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    harshita khadayte
    This document provides an overview of various investment instruments and financial concepts. It discusses types of investments like fixed income schemes, life insurance, mutual funds, real estate, gold, and commodities. It also explains key terms like inflation, taxation on investments, and how mutual funds work. Different investment options are compared based on parameters like expected returns, lock-in periods, minimum investments and tax treatment. Insurance products like term plans and unit linked plans are also introduced along with insurance terminology. Fixed income instruments such as fixed deposits, bonds, and NPS are defined. Finally, it distinguishes between different types of general insurance.

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    Created by L&D

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    harshita khadayte
    35 views37 pages
    This document provides an overview of various investment instruments and financial concepts. It discusses types of investments like fixed income schemes, life insurance, mutual funds, real estate, gold, and commodities. It also explains key terms like inflation, taxation on investments, and how mutual funds work. Different investment options are compared based on parameters like expected returns, lock-in periods, minimum investments and tax treatment. Insurance products like term plans and unit linked plans are also introduced along with insurance terminology. Fixed income instruments such as fixed deposits, bonds, and NPS are defined. Finally, it distinguishes between different types of general insurance.

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    This document provides an overview of various investment instruments and financial concepts. It discusses types of investments like fixed income schemes, life insurance, mutual funds, real estate, gold, and commodities. It also explains key terms like inflation, taxation on investments, and how mutual funds work. Different investment options are compared based on parameters like expected returns, lock-in periods, minimum investments and tax treatment. Insurance products like term plans and unit linked plans are also introduced along with insurance terminology. Fixed income instruments such as fixed deposits, bonds, and NPS are defined. Finally, it distinguishes between different types of general insurance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views37 pages

    Created by L&D

    Uploaded by

    harshita khadayte
    This document provides an overview of various investment instruments and financial concepts. It discusses types of investments like fixed income schemes, life insurance, mutual funds, real estate, gold, and commodities. It also explains key terms like inflation, taxation on investments, and how mutual funds work. Different investment options are compared based on parameters like expected returns, lock-in periods, minimum investments and tax treatment. Insurance products like term plans and unit linked plans are also introduced along with insurance terminology. Fixed income instruments such as fixed deposits, bonds, and NPS are defined. Finally, it distinguishes between different types of general insurance.

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    Created by L&D

    Understanding Investments

    Basic Knowledge of Financial Product

    Taxation

    Q&A
    Investment is a instrument which helps in grow money & it
    also helps you to fulfil your certain desires of your life.

    Types of Investment Instrument


    - Fixed Income Schemes like FD , Bonds etc
    - Life Insurance
    - Direct Equity
    - Mutual Funds
    - Real Estate
    - Gold
    - Fixed Income
    - Commodity
    - Forex
    IDENTIFY THE PURPOSE OF TIME HORIZON OF THE
    INVESTMENT INVESTMENT
    Inflation: The rate at which the general level of prices for goods and services
    is rising, and, subsequently, purchasing power is falling

    For E.g.; When McDonald launched its McAloo Burger it


    was at Rs.20, now because of inflation (Due to rise in price
    of potato, transportation cost, etc.) the same burger now
    costs Rs.30 (including taxes).

    So,Inflation rate is 30-20/20*100=


    50%.
    Inflation
    Average CPI has been 8.17% in last 37 years How inflation is eating your money!
    1980
    Rs. 100,000
    1995
    Rs. 25,571

    2010
    Rs. 7,120

    2016

    Rs. 4,270

    Reduced Value of Money @ 8.17%


    average rate of inflation

    Source: http://www.inflation.eu/inflation-rates/india/historic-inflation/cpi-inflation-india.aspx
    Money in savings account + 100000
    Interest earned in 1 year (@3.5 per + 3500
    annum)
    103500
    Tax on Interest (@30.9%) - 1081
    Impact of Inflation (@5% per annum) - 5000

    Value at the end of year 1 97418


    Mutual fund is an investment vehicle
    that pools the money of many investors
    who share a common financial goal
    and invests them in a diversified portfolio of
    securities
    Passed
    Pool their
    back to
    money with

    Investors

    Income/Dividend/ Fund
    Total Return Manager

    Stock Market
    generates Debt market Invests in
    Money Market
    Video
    Broad Mutual Fund Types

    Open Ended Closed Ended

    Equity Debt Equity Debt

    Aggressive Monthly
    ELSS Funds CPOF
    Growth Funds Income Plan

    Growth Funds
    Liquid Funds FMP
    Diversified
    Equity Fund Short Term
    Debt Funds

    Balanced Fund
    Parameter PPF Bank FD Equity MF Schemes
    Returns 8% 6.5 to 7% 12-15%
    Interest Receipt On Maturity On Maturity Depends on Performance
    Tenure 15 Yrs 7 -10 yrs No Specified Term
    Partial Withdrawal No No Yes
    Long term Tax Liability No Yes No
    Minimum Rs 500 p.a. Rs 10000 Rs 5000
    Investment
    Maximum Rs 1,50,000 No Upper Limit No Upper Limit
    Investment
    Monthly Investments N.A N.A. Rs 500
    Lock In Period Default 15 yrs Depends on Term of Deposit No Lock-in Period
    Particulars Bank RD MF SIPs
    Money Savings Per Month 10000 10000

    Interest Period in Years 10 10

    Returns Expected p.a 6.5% 12%

    Maturity Value 16,93,153 23,00,387


    Total Amount Invested 12,00,000 12,00,000
    Total Gain 4,93,153 11,00,386

    Tax on Interest (@30.9% on FD & 10% in MF 1,47,946 100039


    exceeding 1lac profit in equity)
    Post Tax Return in Hands of Investor After 10yrs 15,45,207 22,00,348

    Investment in MF SIP is giving extra benefit for Rs.6,55,141 !!!


    Insurance is a means of protection
    from financial loss. It is a form of risk
    management, primarily used
    to hedge against the risk of a
    contingent or uncertain loss.
    Human Life is priceless...and It is also an INCOME GENERATING
    ASSET

    Risk For Human Being

    Dying too
    Living too
    Early
    Long

    Financial Loss
    Life Insurance Products

    Traditional Plan Unit Linked Insurance Plan

    Investments are
    Pure Endowment Term Plan(Risk made in equities,
    Management Scheme) debts & money
    market instruments

    Benefit paid in case Benefit paid only in


    of Death /survival case of death during
    during the term the term
    Proposal form Initial step(application) to initiate the contract

    Proposer The person who applies for the insurance contract


    Life Insured The person who is covered in the insurance contract

    Sum Assured The risk cover amount promised by the insurer

    Premium The money paid as consideration for a specified Sum Assured

    Policy term The duration of the insurance contract

    Maturity value The amount received at the end of policy term

    Premium The number of years premium is to be paid. Can be less than or


    paying term equal to Benefit Period

    Surrender value The amount received if policy is closed before the end of policy
    term
    As risk cover As Investment

    As Tax Planning
    An investment that provides a return in the form of fixed
    periodic payments and the eventual return of principal at
    maturity is said to be Fixed Income.

    For e.g.
    A invests Rs. 1,00,000/- for 3 years @ 10% p.a payable
    annually. Then his yearly interest will be Rs. 10,000/- and
    maturity amount will be Rs. 1,00,000/-

    In above example, the Interest payments and Maturity


    amount is Fixed.
    Company National Non
    Fixed Bonds Pension Convertible
    Deposits System (NPS) Debenture

    Capital Gain Tax Free


    GOI Bonds
    Bonds Bonds
    Non Cumulative

    • Interest Calculated – Simple


    • Interest Payable – Monthly, Qtlry , Half Yearly
    • Maturity Value : Only Principle
    • Taxation – Interest Taxable and Added in
    Types of Fixed Income

    Deposits Cumulative

    • Interest Calculated – Compounding


    • Interest Compounding – Monthly, Qtlry , Half
    Yearly
    • Maturity Value : Principle & Interest
    • Taxation – Interest Taxable and Added in
    Income
    General Insurance

    Fire Marine Miscellaneous

    dealing with transport dealing with all other like


    dealing with fire related
    related risk & ships motor, liability, Medical
    risks
    etc

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