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“Various criteria for

Investment
decisions”
Table of Contents

1 2 3 4
Introduction Type Benefits Determinants

5 6 7 8
Financial Return On EIC Analysis Conclusion
Instruments Investment
What is Investment?
•  An additional source of income or gain profit from the investment
over a specific period of time.
• Money you earned is partly spent & the rest saved for meeting future
expenses.

GOLDEN RULES OF INVESTMENT

Invest Early Invest Regularly Invest for long


term
Types of Investments:

Investment in Financial
Investment in Real Assets Assets
Buildings, land, machinery, Pension funds,Mutual
Gold/Jewelry Commodities funds,Securities,PPF,stocks and
bonds
Methods of measuring and assessing return
and risk:
1. Return on Investment (ROI)
2. Price-Earning Ratio (P/E)
3. Book Value
4. Earning Per Share (EPS)
5. Return on Equity (ROE)
6. Net Present Value (NPV)
7. Internal Rate of Return (IRR)
8. Discount Rate
9. Profitability Index (PI)
10. Payback Period
11. Peg Ratio
12. Dividend Payout Ratio
Benefits of
Investment:
• Achieving Financial
Goals
• Financial Security
• Capital Growth
• Tax Implication
• Financial
Independence
• Get an early retirement
• Improve standard of
living
• Preparation for
emergencies
Determinants of Investment Decision-
making
The investor usually looks for high returns in 7 the levels of risk and return to come up
with a right investment decision. Risk are categorized according to their source as the
following:
1 Business Risk 4 Firm-Specific Risk

2 Economic Risk 5 Liquidity Risk

3 Interest rate Risk 6 Exchange rate Risk


Financial Instruments
1. High yield saving Account
2. Money market fund
3. Governments Bonds
4. Corporate Bonds
5. Mutual Funds
6. Index Funds
7. Exchange traded funds
8. Stock Marketing
9. Joint Venture
10. SIP
Magnificent returns in the past 10 Years
Company Name 17-Aug-11 17-Aug-21 10 year CAGR
Bajaj Finance Ltd. 67.3 6,410.1 57.7%
Bajaj Finserv Ltd. 488.4 14,737.3 40.6%
Berger Paints India Ltd. 37.3 815.0 36.1%
Eicher Motors Ltd. 136.0 2,515.7 33.9%
Havells India Ltd. 68.1 1,224.4 33.5%
Shree Cement Ltd. 1,651.3 26,200.3 31.8%
Britannia Industries Ltd. 236.6 3,696.5 31.6%
Info Edge (India) Ltd. 351.2 5,455.3 31.6%
Pidilite Industries Ltd. 168.2 2,216.1 29.4%
HCL Technologies Ltd. 105.8 1,143.0 26.9%
Asian Paints Ltd. 324.5 3,015.3 25.0%
Titan Company Ltd. 210.4 1,874.5 24.4%
Kotak Mahindra Bank Ltd. 222.8 1,788.4 23.2%
Tech Mahindra Ltd. 179.0 1,413.7 23.0%
Hindustan Unilever Ltd. 316.4 2,483.8 22.9%
Return On Investment
Ranking Industries Ranking With in the Sector ROI
1  Tobacco 1 181.31 % 

2  Home Improvement 2 74.97 % 

3  Computer Hardware 3 52.93 % 

4  Iron & Steel 4 41.95 % 

5  Forestry & Wood Products 5 38.45 % 

6  Software & Programming 6 33.68 % 

7  Computer Peripherals & Office 7 24.26 % 


Equipment

8  Internet Services & Social Media 8 23.20 % 

9  Wholesale 9 21.73 % 

10  Consumer Financial Services 10 21.07 % 


Economic Industry Company (EIC) In
Investment Analysis.
Sustainability of Investment
Projects.

Sensitivity and Risk Analyses.

Distribution Analysis.
Conclusion
Investors are more likely to reach their long-term goals if they
remain invested and avoid short-term decisions that may take
them off course.

Firms should keep options open under the conditions of


uncertainty and irreversibility and develop a portfolio of investment
opportunities.

To develop a portfolio of investment opportunities, firms need to


keep monitoring risk, assessing market trends, and trying new
things on a small basis of experimentation.
“Successful investing is
about managing risk, not
avoiding it”

Thankyou!
Sheetal khinchi 123
Dimple koli 124
Shivani pasi 139
Aayushi rane 145
Ishu Saini 149
Hamza shaikh 152
Abhishek Wankhede 167

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