This document summarizes various financial sectors including banking, gold, mutual funds, real estate, public provident fund, post office, share market, government bonds, and insurance. It provides an overview of each sector, describing what they are and their key merits and demerits. For example, it notes that banking accepts deposits and makes loans, while mutual funds pool money from investors to purchase securities. Real estate includes residential, commercial, industrial and land properties. The document aims to educate people on their financial options.

1. FINANCIAL SECTORS
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ASSIGNMENT

2. Believe in Yourself,
Have Faith in Your Abilities
CONTENT
01 Banking
02 Gold
03 Mutual Funds
04 Real Estate
05 Public Provident Fund
06 Post Office
07 Share Market
08 Government Bonds
09 Insurance
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3. 1
BANKING
A bank is a financial institution licensed to receive deposits and
make loans. Banking can be defined as the business activity of
accepting and safeguarding money owned by other individuals and
entities, and then lending out this money in order to earn a profit.
There are 2 types
Fixed deposits - A financial instrument through which people
can invest a predetermined amount of money for a period of
time to earn interest on their investment.
Recurring deposits - RDs allow people to get into a habit of
saving a set amount of money every month and deposit in the
RD account.

4. DEMERITS
MERITS
1. Low interest rates.
2. Low liquidity.
3. No insurance coverage.
4. No life security.
5. Available for longer period
of time.
6. FD and RD are both taxable
products.
7. Funds are generally
blocked.
1. Safety of Public Wealth.
2. Availability of cheap loans.
3. Development of Rural
Areas.
4. Economies of Large Scale.

5. 2
GOLD
Of all the precious metals, gold is the most popular as an
investment. Investors generally buy gold as a way of diversifying
risk, especially through the use of futures contracts and
derivatives.
The gold market is subject to speculation and volatility as are other
markets. Compared to other precious metals used for investment,
gold has the most effective safe haven and hedging properties
across a number of countries

6. DEMERITS
MERITS
1. Gold is a mainstream
asset driven by many
factors, not just
investment demand.
2. Gold is one of the most
effective diversifiers.
3. Gold provides competitive
returns compared to other
major financial assets.
1. Resale value is low.
2. No liquidity
3. No interest rate.
4. High in cost.
5. Fluctuating rate.
6. Taxable product.
7. No life cover

7. 3
MUTUAL FUNDS
A mutual fund is an open-end professionally managed investment
fund that pools money from many investors to purchase securities.
These investors may be retail or institutional in nature.
The investors fund is generally handled or managed by an
investment professional (broker) known as fund manager of
portfolio manager.

8. DEMERITS
MERITS
1. Advanced portfolio
management
2. Dividend re-investment
3. Risk reduction
4. Convenience
5. Fair Pricing
1. Broker charges.
2. Higher charges
3. Higher risk
4. No liquidity
5. Fluctuating rate of
returns
6. No insurance coverage
7. Longer span of time
8. Taxable product
9. Usually funds are
blocked
10.No life security.

9. 4
REAL ESTATE
Real estate is property made up of land and the buildings on it, as
well as the natural resources of the land including uncultivated
flora and fauna, farmed crops and livestock, water, and any
additional mineral deposits.
4 Types of Real Estate
a) Residential Real Estate
b) Commercial Real Estate
c) Industrial Real Estate
d) Land

10. DEMERITS
MERITS
1. Investments under our
control.
2. A hedge against inflation.
3. It can be financed and
leveraged.
1. Lengthy process of
Paperwork.
2. Costly.
3. Taxable (e.g.- property tax)
4. No liquidity
5. Funds are blocked.
6. Fluctuating rates
7. No interest rate.
8. No insurance coverage.
9. Time consuming.

11. 5
PUBLIC PROVIDENT FUND
The Public Provident Fund is a savings-cum-tax-saving
instrument in India, introduced by the National Savings
Institute of the Ministry of Finance in 1968. The aim of the
scheme is to mobilize small savings by offering an investment
with reasonable returns combined with income tax benefits.

12. DEMERITS
MERITS
1. It yields higher interest rate
than Bank fixed deposits.
2. A good investment for future
planned exigency.
3. A partial withdrawal or loan
can be obtained.
4. Account can be obtained for
minor under guardianship of
Parents.
5. It can be extended for further
period without closing on
maturity.
1. Low interest rate.
2. No insurance coverage.
3. No liquidity.
4. Taxable product.
5. Long-term product.
6. Lengthy paperwork

13. 6
POST OFFICE
The Post Office savings bank is the oldest and by far the largest
banking system in the country, serving the investment need of
both urban and rural clientele. These services are offered as an
agency service for the Ministry of Finance, Government of India.
The financial services offered by post offices includes saving
schemes, postal life insurance, rural postal life insurance. The
post office small savings schemes provides a secure, risk free,
attractive, investment option for small investment and offers the
saving products across 155,000 post offices.

14. DEMERITS
MERITS
1. Account can be opened by
cash only.
2. Cheque facility can be taken
in an existing account too.
3. Nomination facility is
available at the time of
opening and also after
opening the account.
4. The account can be
transferred from one Post
Office to another.
1. Higher than bank rates.
2. No life coverage.
3. No liquidity.
4. Poor Services.
5. Time boundations.
6. Funds are blocked.
7. Lower interest rate of 4%
per annum.

15. 7
SHARE MARKET
The share market is a source for companies to raise funds and for investors
to buy part-ownership in growing businesses and grow their wealth. The
stock market is a share market, however besides shares of companies, other
instruments like bonds, mutual funds and derivative contracts too are
traded in the stock market. It is a place where shares of pubic listed
companies are traded.
A stock exchange facilitates stock brokers to trade company stocks and other
securities. A stock may be bought or sold only if it is listed on an exchange.
Thus, it is the meeting place of the stock buyers and sellers. India's premier
stock exchanges are the Bombay Stock Exchange and the National Stock
Exchange.

16. DEMERITS
MERITS
1. No broker charges.
2. Investors can expect a
higher return on their
investment.
3. Transparency is available.
1. Broker charges.
2. Higher charges
3. Higher risk (than Mutual
Funds)
4. No liquidity
5. Fluctuating rate of returns
6. No insurance coverage
7. Longer span of time
8. Taxable product
9. Usually funds are blocked
10.No life security.
11.Money cannot be
distributed while investing,
unlike Mutual Funds.

17. 8
GOVERNMENT BONDS
A government bond or sovereign bond is a bond issued by a
national government, generally with a promise to pay
periodic interest payments called coupon payments and to
repay the face value on the maturity date. The aim of a
government bond is to support government spending.

18. DEMERITS
MERITS
1. Tax Benefits
2. Secure Investment
3. Practical Project.
1. No Insurance Coverage
2. Higher risk of Liquidation.
3. Taxable Product.
4. Lengthy process ( Long-
term investment).
5. Longer time duration..
6. Poor services.

19. 9
INSURANCE
Insurance is a contract, represented by a policy, in which an
individual or entity receives financial protection or reimbursement
against losses from an insurance company. Insurance policies are
used to hedge against the risk of financial losses, both big and
small, that may result from damage to the insured or her property,
or from liability for damage or injury caused to a third party.
There are mainly 2 types :-
General Insurance, and Life Insurance

20. DEMERITS
MERITS
1. High Interest Rate.
2. Life coverage (16 x Premium)
3. High Liquidity ( 90% of money
can be taken back by customer,
while 10% is taken as security
by company)
4. No tax savings.
5. No time period.
6. No blockage of funds.
1. It does not compensate all types of
losses which caused biasness to
insured by insurance company.
2. It takes more time to provide financial
compensation because of lengthy
formalities.
3. Although insurance encourages
savings, it does not provide the
facilities that are provided by the bank.
4. It intentionally tries to compensate as
less as possible to the sufferer with the
aim of maximizing well-being of the
insured.
5. It may lead to the crimes in the society
as the beneficiaries of the policy may
be tempted to commit crimes to receive
the insured amount.
6. Sometimes, the total amount of
premium might be higher than the
policy amount receivable on maturity.

21. THANK
YOU
SUBMITTED BY
LALTHAZUALA
INSTITUTE OF PUBLIC ENTERPRISE
1902017@ipeindia.org
Ph no- 9366913943