The document discusses various types of investment instruments available through Paterson Securities, including mutual funds, fixed deposits, bonds, portfolio management services (PMS), and systematic investment plans (SIP). It provides overview information on each type of instrument, such as how mutual funds pool investor resources and diversify risk, features of open-ended and closed-ended funds, benefits of fixed deposits like capital safety and regular interest, uses of different types of bonds, minimum investment amounts for PMS, and how SIP allows regular investments in mutual funds from as little as ₹100 per month.

1. Types of Investment
Instruments
Paterson Securities (P) Ltd
A Subsidiary of Hinduja
Bank (Switzerland) Ltd.
Equity Broking | Depository | Investment Banking | PMS | Currency Trading | Derivatives | Mutual Funds

2. Slide Number
Topic
3
Mutual Funds
5
Fixed Deposit
7
Bonds
8
PMS
9
SIP

3. 
Mutual fund is a mechanism for pooling the resources by issuing units to the investors and
investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and
thus the risk is reduced. Diversification reduces the risk because all stocks may not move in
the same direction in the same proportion at the same time. Mutual fund issues units to the
investors in accordance with quantum of money invested by them. Investors of mutual funds
are known as unit holders.

The profits or losses are shared by the investors in proportion to their investments. The
mutual funds normally come out with a number of schemes with different investment
objectives which are launched from time to time. A mutual fund is required to be registered
with Securities and Exchange Board of India (SEBI) which regulates securities markets before
it can collect funds from the public.
Source : http://www.sebi.gov.in/faq/mf_faq.html
3

4. 

Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The
key feature of open-end schemes is liquidity.
Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at
least one of the two exit routes is provided to the investor i.e. either repurchase facility or through
listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
Source : http://www.sebi.gov.in/faq/mf_faq.html
4

5. 
CAPITAL SAFETY

REGULAR INTEREST

OPTION FOR PRE CLOSURE

LOAN OPTION AVAILABLE

TAX DECLARATION (FORM 15G / 15H)
5

6. BONDS

Capital Gains Bond(Sec 54EC)
Capital bonds are 'Long term specified assets' .Capital gains arising from transfer of Long-term
capital assets can be invested in these bonds within a period of six months from the date of
transfer of the asset for getting exemption from the capital gains tax.. Capital gains arising from
transfer of Long-term capital assets can be invested in these bonds within a period of six months
from the date of transfer of the asset for getting exemption from the capital gains tax.
Eg :- NHAi, RECL (Rural Electrification Corporation Ltd)

Tax Free Bonds
Tax Free Bonds are instruments where interest earned is not taxed. However, there is no
deduction for the principal invested in these bonds.
Eg :- ntpc

Non Convertible Debentures (NCD)
Debentures are long-term financial instruments which acknowledge a debt obligation towards the
issuer. debentures which can't be converted into shares or equities are called non-convertible
debentures . Issued in multiples of 1000 and sums thereafter.
eg :- Shriram City Union Finance
6

7. 
This service is meant for Individuals, HUF, NRIs, Corporate’s, who have a long term perspective and
are looking at value based investments. The minimum ticket size as specified by SEBI is Rs. 25 lacs.

The PMS is SEBI registered, and operates in such a way that the Portfolio is held in the clients name
with separate Bank, DP and Trading accounts linked to the client portfolio.

Management fees @ 2% p.a. charged on a monthly basis on the NAV.
7

8. 
A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help investors save
regularly. It is just like a recurring deposit with the post office or bank where you put in a small
amount every month, except the amount is invested in a mutual fund. The minimum amount to be
invested can be as small as 100 (100 Indian Rupees) and the frequency of investment is usually
monthly or quarterly.

A SIP means the person commits to investing a fixed amount every month. Let's say it is 1,000.
When the Market price of shares fall, the investor benefits by purchasing more units; and is
protected by purchasing less when the price rises. Thus the average cost of units is always closer to
the lower end.) { NAV : Net Asset Value, or the price of one unit of a fund. Can be computed as
follows : NAV = [ market value of all the investments in the fund + current assets + deposits liabilities ] divided by the number of units outstanding.}

Eg:
Date
NAV
Approx number of units you will
get at 1000
1-Jan
10
100
1-Feb
10.5
95.23
1-Mar
11
90.9
1-Apr
9.5
105.26
1-May
9
111.11
1-Jun
11.5
86.95
8

9. Contact us
Paterson Securities Pvt. Ltd.
a subsidiary of Hinduja Bank (Switzerland) Ltd.
Head Office
Corporate Office
48, Vanguard House, 2nd Line Beach,
No. 3, Bhavani Mansion,
Chennai – 600 001
4th Lane, Nungambakkam High Road,
Tel: (044) 25342700
Chennai – 600 034
Fax: (044) 2534 1741
Tel: (044) 42916522 / 24 / 26
BANGALORE
No. 183, 2nd Floor,
Opp Northside Hospital, 60ft
Road,
G Block, Sahakaranagar,
Bangalore.
Ph : 09342842355
MUMBAI
710, P.J. Towers, BSE Bldg,
Dalal Street,
Fort, Mumbai - 400 001.
Contact: +91 22
22721675
For further information contact
The Wealth Management team