lnvesLmenL

eflnlLlon
An asseL or lLem LhaL ls purchased wlLh Lhe hope LhaL lL
wlll generaLe lncome or appreclaLe ln Lhe fuLure
ln an economlc sense an lnvesLmenL ls Lhe purchase of
goods LhaL are noL consumed Loday buL are used ln Lhe
fuLure Lo creaLe wealLh
ln flnance an lnvesLmenL ls a moneLary asseL purchased
wlLh Lhe ldea LhaL Lhe asseL wlll provlde lncome ln Lhe
fuLure or appreclaLe and be sold aL a hlgher prlce
@he Lwo conLrlbuLlng Lo lnvesLmenL
8lsk
8eLurn
Investment Attributes
8aLe of reLurn
LlquldlLy
8lsk
SafeLy
@ax ShelLer
Convenlence
Investment Objectives
,axlmlzaLlon of reLurn
,lnlmlsaLlon of rlsk
Pedge agalnsL lnflaLlon
%5es oI Investors
lndlvlduals
lnsLlLuLlons
9hases of 9orLfollo ,anagemenL
W SecurlLy Analysls
W 9orLfollo analysls
W 9orLfollo SelecLlon
W 9orLfollo 8evlslon
W 9orLfollo LvaluaLlon
W SecurlLy Analysls
lundamenLal analysls
@echnlcal Analysls
LfflclenL ,arkeL PypoLhesls
W 9orLfollo analysls
9roporLlon of lndlvldual securlLles
W 9orLfollo SelecLlon
CeneraLlng a porLfollo LhaL provldes Lhe
hlghesL reLurns aL a glven level of rlsk A
porLfollo havlng Lhls characLerlsLlc ls known as
an efflclenL porLfollo @he lnpuLs from
porLfollo analysls can be used Lo ldenLlfy Lhe
seL of efflclenL porLfollos
W 9orLfollo 8evlslon
W 9orLfollo LvaluaLlon
Assesslng Lhe performance ln Lerms of reLurn
and rlsk
lnvesLmenL AlLernaLlves
lnvesLmenL alLernaLlve falls lnLo Lwo caLegorles
W llnanclal AsseLs
W 8eal AsseLs
@ypes of lnvesLmenL
W non markeLable flnanclal AsseLs
W ,oney ,arkeL lnsLrumenLs
W 8onds or llxed lncome SecurlLles
W LqulLy shares
W ,uLual fund Schemes
W llnanclal erlvaLlves
W Llfe lnsurance
W 8eal LsLaLe
W 9reclous ob[ecLs
non ,arkeLable llnanclal AsseLs
1 8ank eposlLs
CurrenL AccounL
Savlngs AccounL
llxed eposlL AccounL
9osL offlce @lme eposlLs
W 8aLe of lnLeresL 623 630 723 73
compounded quarLerly for 123 3 years @ accounL
respecLlvely
W Any lndlvldual (a slngle adulL or Lwo adulLs [olnLly)
can open an accounL
W 1 ?ear 2 ?ear 3 ?ear and 3 ?ear @ can be opened
1ype of Account Minimum
Deposit
Maximum
Deposit
123 3 ?ear @
INR.200/- and in
multiples of INR.
200/- thereafter
No limit.
c Savlngs AccounL ln 9osL offlces
W Any lndlvldual can open an accounL
W Cheque faclllLy avallable
W 8aLe of lnLeresL 33 per annum
%pe of Account Maximum Limit
Single Account INR. 1 lakh
Joint Account INR. 2 lakh
,onth|y Income Scheme (,IS)
W Safe sure way Lo geL a regular monLhly lncome
Speclally sulLed for reLlred employees/ Senlor
ClLlzens or any one wlLh hlgh sum for lnvesLmenL
W 8aLe of lnLeresL 8
W ,aLurlLy 9erlod Slx ?ears
W 3 8onus on ,aLurlLy
W 9osL maLurlLy lnLeresL aL Lhe raLe appllcable from
Llme Lo Llme (aL presenL 33)
W AuLo credlL faclllLy Lo S8 AccounL
%pe of
Account
Minimum
limit
Maximum
limit
$ingle
INR 1500/-
INR 4.5
lakhs
Joint
INR 1500/-
INR 9 lakhs
e kecurr|ng Depos|t
W Any lndlvldual (a slngle adulL or Lwo adulLs
[olnLly) can open an accounL
W lour defaulLs are allowed
W efaulLs can be pald wlLhln Lwo monLhs
W 9arL wlLhdrawal faclllLy avallable
W 9remaLure closure allowed afLer Lhree years
W 9ay 8oll Savlngs Scheme ls also avallable for
employees of varlous LsLabllshmenLs
W ,aLurlLy perlod 3 years
%pe of Account Minimum Deposit Maximum Deposit
Individual Account
INR. 10/- and in
multiples of INR. 5/-
thereafter
No limit.
lor flve years an amounL of ln8 100 pm wlll (
1200*3) glve 8s 7289 as Lhe reLurn
f Sen|or C|t|zens Sav|ngs Scheme
(SCSS)
W A new avenue of lnvesLmenL and reLurn for
Senlor ClLlzen
W @he accounL may be opened by an lndlvldual
Who has aLLalned age of years or above on
Lhe daLe of openlng of Lhe accounL
W @he accounL may be opened ln |n|v|ua|
capac|ty or [o|nt|y w|th spouse
W nonresldenL lndlans (n8ls) and Plndu
undlvlded lamlly (Pul) are not e||g|b|e to
open an account
W @he lndlvldual may open one or more accounL
ln Lhe mu|t|p|e of INk$ sub[ecL Lo a
maxlmum llmlL of INk |akh
W no wlLhdrawal shall be permlLLed before Lhe
explry of a perlod of flve years from Lhe daLe
of openlng of Lhe accounL @he deposlLor may
exLend Lhe account for a further per|o of 3
years
W Interest Q 9 per annum from Lhe daLe of
deposlL on quarLerly basls
W @he lnvesLmenL under Lhls scheme quallfy for
Lhe beneflL of SecLlon 80C of Lhe lncome @ax
AcL 1961 from 142007
g ears ub||c rov|ent Iun (
ost off|ces)
W nly one accounL can be opened ln Lhe name
of a person
W @welve deposlLs can be made ln a flnanclal
year
W ,lnlmum deposlLs ln a year ls ln8300 and
maxlmum ls ln8 70000/
W WlLhdrawal ls permlsslble from sevenLh
flnanclal year from Lhe year of openlng
llmlLed Lo one ln a flnanclal year
W A subscrlber can close Lhe accounL ln Lhe 16Lh
flnanclal year @he accounL can also be
conLlnued wlLh or wlLhouL subscrlpLlon for
furLher blocks of 3 years
W eposlLs are quallfled for lncome @ax rebaLe
under secLlon 88 of lncome @ax AcL
W eposlLs compleLely exempLed from wealLh
Lax lnLeresL ls compleLely Lax free under
secLlon 80 of lncome@ax AcL
h |ssan V|kas atra
W ,oney doubles ln 8 years and 7 monLhs
Investment L|m|ts an Denom|nat|ons
W no llmlL on lnvesLmenL
W Avallable ln denomlnaLlons of 8s1008s 300/
8s 1000/ 8s 3000/ 8s 10000/ ln all
posL offlces and 8s 30000/ ln Pead 9osL
fflces
W no lncome Lax beneflL ls avallable under Lhe
scheme Powever Lhe deposlLs
are exempL from @ax educLlon aL Source
(@S) aL Lhe Llme of wlLhdrawal
W lnLeresL accrued on yearly basls wlll be Laken
as lncome for lncome @ax purposes
| Nat|ona| Sav|ngs Cert|f|cate
W lnvesLmenL ln nSC can be deducLed before
compuLlng Lhe Laxable lncome under secLlon
80 c
W @he raLe of lnLeresL ls 9 per cenL per annum
compounded annually
W @here ls no prescrlbed upper llmlL Lo Lhe
amounL you mlghL wanL Lo lnvesL ln Lhe
scheme
W @he nSCs have a maLurlLy perlod of 6 years
[ Lmployee 9rovldend lund
Scheme
W ConLrlbuLlon done by employee and employer
[ 12 of Lhe baslc wages dearness
allowance and reLalnlng allowance lf any
payable Lo employees per monLh
W ConLrlbuLlon made by employer fully Lax
exempLed
W ConLrlbuLlon made by employee can be
deducLed before compuLlng Laxable lncome
under sec 80 C
W Compound lnLeresL of 93
W Loan posslble
k ub||c rov|ent Iun Scheme
W @he 99l ls a longLerm governmenL backed
small savlngs scheme of Lhe CenLral
CovernmenL sLarLed wlLh Lhe ob[ecLlve of
provldlng old age lncome securlLy Lo Lhe
workers ln Lhe unorganlzed secLor and self
employed lndlvlduals
W CurrenLly Lhe lnLeresL raLe offered Lhrough
99l ls around 8 whlch ls compounded
annually
W uraLlon of 99l ls 13 years
W @he accounL holder has an opLlon Lo exLend
Lhe 99l accounL for any perlod ln a block of 3
years afLer Lhe mlnlmum duraLlon elapses
W @he mlnlmum deposlL LhaL you can make lnLo
a 99l accounL ln one whole flnanclal year ls
8s 300 @he maxlmum ls 8s 70 000
W @he amounL you lnvesL ls ellglble for
deducLlon under Lhe 8s 1 00000 llmlL of
SecLlon 80C n maLurlLy Lhe enLlre amounL
lncludlng Lhe lnLeresL ls nonLaxable
W lL can be opened wlLh a mlnlmum deposlL of
8s 100 aL any branch of Lhe SLaLe 8ank of
lndla (S8l) or branches of lL's assoclaLed banks
llke Lhe SLaLe 8ank of ,ysore or Pyderabad
W @he accounL can also be opened aL Lhe
branches of a few naLlonallzed banks llke Lhe
8ank of lndla CenLral 8ank of lndla and 8ank
of 8aroda and aL any head posL offlce or
general posL offlce
L Company eposlLs
W llxed deposlLs moblllzed by manufacLurlng
companles and n8lC's
W 8egulaLed by CL8 and 88l respecLlvely
W lor a manufacLurlng company Lhe Lerm of
deposlL can be one Lhree years whereas
n8lC's lL can vary b/w 23 monLhs 3 years
W A manufacLurlng co can moblllze by way of
llxed deposlLs an amounL equal Lo 23 of lLs
neL worLh from Lhe publlc and an addl amounL
equal Lo 10 of lLs neLworLh from lLs
shareholders n8lC's can moblllze hlgher
amounLs
W Plgher lnLeresL Lhan LhaL of 8anks
W no Lax beneflLs for Lhe lnvesLors @ax
exempLed upLo an lnLeresL lncome of 3000 ln
a flnanclal year
W n8lCs LhaL offer ls need Lo mandaLorlly geL
Lhem raLed by raLlng agencles such as C8lSlL
lC8A CA8L eLc Powever manufacLurlng
companles do noL have any such compulslons
enef|ts of Company I|xe Depos|ts
W Plgh raLes of lnLeresL
W SLable source of lncome
W SufflclenL safeLy as mosL companles are raLed
W llexlble Lenure ranglng from 6 monLhs Lo 7
years
W nly 6 monLhs lockln perlod
W no @S ln case Lhe lnLeresL ls only 8s 3000 ln
a year