not worth it for minor things.

Help in unemployment. Implies some level of bureaucracy.

Prevent from becoming bankrupt. Adverse selection led to problem.

Better future plans. Long procedure.

Cover health issues. Acceptability issues.

z Introduction
 Real Estate is real property that consist of land
and improvements, which include buildings,
fixtures, roads, structures and utility systems.

 There are several types of real estate, some

are
land, residential, commercial and industrial.

 Its major jobs are development, sales and

marketing, brokerage, property management,
landing and professional services (law,
accounting, etc.).
PROS CONS

Tangible asset. Liquid asset.

Tax benefit. More work required.

Purchase below market value. Interest rate risk.

Easer to understand. Local market risk.

Steady cash flow. Tenant risk.

Complete control. Need a big down payment.