2. AGENDA
Concept of Investment
Concept of Saving
Difference between Investment vs Saving
Why someone invests?
Types of Assets?
Careers in finance
How to choose best fit for you?
5. Investment is the commitment of funds for a period of time
with the expectation of receiving more than the current
outlay. The returns could be in the form of annual income
and/or appreciation in price.
Saving is a process of setting aside a portion of current
income for future use, or the flow of resources
accumulated in this way over a given period of time.
6. DIFFERENCE BETWEEN SAVING AND
INVESTMENT
BASIS FOR
COMPARISON
SAVINGS INVESTMENT
Meaning Savings represents
that part of the
person's income
which is not used for
consumption.
Investment refers to
the process of
investing funds in
capital assets, with a
view to generate
returns.
Purpose Savings are made to
fulfill short term or
urgent requirements.
Investment is made to
provide returns and
help in capital
formation
Risk Low or negligible Very high
Returns No or less Comparatively High
Liquidity Highly Liquid Less liquid
7. Why someone invests?
While the reasons for investing are unique to each individual, common
reasons could be to have
money for emergencies,
to beat inflation,
to buy a car or house,
pay for education,
indulge in travel and hobbies,
to give to children or charity and
for retirement.
• It is important for each investor to have a financial plan in order to achieve
these goals. Various types of assets are available for investment such as land,
buildings, fixed deposits, shares, gold etc.
•As individual needs and the risk and return of the portfolio change over time,
the selected portfolio needs to be reviewed periodically and revised if
necessary.
8. Careers in finance offer a variety of jobs in
strategic financial planning
stock trading,
assets management,
Certifications are also available from National Stock
Exchange (NSE), Bombay Stock Exchange (BSE)
and Association of Mutual Funds of India (AMFI).
NISM certifications
11. Features→ Returns Risk Liquidity Transaction cost Life Tax planning Lock in period Growth Regular income Transaferbility Market type Regulator
Asset class↓
Equity HIGH HIGH SUBJECTIVE LOW LONG NO NO YES NO YES Exchange traded SEBI
Debt MODERATE LOW- MOD SUBJECTIVE LOW
MEDIUM -
LONG YES YES NO YES YES ET& OTC SEBI & RBI
Money market LOW -MOD LOW -MOD HIGH LOW SHORT NO NO NO NO YES BOTH RBI
Real estate MOD-HIGH LOW -MOD LOW HIGH LONG YES YES YES YES YES OTC NO
Bank asset LOW -MOD LOW HIGH LOW SHORT-LONG YES YES NO YES NO OTC RBI
Post office LOW -MOD LOW MODE LOW
MEDIUM -
LONG YES YES NO YES NO OTC RBI
Insurance LOW -MOD LOW LOW LOW LONG YES YES NO NO NO OTC IRDA
Derivatives HIGH HIGH HIGH LOW SHORT-LONG NO NO YES NO YES BOTH SEBI & RBI
Commodities HIGH HIGH SUBJECTIVE MODE-HIGH SHORT-LONG NO NO YES NO YES BOTH SEBI
Art objects HIGH HIGH LOW HIGH LONG NO NO YES NO YES OTC NO
