The document discusses the merits and demerits of various financial investments including real estate, shares, gold, post offices, banking, mutual funds, government bonds, and retirement funds. Each investment type has its advantages, such as opportunities for income and diversification, as well as disadvantages like liquidity issues and market knowledge requirements. The summary emphasizes the importance of understanding these factors before making investment decisions.

1. Merits & Demerits of Types of
Financial Investments
Deepak Dwivedi
BBA E1 (Vth)

2. Various financial sectors
1. Real Estate.
2. Shares.
3. Gold.
4. Post Offices.
5. Banking .
6. Mutual Funds.
7. Government Bonds.
8. PPFs , EPFs & PFs.
9. Insurance.

3. Merits
1. Opportunity to earn rental
income.
2. Higher control on the assets.
3. Rental rates rise whenever a lease
expires.
4. Great diversification.
Demerits
1. Unattractive locations may not be taken
into consideration.
2. Change in the government could hinder
the rates of property.
3. Additional expenses.
4. Sudden government plans can cause
huge losses in the investment.
Real Estate

4. Merits
1. Easy liquidity.
2. Flexibility.
3. Versatility.
4. Maximum return.
5. Time Value of money.
6. Limited liability.
Demerits
1. Knowledge about the market
is a must.
2. Might not give the desired
result.
3. De-mat account required
4. Have to seek external help for
investment.
5. No life cover.
Shares

5. Merits
1. High Liquidity.
2. One of the most desired community.
3. Holds its value for long time.
4. Diversification.
5. Start with a small amount.
Demerits
1. Extra bank charges are to be given for
deposits.
2. Difficult to store.
3. Losses begin from the time of
purchase.
4. Less Resale value.
5. Subject to Confiscation.
6. Partial liquidity.
7. May subject to a crime in the outside
world.
Gold

6. Merits
1. Withdrawal before completion.
2. Safe and Secure mode of
savings.
3. The A/C can be transferred from
one post office.
4. Electronic deposits.
Demerits
1. Rate of interest.
2. No Computerization.
3. No Roaming facility.
4. Reliability on the agent.
5. Allocation issues.
Post Office

7. Merits
1. Guaranteed returns.
2. Easily withdrawal.
3. Flexible in nature.
4. Encourages saving habits.
5. Higher rate of returns.
Demerits
1. No flexibility to access
your funds.
2. Relatively low
investment returns.
3. Time consuming.
4. Additional charges may
occur at the time of
breaking of FD.
Banking

8. Merits
1. Reduces investment risk.
2. Diversification at low cost.
3. Professionally managed.
4. Ease of liquidity.
5.Time value of money.
Demerits
1.High expense ratios and
sales charges.
2.Misleading during
investment.
3.No insurance against losses.
4.Trading limitations.
Mutual funds

9. Merits
1. Tax free.
2. Less risk.
3. Good long term returns.
4. Early redemption is easy
5. Diversifies Portfolio
Demerits
1.Vulnerable at the time of fiscal
crisis.
2.Low rate of investment
(depends on inflation/deflation).
3.Burden on the government.
4. Limit to investment.
Bonds

10. Merits
1. Generates guaranteed returns.
2. The maturity proceeds are exempt
from taxes.
3. Safety of capital.
4. Can be opened in the name of
minor along with a guardian.
Demerits
1. Lack of liquidity.
2. Cannot be opened by HUF, NRI,
trust etc.
3. Joint account is not permissible.
4. Big lock in period of 15 years.
5. Account cannot be closed
prematurely.
PPF , PF , EPF

11. Merits
1. Comes under 80©.
2. Guaranteed income.
3. Tax benefits.
4. Mortgage recovery.
5. Risk guard.
6. High Liquidity.
Demerits
1. Lack of awareness.
2. Inconsistent premiums.
3. Trust worthiness.
4. Lengthy legal
formalities.
Insurance

12. Conclusion and Treatment

13. Thank you.