Financial sector

1. 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.
• This sector comprises a broad range of industries
including banks, investment companies, insurance
companies, and real estate firms.

2. FINANCIAL SECTORS
 Banking sector
 Stock market
 Mutual funds
 Real estate
 Gold
 Public provident fund (PPF)
 Goverment bonds
 Life insurance

3. BANKING SECTOR
• It supervises and administers exchange
control and banking regulations and
administers the government's monetary policy.
• The banking system in India works according
to the guidelines issued by the RBI.
• The banking sector is the lifeline of the modern
economy.
• A bank is a financial institution which performs
the deposit and lending function.

4. Merits & Demerits
• Safety & security of
deposits
• Fixed and assured
return
• Easy liquidity
• Loan facility
• Low returns
• No tax benefits
• Penalty charges on
pre-mature
withdrawls

5. Stock Market
• A stock market, equity market, or share market
is the aggregation of buyers and sellers of
stocks (also called shares), which represent
ownership claims on businesses; these may
include securities listed on a public stock
exchange, as well as stock that is only traded
privately, such as shares of private companies
which are sold to investors through equity
crowdfunding platforms. Investment is usually
made with an investment strategy in mind.

6. Stock Market
MERITS
• High chances of return
• Easy liquidity
• Regulated by sebi
• Ownership perks
• Varitey of options
available
DEMERITS
• Fluctuating returns
• Risky investments
• No tax benefits
• Huge market
knowledge required

7. Mutual funds
• A mutual fund is a collective investment
vehicle that collects & pools money from a
number of investors and invests the same
in equities, bonds, government securities,
money market instruments.
• The money collected in mutual fund
scheme is invested by professional fund
managers in stocks and bonds etc.

8. Mutual funds
Merits
• Moderately high
returns
• Regulated sector
• Moderate liqudity
• Variety available
• Flexible investment
• Professional
assistance
• Digitalization
Demerits
• Subject to market risk
• No tax benefits
• High commission
charges
• Little market knowledge
required
• No control over
investments

9. Real Estates
• Real estate is the land along with any
permanent improvements attached to the
land, whether natural or man-made—
including water, trees, minerals, buildings,
homes, fences, and bridges.
• Real estate is a form of real property. It differs
from personal property, which are things not
permanently attached to the land, such as
vehicles, boats, jewelry, furniture, and farm
equipment.

10. Real Estate
Merits
• Secondary income
• Loan facility
• Inflation cover
• Passes to next
generation
Demerits
• Low returns
• Huge capital required
• No tax benefits
• Brokerage /commision
charges
• Maintainence charges
• Low liquidity

11. Gold
• Gold has a special place among metals. It is the
oldest metal exploited by man, it plays an
important role in world economics, it is highly
prized, it was the ultimate goal of alchemists,
and it is stored in the vaults of banks.
• Gold has been used in gilding, to make funeral
masks, and for many other uses.

12. Gold
Merits
• Inflation cover
• Loan facility
• Protection against
uncertainty
• Could be passed to
next generation
Demerits
• Low returns
• No tax benefits
• Low liqudity
• Making charges
• Maintainence
charges

13. Public provident fund (PPF)
• The Public Provident Fund (PPF) is a
savings-cum-tax-saving instrument in India,
introduced by the National Savings Institute
of the Ministry of Finance in 1968.
• The main objective of the scheme is to
mobilize small savings by offering an
investment with reasonable returns
combined with income tax benefits.

14. Public provident fund (PPF)
Merits
• Safety and security
• Fixed and assured
returns
• Tax benefits
• Minors can also invest
• Protectionagaints
insolvency
Demerits
• Lock in period
minimum 7 years in
which 50% amount can
be withdrawn
• 15 years long time
period
• Moderate returns

15. Life insurance
• Life Insurance is defined as a
contract between the policy
holder and the insurance
company, where the life
insurance company pays a
specific sum to the insured
individual's family upon his
death.
• The life insurance sum is paid
in exchange for a specific
amount of premium.
• Life is beautiful, but also
uncertain.

16. Life insurance
Merits
• Saftey and security
• High returns
• Life security (cover)
• Varities available
Demerits
• Higher premium for
old age people
• Complex policies
• Hidden clauses

17. Goverment Bonds
• A government bond is a debt security
issued by a government to support
government spending and obligations.
• Government bonds can pay periodic
interest payments called coupon
payments.
• Government bonds issued by national
governments are often considered low-
risk investments since the issuing
government backs them.

18. Goverment Bonds
Merits
• Practical project
• Tax benefits
• Liquidity
• Regular income
Demerits
• Lower rate of return
• Interest rate risk

19. Name :-
Ritik Borkar
College :- Dr. Dy Patil
GBSRC pune
Submitted to :-
Sarthak Sir
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