Investment Sectors In India

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This was an attempt to understand concepts under vivid education of FTKMC- MCX.

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Investment Sectors In India

  1. 1. INVESTMENT SECTORS IN INDIA<br />AnamikaTarafdar<br />M090700007<br />Chitkara University<br />Source: FTKMC knowledge books.<br />
  2. 2. Introduction<br /><ul><li>What is INVESTMENT?
  3. 3. Why investment in market is required?
  4. 4. What are financial instruments?</li></li></ul><li>INTRODUCTION TO INVESTMENT SECTOR<br /><ul><li>BANK FIXED DEPOSITS
  5. 5. LIFE INSURANCE
  6. 6. REAL ESTATE/PROPERTY
  7. 7. POSTAL SAVING SCHEMES
  8. 8. GOLD
  9. 9. SHARES AND MUTUAL FUNDS
  10. 10. NSC AND PPF
  11. 11. BONDS, CHIT FUNDS AND COMPANY FD’S</li></li></ul><li>PRESENT SCENARIO<br /><ul><li>Globally changed position.
  12. 12. New facet with changed technology and terminology.
  13. 13. New and different financial instruments in the market.</li></li></ul><li>The Debt Market<br />The debt market plays a pivotal role in the economy as it helps in efficient mobilization and allocation of resources in the economy, besides financing the development activities of the govt.<br />Factors Impacting the Debt Market <br /><ul><li>Sound fiscal and monetary policy
  14. 14. Effective legal, taxation and regulatory infrastructure</li></li></ul><li><ul><li>Competitive market structure
  15. 15. Low transaction cost
  16. 16. Low levels of fragmentations
  17. 17. Robust market infrastructure
  18. 18. High level of heterogeneity among market participants
  19. 19. Liberalized financial system with competing intermediaries
  20. 20. Diversified investor base-the more investors, the more trading activity
  21. 21. Availability of hedging instruments such as interest rate futures and swaps</li></li></ul><li><ul><li>Reliable benchmark yield curve to price long term risk
  22. 22. Robust clearing and settlement system
  23. 23. Availability of public information to assess credit quality</li></li></ul><li>EQUITIES MARKET<br />The Stock Exchange provides the means by which finance can be raised by the sales of shares to investors. <br />Factors impacting the Equity Market<br /><ul><li>Interest rates
  24. 24. Inflation rate
  25. 25. GDP growth rate
  26. 26. Money supply
  27. 27. Investment climate
  28. 28. Taxation
  29. 29. Regulatory infrastructure
  30. 30. Balance of trade and balance of payments
  31. 31. Currency rates</li></li></ul><li>
  32. 32.
  33. 33. CURRENCY MARKET<br />The Foreign Exchange market is the largest and the most liquid market in the world.<br />Factors impacting Foreign Exchange Market<br /><ul><li>Business cycles
  34. 34. Economic growth and trends
  35. 35. Balance of payment
  36. 36. Balance of trade
  37. 37. Political developments
  38. 38. New tax laws
  39. 39. Stock market news
  40. 40. Inflationary expectations</li></li></ul><li><ul><li>International investment patterns
  41. 41. Government and RBI policies
  42. 42. Market psychology
  43. 43. International political and economic developments</li></li></ul><li>MUTUAL FUND INDUSTRY<br />Indian mutual funds in India commenced operations in 1964 as an initiative of the Indian government and Reserve Bank of India(RBI). <br /><ul><li>Phase I (1964-87) - establishment of UTI
  44. 44. Phase II (1987-93) – entry of public sector funds
  45. 45. Phase III(1993-96) – entry of private sector funds
  46. 46. Phase IV (1996-99) – growth and SEBI regulations
  47. 47. Phase V (1999-2004) –emergence of a large & uniform industry
  48. 48. Phase VI (from 2004) – consolidation and growth</li></li></ul><li>FACTORS IMPACTING MUTUAL FUNDS<br /><ul><li>Performance of fund investments
  49. 49. Units sold or redeemed
  50. 50. Personal experience with a mutual fund company
  51. 51. Current events in the financial markets
  52. 52. Professional financial advisors
  53. 53. Stock market fluctuations
  54. 54. Media coverage about fund companies</li></li></ul><li>RETURNS ARE PASSED ONTO INVESTORS<br />INVESTORS POOL FUNDS WITH FUND MANAGERS<br />SECURITIES GENERATE RETURNS<br />FUND MANAGERS INVEST FUNDS IN SECURITIES<br />
  55. 55. COMMODITY MARKET<br />Futures market facilitates discovery of prices at a future date on the basis of information collected by many stakeholders.<br />FACTORS IMPACTING THE COMMODITY MARKET<br /><ul><li>The demand-supply equation
  56. 56. Seasonality
  57. 57. News
  58. 58. Geo-political developments
  59. 59. Macroeconomic conditions
  60. 60. Currency movement</li></li></ul><li>
  61. 61. Foreign Direct Investment<br />FDI or Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. <br />
  62. 62.
  63. 63. Major Investment Projects in India<br /><ul><li>VIRGIN INDIA
  64. 64. RELIANCE POWER PROJECT
  65. 65. BHARTI WALMART</li></li></ul><li>Conclusion<br />Overall the investment in different sectors shows an uprising trend, thus implying the growth in economy. The investors now are more comprehensive of the current scenario of the financial market and are coming forth to invest extensively with the help of different financial tools to enhance growth and maximize profit and generate unimaginable bottom-line.<br />

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