good

1. The banking industry in India has a huge canvass of history, which covers the
traditional banking practices from the time of Britishers to the reforms period,
nationalization to privatization of banks and now increasing numbers of foreign
banks in India. Therefore, banking in India has been through a long journey. Rural
banking and micro financing are the two gateways for the Indian banks to grow and
compete with international banks.
The use of technology has brought a revolution in the working style of the banks and
it has pervaded each and every aspect of human life in a drastic manner. As we
know finance is considered as the life blood of all economic activities and has
become integral part of modern business. A country’s financial system works in a
set of financial markets, financial services and financial institutions.

2. MERITS :
 Flexible Amount
 Fixed and Assured Returns
 Easy Liquidity
DEMERITS :
 No Tax Benefit
 Moderate Returns

3. • The NSE (National Stock Exchange)has about 1500 listed stocks. The BSE (Bombay Stock
Exchange)has over 6000 listed stocks.
• Most major stocks in India are traded on both the stock exchanges which means that an investor can buy
or sell shares on either exchange.
• The primary index of BSE is BSE Sensex comprising 30 stocks.
• NSE has the S&P NSE 50 Index (Nifty) which consists of fifty stocks.
• Securities and Exchange Board of India (SEBI) Ltd. is the key regulator governing Stock Exchanges,
Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian
Secondary and Primary Market.

4. MERITS :
 High chances of return
 Ownership Benefits
 Multiple options available
DEMERITS :
 High risk
 Huge market knowledge required

5. • A mutual fund is an investment vehicle that collects money from a large group of
investors.
• Similarly, when organising the picnic, the contributions from your family members are
pooled together. Here, your family members could represent the 'large group of
investors'. The share that each person pays is their 'investment'.
• A professional fund manager or a fund management team decides how to use this
pool of money. They allocate the investors’ money across different asset classes.
• One could compare the fund manager (or the fund management team) with those
family members who organise the picnic. Of course, unlike your enthusiastic uncle,
the fund manager charges a fee for the service provided.

6. MERITS :
 Moderate returns
 Professional assistance
 Regulated sector
DEMERITS :
 No tax benefit
 High commission charge

7.  The real estate sector is one of the most globally recognized sectors. It comprises of four
sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well
complemented by the growth in the corporate environment and the demand for office
space as well as urban and semi-urban accommodation. The construction industry ranks
third among the 14 major sectors in terms of direct, indirect and induced effects in all
sectors of the economy.
 In India, the real estate sector is the second-highest employment generator, after the
agriculture sector. It is also expected that this sector will incur more non-resident Indian
(NRI) investment, both in the short term and the long term

8. MERITS :
 Loan facility
 Inflation Cover
 Good return
DEMERITS :
 Huge capital required
 Maintenance charges

9.  By investing in gold funds, you invest in stocks of companies operating in gold and
gold-related activities. Gold mutual funds include silver, platinum, and other metals in
their investment basket.
 Investments are made and managed by the investor
 Gold is a precious high-value metal that is liquid in nature
 Pools investors’ money in equities, debts and other market instruments to multiply the
money

10. MERITS :
 Inflation cover
 Protection against uncertainity
 Loan facility
DEMERITS :
 Storage issues
 Making charges

11.  Among the many schemes, the Public Provident Fund (PPF), is
designed to offer fixed returns, tax exemptions, and the safety
of investments. While exploring different long-term investment
options, you might consider opening a PPF account in a post
office or an authorised national or private bank.
 You can start saving and gaining interest in a Public Provident
Fund account instead of letting funds sit idle in a savings
bank account. This will not only instil a habit of savings but
also provide returns in the long run. Furthermore, investing a
certain amount every year in the Public Provident Fund can also
help in portfolio diversification.

12. MERITS :
 Moderate return
 Minors can invest
 Stay after bankrupt
DEMERITS :
 Lock in period of 7 years
 No liquidity

13.  A post office investment scheme is designed to help you accrue good investment
returns. This scheme has a holding period of 5 years and provides an annual interest
rate ranging from 4 to 8 per cent. With it, you can avail of a fixed monthly income. You
can help with this scheme at any of the post offices located across the country.
 Indian post office investment schemes aren’t as popular, they provide investors with a
wide range of benefits. In fact, as the Indian post offices fall under the governance of
the Ministry of Finance, they hold greater credibility in comparison to other
investments.

14. MERITS :
 Risk free
 Long term benefits
 Easily accessible
DEMERITS :
 Premature withdrawl
 Short term tenure

15. • Life insurance, in simple words, is a contract between you and the insurance company. The
insurance company covers your financial risks. In exchange, you are required to pay a fee.
Under this contract, the insurance company promises to pay a sum of money to your family
members in the event of your death.
You will be the ‘insured’ or ‘life assured’.
• The fee that you are required to pay is the ‘premium’.
• The money that the insurance company will pay so that your family continues living their
lifestyle is the ‘cover amount’.
• The family members who will get the money from the insurance company are called
the ‘nominees’ or ‘beneficiaries’.
• The main purpose of life insurance is to provide financial protection to your loved ones when
you are not around anymore. However, besides this, life insurance also helps you make long-
term savings and achieve financial goals related to retirement, child’s education or wedding,
etc.

16. MERITS :
 High returns
 Tax benefits
 Life cover
DEMERITS :
 Exclusions in policy
 Insurers may not pay the benefits