8 FINANCIAL SECTORS

SUBMITTED BY:
PRAJNA PARAMITA MALIK
CONTENT:
• INTRODUCTION
• 8 Financial sectors & their merits &
demerits
• Conclusion
 INTRODUCTION:
The 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.
 Insurance
Bank/FD
Post
GoldOffice
Mutual Estate
Real Fund
8 TYPES OF FINANCIAL SECTORS
PPF
Share market
 Share Market

• The share market is a platform where

buyers and sellers come together to trade
on publicly listed shares during specific
hours of the day.
 Merits & Demerits of share market
MERITS DEMERITS
• High chance of return. • Huge market knowledge required.
• Regulated sector(stock market). • Huge risk involved.
• Easy liquidity. • No tax benefit.
• Ownership benefit. • Insider trading.
• Multiple option/ Product
available.
• Digitization.
 Mutual Fund

• A mutual fund is a collective investment

vehicle that collects & pools money from a
number of investors and invests the same
in equities, bonds ,government securities,
money market instruments.
 Merits & Demerits of Mutual fund
MERITS
• Moderate returns.
• Regulated.
• moderate liquidity.
• Professional assistance(multiple
option available)
DEMERITS
• Subject to market risk.
• Fluctuating returns.
• No tax benefits.
• High commission charges.
• Market knowledge required.
 Gold
• Gold is placed in high regard as an
investment. Due to some influencing
factors such as high liquidity and inflation-
beating capacity. Gold investment can be
done in many forms like buying jewelry,
coins, bars, gold exchange-traded funds,
Gold funds, sovereign gold bond scheme,
etc.
 Merits & Demerits of Gold
MERITS DEMERITS
• Marit loan facility. • Low returns.
• inflation cover. • No tax benefits.
• Status symbol. • Low liquidity.
• Production against uncertainty. • Storage Issue.
• Making charges.
• Maintenance cost.
 Bank/FD
• A fixed deposit (FD) is a financial
instrument provided by banks or non-
bank financial institutions which
provides investors a higher rate of
interest than a regular savings account,
until the given maturity date.
 Merits & Demerits of Bank/FD
MERITS DEMERITS
• Safety & security. • No tax benefits.
• Fixed & assured return. • Penalty on pre-mature withdrawal.
• Easy liquidity.
• Loan facility
• Digitization.
• Moderate return.
 PPF
• The Public Provident Fund (PPF) 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.
 Merits & Demerits of PPF
MERITS DEMERITS
• Safety & security. • Locking period of 7 years.
• fixed & assured returns. • Low liquidity.
• Minors can also invest. • Fixed minimum deposit is 1.5 lakh
• Moderate returns. rupees.
• Tax benefits.
• Protection against bank
corruption
 Real estate
• Real estate investment is the purchase,
ownership, or acquisition and
management of land, properties or
anything for profit. The original
motive could be for-profit or prestige.
Merits & Demerits of Real estate
MERITS DEMERITS
• Secondary income. • Huge capital required.
• Loan facility. • Low returns.
• Inflation cover. • No tax Benefits.
• Safe & Secured Investment • Broker charges.
• Low liquidity.
Option.
• Geographical intervention.
 Post Office
• Post office savings scheme includes saving
instruments, offering several reliable and risk-
free returns on investments. In India, you can
open a savings account, recurring deposit
account, time deposit account, monthly
income account, saving scheme account, ppf,
sukanya samriddhi account, kishan vikas patra
account, pm cares for children account etc.
Merits & Demerits of Post Office
MERITS DEMERITS
• Easy investment. • Not digitalized.
• Tax exemption. • Maximum tenure of FD is 5 tears.
• Wide array of option. • Limited to the place of investment.
• Long-term investment gain.
 Insurance
• Insurance is a contract, represented by a
policy, in which a policyholder receives
financial protection or reimbursement against
losses from an insurance company.There are
many types of insurance policies. Life, health,
homeowners, and auto are among the most
common forms of insurance.
 Merits & Demerits of Insurance
MERITS
• High returns.
• Safety & security.
• Regulated sector.
• Tax benefits.
• Extra bonuses.
• moderate liquidity.
• Multiple options available.
DEMERITS
• High premium for high age.
• Has many Terms and Conditions.
• Long and Costly Legal
Procedures.
• Insurance Broker Focusing to
Close the Sale.
• Limited Offers.
Conclusion:
Financial System accelerates the rate and volume of
savings through the provision of various financial
instruments and efficient mobilization of savings. It aids
in increasing the national output of the country by
providing funds to corporate customers to expand their
respective business. It helps economic development and
raising the standard of living of people and promotes the
development of the weaker section of society through
rural development banks and co-operative societies. These
are the important facts about the Indian Financial system.
THANK YOU