Best Investment information

1. WELCOME
TO
DIGITAL
EMPOWERMENT
BATCH NO. :- 15
SUBJECT :-INVESTMENT

2. ❖ What is investment ?
Investment banking is a special segment of banking
operation that helps individuals or organizations raise
capital and provide financial consultancy services to them.
They act as intermediaries between security issuers and
investors and help new firms to go public. They either buy
all the available shares at a price estimated by their experts
and resell them to public or sell shares on behalf of the
issuer and take commission on each share.

3. ❖ Types of investments
⮚Stocks
⮚Bonds
⮚Mutual Funds
⮚Exchange Trade Funds (ETFS)
⮚Certificates of Deposit (CDS)
⮚Retirement plans

5. Investing is an effective way to put your
money to work and potentially build wealth.
Smart investing may allow your money to outpace
inflation and increase in value. The greater
growth potential of investing is primarily due to
the power of compounding and the risk-return
tradeoff.
❖ Need Of Investment ?

6. Inflation refers to the situation in which there is
sustained increase in prices of goods and services
leading to decline in people's purchasing power.
Due to inflation, the value of money decreases
over time. This means that the value of Rs.
1,00,000 held with you as idle money will fall in
value in future.
❖ Inflation Of Investment

7. Return on investment, or ROI, is a mathematical formula that investors can use
to evaluate their investments and judge how well a particular investment has
performed compared to others. An ROI calculation is sometimes used with
other approaches to develop a business case for a given proposal. The overall
ROI for an enterprise is used as a way to grade how well a company is
managed.
If an enterprise has immediate objectives, including getting
market revenue share, building infrastructure or positioning itself for sale, a
return on investment might be measured in terms of meeting one or more of
these objectives rather than immediate profit or cost savings.
 Returns of investment

8.  Derivative of investment
A derivative is a contract between two or more
parties whose value is based on an agreed-
upon underlying financial asset (like a security)
or set of assets (like an index). Common
underlying instruments include bonds,
commodities, currencies, interest rates, market
indexes, and stocks.

9.  Important Steps To Investing
1.Create and follow a financial plan
2.Diversify among various assets (as per your
temperament)
3.Invest and stay invested as per your financial tenure
4.Avoid trying to time the equity markets
5.Ignore stock market volatility, emotions, get rich tips…
6.Look for long term compounding effect
7.Keep realistic expectations while investing
8.Periodically review, and re-balance if necessary

10.  Interest On Investment
Interest on investments is the periodic receipt of
inflows on financial instruments like bonds,
government securities, or bank accounts. It may be
income earned from the specified form of liquid
assets. The pay-out can be monthly, quarterly, or
annually.

11. ❖Factors Determine Intrest Rate
An interest rate is the cost of borrowing money. Or,
on the other side of the coin, it is the compensation
for the service and risk of lending money. In both
cases it keeps the economy moving
by encouraging people to borrow, to lend, and to
spend.

12. ❖ Option For Investment
Options can be a better choice when you want to limit risk to
a certain amount. Options can allow you to earn a stock-like
return while investing less money, so they can be a way to
limit your risk within certain bounds. Options can be a
useful strategy when you're an advanced investor. Options
are the most dependable form of hedge, and this also makes
them safer than stocks.

13. ❖Short term Financial Option Invetsment
In case of short term investments, the money can be converted
into cash after a tenure of 3 to 12 months. Some of the popular
short term investments include high-yield savings accounts,
money market accounts, treasury bills, and government bonds,
which are quality products with highly liquid assets.

14. ❖Saving Bank Account
A savings account is an interest-bearing deposit account held at a
bank or other financial institution. Though these accounts typically
pay a modest interest rate, their safety and reliability make them a
great option for parking cash you want available for short-term needs.
Savings accounts have some limitations on how often you can
withdraw funds, but generally offer exceptional flexibility that’s ideal
for building an emergency fund, saving for a short-term goal like
buying a car or going on vacation, or simply sweeping surplus cash
you don’t need in your checking account so it can earn more interest.

15. ❖ Money Market Investment
A money market fund is a kind of mutual fund that invests in
highly liquid, near-term instruments. These instruments include
cash, cash equivalent securities, and high-credit-rating, debt-
based securities with a short-term maturity (such as U.S.
Treasuries). Money market funds are intended to offer investors
high liquidity with a very low level of risk. Money market funds
are also called money market mutual funds.

16. ❖ Fixed Deposit with banks
In a Fixed Deposit, you put a lump sum in your
bank for a fixed tenure at an agreed rate of
interest. At the end of the tenure, you receive the
amount you have invested plus compound interest.
FDs are also called term deposits.

17. ❖ Long Term Financial Investment
A long-term investment is an account on the asset side of a company's
balance sheet that represents the company's investments, including stocks,
bonds, real estate, and cash. Long-term investments are assets that a
company intends to hold for more than a year.
The long-term investment account differs largely from the short-term
investment account in that short-term investments will most likely be sold,
whereas the long-term investments will not be sold for years and, in some
cases, may never be sold.

18. ❖ Post Office Saving
The post office savings account is a deposit scheme provided
by the post office throughout India. The account provides a
fixed interest rate on the account balance. It is a beneficial
scheme for individual investors who wish to earn a fixed rate of
interest by investing a significant portion of their financial assets.

19. ❖ Public Provident Fund
Public Provident Fund (PPF) is a retirement savings scheme
offered by the Government of India with the aim of providing
a secure post-retirement life to everyone. The minimum
deposit you must make in the account per financial year is Rs.
500 and it can go up to Rs. 1.5 lakh

20. ❖ Company Fixed Deposit
Company Fixed Deposit (corporate FD) is a term
deposit which is held over fixed period at fixed
rates of interest. Company Fixed Deposits are
offered by Financial and Non-Banking financial
companies (NBFCs). The maturities of various
company fixed deposits can range from a few months
to a few years.

21. Thank You
Made By :-
Anuj Dhawan
Kartik More