MUTUAL FUNDS The article mentioned below, is for the investors who have not yet started investing

in mutual funds, but willing to explore the opportunity and also for those who want to clear their basics for what is mutual fund and how best it can serve as an investment tool. Getting Started Before we move to explain what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. Stocks Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. Bonds Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds. TOP Working of Mutual Fund

TOP Regulatory Authorities To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations.

SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc. TOP What is a Mutual Fund? A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. TOP Diversification Diversification is nothing but spreading out your money across available or different types of investments. By choosing to diversify respective investment holdings reduces risk tremendously up to certain extent. The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, emerging or mid size companies, low-grade corporate bonds, etc). TOP Types of Mutual Funds Schemes in India Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds
2

in categories, mentioned below. Overview of existing schemes existed in mutual fund category: BY STRUCTURE 1. Open - Ended Schemes: An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. 2. Close - Ended Schemes: These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Investors can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchanges could vary from the net asset value (NAV) of the scheme on account of demand and supply situation, expectations of unitholder and other market factors. Alternatively some close-ended schemes provide an additional option of selling the units directly to the Mutual Fund through periodic repurchase at the schemes NAV; however one cannot buy units and can only sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit routes is provided to the investor. 3. Interval Schemes: Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vise versa if he pertains to lower risk
3

instruments, which would be satisfied by lower returns. For example, if an investors opt for bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases in the same proportion. Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity. That doesnt mean mutual fund investments risk free. This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives market which is considered very volatile. Overview of existing schemes existed in mutual fund category: BY NATURE 1. Equity fund: These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund managers outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:

Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix. 2. Debt funds: The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government. Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities. MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes. Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.
4

Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.

3. Balanced funds: As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns. Further the mutual funds can be broadly classified on the basis of investment parameter viz, Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly. By investment objective: Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Income Schemes:Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents (normally 50:50). Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Other schemes Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate. Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index. Sector Specific Schemes:
5

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. TOP Types of returns There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. TOP

Pros & cons of investing in mutual funds: For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund. Advantages of Investing Mutual Funds: 1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively less expensive way to make and monitor their investments. 2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. 3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors. 4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when they want. 5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.
6

Disadvantages of Investing Mutual Funds: 1. Professional Management- Some funds doesnt perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so-called professionals are any better than mutual fund or investor him self, for picking up stocks. 2. Costs The biggest source of AMC income, is generally from the entry & exit load which they charge from an investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon. 3. Dilution - Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. 4. Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

Tax Saving ELSS Mutual Funds by MANSHU on JANUARY 2, 2011 in MUTUAL FUNDS ,TAX This is yet another post from the Suggest a Topicpage, and in this post Im going to take a look at the ELSS (Equity Linked Saving Schemes) mutual funds or tax saving mutual funds in a little bit of detail. Let me start off by telling you that there are plans to phase out the tax breaks on ELSS mutual funds with the introduction of the Direct Tax Code (DTC), so this avenue is going to be closed in the coming years. However, you can still invest in it this year and get tax breaks. These tax saving mutual funds are covered under Section 80C, which means that you can invest a maximum of Rs. 1 lakh in them, and reduce that amount from your taxable income. There is a lock-in period of 3 years on such funds, which means that you cant sell these funds within 3 years of your purchase date. I saw an interesting question on Value Research some time ago where someone had written in to ask what happens when they select the dividend re-investment option in the case of a ELSS fund. The dividend that is invested back in the scheme is considered fresh investment, so what happens is that this money is further locked in for three years, and this can create an infinite loop. Im not sure what will happen going forward with DTC coming in, but its best to play it safe, and go for the Dividend or Growth option of the ELSS youre buying.

Before we get down to the options available under ELSS funds, lets recap the points discussed so far: 1. The tax benefit of ELSS will be phased out with the introduction of DTC. 2. The tax benefit is still available this year. 3. There is a lock in of 3 years, so you cant sell these tax saving mutual funds within 3 years of purchase. 4. If you use the dividend re-investment option then the amount re-invested will be treated as fresh investment, and will be locked in for 3 years from the time of re-investment. ELSS Mutual Fund Options I wrote a post on how to find tax saving mutual funds some time ago, and I used that information to get a list of all the ELSS mutual funds currently available in India, and then narrow down options from there. Then I looked at the funds that were around for 5 or more years, and took the 10 best performing out of them. After that I noted their expense ratio, as well as their inception date in the table below. Doing this gave me a list that has some tax saving funds that have been around for a very long period, and have done reasonably well over that period. The expenses are important because they eat up your returns, so I wanted to highlight them as well. The limitation with this list is that it doesnt contain any mutual funds that have been around for less than 5 years even if they performed well. For example DSP Blackrock is a ELSS mutual fund that has been around for about 4 years, has done well during that time, but is missing from this list. Name Inception Date 5 year returns 16.57% 22.31% Expense Ratio 1.96 2.38

Birla Sun Life March 1996 Tax Relief 96 Canara Robeco March 1993 Can Equity Tax Saver HDFC Tax Saver March 1996

17.80%

1.86 1.98 1.78

ICICI Prudential August 1999 15.48% Tax Plan SBI Magnum Tax Gain March 1993 16.32%

Scheme 93 Principal Personal Tax Saver Franklin India Tax Shield Sundaram Tax Saver March 1996 16.42% 2.19

April 1999 Nov 1999

17.34% 17.73% 22.31%

2.10 1.96 2.50 1.88

Sahara Tax Gain March 1997 Reliance Tax Saver

August 2005 15.14%

All data from Value Research This list is not sorted in any particular order, and thats deliberate because as soon as you sort something your brain tends to think of it as best to worst from top to bottom, but thats not the case. For mutual funds the best mutual fund is the one that will give you the maximum return for your holding period, but since thats in the future, there is no way to really predict which one will do better than the rest. In the absence of that I compiled a list of long standing performers, and have presented you with that information, and if you think this criteria makes sense, then you can select one or two funds from this list for your investment. I will also recommend going to Value Research and doing some more research, and playing with their tools because they do have a lot of good tools in there.

DE-MATE ACCOUNT The term Demat, in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures, required forinvestors by The Securities Exchange Board of India (SEBI). In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number is quoted for all transactions to enable electronic settlements of trades to take place. Access to the Demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the Demat account are automatically made once transactions are confirmed and completed.
9

Advantages of Demat A Demat account reduces brokerage charges (which are usually around 2.5%), makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipts for public issue allotments or IPOs. A Demat account also helps avoid problems typically associated with physical share certificates, for example: delivery failures caused by signature mismatch, postal delays and loss of certificate during transit. Further, it eliminates the risks associated with forgery and loss due to damaged stock certificates. Demat account holders also avoid stamp duty (as against 0.5 per cent payable on physical shares) and filling up of transfer deeds. Demat account holders usually obtain quicker receipts of benefits like stock splits and bonuses.

ONLINE TRADING Online Trading The act or practice of buying and selling securities over the Internet. Generally speaking, online trading occurs when an investor makes an order to a broker online; the broker then executes the order through the ordinary means. Online trading became more common in the 1990s as more brokerages offered theirservices online, often for a small fee rather than a commission on the trade. Online trading should be distinguished from electronic trading, which occurs on an exchange. See also: Discount brokerage. Online trading. If you trade online, you use a computer and an Internet connection to place your buy and sell orders with an online brokerage firm. While the orders you give online are executed immediately while the markets are open, you also have the option of placing orders at your convenience, outside normal trading hours.

OFF LINE TRADING Offline trading is the traditional way of transacting the shares through a broker probably by means of phone. Online trading is a revolutionary change introduced in 21st century which lead to a huge improvement in the trading volume. This is one of the reasons why the turnovers of stock exchanges increased phenomenally. National Stock Exchange is the first exchange in India to introduce online trading. There are innumerable advantages in online trading when compared with offline trading but still some traders still prefer trading offline due to security reasons.

10

Advantage of online trading to offline trading: Time Only a trader knows how important time factor is, at the time of trading. Online trading makes it quite easy to place order in a few clicks saving lot of time. Money It also avoids all miscellaneous costs as in case of offline trading, broking firms charge extra for the service they provide. Minimizing losses Trader can square off his positions immediately when markets turn against his positions which is never possible in traditional type of trading Buying & Selling One of the most advantages a trader could experience is trigger trading where he/she need not wait till the required price comes. In case of buying or selling (including stop loss trade), the trader is just a click away to place his order and leave the terminal. So, there is no need to buy at current price or wait till the price arrives. Apart for the above advantages, there are also many advantages in online trading comforting the trader and helps in gaining maximum profits. trading account 1. An account with a broker that enables an individual or other party to buy and sell securities. 2. The part of an income statement that shows how thegross profit was generated through trading activities.

Trading Account

What Does Trading Account Mean? 1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer. 2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy.

Investopedia explains Trading Account 1. Though trading accounts are traditionally thought to hold only stocks, a trading account can hold cash, foreign cash, securities and a number of other types of investments. 2. Investors who use a number of trading strategies or have a number of brokerage accounts may separate their accounts in order to avoid confusion. One account may be a registered account for their retirement savings; another account may be a buy-and-hold account for their longterm stocks; another may be a margin account; and another may be a trading account used for conducting day-trading activities.
11

FIXED DEPOSITS 'Fixed deposits are a kind of high-interest-yielding deposit offered by banks in India, where bank accounts can be broadly categorised into 2 types : 1. Demand deposits, which are repayable by the bank to the customer on demandThey offer high liquidity but correspondingly low or no interest. Includes the Savings Accounts and Current Accounts. Term deposits, which are repayable after expiry of the term, that is, on maturity. In return for the low liquidity (ease of withdrawing money), they offer higher rates of interest than the demand deposits.
1.

The most popular form of Term deposits are Fixed Deposits. Other forms are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand deposit and Fixed deposit). As mentioned previously, to compensate for the low liquidity, FDs offer higher rates of interest than saving accounts. The longest permissible term for FDs is 10 years. Generally, the longer the term of deposit, higher is the rate of interest but a bank may offer lower rate of interest for a longer period if it expects interest rates, at which RBI lends to banks ("repo rates"), to dip in the future. Ordinarily, interest on FDs is paid every three months from the date of the deposit. (e.g. if FD a/c was opened on 15th Feb., first interest instalment would be paid on 15 May). The interest is credited to the customers' Savings bank account or sent to them by cheque. This is aSimple FD. Instead, the customer can choose to have the interest reinvested in the FD account. In this case, the deposit is called the Cumulative FD or compound interest FD. For such deposits, the interest is paid with the invested amount on maturity of the deposit at the end of the term. While banks can refuse to repay FDs before the expiry of the deposit, banks do not generally refuse premature withdrawal. In such cases, interest will be paid at the rate applicable to the term for which the deposit has remained with the bank. For example, a deposit is made for 5 years at 8 %, but is withdrawn after 2 years. If the rate applicable on the date of deposit for 2 years is 5 per cent, the interest will be paid at 5 per cent. Banks can levy a penalty for premature withdrawal. Customers can avail loans against FDs up to 80 to 90 per cent of the value of deposits. The rate of interest on the loan could be 1 to 2 per cent over the rate offered on the deposit. In case the customer defaults in repaying the loan, the bank can adjust his FD against the loan.

Types of FDs The minimum amount you would require to open a fixed deposit account is USD 600. You can choose from two types of FD accounts:

12

* SPECIAL TERM DEPOSITS: The earned interest is added to the principal and compounded quarterly. This amount is accrued and repaid along with the principal amount on maturity of the deposit. * ORDINARY TERM DEPOSITS: The earned interest is credited to the investors account, held with the bank or in a bank account of his choice, once a quarter. In specific cases, interest may be credited on a monthly basis. However, this is at the sole discretion of the bank in which the deposit is made. The interest rate on these fixed deposits is very high and is compounded on a quarterly basis. Also, the earned interest amount is exempt from income tax. It is possible for you to get loans against fixed deposits as well. However, these loans are provided subject to restrictions on the use of the deposited funds. The interest rate applicable to loans against FDs ranges between 5% and 7%. Special FDs If you hold a Non Resident (Special) Rupee (NRSR) account, you can make an FD for any period ranging from 15 days to 10 years. However, the interest rates applicable to the deposits will be the same as those offered to resident investors. Further, the principal amount and the interest earned on the deposit will be non-repatriable and the interest earned will be subject to tax deducted at source by the banks.

GENERAL INSURANCE General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called propertyand casualty insurance in the U.S. and Non-Life Insurance in Continental Europe. In the UK, General insurance is broadly divided into three areas: personal lines, commercial linesand London market. The London market insures large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the City of London. The Lloyd's of London is a big participant in this market.[1] The London Market also participates in personal lines and commercial lines, domestic and foreign, through reinsurance. Commercial lines products are usually designed for relatively small legal entities. These would include workers' comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels. Personal lines products are designed to be sold in large quantities. This would include autos (private car), homeowners (household), pet insurance, creditor insurance and others. ACORD [2] which is the insurance industry global standards organisation. ACORD has standards for personal and commercial lines and has been working with the Australian General Insurers to develop those XML standards, standard applications for insurance, and certificates of currency.
13

LIFE INSURANCE Life insurance is a contract between the policy holder and the insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness orcritical illness may also trigger payment. In return, the policy holder agrees to pay a stipulated amount (the "premium") at regular intervals or in lump sums. In some countries, death expenses such as funerals are included in the premium; however, in the United States the predominant form simply specifies a lump sum to be paid on the insured's demise. The value for the policy owner is the 'peace of mind' in knowing that the death of the insured person will not result in financial hardship. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion. Life-based contracts tend to fall into two major categories: Protection policies designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies.

HEALTH INSURANCE Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health careexpenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity

PROJECT PORTFOLIO MANAGEMENT Project Portfolio Management (PPM) is a term used by project managers and project management (PM) organizations, (or PMOs), to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics. The fundamental objective of PPM is to determine the optimal mix and sequencing of proposed projects to best achieve the organization's overall goals - typically expressed in terms of hard economic measures, business strategy goals, or technical strategy goals - while honoring constraints imposed by management or external real-world factors. Typical attributes of projects being analyzed in a PPM process include each project's total expected cost, consumption of scarce
14

resources (human or otherwise) expected timeline and schedule of investment, expected nature, magnitude and timing of benefits to be realized, and relationship or inter-dependencies with other projects in the portfolio.[vague] Some commercial vendors of PPM software emphasize their products' ability to treat projects as part of an overall investment portfolio. PPM advocates see it as a shift away from one-off, ad hoc approaches to project investment decision making. Most PPM tools and methods attempt to establish a set of values, techniques and technologies that enable visibility, standardization, measurement and process improvement. PPM tools attempt to enable organizations to manage the continuous flow of projects from concept to completion. Treating a set of projects as a portfolio would be, in most cases, an improvement on the ad hoc, one-off analysis of individual project proposals. The relationship between PPM techniques and existing investment analysis methods is a matter of debate. While many are represented as "rigorous" and "quantitative", few PPM tools attempt to incorporate established financial portfolio optimization methods likemodern portfolio theory or Applied Information Economics, which have been applied to project portfolios, including even non-financial issues.[1][2][3][4]

WEALTH MANAGEMENT There is no generally accepted standard definition of wealth management both in terms of the products and services provided and the constitution of the client base served but a basic definition would be financial services provided to wealthy clients, mainly individuals and their families.[1] Private banking should not be confused with a private bank, which is simply a non-incorporated banking institution. Private banking, also called private wealth management, concerns the high-quality provision of a range of financial and related services to wealthy clients, principally individuals and their families. Typically the services on offer combine retail banking products such as payment and account facilities plus a wide range of up-market investment related services.[2] Market segmentation and the offering of high quality service provision forms the essence of private banking and key components include:[2]

tailoring services to individual client requirements anticipation of client needs a long-term relationship orientation personal contact discretion investment performance.

IPO

15

An initial public offering (IPO), is the first sale of stock by a formerly private company. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an Investment Banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price (IPO Initial Public Offerings, 2011).

NEW FUND OFFER IN MUTUAL FUND

New Fund Offer - NFO

What Does New Fund Offer - NFO Mean? A security offering in which investors may purchase units of a closed-end mutual fund. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities.

Investopedia explains New Fund Offer - NFO A new fund offer is similar to an initial public offering. Both represent attempts to raise capital to further operations. New fund offers are often accompanied by aggressive marketing campaigns, created to entice investors to purchase units in the fund. However, unlike an initial public offering (IPO), the price paid for shares or units is often close to a fair value. This is because the net asset value of the mutual fund typically prevails. Because the future is less certain for companies engaging in an IPO, investors have a better chance to purchase undervalued shares.

Company Profile Our Mission The single focus of our organization is to be the most useful, reliable and efficient provider of Financial services.It is our continuous endeavor to be a trustworthy advisor to our clients, helping them achieve their Financial goals. We are SEBI approved merchant bankers, investment advisors and financial planners. We have a track record of ethical dealings for the last 42 years and have had the honour of helping millions of investors achieve their life's financial goals. Your one stop Financial Supermarket We offer you a comprehensive range of financial products and services, which will help you achieve your life's financial goals all under one roof
16

Our Mission Your one stop Financial Supermarket Our range of Products and Services Financial Planning Services Our Team Investment Advisory Products Offered by Bajaj Capital Financial Planning Services Offered by Bajaj Capital Future Goal Funding Bajaj Capital's Value Added Services Bajaj Capital's In-house Publications for Investors 8 Reasons for you to invest only through Bajaj Capital How to achieve 'Lifetime of Investment success'? . Our range of Products and Services Investment Advisory Products Company fixed deposits Bonds Mutual funds Life insurance General insurance Pension schemes Post office schemes Tax saving schemes Insurance linked investment schemes Initial public offerings Housing loans NRI schemes Car insurance Financial Planning Services Investment planning Retirement planning Insurance planning Children's future planning Tax planning Short-term cash flow planning Our Team We have a well-trained professional team comprising of MBAs, CAs, CSs, Financial Analysts, Financial Planners, Investment Experts, Insurance Experts, and Law Graduates. Investment Advisory Products Offered by Bajaj Capital Company Fixed Deposits Company Fixed Deposits offer better returns than Bank Deposits with minimum lock-in periods.
17

Top

Top

18