Investment Ppt

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INVESTMENT
•ALTERNATIVES •CLASSIFICATION •APPROACHES
DMP-INVESTMENT MGT

Investment Vs. Speculation
INVESTOR
• PLANNING HORIZON • RISK DISPOSITION • RETURN EXPECTATION • BASIS FOR DECISIONS • LEVERAGE LONG MODERATE MODEST FUNDAMENTAL NO DMP-INVESTMENT MGT

SPECULATOR
SHORT HIGH HIGH TECHNICAL HIGH

Investment Alternatives
Investm ent A venues N onm arketable Financial A ssets B onds

E quity Shares M oney M arket Instrum ents

M utual Fund Schem es R eal E state

L ife Insurance Policies Precious O bjects Financial D erivatives DMP-INVESTMENT MGT

Investment Attributes
• RETURN

• RISK • LIQUIDITY • TAX SHELTER • CONVENIENCE

DMP-INVESTMENT MGT

Choices Galore

• Non-marketable Financial Assets • Money Market Instruments • Bonds or Fixed Income Securities • Equity Shares • Mutual Fund Schemes • Financial Derivatives • Life Insurance • Real Estate • Precious Objects DMP-INVESTMENT MGT

Non-Marketable Financial Assets
• BANK DEPOSITS • POST OFFICE TIME DEPOSITS (POTDs) • MONTHLY INCOME SCHEME OF THE POST OFFICE (MISPO) • KISAN VIKAS PATRA (KVP) • NATIONAL SAVINGS CERTIFICATE • COMPANY DEPOSITS • EMPLOYEES PROVIDENT SCHEME • PUBLIC PROVIDENT FUNDMGT SCHEME DMP-INVESTMENT

Money Market Instruments
• TREASURY BILLS • CERTIFICATES OF DEPOSITS • COMMERCIAL PAPER • REPOS

DMP-INVESTMENT MGT

Bonds or Fixed Income Securities
• Government Securities • Savings Bonds • Private Sector Debentures • PSU Bonds • Preference Shares

DMP-INVESTMENT MGT

Classification of Equity Shares
• BLUE-CHIP SHARES • GROWTH SHARES • INCOME SHARES • CYCLICAL SHARES • DEFENSIVE SHARES • SPECULATIVE SHARES

DMP-INVESTMENT MGT

Mutual Fund Schemes
• Equity Schemes • Balanced Schemes • Debt Schemes • Regulation • Pros and Cons DMP-INVESTMENT MGT

Financial Derivatives
A derivative is an instruments whose value depends on the value of some underlying asset. Futures A futures contract is an agreement between two parties to exchange an asset for cash at a predetermined future date for a price that is specified today. Options An option gives its owner the right to buy or sell an underlying asset on or before a given date at a predetermined price. DMP-INVESTMENT MGT

Insurance Policies
• Endowment Assurance • Money Back Plan • Whole Life Assurance • Unit Linked Plan • Term Assurance • Immediate Annuity • Deferred Annuity DMP-INVESTMENT MGT

Real Estate
• Residential House • Sources of Housing Finance • Features of Housing Loans • Guidelines for Buying a Flat • Commercial Property • Agricultural Land • Suburban Land • Time Share in a Holiday Resort DMP-INVESTMENT MGT

Precious Objects
• Gold and Silver

• Precious Stones

• Art Objects

DMP-INVESTMENT MGT

Evaluation Of Various Investment Avenues
Return Current yield Capital appreciation Equity Shares Nonconvertible Debentures Equity Schemes Debt Schemes Bank Deposits Public Provident Fund Life Insurance Policies Residential House Gold and Silver Low High Low Moderate Moderate Nil High Negligible High Low Nil Moderate Risk High Low High Low Negligible Nil Marketability/ Liquidity Fairly high Average High High High Average Tax Shelter High Nil High No tax on dividends Nil Section 80 C benefit Section 80 C benefit High Nil Convenience High High Very high Very high Very high Very high

Nil Moderate Nil

Moderate Moderate

Nil

Average Low

Very High Fair Average

Negligible

Moderate DMP-INVESTMENT MGT Average Average

CLASSIFICATI ON OF FINANCIAL MARKETS
DEBT MARKET NATURE OF CLAIM EQUITY MARKET MONEY MARKET MATURITY OF CLAIM CAPITAL MARKET PRIMARY MARKET SEASONING OF CLAIM SECONDARY MARKET CASH OR SPOT MARKET TIMING OF DELIVERY FORWARD OR FUTURES MARKET EXCHANGE-TRADED MARKET ORGANISATIONAL STRUCTURE DMP-INVESTMENT MGT

OVER-THE-COUNTER MARKET

Approaches To Investment Decision Making
• FUNDAMENTAL APPROACH • PSYCHOLOGICAL APPROACH • ACADEMIC APPROACH MP ≃ IV

RANDOM WALK POSITIVE LINK..RISK & RETURN •...
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