investment final ppt

COMPARISION OF VARIOUS INVESTMENT ALTERNATIVES

By Sai Sudha.K 

CONTENTS CONTENTS Objectiv Objectives es D ef init inition of  of inv investme estmen nt Objectiv Objectivee of an f an invest investor  or  Inv estmen estment alte alterna rnattives ives 1. Financ Financial assets assets 2. R eal assets assets How do inv estor  estor s invest? invest? Mo st pr eferr  eferr ed investme investmen nt opt option

OBJECTIVES To under stand in depth about differ ent investment avenues available in India. To f ind out how investor s get inf or mation about the various f inancial instruments. The type of f inancial instruments, they would pr efer to invest. The rate of r eturn they would lik ely to earn f rom the investment. The risk s involved in various investments

INVESTMENT Investment r efer s to putting money into something with the expectation of prof it. The f utur e benef its derived f rom an investment ar e known as µreturns¶ 1. Giving loan: with an expectation to get the principal back  along with the inter est at a f utur e date 2. Buying gold: with an expectation of appr eciation in its value in f utur e 3. Buying an insurance plan: f or various benef its derivable in f utur e &/or in case of an eventuality 4. Buying shares of companies: f or dividend &/ or capital appr eciation.

Objectives of an investor Ma ximization of r eturn Mini mization of risk 

INVESTMENT ALTERNATIVES FINANCIAL ASSETS

± Bank Fixed deposits ± Insurance policies ±  National Saving Cer tif icate (NSC) ± Public Provident Fund (PPF) ± Stock Mark et ± Mutual Funds ± Private Equity ±  Non R esident Ordinary (NR O) f unds REAL ASSETS ± R eal estate ± Pr ecious objects

The three golden rules f or all investor s ar e: Inv est early Inv est r egularly Inv est f or long ter m and not shor t ter m

FINANCIAL ASSETS Bank

Fixed Deposits (FD) Fixed Deposit or FD accrues 8.5% of yearly profits, depending on the bank's tenure and guidelines, which makes it's widely sought after safe and secure investment alternative. I nsur ance It

involves pooling funds from many insured entities to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.

N ational

S aving Certificate ( NS   C)

It

is subsidized and supported by government of India as is a secure investment technique with a lock in tenure of 6 years. There is no utmost limit in this investment option while the lowest amount is estimated as Rs 100. P ublic P rovident

Fund ( PP F) Like NSC, Public Provident Fund (PPF) is also supported by the Indian government. An investment of minimum Rs 500 and maximum Rs 70, 000 is required to be deposited in a fiscal year.

I nvestments

in Stock M arket  Investing in share market yields higher profits. stock market to some extent cannot be considered as the safest investment options.. Mutual funds: It is a type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals)

P ri vate

Equity : It refers to a type of investment aimed at gaining significant, or even complete, control of a company in the hopes of earning high return.

N on

Resident Ordinary ( NR   O) funds:

Investing

in domestic (NRO) is one the best investment alternatives for NRI·s who wish to deposit their income accrued abroad and maintain it in Indian rupees.

REAL ASSETS Real est ate investment  involves the commitment of funds to property with an aim to generate income through rental or lease and to achieve capital appreciation. Art as an

investment  avenue has been considered an interesting and profitable alternative, but it is also extremely risky.

GOLD INVESTMENT Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social, or fiat currency crises

OTHER INVESTMENT ALTERNATIVES Company fixed deposits Bonds and Debentures Derivatives Commodities Market

number of people friend's suggestion newspapers/ magazines self decision television brokers/agents others

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