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    Navdeep Singh

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    Navdeep Singh
    The document provides an overview of the major sectors within India's financial system. It discusses 8 key sectors: 1) the stock market, 2) mutual funds, 3) real estate, 4) post office savings, 5) insurance, 6) provident funds, 7) banks, and 8) gold. For each sector, it outlines what they are, their merits and demerits, as well as specific examples within each sector like share markets, mutual funds categories, and types of insurance companies. The presentation aims to give attendees an understanding of the various components that make up India's financial industry.

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    Navdeep Singh

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    Navdeep Singh
    40 views20 pages
    The document provides an overview of the major sectors within India's financial system. It discusses 8 key sectors: 1) the stock market, 2) mutual funds, 3) real estate, 4) post office savings, 5) insurance, 6) provident funds, 7) banks, and 8) gold. For each sector, it outlines what they are, their merits and demerits, as well as specific examples within each sector like share markets, mutual funds categories, and types of insurance companies. The presentation aims to give attendees an understanding of the various components that make up India's financial industry.

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    The document provides an overview of the major sectors within India's financial system. It discusses 8 key sectors: 1) the stock market, 2) mutual funds, 3) real estate, 4) post office savings, 5) insurance, 6) provident funds, 7) banks, and 8) gold. For each sector, it outlines what they are, their merits and demerits, as well as specific examples within each sector like share markets, mutual funds categories, and types of insurance companies. The presentation aims to give attendees an understanding of the various components that make up India's financial industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    40 views20 pages

    Navdeep Singh

    Uploaded by

    Navdeep Singh
    The document provides an overview of the major sectors within India's financial system. It discusses 8 key sectors: 1) the stock market, 2) mutual funds, 3) real estate, 4) post office savings, 5) insurance, 6) provident funds, 7) banks, and 8) gold. For each sector, it outlines what they are, their merits and demerits, as well as specific examples within each sector like share markets, mutual funds categories, and types of insurance companies. The presentation aims to give attendees an understanding of the various components that make up India's financial industry.

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    A presentation on :-

    Financial sectors

    Presentation BY:
    Navdeep Singh (Starex University)
    What is Financial sector ?
    • The financial sector is a section of the economy made up of firms and institutions that
    provide financial services to commercial and retail customers.
    • The financial sector generates a good portion of its revenue from loans and mortgages
    and thrives in a low-interest-rate environment.
    • The sector is comprised of many different industries including :
    banks, investment companies, insurance companies, and real estate firms.
    • A strong financial sector is a sign of a healthy economy.
    Types of Financial Sector
    1. Share Market
     A equity market is the aggregation of buyers and sellers of stocks(Shares).
     It represents the ownership claims on businesses.
     It can be Securities listed on stock exchange or which is privately traded to investors.
     It is divided into two parts:

    1.NSC(National Stock Exchange)

    2.BSC(Bombay Stock Exchange)


    Merits and D-merits of Share market
    Merits  D-Merits
    Diversification Easy buy and sell

    Risk
    Volatile
    Stay ahead of inflation

    Fraud
    Ownership stake in
    company
    Lack of knowledge
    Time consuming

    Contribute to economic growth


    2. Mutual Funds
    • A mutual fund is a professionally managed investment fund that pools many from many
    investors to purchase securities.
    • It consists of a portfolio of stocks, bonds, or other securities
    • Mutual fund give chance to individual or small investor to invest.
    • Mutual funds are divided into many categories,

    representing the kind of securities they invest in, their investing objective and the type
    of returns they seek for.
    • Employer sponsored retirement plans commonly invest in mutual funds.
     Merits  D-Merits
    1

    1
    • Fluctuating Returns
    liquidity
    2
    2
    • No control
    Low cost
    3
    • Diversification
    3

    Transparency 4
    • Cost

    5
    • Past performance
    4

    Flexibility 6
    • Fund evaluation
    5

    Variety of scheme
    6

    Well regulated
    3.Real Estate
     To boost the residential industry in the country the central government established:
     The housing & urban development company in1970
     City & industrial development corporation in 1971
     National housing bank in 1988
     Real estate investing involves the purchase, management and sale or rental of real estate for
    profit.
     Real estate investment trusts (REITs) are basically dividend paying stocks.
     Merits  D-Merits

    Easy to understand Time consuming

    Improvable Requires maintenance

    Hedge against inflation High cost

    High rate of retrn Iliquid

    Saves income tax Property tax

    Steady cash inflows Decline property rate


    4.Post office
    • The post office savings bank is the oldest and by far the largest banking system in the country.
    • Serving the investment need of both urban and rural clientele.
    • These are offered as an agency service for the ministry of finance, government of india.
    • It was started because of the reach of the post offices(more than bank branches).
     Merits
    Low minimum amount High interest rates

    Premature withdrawal Transferrable

    Gives auto renew/credit facility

     D-Merits
    No online facility Not for short term

    Unfriendly post office


    staff No control

    Higher costs
    5.Insurance
    • The insurance industry is made up of different types of players operating in different
    spaces.
    • Life insurance companies focus on legacy planning and replacing human capital value,
    health insurers cover medical costs, and property, casualty, or accident insurance is
    aimed at replacing the value of homes, cars, or valuables.
    • Insurance companies can be structured either as a traditional stock company with
    outside investors, or mutual companies where policyholders are the owners.
    1 Does not compensate all type of losses

    2 Require more time

    3 Complex process

    4 System of collateral securities

     Merits 5 Fraud

    1 Perfect for your family 6 Temporary and Termination

    2 Shares Risks  D-Merits


    3 Tax benefits
    4 Financial support
    5 Economic protection
    6 Encourages savings
    6.Provident Fund
    • Provident fund is a government-managed retirement savings scheme for employees who
    can contribute a part of their pension fund every month.
    • It is divided mainly into three parts:
     PPF (Public provident Fund):

    For common people, 7.1% rate, 5years, tax saving by section 80(C) & 10(10)D

     EPF (Employer provident Fund)


    For private employees, 8.1% rate, gets money after retirement, tax saving by section 80(C) & 10(10)D

     GPF (General provident Fund)

    12% given by employee & 12% by company


     Merits  D-Merits
    Guaranteed • Time consuming
    returns Tax Savings 1

    2 • Joint a/c not allowed


    Everybody can 3
    • No liquidity
    Take loan from PF
    invest in PF • Outsiders cannot invest
    4

    • Limited (1.5L)
    Under stable 5

    6
    • Cannot close A/C before maturity
    7.Bank (Fd & RD)
    • The banking industry is the foundation of the financial services group.
    • It is most concerned with direct saving and lending, while the financial services sector incorporates
    investments, insurance, the redistribution of risk, and other financial activities.
    • Banking services are provided by large commercial banks, community banks, credit unions, and
    other entities.
     Merits  D-Merits
    1

    Economic growth Time consuming


    2
    Low returns
    Credit growth
    3
    Account fees
    Low penetration
    4

    Global reach High risks


    5
    Assets Quality
    Development of rural areas
    6 Lack of cordination
    Rate of interest can be higher
    8.Gold

    • Due to some influencing factors such as high liquidity and inflation-beating capacity,
    gold is one of the most preferred investments in India.
    • Gold investment can be done in many forms like buying jewelry, coins, bars, gold
    exchange-traded funds, Gold funds, sovereign gold bond scheme, etc.
    • Gold: Gold ETFs (Exchanged Traded Funds)
    No Demat account is needed: One needs a Demat account in order to invest
    Merits D-Merits

    Value for longer Difficult to High risks


    Less Risk store
    period
    Most High
    desired
    commodity
    costs
    Needs security
    Tangible Low volatility and liqudity
    insurance
    Thank you

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