The document summarizes various financial sectors available for investment in India, including their pros and cons. It discusses share markets, mutual funds, gold, bank fixed deposits, provident funds, post office savings schemes, and insurance. The share market allows trading of publicly listed company shares but carries risks like losses from company failures. Mutual funds provide diversified, professionally managed portfolios at low cost but have annual fees. Gold is seen as a hedge against inflation but does not generate income. Bank deposits are seen as safe but offer low returns. Provident funds help save for retirement through mandatory contributions. Post office schemes offer government-backed guaranteed returns but have lower interest rates than some other options.

1. FINANCIAL SECTORS IN INDIA
INVESTOR OPPORTUNITY

3. 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.
“A strong financial sector is a sign of a healthy
economy.”

4. FINANCIAL SECTORS IN INDIA
SHARE
MARKET
MUTUAL
FUNDS
GOLD BANK /
FIXED
DEPOSIT
PROVIDENT
FUND
REAL
ESTATE
POST
OFFICE
INSURANCE
SECTORS

5. SHARE MARKET
The share market is a platform where buyers
and sellers come together to trade on
publicly listed shares during specific hours
of the day. People often use the terms ‘share
market’ and ‘stock market’ interchangeably.
The principal stock exchanges in India are
the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE).
The BSE has been in existence since 1875.
The NSE, on the other hand, was founded in
1992 and started trading in 1994.
The Securities and Exchange Board of India
(SEBI) is the regulatory authority established
under the SEBI Act 1992.

6. Risk
Stockholders of broke
companies get paid last
Takes time to research
Taxes on profitable stock
sales
Emotional ups and downs
Competing with institutional
and professional investors
PROS CONS
Higher chances of return
Grow with economy
Stay ahead of inflation
Easy to buy
Flexible investing
Income from price
appreciation and dividends
Liquidity

7. MUTUAL FUNDS
 A mutual fund is a type of investment vehicle consisting of a portfolio of
stocks, bonds, or other securities.
 Mutual funds give small or individual investors access to diversified,
professionally managed portfolios at a low price.
 Mutual funds are divided into several kinds of categories, representing the
kinds of securities they invest in, their investment objectives, and the type
of returns they seek.
 Mutual funds charge annual fees (called expense ratios) and, in some cases,
commissions, which can affect their overall returns.

8. Liquidity
Safety
Tax-efficiency
Diversification
Suit your financial goals
Quick & painless process
Capital gains tax
Dilution
Lock-in Peroids
No Control
Fluctuating returns
High Operating Cost

9. GOLD
Due to some influencing factors such as
high liquidity and inflation-beating
capacity, gold is one of the most preferred
investments in India. Gold investment can
be done in many forms like buying jewelry,
coins, bars, gold exchange-traded funds,
Gold funds, sovereign gold bond scheme,
etc.
Digital gold is a new age investment
instrument that allows you to invest in 24
Karat, 999.9 purest gold, which is then
stored in MMTC-PAMP's secure vaults
under your ownership. If you wish to take
possession of the same, you can redeem
digital gold for 24 Karat, 999.9 purest gold
coins and gold bars.

10.  Inflation Hedge
 Security of Value Portfolio
 Diversification Simplicity
 Hedge Against a Disaster
 Liquidity
 Most Desired Commodity
PROS
 Storage of the Physical
Gold Not A Passive
 Income Asset Premiums
and Taxes.
 Theft
 Gold Has A Terrible
Historical Return.
 Gold doesn’t pay any
dividend.
CONS

11. BANK / FIXED DEPOSITS
Source – Money Control Source – RBI

12. Fixed Tenor
Safe
Investment
Loan Against
FD
Flexible
Interest Rate
Pay-Outs
Tax Saving
FD
Low Returns Liquidity
Tax Returns
Penalty on
premature
closure
Fails to
counter
inflation
PROS CONS

13. PROVIDENT FUND
The Provident Fund (PF) is a pension fund that
helps people regularly save a portion of their
salary to provide enough money for a good and
healthy lifestyle after retirement.
This program is provided by the Employment
Provident Fund Organization (EPFO). All
companies with more than 20 members can apply
for the EPF scheme.
The first Provident Fund Act, passed in 1925.
. .
It was replaced by the Employees' Provident Funds
Act, which extended to the whole of India except
Jammu & Kashmir. The Employees' Provident
Funds Scheme, framed under section 5 of the Act,
was introduced in stages and came into force in its
entirety by 1 November 1952.
There are four types of PF that are Recognized
Provident Fund, PPF (Public Provident Fund),
Statutory Provident Fund and Unrecognized
Provident Fund

14. PROS CONS

16. PROS
CONS

17. Indian Post offers diverse
investment options to cater
to the varying needs of
different investors.
All Post office savings
schemes guarantee returns
as they are backed up by
the government of India.
Moreover, most of the post
office investment schemes
are tax-exempt
under Section 80C, i.e. tax
exemption up to Rs.
1,50,000 is allowed.
Small Savings Scheme Interest Rate Tenure
Tax Deduction on
Investment?
Interest Taxable
Post Office Savings Account 4.0% NA No Yes
Post Office Recurring Deposit 5.8% 5 Years No Yes
Post Office Monthly Income Scheme 6.6% 5 Years No Yes
Post Office Time Deposit (1 year) 5.5% 1 Year No Yes
Post Office Time Deposit (2 year) 5.5% 2 Years No Yes
Post Office Time Deposit (3 year) 5.5% 3 Years No Yes
Post Office Time Deposit (5 year) 6.7% 5 Years Yes Yes
Kisan Vikas Patra (KVP) 6.9% 30 Months Lock-in period No Yes
Public Provident Fund (PPF) 7.1% 15 Years Yes No
Sukanya Samriddhi Yojana 7.6% 21 Years Yes No
National Savings Certificate 6.8% 5 Years Yes No
Senior Citizens Savings Scheme 7.4% 5 Years Yes Yes

18. Easy Enrollment Process
Invest Money for Long
Term
Simple to Invest
Good Interest Rate
Tax Exemption
Risk-Free Investment
Unfriendly Post office
Staff
High Paper Work
Post Office Agents Rule
the Roost
Lack of Digitalization
linked to Place of
Investment

21. A