The document discusses various capital market investment avenues in India. It outlines different types of securities traded in the capital market like equity shares, preference shares, debentures, and bonds. It also describes segments of the equity market like the primary market for initial public offerings and the secondary market of stock exchanges. The document provides tips for investors like studying company fundamentals before investing, having a long-term outlook, and avoiding speculation. Finally, it lists various investment opportunities in sectors like infrastructure, agriculture, and healthcare as well as avenues like corporate securities, government bonds, mutual funds, and real estate.

1. Capital Market and Investment Avenues
-B.V.Raghunandan, SVS College, Bantwal
Management Development Programme
Sahyadri College, Adyar-Mangalore-India
November 12, 2011 Page 1

2. Capital Market
• A market for long-term funds
• Securities having a life of more than one year
• Based upon the interpretation of the Tax Laws
and Public Finance Page 2

3. Securities in the Capital Market
• Equity Shares
• Preference
Shares
• Debentures
• Bonds
• Innovative
Bonds or
Preference
Shares
Page 3

4. Equity Shares: A Unique Investment
• Regular Income by way of
Annual Dividend, Interim
Dividend, Special Dividend,
Surplus Dividend
• Capital Appreciation by way
of Bonus Shares
• Capital Appreciation by way
of Increase in market value
• Benefits from Corporate
Action like share splitting,
sponsored ADR, M&A
• Real Time knowledge of
prices
• Voting Right Page 4

5. Segments of Equity Market
Secondary Market: Stock
Primary Market: IPO
Exchange
Page 5

6. Transactions in Stock Market
• Cash Market
• Derivatives Market:
- Futures and
Options Page 6

7. Investor Education: The Most Difficult Exercise
• Converting emotional decisions into rational decisions
• Convincing them about long-term investment
• Exposure to analysis of financial information
• Wisdom not to be moved by the vested opinions
• ignore the concept of loss of profit
Page 7

8. Traditional Retailers
• Geographic
concentration:
Gujarat, Rajastan, and
West Bengal
• Community Biased:
Parsis, Marwadis, Chetti
ars, GSBs and Brahmins
• Urban Concentration
• Broker Dominated with
broker participating in
the sale and purchase
Page 8

9. Change Agents
• Dhirubhai Ambani of
Reliance Industries70s
• IT Companies of the 80s
• Media Companies of the
90s
• Establishment of SEBI in
1988
• Establishment of NSE in
1994
• Entry of FIIs
• Dematerialisation
• Corporate Brokerage
• Shorter Period of
Allotment in Book-Building
• Shorter Settlement Cycle
Page 9

10. Investment in Primary Market
• Study the Prospectus
• Management Profile
• Product Profile
• Premium
• Risk Factors
• History of the Company
• Industry Profile
• Do not look at the
response to the Issue
Page 10

11. Opportunities
• Infrastructure projects
• Commercial Agriculture
• Bio-Technology
• Pharma-Research and Pharmaceuticals
• Hospitals and Hospitality
• Power Sector Development
• Shipping and Ship-Building Page 11

12. Stock Exchange: Strategies
• Buy in the Depressed Market
• Understand the Seasonality of Market
• Understand the Weekly Behavior of the Market
• Invest for Life Time or for Generation
• Sell only in a Boom Market
• Select Dividend Paying Companies Page 12

13. Things to be Avoided
• Acting on Tips
• Avoid Speculation and Day Trading
• It should not become a Full Time
Occupation
• Avoid Derivative Trading
• Avoid borrowing and investing
• Do not park short term funds
• Avoid Distress or Emergency Sale
Page 13

14. Opportunities
• More Inflow of FII money
• Better public finance through
disinvestment
• Gains for the Government through
recapitalisation of banks
• More Venture Capital Participation
• Larger body of retailers
• More stable operations
Page 14

15. Investment Avenues
• Corporate Securities • Medals and Others
• Government • Bank Deposits
Securities • Small Savings
• Mutual Funds • Introduction of Capital
• Exchange Traded for Starting
Funds Firms, Private Limited
• Real Estate Companies and
• Gold Public Limited
Companies
• Old Coins & Stamps
Page 15

16. THANK YOU
Page 16