This document discusses various investment avenues in India categorized as short-term and long-term options. It provides details on savings bank accounts, money market funds, bank fixed deposits, post office savings, public provident fund, company fixed deposits, bonds, debentures, mutual funds and equity shares. Bank deposits offer safety of capital, guaranteed returns but lower returns compared to other long-term options like mutual funds and equity shares which provide higher returns but also involve greater risk. Overall the document analyzes features, benefits, risks and differences between various investment instruments available to Indian investors.
Conventional & Innovative Sources of Long Term FinanceMohammed Jasir PV
Conventional & innovative sources of long term finance
1. Venture Capital
2. Seed Capital
3. Bridge Finance
4. Lease Financing
5. Hire Purchase Finance
6. Euro Issues
Debenture is a debt instrument which is used by companies to borrow money from general public. Here's a presentation that tells you everything you need to know about Non Convertible Debentures
Need of new Financial Instruments, New Financial Instruments, Global Depository Receipts (GDRs), Advantages, ADR, Zero Coupon Debenture, Deep Discount Bonds, Infrastructure bonds, Floating rate bonds, Municipal bonds, Regular income bonds, Retirement bonds, Growth bonds etc.
नए वित्तीय साधनों, नए वित्तीय साधनों, वैश्विक डिपॉजिटरी प्राप्तियों (जीडीआर), लाभ, एडीआर, जीरो कूपन डिबेंचर, डीप डिस्काउंट बांड, इन्फ्रास्ट्रक्चर बॉन्ड, फ्लोटिंग रेट बॉन्ड, म्यूनिसिपल बॉन्ड, रेगुलर इनकम बॉन्ड, रिटायरमेंट बॉन्ड, ग्रोथ बॉन्ड आदि की जरूरत है।
Part-1 link: https://youtu.be/BnhujbYLwO4
Make sure to like and share the video. Your support and love is very important to me.
Follow me on slideshare: https://www.slideshare.net/GitanjaliJindal
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Conventional & Innovative Sources of Long Term FinanceMohammed Jasir PV
Conventional & innovative sources of long term finance
1. Venture Capital
2. Seed Capital
3. Bridge Finance
4. Lease Financing
5. Hire Purchase Finance
6. Euro Issues
Debenture is a debt instrument which is used by companies to borrow money from general public. Here's a presentation that tells you everything you need to know about Non Convertible Debentures
Need of new Financial Instruments, New Financial Instruments, Global Depository Receipts (GDRs), Advantages, ADR, Zero Coupon Debenture, Deep Discount Bonds, Infrastructure bonds, Floating rate bonds, Municipal bonds, Regular income bonds, Retirement bonds, Growth bonds etc.
नए वित्तीय साधनों, नए वित्तीय साधनों, वैश्विक डिपॉजिटरी प्राप्तियों (जीडीआर), लाभ, एडीआर, जीरो कूपन डिबेंचर, डीप डिस्काउंट बांड, इन्फ्रास्ट्रक्चर बॉन्ड, फ्लोटिंग रेट बॉन्ड, म्यूनिसिपल बॉन्ड, रेगुलर इनकम बॉन्ड, रिटायरमेंट बॉन्ड, ग्रोथ बॉन्ड आदि की जरूरत है।
Part-1 link: https://youtu.be/BnhujbYLwO4
Make sure to like and share the video. Your support and love is very important to me.
Follow me on slideshare: https://www.slideshare.net/GitanjaliJindal
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Sources of Finance Functions and Investment Policies of NBFIs in India RBI Gu...Mohammed Jasir PV
Sources of Finance
Functions and Investment Policies of NBFIs in India
RBI Guidelines on NBFCs
Products offered by different NBFCs in India
Features of these Financial Products
Sources of long term finance, Corporate governance AND Financial engineeringMohammed Jasir PV
Sources of long term finance — conventional and innovative sources — Leasing — Factoring — securitization
Dividend theories — Walter’s model — Gordens model — MM approach — legal aspects of dividend — formulation of dividend policy.
Corporate governance
Financial engineering
the cost of capital of a company describes the return expected by creditors of funds to companies. It includes the cost of equity, debt, hybrid and WACC
This ppt is all about the long term finance for the business. From which sources a business firm used to get their long term finance to run the business. So i hope it will help you to give your presentation . Thanks for the download. And if you find any mistake, please feel free to comment and inform.
or send me a mail in tatinpisa@outlook.com
it is a presentation based on long term sources of finance
i have added all major contents and make it error free in best possible ways
Errors or suggestions (if any)
Feel free to contact
NIKHIL JAIN
Brief overview of Debentures & Bonds and Term Loans.
A project given to our class group for the subject Corporate Finance. Hope it helps.
Contact for additional information
www.facebook.com/Sahith1
ansahithkrishna@gmail.com
A debenture is thus like a certificate of the loan or a loan bond. this debenture is issued from the government do not have any risk of in future Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to secure capital. a debenture holder is 1 preference of company investor when returning the money.
John convery of west palm beach a financial professionalJohn Convery
John Convery is an experienced financial professional in West Palm Beach, Florida. He was born in Point Pleasant, New Jersey and spent part of his childhood in Germany. He attended East Stroudsburg University and graduated in 1984 with a Bachelor of Arts. He then used his education to build a career for himself. He started working in finance and specialized in retirement planning. He established The Educated Wealth Center in 1985 and focused on helping his clients with all of their retirement preparation needs. He has thirty years of experience in the financial industry, and is a regular contributor to radio programs and news sites.
https://youtu.be/_yLt_abcK2w
Angular is a TypeScript-based open-source front-end platform that makes it easy to build applications with in web/mobile/desktop. The major features of this framework such as declarative templates, dependency injection, end to end tooling, and many more other features are used to ease the development.
Angular 7 is a Javascript framework built around the concept of components, and more precisely, with the Web Components standard in mind. It was rewritten from scratch by the Angular team using Typescript (although we can use it with ES5, ES6, or Dart as well).
Angular 7 is a big change for us compared to 1.x. Because it is a completely different framework than 1.x, and is not backward-compatible. Angular 7 is written entirely in Typescript and meets the ECMAScript 6 specification
angular interview questions and answers, angular 7 interview questions and answers, angular interview question, angular interview questions and answers for experienced, angular 7 interview questions, angular 6 interview questions,
angular interview questions, angular 6 interview questions and answers, angular 2 interview questions, angular7, angular 5 interview questions, angular interview, angular 2 interview questions and answers, angular questions and answers
http://www.redicals.com
The spectrophotometer technique is to measures light intensity as a function of wavelength.
• Measures the light that passes through a liquid sample
• Spectrophotometer gives readings in Percent Transmittance (%T) and in Absorbance (A)
Spectrofluorimetry or fluorimetry (www.Redicals.com)Goa App
The term fluorescence comes from the mineral fluorspar (calcium fluoride) when Sir George G. Stokes observed in 1852 that fluorspar would give off visible light (fluoresce) when exposed to electromagnetic radiation in the ultraviolet wavelength.
Atomic absorption spectroscopy is a method of elemental analysis. It is particularly useful for determining trace metals in liquids and is most independent of molecular form of the metal in sample.
Hidden Markov Model Toolkit (HTK) www.redicals.comGoa App
HTK is the “Hidden Markov Model Toolkit” developed by the Cambridge University Engineering Department. This toolkit aims at building and manipulating Hidden Markov Models (HMMs).
HTK is primarily used for speech recognition research although it has been used for numerous other applications including speech synthesis, character recognition and DNA sequencing. HTK consists of a set of library modules and tools available in C source form. It is available on free download, along with a complete documentation.
Also known as automatic speech recognition or computer speech recognition which means understanding voice by the computer and performing any required task.
Gephi is an open source software for graph and network analysis. It uses a 3D render engine to display large networks in real-time and to speed up the exploration. A flexible and multi-task architecture brings new pos- sibilities to work with complex data sets and produce valuable visual results. We present several key features of Gephi in the context of interactive exploration and interpretation of networks. It provides easy and broad access to network data and allows for spatializing, fil- tering, navigating, manipulating and clustering
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
1. TYPES OF INVESTMENT AVENUES
I. Short-term investment Avenues
Savings bank account
Money market funds
Bank fixed deposits
II. Long-term investment Avenues
Post Office savings
Public Provident Fund
Company fixed deposits
Bonds and debentures
Mutual Funds
Life Insurance Policies
Equity shares
2. SAVINGS BANK ACCOUNT
• Savings accounts offer low interest compared to
bank deposits and money market fund.
• But marginally better than safe deposit lockers.
3. MONEY MARKET FUNDS
• Provides opportunity to investors to invest in short
term securities like treasury bills and commercial
papers
• Safe investment avenue
• Provides high returns
4. BANK DEPOSITS
• Also referred to as term deposits.
• Offered by all private and nationalised commercial
banks, cooperative banks, Foreign banks, etc.
• Minimum investment period for bank FDs is 30 days.
• Early withdrawals typically carry a penalty.
5. ADVANTAGES OF BANK DEPOSITS
• Low risk
• Banks deposits come with very low default risk and
offer security for investor capital.
• Capital guarantee
• Investors deposit of up to Rs 1 lakh in any bank is
protected under RBI's Deposit Guarantee Scheme.
• This means if investor place their deposit in a bank
that defaults, they will get up to Rs 1 lakh of their
money in the deposit.
6. Fixed returns
Interest rate on bank deposits is fixed for the entire tenure of the deposit.
FDs of different tenures carry different interest rates.
Generally, higher the tenure, higher is the rate.
Liquidity
Investor can invest in a FD for as little as a month too.
Thus, it provides ample liquidity as investor can place their surplus for the short
term.
Besides, bank deposits can be prematurely withdrawn.
However, the investor will need to pay a penalty of 1 per cent of the interest rate.
Good returns
With high interest rates at present, FD returns have become attractive.
For a longer tenure deposit (two to three years), investor can even get a rate of
around eight to nine per cent per annum.
However, rates vary from bank to bank.
7. COMPANY FIXED DEPOSIT
• Company fixed deposits- present in the Indian
market for a long time.
• Used by Corporates to raise funds.
• For some years though, its use had become scarce
as companies found it more convenient to raise
money from the share market.
• But, in the recent years, corporates have again
started to issue company fixed deposits
• The main reason is the economic slowdown and the
increased difficultly faced by them to raise money
through the share markets
8. FEATURES OF COMPANY FDS
Company fixed deposit is a deposit in company for a fixed rate of return
over a fixed period of time
The interest rates offered on Company FDs are generally higher than those
offered on bank fixed deposits.
The interest income is provided on a fixed periodic basis such as monthly,
quarterly, half yearly or annually.
The deposit made in a company fixed deposit is governed by section 58A
of the Companies Act.
The company fixed deposits have different maturity periods ranging from
six months to seven years.
Company FDs are riskier as compared to bank FDs.
The returns on the former are only assumed. The interests paid on
corporate fixed deposits are not fixed and can vary depending upon the
financial conditions of the company. For example, if a corporate FD
carries an interest rate of 9 percent, the actual rates received can also be
5 percent.
If the firm faces difficult financial situation, the investors will be paid interest
only after all the secured creditors have been paid off.
In case of default by a company, the investor cannot sell the deposit
documents to recover his amount. The investor has no claim over the
assets of the company in case of winding up of the company.
9. DEBENTURES
• Meaning of Debenture:A bond which is not secured
by any asset or collateral is known as a debenture.
Debentures are mostly long term in nature and at
times, the holder has an option of exchanging
debentures for stocks of the issuing company.
• Two types of Debenture
• Convertible and
• Non Covertable
10. CONVERTIBLE DEBENTURES
• Convertible debenture - Convertible debentures are
those which can be converted into company
stocks. These types of debentures generally
command a lower interest rate when compared
with non convertible debentures
11. NON CONVERTIBLE DEBENTURES
• Non convertible debenture - Non convertible
debentures are those which cannot be converted
into company stocks. These types of debentures
generally command a higher interest rate when
compared with convertible debentures
12. DIFFERENTIATE BETWEEN CONVERTIBLE
AND NON CONVERTIBLE DEBENTURES
• Reducing Downside Risk
• Convertible debentures help in reducing the risk
involved as they are backed by the company’s
assets.
• In case of volatility in the markets, convertible
debentures are a safer bet when compared with
non convertible debentures
13. BENEFITS TO ISSUERS
• One of the primary reasons for companies to issue
convertible bonds is that there is a higher interest
cost associated with them.
• They can take advantage of this by offering bond
holders the option to convert them into company
stocks.
• Convertible bonds are also associated with less risk
and hence are more desirable for investors
14. VALUE AT MATURITY
• In case of a convertible bond, the maturity value
can either be lower or higher than the par value,
depending on the market situation.
• In case of a conversion to company stocks,
debenture holders are treated exactly the same as
the company shareholders.
• This means they are either free to hold the securities
or sell them in the open market
15. MARKETS AT WORK
• Once the convertible bonds are issued, their market
value is decided depending on the interest rate,
which is also dependent on market fluctuations.
• Investors, in this situation, can take a lot of
advantage; maximum benefit can be reaped
when they are close to the underlying stock and
they also experience appreciation of the value of
the security
16. NON CONVERTIBLE DEBENTURES VS FIXED
DEPOSITS
• Interest Rate: Banks offers an interest rate of 9%-10%
for fixed deposits, NCDs are offer above 11% interest
for the amount invested. Unsecured NCDs give
higher returns than secured NCDs. This is because
unsecured NCDs have no underlying asset to give
value to the debentures. This makes it more risky
and hence higher returns are promised.
17. Maturity: Maturities range from 90 days to as long
as 10 or even 20 years. Therefore time is not a
constraint when taking decisions to invest in
debentures. Investor can either opt for a short time
debenture or one with a long maturity period.
Fixed deposits typically have a maturity period
ranging from 1 year to 5 years. Therefore short term
investments and very long term investments are not
possible with fixed deposits. The choice of time is
limited.
18. • Risk: Non convertible debentures like shares are
highly risky because companies might face loss at
any time and lose value.
• Whereas fixed deposits are more secure than NCDs
though the returns are less. This is because FDs are
provided by banks, which are more stable and
regulated by highly efficient Reserve Bank of India.
19. • Liquidity: Debentures have more liquidity than fixed
deposits. Investor can sell debentures in the
secondary market before the maturity date and
can be traded just like stocks.
• Fixed Deposits on the other hand is not liquid. Banks
do not allow investors to take money from Fixed
deposits easily. The process is very time consuming
and cumbersome.
20. • Traded in Stock Exchange: Non convertible
debentures are listed on stock exchanges and can
be traded as shares.
• However fixed deposits have nothing to do with
stock markets. It is an instrument provided by banks
and post offices.
21. EQUITY SHARES
• Equity shares are most common share.
• The holders of these shares are the real owners of
the company.
22. FEATURES OF EQUITY SHARES
• Different values
• Equity shares contains face value which is also
called normal value.
• Depending upon the value of the shares, the
market fluctuates.
• Market value is the value at which the shares are
traded in the stock exchange.
23. PERMANENT CAPITAL
• The capital procured by issue of equity shares is a
permanent source of funds to the company as it
need not be redeem during the life time of the
company.
• At the same time shareholders can get money by
sale of shares in the stock exchanges.
24. NO NEED FOR SECURITY
• There is no need to offer security to the
shareholders.
• Hence, the assets of the company are free from
charge.
25. NO FIXED RATE OF RETURN
• The rate of dividend of these shares depends upon
the profits to the company.
• They may b paid a higher rate of dividend or they
may not get anything.
26. NO OBLIGATION TO PAY DIVIDEND
There is no specific assurance to equity shareholders
regarding the rate of dividend.
• If the company makes sufficient profit in the year to
declare the dividend it may do so and if not no dividend
will be paid.
• Even if they have adequate profits, dividend may not be
declared if the management feels that the profits should
be earmarked for future contingencies.
• Whether dividend should be paid or not, even if it is to be
paid what should be the rate of dividend, etc. would be
decided by the Board of Directors in general body
meetings.
27. RESIDUAL CLAIM TO ASSETS
• At the liquidation of the company, the equity
shareholders will be paid only if any amount is left
after all the other claims against the company are
settled.
28. RIGHT TO CONTROL
• Equity share holders have voting rights and they
elect board of directors who controls the affairs of
the company
• Thus the equity shareholders are collectively
responsible for efficient management of the
company.
29. FORM THE BASIS FOR LOANS
• Equity share capital forms the basis for getting the
loans to the business.
30. PRE-EMPTIVE RIGHTS
• Any share holders owning 2% of the existing issued
capital is entitled to a preemptive rights to acquire
2% of additional shares issued by the company. He
can exercise or sell or renounce this right.
31. SPECULATION
• Investing public purchase equity shares with
speculative motive.
• This is possible because the market value of shares
fluctuates depending upon the good will of the
firm, rate of dividend is declared.
32. LIMITED LIABILITY
• In the case of companies where the liability is
limited by shares the liability of the share holders is
limited only upto the unpaid value of shares.
• He is not personally responsible for the liability of the
company as in the case of sole trading concern
and partnership firm.
33. ADVANTAGES OF EQUITY SHARES
• Dividend:
• An investor is entitled to receive dividend from the
company.
• It is one of the two main sources of return on his
investment.
• Capital Gain:
• The other source of return on investment apart from
dividend is the capital gains.
• Gains which arise due to rise in market price of the
share.
34. • Limited liability:
• Liability of shareholder or investor is limited to the
extent of the investment made.
• If the company goes into losses, share of loss over
and above the capital investment would not be
borne by the investor.
35. • Exercise control:
• By investing in the company, the shareholder gets
ownership in the company and thereby he can
exercise control.
• In official terms, he gets voting rights in the
company.
36. • Claim over Assets and Income:
• An investor of equity share is the owner of the
company and so is the owner of the assets of that
company.
• He enjoys share in the incomes of the company.
• He will receive some part of that income in cash in
the form of dividend and remaining capital is
reinvested in the company.
37. • Rights Shares:
• Whenever companies require further capital for
expansion etc, they tend to issue ‘rights shares’.
• By issuing such shares, ownership and control of
existing shareholders is preserved and the investor
receives investment priority over other general
investors.
38. • Bonus Shares:
• At times, companies decide to issue bonus shares to
its shareholders.
• It is also a type of dividend.
• Bonus shares are free shares given to existing
shareholders and many a times they are given in
lieu of dividends.
• Liquidity:
• The shares of the company which are listed on
stock exchanges have benefit of any time liquidity.
• The shares can very easily transfer ownership.
39. DISADVANTAGES OF EQUITY SHARE
INVESTMENT:
Dividend:
The dividend which a shareholder receives is neither fixed nor
controllable by him.
The management of the company decides how much
dividend should be given.
High Risk:
Equity share investment is a risky share compared to any other
investment like debts etc.
The money is invested based on the faith an investor has in
the company.
There is no collateral security attached with it.
40. Fluctuation in Market Price:
The market price of any equity share has a wide
variation.
It is always very difficult to book profits from the
market.
On the contrary, there are equal chances of losses.
Limited Control: An equity investor is a small investor
of the company therefore it is hardly possible to
impact decision of the company using the voting
rights.
41. • Residual Claim: An equity shareholder has a
residual claim over both the assets and the income.
• Income which is available to equity shareholders is
after the payment of all other stakeholders’ viz.
debenture holders etc
42. ADVANTAGES OF MUTUAL FUNDS
• Benefits of Mutual Fund are for people who want to invest
small amounts. Daily Wage Workers, Rickshaw Taxi Drivers,
Labourers who wish to invest into Mutual Funds.
• Professional Investment Management.
Mutual funds are managed and supervised by investment
professionals.
As per the stated objectives set forth in the prospectus, along
with prevailing market conditions and other factors, the
mutual fund manager will decide when to buy or sell
securities.
This eliminates the investor of the difficult task of trying to time
the market.
43. DIVERSIFICATION
• Using mutual funds can help an investor to diversify their
portfolio with a minimum investment.
• When investing in a single fund, an investor is actually
investing in numerous securities.
• Spreading investors investment across a range of securities
can help to reduce risk.
• A stock mutual fund, for example, invests in many stocks -
hundreds or even thousands
• This minimizes the risk attributed to a concentrated position.
• If a few securities in the mutual fund lose value or become
worthless, the loss maybe offset by other securities that
appreciate in value.
44. CONVENIENCE:
• With most mutual funds, buying and selling shares,
changing distribution options, and obtaining
information can be accomplished conveniently by
telephone, by mail, or online.
45. LIQUIDITY
• Mutual Funds shares are liquid and orders to buy or
sell are placed during market hours.
• However, orders are not executed until the close of
business when the NAV (Net Average Value) of the
fund can be determined.
• Fees or commissions may or may not be
applicable.
• Fees and commissions are determined by the
specific fund and the institution that executes the
order.
46. MINIMUM INITIAL INVESTMENT:
• Top Mutual Fund Companies offer its investors an
option to invest extremely small amounts such as Rs
100/-, Rs 500/-, Rs 1000/- each month depending on
individual’s capacity into many of its mutual fund
schemes.
47. EASE OF INVESTING ON CONVENIENT
DATES
• Investor can invest in top Mutual Fund Scheme on
their choice of dates.
• Many large Mutual Fund companies offer multiple
dates for investing into its top performing mutual
fund schemes.
• E.g Few dates would be 1st, 5th, 10th, 15th, 25th of
each month.
• This makes regular investments on salary dates
possible.
48. INVESTING WITHOUT PHYSICAL
PRESENCE
• Investments in Mutual Funds can be done through
Assignment of a Power of Attorney for effective
financial planning.
• Army Personnel, Officers posted on-duty at far off
places, owners/directors of limited companies, Non-
Resident Indians, Resident Indian posted
onsite/outside India can invest through the
convenience of POA.
49. SAFEKEEPING
• When investor own shares in a mutual fund, he own
securities in many companies.
• He don't even have to worry about handling the
mutual fund stock certificates.
• The fund maintains the investor’s account on its
books and sends the periodic statements keeping
track of all investor’s transactions.
50. ONLINE SERVICES
• The internet provides a fast, convenient way for
investors to access financial information.
51. GOLD AN INVESTMENT AVENUE
• Gold is one of the most popular precious metals for
investment today.
• There are 5 ways of investing in gold:
• Purchase of physical gold
• Investment through Gold Mutual Funds:
• Investment through Derivative Markets:
• ETFs
• Electronic Gold (E-Gold):
52. I. PURCHASE OF PHYSICAL GOLD:
• It’s the most conventional way of investment.
• It includes buying of readymade jewelry, coins,
bars, biscuits, etc through jewelers and banks.
53. DRAWBACKS OF INVESTMENT IN PHYSICAL GOLD
Storage & Safety:
▫ Physical gold requires storage like a safe or bank locker and
▫ there is also a risks of theft or losing it.
Emotional Touch:
▫ Most of the times jewelry or ornaments have an emotional
value attached to it.
▫ Hence it cannot be considered as a liquid asset in times of
crisis.
Costs involved:
▫ It involves some expenses like making charges, locker
charges, if insured then insurance premium and so on.
Wealth Tax:
▫ Physical gold attracts wealth tax if the value of the gold
exceeds 30 lakhs.
54. INVESTMENT THROUGH GOLD
MUTUAL FUNDS:
• Investing in gold mutual funds is like investing in any
mutual fund actively managed by a fund manager
through Systematic Investment Plans (SIPs).
• The funds are invested in gold mines to reap the
benefits.
55. FEATURES OF INVESTMENT IN
GOLD MUTUAL FUNDS:
Benefit of Rupee Cost Averaging:
▫ Since the investments are in the form of Systematic
Investments Plans (SIPs), the investor enjoy the benefits of
rupee cost averaging without bothering much about the
swinging markets.
Ease of Operation:
▫ No Demat A/C is required like in case of gold Exchange
Traded Funds (ETFs) or E-gold.
▫ Meaning of Demat A/C:
▫ Demat A/C is Dematerialized Account.
▫ In a demat account, share and securities are held
electronically instead of the investor taking physical possession
of certificates.
▫ Demat account is opened by the investor while registering with
an investment broker.
▫ Purchase or transfer of securities or shares is initiated trough
demat account.
▫ It eliminates the risks associated with forgery and due to
damaged stock certificates.
▫
56. Safety & Security:
▫ Since no physical gold is involved it is safer to invest in gold
mutual funds.
Costs Involved:
▫ Expenses on account of fund management charges are
higher as compared to the ETFs but lower compared to the
expenses incurred on physical gold.
Profitability:
▫ In case gold mining companies are making profits, the
investors in turn are benefitted.
Wealth Tax:
▫ Gold Mutual Funds do not attract any wealth tax liability.
57. GOLD EXCHANGE TRADED FUNDS
(ETFS)
• Exchange Traded Funds or ETF is like trading shares
on a stock exchange.
• In case of Gold ETFs, Gold is a security under
consideration.
• Investor can purchase units of gold in multiples of 1
unit.
• 1 Unit = 1 gram of gold.
• (A few fund houses also trade ½ gram gold as one
unit.)
58. FEATURES OF GOLD ETFS
Safety & Storage:
▫ Since there is no physical gold involved it is a safer avenue for
investment in gold.
▫ So there is no question of storage as well.
Less Expensive:
▫ No making charges, locker charges are applicable in case of ETFs.
Tax Efficiency:
▫ ETFs are tax efficient if held for more than a year as compared to
physical gold sales.
▫ ETFs don’t attract Wealth Tax, Security Transaction Tax (STT).
Affordability:
▫ Gold can be bought in as small quantity as 1 gram gold.
Purity:
▫ ETFs guarantee purity of gold, usually 99.5%.
Liquidity & Transparency:
▫ Gold ETFs can easily be bought & sold on exchanges and hence
there is liquidity and transparency in the prices.
59. INVESTMENT THROUGH DERIVATIVE
MARKETS
• A gold future means gold bought at the price and
quantity decided today, at a future date.
• Gold future can be good form of hedge in rising
gold prices as one need to pay the price today.
• Hedging covers the risk arising out of changes in
the Gold rate.
• If the prices fall in future as compared to today’s
prices then it turns out to be a business of loss.
• Exchanges like MCX, NCDEX deals in gold futures.
60. FEATURES OF GOLD FUTURES
▫ Good Investment Avenue if investor is expecting increase in
gold prices in future.
▫ Investors need not put in the entire amount at the time of
entering into the contract, only 5% of the transaction value.
▫ When the delivery takes place, profit is treated as a
business income and taxed according to appropriate tax
brackets.
▫ And, if the contract is settled without the delivery,
proceeds are treated as an income from speculation and
are taxed under short-term capital gains.
▫ Risk averse investors or new investors should refrain from
investment in futures as these are highly uncertain in
returns.
▫ It is preferred by speculators & big investors with high risk
61. ELECTRONIC GOLD (E-GOLD)
• E-Gold is invented and implemented by National
Spot Exchange Ltd. (NSEL).
• Like ETFs, Investor can invest in E-gold through
demat A/C and purchase as small as 1 gm of gold.
• This trading facility is available on Monday to Friday
(except Exchange specific holidays) from 10.30 am
to 11.30pm.
62. FEATURES OF E-GOLD
Ease of trading:
▫ Investor can buy/ sell gold through the exchange easily from
the comfort of home/office.
Smaller quantity:
▫ Even a smaller quantity of 1 gm of gold can be bought. 1
unit=1 gm of gold.
Lower Expense Ratio:
▫ The management expenses are lower compared to Gold ETFs.
No making charges, no locker charges.
Conversion in physical gold:
▫ Opportunity to convert the units in physical gold i.e. coins/bars
in seamless manner.
Purity:
▫ Gold purity is 99.5%
Safety & Storage:
▫ Since there is no physical gold involved it is a safer avenue for
investment in gold. So there is no question of storage as well.
63. POST OFFICE SAVING DEPOSITS
• Post Office Small savings schemes are designed to
fulfill dual objective:
• to provide safe and attractive investment options to
the public and
• to mobilise resources for development.
• These schemes are operated through about 1.54
lakh post offices throughout the country.