(NSE’s Certification In Financial Market)
It is the employment of funds on assets with the aim
of earning income or capital appreciation.
The money you earn is partly spent and the rest saved
for meeting future expenses.
Instead of keeping the savings idle you may like to
use savings in order to get return on it in the future.
It has two attributes
1 TIME
2 RISK
Invest early
Invest regularly
Invest for long term and not short term
Taking up the business risk in the hope of
getting short term gain
Ex :>
1 Buying stock for dividend
2 Buying stock when prices are low
Time
Horizon
Risk
Return
Decision
Funds
It is game or chance
Very short time
No calculation
Different from investment and speculation
Investment policy ;
1 investible fund
2 objective
3 knowledge
Analysis;
1Market
2 Industry
3Company
Valuation
1Intrinsic value
2Future value
Portfolio construction
1Diversification
2 Selection and allocation
Portfolio evolution
1 Appraisal
2 Revision
1 Physical Assets
Real estate
Gold
Commodity
2 Financial Assets
Equity & Preference shares
Debenture Bonds or Fixed income securities
Money Market instrument
Insurance policies
Precious object
SHORT TERM LONG TERM
Money Market or Post Office Savings
Liquid Funds
Public Provident Fund
Saving bank A/C Company Fixed
Deposits
Fixed Deposits with
Banks (For 6-12 Bonds
month)
Mutual Funds
Measured
Reluctant Investors
Competitive Investors
Unprepared Investors
Don’t measurable financial risk
Make financial decision without
understanding the market
Confusion in financial planning
Not revaluated their financial plan periodically
Expect unrealistic returns on investment
Believe that financial planning is primarily tax
planning
Returns
Risk
Liquidity
Hedge against inflation
Safety
Securities
(1) Debenture
Secured and Non-Secured
FCB
PCB
NCB
(2) Bond
Secured and Non secured Bond
Perpetual and Redeemable Bonds
Fixed interest rate and floating interest Bond.
Zero coupon Bond
Deep discount Bonds
Capital indexed bond
Non- Securities
Equity shares
Sweat equity
Non voting shares
Right shares
Bonus shares
Preference stock
International Affairs
National Affairs
Industry Information
Company Information
Stock Market Information
Types Of Interest Rates -
Banks Interest Rates.
Government Bond/Government Securities
interest rates offered to investors in small.
NSC, PPF, rates at which companies issue fixed
deposits etc.
FACTORS
Demand for money
Level of government borrowings.
Supply of money
Inflation rate
RBI & Government Of India policies
Money Market
It is the market for dealing in monitory assets of
short term nature.
Money market instrument have the characteristics
of liquidity. (quick conversation into cash.)
Money market provide access to providers and
users of short term fund to fulfill their borrowings
and investment requirement at an efficient market
clearing price.
Capital Market
Capital market is very important segment in
financial system. Its create a securities for long term
purpose to investors. Ex debenture, shares
(Preferences & Equity).
Investors gets a reasonable return during initial
years/ followed by equity participation on
conversation.
Capital Market
Primary Market Secondary / Stock
(IPO) Exchange
Equity shares
Debt instruments
In the Indian securities markets, the term ‘bond’ is
used for debt instruments issued by the Central and
State governments.
In public sector organizations the term debenture is
used for instruments issued by private corporate
sector.
“Derivative”
Derivative is a product whose value is derived from
the value of one or more basic variables, called
underlying.
The underlying asset can be equity, index, foreign
exchange (forex), commodity or any other asset.
Mutual Fund
A Mutual Fund is a body corporate registered with
SEBI (Securities Exchange Board of India)
Collect money from individuals/corporate and
invests the same in a variety of different financial
instruments.
Index.
An Index shows how a specified portfolio of share
prices are moving in order to give an indication of
market trends.
It’s movement upwards or downwards.
BSE ( Sensex ) NSE (NIFTY)
Depository.
A depository is like a bank where in the deposits are
securities (shares, debentures, bonds, government
securities, units etc.) in electronic form.
Dematerialization.
Dematerialization is the process by which physical
certificates of an investor are converted to an
equivalent number of securities in electronic for and
credited to the investor’s account with his
Depository Participant (DP). (NSDL & CDSL)
THANK YOU & WELCOME FOR
?
Prof. Laxman Pawar.
9742194303
