1 PARTICIPANTS IN FINANCIAL MARKET Dr P Saradhamani

1 PARTICIPANTS IN FINANCIAL MARKET Dr. P. Saradhamani , Do. MS, 3/18/2018

AGENDA 2 What is investment ? Why invest ? Where invest ? An Introduction to Financial Market Types of Financial Market Conclusion Dr. P. Saradhamani , Do. MS, 3/18/2018

What is Investment ? 3 Money we earn is partly spent and rest saved for meeting future expenses. Instead of keeping the savings idle we like to use savings in order to get return on it in the future. This is called Investment. Dr. P. Saradhamani , Do. MS, 3/18/2018

Why Invest ? 4 Earn Return on idle resources Generate sum of money for specified goal in life Make provision for uncertain future To meet the cost of inflation Dr. P. Saradhamani , Do. MS, 3/18/2018

An Introduction to Financial Market 5 In economics, a financial market is a mechanism that allows people to easily buy & sell (trade) financial securities ( such as stocks & bonds ), commodities ( such as precious metals or agricultural goods ). Dr. P. Saradhamani , Do. MS, 3/18/2018

Types of Financial Market 6 Capital market Commodity Market Money Market Financial Market Derivatives Market Dr. P. Saradhamani , Do. MS, Insurance Market Foreign Exchange Market 3/18/2018

Options for Retail Investor 7 Equity Debt Mutual Funds Fixed Deposits with Banks Post office schemes Gold Real Estate Insurance Dr. P. Saradhamani , Do. MS, 3/18/2018

Equity Shares 8 • It commonly referred to as ordinary share represents the form of fractional ownership in a business venture. • Equity shareholders have the right to get dividends as declared. Dr. P. Saradhamani , Do. MS, 3/18/2018

DEBT 9 This instrument represents contract whereby one party lend money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principle amount by the borrower to the lender. Dr. P. Saradhamani , Do. MS, 3/18/2018

Classification of DEBT 10 BONDS: Issued by Govt. (Central and State), Public Sector Organisation DEBENTURES: Issued by Private Corporate Sector. Dr. P. Saradhamani , Do. MS, 3/18/2018

Mutual Fund 11 A Mutual fund is a collective investment vehicle that pools together investor money. This collective pool of money is invested in accordance to stated objective. Mutual Funds are : Ø A large pool of resources Ø Managed by professionals Ø Diversified investment for lower risk & better return Dr. P. Saradhamani , Do. MS, 3/18/2018

Fixed Deposits with Banks 12 It allows an investor to deposit a lump sum of money for a fixed period ranging from a few weeks to a few year and earn a pre-determined rate of interest. Guaranteed Returns depends upon term. Safe and Secured Investments Dr. P. Saradhamani , Do. MS, 3/18/2018

Post Office Schemes 13 Offered by Govt. of India Safe, secure and risk-free Investment No Tax deduction at source (TDS) Transferable to any post office in India Attractive Rate of Interest Post office monthly income scheme Kisan Vikas Patra National Savings certificate Public Provident Fund Dr. P. Saradhamani , Do. MS, 3/18/2018

GOLD 14 Physical Gold in the form of bars and coins Gold accounts in banks where units in the gold a/c in the banks are backed up by physical gold held in the bank and bank gives assurance that the investor can convert the gold back to cash anytime. Dr. P. Saradhamani , Do. MS, 3/18/2018

Real Estate Investment 15 Financial instrument that invests primarily in the real estate such as offices, apartments, shopping centres, hotels etc. Tend to pay high returns( often as high as 10%) Attractive investment opportunity when the stock market is falling. Dr. P. Saradhamani , Do. MS, 3/18/2018

Insurance 16 A promise of compensation for specific potential future losses in exchange for a periodic payment. Now it is considered as a investment tool also: ULIPs Traditional Plans Dr. P. Saradhamani , Do. MS, 3/18/2018

Conclusion 17 Investors looks at superior returns and measured risk therefore he has to select a dynamically balanced asset allocation mix consisting of the different investment options available in the Financial Market. Dr. P. Saradhamani , Do. MS, 3/18/2018

18 THANK YOU Dr. P. Saradhamani , Do. MS, 3/18/2018