sector information

1. *FINANCIAL SECTORS

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 Financial Services is term used to refer to the services provided
by the finance market, it is also deal with the management of
money.
 It is an interaction of various intermediaries, market instruments,
policy makers, and various regulations to aid the flow of savings
from savers to investors and managing the proper functioning of
the system

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*SHARE MARKET
*MUTUAL FUNDS
*GOLD
*BANK/FD
*PPF
*REAL ESTATE
*POST OFFICE
*INSURANCE

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 A place where share of public listed companies are traded
 It is an organization that provides a marketplace for either
physical or virtual trading shares, bonds and warrants where
investors may buy and sell shares of a wide range of
companies
 Pestle analysis is the tool used in share marketing
 NSE- National Stock Exchange More than 2000 listed stocks
from different sectors
 BSE- Bombay Stock Exchange More than 4000 listed
companies from different sectors
Basic activities in stock market is Buying & Selling

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Pros:-
 Grow with Economy
 Stay ahead of Inflation
 Easy to Buy
 Less amount is required for
investing
 High Liquidity
 Income from price appreciation
& Dividends
 Back by SEBI
Cons:-
 High Risk
 Takes time to research
 Taxes on profitable stock
 Ups and downs in Share
 Competing with institutional
& professional investors
 Common stock holders paid
last
 Cyber Crime

6. *
 A mutual fund is an investment vehicle where many
investors pool their money to earn returns on their capital
over a period.
 This corpus of funds is managed by an investment
professional know as a fund manager or portfolio manger.
 It is his/her job to invest the corpus in different securities
such as bond, stocks, gold & other assets and seek to
provide potential returns.
 The gain or losses on the investment are shared collectively
by the investors in proportion to their contribution to the
fund

7. *
Pros:-
 Liquidity
 Portfolio Diversification
 Cost Benefits from Scale
 Low- Cost Investment
Scheme
 Cost Efficiency
 Tax Savings
 Transparency
Cons:-
 High Costs Associated
 Diversification of Funds
 Fluctuating Returns
 Fund Evaluations
 Exit load

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 A gold fund is type of investment fund that hold assets
related to gold
 They comes in variety of forms
 It may be accessible through a financial institution such as a
commercial bank
 Gold funds offer investors a convenient way to gain
exposure to gold

9. *
Pros:-
 Safe Haven
 Low Long-Term Volatility
 Tangibility
 Portfolio Diversification
 Simple to understand
Cons:-
 Liquidity
 Storage issues
 Taxes
 High Short- Term Volatility
 Speculative
 No Yield

10. *
 Bank is a financial institution which accepts
deposits, pay interest on pre-defined rates, clears
checks, makes loans in financial transactions
 Banking System has evolved from Barbaric Banking
 Fixed Deposit is a way to save money and also
earned a interest
 FD ranging from min 7-14 days to max 10 years
 Interest you can earn is either paid at maturity or
on periodic basis depending on your choice

11. *
Pros:-
 Back Bone of Indian Economy i.e. RBI
 It gives many Services
 Loan against FD
 Flexible
 High Return
 Easy to access
 Minimum Balance options
 Development in rural areas
Cons:-
 Penalties on withdrawal
 Risk of Public Debt
 Chances of Bank Going Bankrupt
 Risk of Fraud and Robberies
 Tax Returns
 Fixed rate of Interest
 Inflation Risk

12. *
 PPF is savings cum tax saving in India
 Main Objective of the scheme is to mobilize small savings
 The Scheme is fully guaranteed by the Central Government
 It is introduced by the government on 12 December 2019,
resulted of the earlier 1968 Public Provident Scheme
 A minimum yearly 500 rupees is required to open & maintain
 Maximum can deposit of 1.5 lac
 There are 3 types of PPF i.e. GPF EPF PPF

13. *
Pros:-
 Safe investment with a certain return
 Low investment amount i.e. 500
 Loan against your PPF account
 Flexibility
 PPF offers tax benefits
 Even minors can open a PPF
Cons:-
 It is long lock in period of 15 years
 Due to lock in period you lose your
liquidity
 Not ideal for large investment
 In high Inflation it may not be able
to protect your invested wealth
 Joint PPF accounts cannot be
opened unless in case of minor

14. *
 It is property consisting land & the buildings on it
 Real Estate is often purchased as an investment
 It is best collateral investment
 Real Estate Regulatory Authority ( RERA) regulation of the real
estate sector and also acts as an adjudicating body
 RERA is different in different state

15. *
Pros:-
 It has unique tax benefits
 Provides a steady Cash Flow
 It lets you use Leverage
 Less Stating Capital
 Its builds Equity
 Hedge against Inflation
Cons:-
 It Requires Money
 Takes a lot of Time
 Long term Investment
 It can be Problematic
 Investing has unique risk
 Its benefits don’t always apply

16. *
 India Post is government operated postal system in
India
 Warren Hastings had taken initiative under East
India Company in 1766
 It is local office where mail is received sorted &
delivered
 Also stamps & other postal materials are sold
 It is the back bone of the country's communication
 Around 1,55,015 post office
 It has maximum branches

17. *
Pros:-
 Low minimum amount i.e. 1000
 High interest rate
 Premature withdrawal Cons:-
 The maximum tenure of a post office
FD is 5 year
 If you opt a premature withdrawal you
may be charged a fee
 Most services are not online
 Interest pay-out is only annually

18. *
 It is an contract in which an individual or entity receives
financial protection or reimbursement against losses from an
company
 Serves as an agency of capital formation
 It compensate specified loss, damage, illness or death in
return for a payment of a premium
 Source of employment

19. *
Pros:-
 Perfect cover for your family after you are
gone
 Benefits of Compensation
 Tax Benefits
 Financial support post retirement
 For smooth business operation
Cons:-
 Tricky term and conditions
 Lengthy legal formalities
 Potential crime incidents
 Lack of investment control
 s

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