3. investment avenues
TRANSCRIPT
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INVESTMENT AVENUES
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SOME OPTIONS
Shares/ Stocks Listed / Unlisted ADR/GDR/IPO
DebtGovt. Bonds / Gilt Edged - Central/State /municipalCorporate Bonds / DebenturesShort term Call money market / Commercial PaperSecuritized Instruments
Bank DepositsCompany deposits
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Further OptionsSmall Saving Schemes
Public Provident FundNational Saving Certificate
Post office Time Deposit AccountSenior Citizen Saving SchemeMutual funds/ETFInsuranceCurrencyReal Estate
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More Options
Bullion/SilverCommodity
Derivatives
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Exotic Options
Precious / Semi-precious stonesPaintings and artifacts
Antiques
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National Saving Certificates
Govt. mobilizes savings of generalpublic
Operated through Post OfficesInterest rate 8.5%Tenure 10 years ,
Amount invested qualifies asdeduction from total income in taxcalculation
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Public Provident Fund16 yearsExtended for blocks of 5 yearsSelect Branches of SBI and some nationalizedbanksMinimum amount Rs.500/- per yearMaximum amount Rs.1,00,000 per yearInterest rate 8.7%Amount invested is deductible from totalincomeInterest income is exempt us 10 of the IT Act
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Post Office Deposit Schemes
Senior Citizens Age > 60Max 15 lakhsInterest 9.2 %Interest paid quarterlyMaturity 5 years
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INSURANCE
LifeTerm Insurance
Whole Life InsuranceEndowment
Non-Life / General
MedicalHouseHouse loan
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REAL ESTATE Land & House Property
Psychological satisfaction
Capital appreciation
Tax Benefits
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Lure of GoldSentimental and social valueMethod of saving by housewivesJewelry/ Ornaments sense of securityand status symbolGold Bars & Gold CoinsMoney store of value
SBI Gold Deposit Scheme (3-7 years/3-4% int)Gold ETF / Gold Mutual Funds
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Diamonds are foreverCarat
ClarityColor
CutPoor LiquiditySubjectivity in valuation
Substantial InvestmentsNo regular incomeInstead Cost of insurance and storage
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The Smile of Mona Lisa
Painting are becoming popularSubstantial appreciation in value ofpaintings of Hussain and othersDifficult to estimate valueLiquidity AuctionsNo Regular incomeFunctional Art
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Love for History
Antiques are difficult to obtainGovernment regulationsInability to assess value of antiquesUnpredictable appreciation in valueFlourishing fake antique market
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Where do I Put my money
Investment Benefit Disadvantage
ULIP / RetirementSchemes
Minimum return assured Illiquidity , fixed timings
Debentures andBonds
Returns are likely to atleast protect againstinflation , low volatility
If not tradable , lowliquidity
Real EstateTax benefit , Security Illiquidity, maintenance
cost
Gold Currency , has not fallen inthe long run
Storage risk and cost if inphysical form,
Mutual Funds money market, gold,
balanced
Professionally run ,regulated , some have taxbenefits
Lock in periods , costs
Moderate Risk , Moderate Return
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Where do I Put my money
Investment Benefit Disadvantage
Mutual Funds Stocks
Diversification , SIP,Professionally managed
Some may be less liquid ,subject to marketfluctuations
Stocks (listedcompanies )
Liquidity (those that areregularly traded on stockmarket)
Volatile , expertise required
Derivatives Hedging , Liquidity Volatile , expertise requiredDiamonds, Art,Antiques
Very large appreciation Uncertain, specializedknowledge required
High Risk , High Return
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Your Portfolio Rs. 10 Lakh
1. Gold (ETF) & Nikkei Index2. USD & Govt Bond (10 years)
3. Nasdaq Index & Bank FD4. Euro & Balanced Mutual Fund(Growth)5. Petrol (Int. Crude Oil) & Sensex6. Nifty & Real Estate Fund7. CNX IT Index & Emerging Market Fund8. Nifty Midcap 50 & Commodity Fund9. Bank Index & Silver