Description: This comprehensive PowerPoint presentation delves into the dynamic landscape of the financial sector in India, highlighting its merits and demerits. Explore the pivotal role of the financial sector in stimulating economic growth, financial inclusion, and fostering a robust banking and capital market structure. Understand the merits such as improved access to credit, wealth creation, and technological advancements, alongside the demerits including non-performing assets (NPA), regulatory challenges, and economic volatility. Gain insights into the ongoing reforms and strategies aimed at enhancing the financial sector's performance and mitigating its drawbacks. Stay informed about the financial sector's critical impact on India's economic trajectory, making informed decisions in this ever-evolving sector. #FinancialSector #IndiaFinance #MeritsAndDemerits #EconomicGrowth #FinancialInclusion #NPA #RegulatoryChallenges #FinancialReforms #CapitalMarkets #BankingSector

1. FINANCIAL SECTORS
IN INDIA
BY : PARTH SHARMA
CAMPUS :DELHI INSTITUTE OF
ADVANCE STUDIES

2. SHARE MARKET
• It is a platform where buyers and sellers come together to trade on publicly listed
shares during specific hours of the day .
• Requires a D- Mat Account to hold the shares in e form .
• Types of stocks
Defensive Stocks
New issues
Yield Stocks
Growth Stocks

3. MERITS AND DEMERITS OF SHARE MARKET
 Grows with economy
 Stay ahead of
inflation
 Easy to buy
 Liquidity
 Risk involved
 Brokerage fees
 Takes time to
research .
 Lack of knowledge
 Tax on profitable
stock sale

4. MUTUAL FUNDS
• There is a saying “ PUT NOT YOUR TRUST IN MONEY , PUT YOUR MONEY IN
TRUST .
• It is an established fund in the form of trust .
• Raises money through sale of units to public under different schemes
• Money received from public invested in securities including :
 Money market instruments
 Gold
 Gold related insruments

5. MERITS AND DEMERITS MUTUAL FUNDS
 Professional
Management
 Diversification
 Convenient
Administration
 Low Cost
 Liquidity
 Excessive
Diversification
 Concentrated on
blue chip Securities
 High Brokerage and
commission .
 Lack of knowledge
 Under Performance

6. REAL ESTATE
• Real Estate is property in the form of land , house or other buildings .
• The property or land available for sale and purchase is termed as real estate
• Real estate are majorly of 2 types
COMERCIAL
PROPERTY /PLOTS
RESIDENTIAL
PROPERTY / PLOTS

7. MERITS AND DEMERITS OF REAL ESTATE
 It is easier to
understand .
 it is improvable.
 It is a Hedge against
Inflation.
 It can be financed
and leveraged .
 Properties exist in an
inefficient Market .
 Higher Transaction
Cost
 Low liquidity
 Requires
Management and
Maintenance
 Market have
significant
Inefficiencies
 Creates Liabilities

8. BANK FIXED DEPOSITS
• It can be referred as when you put a lumpsum amount you put in your bank
account for a fixed tenure at an agreed rate of interest .
• Smallest time span for an FD is 7 Days .
• Some of the 5 years FD interest rates :
Name of Bank For General Citizens
(p.a.)
For Senior Citizens
IDFC First Bank 6.50% 7.00%
Union Bank of India 5.40% 5.90%
IDBI Bank 5.60% 5.35%
Canara Bank 5.75% 6.25%

9. MERITS AND DEMERITS OF BANK DEPOSITS
 Fixed Tenure .
 Safe Investment .
 Loan against FD .
 Flexible interest rate
.
.
 Low Returns .
 Liquidity .
 Tax Returns.
 Upper limit is fixed
for 1.5 lacks

10. INSURANCE
• It is a way to manage your RISK .
• As one buys insurance they purchase a protection against unexpected financial
losses .
• Major types of Insurance
Home
Insurance
Motor
Insurance
Travel
Insurance
Health
Insurance

11. MERITS AND DEMERITS OF INSURANCE
 Benefits of
Compensation .
 Tax Benefits .
 Financial Support
post Retirement .
 For smooth business
operations .
.
 Tricky terms and
conditions .
 Lengthy legal
Formalities .
 Potential crime
incidents .

12. PROVIDENT FUND (PPF)
• It is a retirement saving scheme offered by the government of India .
• It aims to provide a secure post – retirement life to everyone .
• PPF Account matures in 15 years .
• Can be extended in blocks of 5 years .
• Has a limit of 500- 1.5 lakhs per financial year .
• Interest rate is 7.1%

13. MERITS AND DEMERITS OF (PPF)
 Safe investment
Avenue .
 Assured Returns .
 Tax Benefits .
.
.
 Accumulated Corpus
may not high .
 Longer lock in period
.
 Upper limit .

14. POST OFFICE
• It basically encourages the investments from the rural sector of our nation.
• As 70 % of our population resides in rural areas ,
• they have a faith with post office as they are in connection with them from a past
times .
• investment are made in small amounts their to encourage rural people .
• Currently PPF in post office offers 7.1 % interest .

15. MERITS AND DEMERITS OF POST OFFICE
 Low Minimum
Amount .
 Assured and Higher
Returns .
 Tax Benefits .
.
.
 Limited tenure period
.
 Premature withdraw
fees is there .
 Most rendered
services are not
online .

16. GOLD
• It is a precious metal that is used for making coins , jewellery etc.
• Current market price is 52,475 Indian rupees .
• IN the early independence gold was also used as a medium of exchange of dollars or
making payments .
• Today we can by gold in E- form through D-mat account

17. MERITS AND DEMERITS OF GOLD
 It is a hedge against
inflation .
 Liquidity .
 Diversification
 Holds its value over a
longer period .
.
.
 Its not a passive
investment .
 Difficult to store .
 Price correction can
lead to losses .