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    Mehak Insplore

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    Kashish Singhal
    The document discusses different types of investments including share market, mutual funds, bank fixed deposits, gold, provident fund, real estate, post office deposits, and insurance. For each investment type, it provides a brief definition and then lists the main merits and demerits. The key points covered include how the share market and stock market differ, how mutual funds and PFs work, merits like returns and tax benefits versus demerits like risk, illiquidity and fees for each investment avenue.

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    Mehak Insplore

    Uploaded by

    Kashish Singhal
    28 views19 pages
    The document discusses different types of investments including share market, mutual funds, bank fixed deposits, gold, provident fund, real estate, post office deposits, and insurance. For each investment type, it provides a brief definition and then lists the main merits and demerits. The key points covered include how the share market and stock market differ, how mutual funds and PFs work, merits like returns and tax benefits versus demerits like risk, illiquidity and fees for each investment avenue.

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    MEHAK_INSPLORE

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    The document discusses different types of investments including share market, mutual funds, bank fixed deposits, gold, provident fund, real estate, post office deposits, and insurance. For each investment type, it provides a brief definition and then lists the main merits and demerits. The key points covered include how the share market and stock market differ, how mutual funds and PFs work, merits like returns and tax benefits versus demerits like risk, illiquidity and fees for each investment avenue.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views19 pages

    Mehak Insplore

    Uploaded by

    Kashish Singhal
    The document discusses different types of investments including share market, mutual funds, bank fixed deposits, gold, provident fund, real estate, post office deposits, and insurance. For each investment type, it provides a brief definition and then lists the main merits and demerits. The key points covered include how the share market and stock market differ, how mutual funds and PFs work, merits like returns and tax benefits versus demerits like risk, illiquidity and fees for each investment avenue.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    MEHAK

    SINGAL
    IITM 
    TYPES OF INVESTMENT
    WHAT IS SHARE MARKET?

    • ​The share market is a platform where buyers and sellers come


    together to trade on publicly listed during specific hours of the day.
    • People often use the terms ‘share market’ and ‘stock market’
    interchangeably.
    • However, the key difference between the two lies in the fact that
    while the former is used to trade only shares, the latter allows you to
    trade various financial securities such as bonds, derivatives, forex etc.
    • The principal stock exchanges in India are the National Stock
    Exchange (NSE) and the Bombay Stock Exchange (BSE).
    MERITS AND DEMERITS OF
    SHARE MARKET
    • MERITS
    An ownership stake in a company
    Easy to buy
    Return on investment
    Good returns on investments in short time
    • DEMERITS
    Volatile investments
    High brokerage and low margin
    Impulsive investment
    WHAT IS MUTUAL FUND?

    • A mutual fund is an investment vehicle where many investors pool their money
    to earn returns on their capital over a period.
    • This corpus of funds is managed by an investment professional known as a fund
    manager or portfolio manager.
    • It is his/her job to invest the corpus in different securities such as bonds, stocks,
    gold and other assets and seek to provide potential returns.
    • The gains (or losses) on the investment are shared collectively by the investors
    in proportion to their contribution to the fund.
    MERITS AND DEMERITS OF
    MUTUAL FUNDS
    • MERITS
    Liquidity
    Diversification
    Expert Management 
    Flexibility to invest in Smaller Amounts 
    • DEMERITS
    Fluctuating returns
    No Control
    Fund Evaluation
    WHAT IS BANK/FD?

    • In a Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an
    agreed rate of interest.
    • At the end of the tenure, you receive the amount you have invested plus
    compound interest. 
    • FDs are also called term deposits.
    • Interest rates on FDs are fixed when you open the deposit and the rate depends
    on the term that you wish to hold it for. Visit the HDFC Bank website to view
    the latest FD interest rates.
    MERITS AND DEMERITS OF
    BANK/FD
    •MERITS
    Assured rate of return
    Tax threshold for interest
    Flexible tenure
    Easy liquidation
    •DEMERITS
    Locked in funds
    Penalties on withdrawal
    No tax benefit
    WHAT IS GOLD?

    • Gold funds are investment vehicles that offer exposure to gold.


    • They come in a variety of forms, but three popular varieties are those investing
    in physical gold, gold futures contracts, and gold mining companies.
    • Investors interested in hedging against inflation generally opt for gold funds that
    hold gold bullion or futures, whereas investors who are particularly bullish on
    gold tend to also incorporate gold mining companies.
    • A gold fund is a type of investment fund that holds assets related to gold.
    MERITS AND DEMERITS OF
    GOLD
    • MERITS
    Gold has a long-term Store of Value
    High in demand
    High Liquidity
    Inflation Hedge
    • DEMERITS
    Returns may not be higher
    Needs Security and Insurance
    It is difficult to transact when you have invested in gold
    WHAT IS PF?

    • A provident fund​ is an investment fund that is voluntarily established by


    Employer and employees to serve as long term savings to support an employee’s
    retirement.
    • Sources of fund:
    1.Employee’s contribution:  The amount deducted from the employee’s salary at a
    rate of 2% – 15%.
    2.Employer’s contribution: Besides the usual salary payment made to the
    employer, an employer will also pay 2% - 15% of employee’s salary into the
    fund. It is also considered a part of employment welfare.
    MERITS AND DEMERITS OF PF

    • MERITS
    Safest Investment Avenue
    Assured returns
    Tax benefits
    Options to invest in PPF
    • DEMERITS
    Accumulated Corpus may not high
    Longer lock-in period
    Upper limit
    WHAT IS REAL ESTATE?

    • Real estate investing refers to the purchase of property as an investment to


    generate income rather than using it as a primary residence.
    • In simple terms, it can be understood as any land, building, infrastructure and
    other tangible property which is usually immovable but transferable.
    • Some of the examples of real estate are a house, office building, agricultural
    land, commercial plot, etc. It is considered to be a secured form of investment.
    MERITS AND DEMERITS OF REAL
    ESTATE
    • MERITS
    Hedge Against Inflation
    Rent Pays Off for Mortgage
    Stable Income
    Tax Benefits
    • DEMERITS
    Tax Benefits
    Self Decision Making
    Financial Security
    WHAT IS POST OFFICE?

    • The post-office term deposit (POTD) is similar to a bank fixed deposit, where
    you save money for a definite time period, earning a guaranteed return through
    the tenure of the deposit.
    • At the end of the deposit's tenure, the maturity amount comprises the capital
    deposited and the interest it earns.
    MERITS AND DEMERITS OF POST
    OFFICE
    • MERITS
    Low Minimum Amount
    High Interest Rates
    Premature Withdrawal
    • DEMERITS
    Schemes are not digitized
    Unfriendly Post office Staff
    Post Office Agents Rule the Roost
    WHAT IS INSURANCE?

    • Insurance is a contract, represented by a policy, in which an individual or entity


    receives financial protection or reimbursement against losses from an insurance
    company.
    • The company pools clients’ risks to make payments more affordable for the
    insured.
    • Insurance policies are used to hedge against the risk of financial losses, both big
    and small, that may result from damage to the insured or her property, or from
    liability for damage or injury caused to a third party.
    MERITS AND DEMERITS OF
    INSURANCE
    • MERITS
    Provides Economic Protections
    Shares Risk
    Maintain Standard of living
    Encourages Savings
    • DEMERITS
    Long Legal formalities
     Fraud Agency
    Not for all People
    THANKYOU

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