investment options ii
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TRIO-FEST 2009TRIO-FEST 2009
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INVESTMENTINVESTMENT
AVENUES-IIAVENUES-II
I.BBA ( 2009-2012 BATCH)I.BBA ( 2009-2012 BATCH)
M.M.E.S WOMENS COLLEGE OF ARTS &M.M.E.S WOMENS COLLEGE OF ARTS &
SCIENCESCIENCE
MELVISHARAM- 632509MELVISHARAM- 632509
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I.BBA ( 2009-2012 BATCH)I.BBA ( 2009-2012 BATCH)## AAMINA SHARIFAAAMINA SHARIFA # A. ANITHA# A. ANITHA
# SAIDA FATHIMA# SAIDA FATHIMA # B. CHITRA# B. CHITRA# SULTHANA# SULTHANA # K.BHUVANESHWARI# K.BHUVANESHWARI
# RABIYA ANJUM# RABIYA ANJUM # SHAJITHA# SHAJITHA
# K. ELAKKIYA# K. ELAKKIYA # NAZIYA SAMREEN# NAZIYA SAMREEN
# ALMAS BANU# ALMAS BANU # J. SHARMILA DEVI# J. SHARMILA DEVI
# FOUZIYA ANJUM# FOUZIYA ANJUM # NADIYA# NADIYA
# LOGANAYAGI# LOGANAYAGI # C.SARANYA# C.SARANYA
# D. BHUVANESHWARI# D. BHUVANESHWARI # M.INDHUMATHY# M.INDHUMATHY
# R.POORANI# R.POORANI # B.SINDHUPRIYA# B.SINDHUPRIYA
# S.GAYATHRI# S.GAYATHRI # M.GEETHA# M.GEETHA# S.ISHWARYA# S.ISHWARYA # S.DIVYA# S.DIVYA
# R.NITHYA# R.NITHYA # R.AISHWARYA# R.AISHWARYA
# P.LAVANYA# P.LAVANYA # E. MALA# E. MALA
# R. NITHYA# R. NITHYA # THASMIYA FIRTOUSE# THASMIYA FIRTOUSE
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WHY SHARES ARE WORTHWHY SHARES ARE WORTH
INVESTING IN?INVESTING IN?
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What is the Stock Market ?What is the Stock Market ?The Stock Market refers to equities where actually stocks and derivatives areThe Stock Market refers to equities where actually stocks and derivatives aretraded. In the Indian context, all trading in stocks happens in one of the major twotraded. In the Indian context, all trading in stocks happens in one of the major two
exchanges : NSE and BSE.exchanges : NSE and BSE.
The Indian stock markets has evolved and it has become relatively easy to invest inThe Indian stock markets has evolved and it has become relatively easy to invest inshares of Indian companies with the advent of dematerialisation, reduction inshares of Indian companies with the advent of dematerialisation, reduction inmarket lots and the growth of online stock trading.market lots and the growth of online stock trading.
The Stock Market is akin to a marketplace where buyers and sellers of a company'sThe Stock Market is akin to a marketplace where buyers and sellers of a company's
share come together and transact the share of the company.share come together and transact the share of the company.
Money flows from the buyer to the seller and the shares are transferred from theMoney flows from the buyer to the seller and the shares are transferred from theseller to the buyer.seller to the buyer.
However, there is a lot of intricacies involved in investing in the stock markets ofHowever, there is a lot of intricacies involved in investing in the stock markets ofany country and more so in the Indian Stock Markets due to the large number ofany country and more so in the Indian Stock Markets due to the large number of
listed companies which can easily confuse the lay investor.listed companies which can easily confuse the lay investor.Stock Marketing investing is not for the faint hearted as it can lead to huge losses ifStock Marketing investing is not for the faint hearted as it can lead to huge losses ifthe investor has not done the necessay homework to understand the nuances ofthe investor has not done the necessay homework to understand the nuances ofstock market investments.stock market investments.
Finally, there is a well known saying in the stock markets : "Tread withFinally, there is a well known saying in the stock markets : "Tread with
caution...always !".caution...always !".
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What Is An IPO ?What Is An IPO ?
An IPO is an Initial Pubic Offering. InAn IPO is an Initial Pubic Offering. In
effect, an IPO takes a privateeffect, an IPO takes a private
company public. It is also a meanscompany public. It is also a means
for an existing company listed on onefor an existing company listed on one
of the exchanges to spin off or createof the exchanges to spin off or create
a new company from its parenta new company from its parent
company.company.
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Reasons For Floating An IPOReasons For Floating An IPO
The most obvious reason for a private company to enter the publicThe most obvious reason for a private company to enter the public
market is raising immediate liquid assets by way of offering shares inmarket is raising immediate liquid assets by way of offering shares inthe company. A company may need to generate money to drive it'sthe company. A company may need to generate money to drive it'sexpansion plans and combat competitition. There have been some badexpansion plans and combat competitition. There have been some badapples in the IPO offerings in the Indian Stock Market history.apples in the IPO offerings in the Indian Stock Market history.
Generally, companies start floating Initial Public Offerings (IPO) whenGenerally, companies start floating Initial Public Offerings (IPO) whenthe stock markets are at a high and the public appetite for shares ofthe stock markets are at a high and the public appetite for shares ofcompanies are also at a high.companies are also at a high.
However, precautions need to be taken in such situations as theHowever, precautions need to be taken in such situations as thegeneral public is most vulnerable in these times.general public is most vulnerable in these times.
It is at these times that the stock market regulators like the SecuritiesIt is at these times that the stock market regulators like the SecuritiesExchange Board Of India (SEBI) should take care of the investorsExchange Board Of India (SEBI) should take care of the investorsthrough appropriate investor awareness programs.through appropriate investor awareness programs.
Corporate India needs to take note of such unwanted spikes in IPOsCorporate India needs to take note of such unwanted spikes in IPOsand protect investors from the pitfalls.and protect investors from the pitfalls.
The IPO, however still remains the prefered vehicle for new investors toThe IPO, however still remains the prefered vehicle for new investors toget into the stock markets and it can prove to be beneficial only ifget into the stock markets and it can prove to be beneficial only ifinvestors pick the right Initial Public Offerings (IPOs) to participate andinvestors pick the right Initial Public Offerings (IPOs) to participate andmake a decent return on their investmentsmake a decent return on their investments
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Dematerialization of SharesDematerialization of Shares
As you may be aware that the sharesAs you may be aware that the sharesof MFL are under compulsoryof MFL are under compulsorydematerialization (demat) segment ofdematerialization (demat) segment oftrading as per SEBI directives. Thistrading as per SEBI directives. This
means, MFL shares can bemeans, MFL shares can bepurchased / sold at the Stockpurchased / sold at the StockExchanges only in dematExchanges only in dematform. Shareholders are thereforeform. Shareholders are therefore
advised to avail the demat facility.advised to avail the demat facility.
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Dematerialization - MeaningDematerialization - Meaning
Dematerialisation is the process ofDematerialisation is the process of
converting physical share certificatesconverting physical share certificates
into electronic form i.e. crediting ofinto electronic form i.e. crediting of
equivalent number of shares to yourequivalent number of shares to yourdepository account electronically.depository account electronically.
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Depository AccountDepository Account
For dematerialisation of shares youFor dematerialisation of shares youhave to open a depository accounthave to open a depository accountwith a Depository Participant (DP)with a Depository Participant (DP)
having connectivity with Nationalhaving connectivity with NationalSecurities Depository Ltd (NSDL) /Securities Depository Ltd (NSDL) /Central Depository Services (I) LtdCentral Depository Services (I) Ltd(CSDL). You are free to open an(CSDL). You are free to open an
account with any of the DPs foraccount with any of the DPs fordemat.demat.
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Advantages of share investmentAdvantages of share investment
1.Capital Appreciation1.Capital Appreciation
2. Bonus shares:2. Bonus shares:
3. Dividend earnings3. Dividend earnings
4. Diversify Portfolio4. Diversify Portfolio
5. Long term benefits and return on investment:5. Long term benefits and return on investment:6. Simple and easy method to purchase and trade:6. Simple and easy method to purchase and trade:
7. Easily cashable7. Easily cashable
8.lucrative and simple methods of investment8.lucrative and simple methods of investment..
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DisadvantagesDisadvantagesin sharein share
investmentinvestment
High returns involves High RiskHigh returns involves High Risk Share prices fluctuate a lot, which short termShare prices fluctuate a lot, which short term
oriented investors find very distressing.oriented investors find very distressing.
Some companies go broke, and due to theSome companies go broke, and due to theoccasional dishonest auditor you won't be able tooccasional dishonest auditor you won't be able tosee it coming. Therefore you need to diversify a lot,see it coming. Therefore you need to diversify a lot,though this is easy to do since you can buy smallthough this is easy to do since you can buy smallamounts of shares.amounts of shares.
Shares require analysis and hard work if you areShares require analysis and hard work if you aregoing to do better than average.going to do better than average.
Achieving high returns above the inflationary rate,Achieving high returns above the inflationary rate,in these times property may not provide superiorin these times property may not provide superiorreturns.returns.
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BOMBAY STOCK EXCHANGEBOMBAY STOCK EXCHANGE The Bombay/Mumbai Stock Exchange LimitedThe Bombay/Mumbai Stock Exchange Limited (formerly,(formerly, The Stock Exchange, MumbaiThe Stock Exchange, Mumbai;;
popularly calledpopularly called The Bombay/Mumbai Stock ExchangeThe Bombay/Mumbai Stock Exchange, or, orBSEBSE) is the oldest stock exchange) is the oldest stock exchangein Asia and has the greatest number of listed companies in the world, with 4700 listed as ofin Asia and has the greatest number of listed companies in the world, with 4700 listed as ofAugust 2007. It is located atAugust 2007. It is located at DalalDalalStreetStreet,, MumbaiMumbai,, IndiaIndia. BSE Online Trading System. BSE Online Trading System(BOLT) which is the online trading system of the exchange.(BOLT) which is the online trading system of the exchange.
On 31 December 2007, the equityOn 31 December 2007, the equity market capitalizationmarket capitalization of the companies listed on the BSEof the companies listed on the BSEwaswas US$US$ 1.791.79 trilliontrillion, making it the largest stock exchange in, making it the largest stock exchange in South AsiaSouth Asia and theand the12th largest in the world12th largest in the world..
With over 4700 Indian companies list on the stock exchange and it has a significant tradingWith over 4700 Indian companies list on the stock exchange and it has a significant trading
volume. Thevolume. The BSE SENSEXBSE SENSEX ((SENSSENSitive inditive indEXEX), also called the "BSE 30", is a widely used), also called the "BSE 30", is a widely usedmarket index in India andmarket index in India and AsiaAsia. Though many other exchanges exist, BSE and the. Though many other exchanges exist, BSE and theNational Stock Exchange of IndiaNational Stock Exchange of India account for most of the trading in shares in India.account for most of the trading in shares in India.
Hours of operationHours of operation Beginning of the Day Session....8:00 - 9:00Beginning of the Day Session....8:00 - 9:00
Login Session....9:00 - 9:30Login Session....9:00 - 9:30Trading Session....9:55 - 15:30Trading Session....9:55 - 15:30Position Transfer Session....15:30 - 15:50Position Transfer Session....15:30 - 15:50
Closing Session....15:50 - 16:05Closing Session....15:50 - 16:05Option Exercise Session....16:05 - 16:35Option Exercise Session....16:05 - 16:35Margin Session....16:35 - 16:50Margin Session....16:35 - 16:50Query Session....16:50 - 17:35Query Session....16:50 - 17:35End of Day Session....17:35End of Day Session....17:35
The hours of operation for the BSE quoted above are stated in terms of the local time inThe hours of operation for the BSE quoted above are stated in terms of the local time inMumbai, India (also known as Bombay). This translates into a standard time zone UTC/GMTMumbai, India (also known as Bombay). This translates into a standard time zone UTC/GMT+5:30.+5:30.
BSE's normal trading sessions are on all days of the week except Saturdays, Sundays andBSE's normal trading sessions are on all days of the week except Saturdays, Sundays andholidays declared by the Exchange in advanceholidays declared by the Exchange in advance
http://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/List_of_stock_exchangeshttp://en.wikipedia.org/wiki/List_of_stock_exchangeshttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/List_of_stock_exchangeshttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Dalal_Street -
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Top 30 companies in sensex asTop 30 companies in sensex as
on 20on 20thth December 2008December 2008ACCACC BHELBHEL
Bajaj AutoBajaj Auto Bharti TeleBharti Tele
CiplaCipla Dr Reddys LabsDr Reddys Labs
Grasim IndGrasim Ind Guj Ambuja CemGuj Ambuja Cem
HDFCHDFC HDFC BankHDFC Bank
HLLHLL Hero HondaHero HondaHindalcoHindalco ICICI BankICICI Bank
ITCITC InfosysInfosys
Larsen & TubroLarsen & Tubro Maruti UdyogMaruti Udyog
NTPCNTPC ONGCONGC
Ranbaxy LabsRanbaxy Labs Reliance IndReliance Ind
Reliance EnergyReliance Energy SBISBI
Satyam ComputersSatyam Computers TCSTCS
Tata MotorsTata Motors Tata PowerTata Power
Tata SteelTata Steel WiproWipro
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NATIONAL STOCK EXCHANGENATIONAL STOCK EXCHANGE
The National Stock Exchange of India Limited (NSE), is aThe National Stock Exchange of India Limited (NSE), is a MumbaiMumbai--basedbased stock exchangestock exchange and is well known for its technologicaland is well known for its technologicaladvancements. NSE began it's operations with the Wholesale Debtadvancements. NSE began it's operations with the Wholesale DebtMarket segment in June 1994 and the equity segment commencedMarket segment in June 1994 and the equity segment commencedoperations in November 1994.operations in November 1994.
It is the largest stock exchange inIt is the largest stock exchange in
IndiaIndia
in terms of daily turnover andin terms of daily turnover and
number of trades, for both equities and derivative trading.. NSE hasnumber of trades, for both equities and derivative trading.. NSE hasa market capitalization of arounda market capitalization of around RsRs 47,01,923 crore (7 August 2009)47,01,923 crore (7 August 2009)and is expected to become the biggest stock exchange in India inand is expected to become the biggest stock exchange in India interms of market capitalization by 2009 end.terms of market capitalization by 2009 end.
Though a number of other exchanges exist, NSE and theThough a number of other exchanges exist, NSE and theBombay Stock ExchangeBombay Stock Exchange are the two most significant stockare the two most significant stockexchanges in India, and between them are responsible for the vastexchanges in India, and between them are responsible for the vastmajority of share transactions.majority of share transactions.
The major benchmark of NSE is the S&P CNX Nifty which is a group ofThe major benchmark of NSE is the S&P CNX Nifty which is a group of50 stocks which are actively traded in the stock exchange.50 stocks which are actively traded in the stock exchange.
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Mumbai -
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NIFTY Top 50 StocksNIFTY Top 50 Stocks
NIFTY consists of 50 top stocks from different sectors of NSE. Below is the list byNIFTY consists of 50 top stocks from different sectors of NSE. Below is the list by
20th December 2008.20th December 2008.
1. ABB Ltd :1. ABB Ltd : ELECTRICAL EQUIPMENTELECTRICAL EQUIPMENT
2.2. ACC Ltd : CEMENT AND CEMENT PRODUCTSACC Ltd : CEMENT AND CEMENT PRODUCTS
3. Ambuja Cements Ltd : CEMENT AND CEMENT PRODUCTS3. Ambuja Cements Ltd : CEMENT AND CEMENT PRODUCTS
4.4. BHEL : ELECTRICAL EQUIPMENTBHEL : ELECTRICAL EQUIPMENT
5. Bharat Petroleum Corporation Ltd(BPCL) : REFINERIES5. Bharat Petroleum Corporation Ltd(BPCL) : REFINERIES
6.6. BhartiBhartiAirtelAirtelLtd : TELECOMMUNICATION - SERVICESLtd : TELECOMMUNICATION - SERVICES
7. Cairn India Ltd : OIL EXPLORATION/PRODUCTION7. Cairn India Ltd : OIL EXPLORATION/PRODUCTION
8. Cipla Ltd :8. Cipla Ltd : PHARMACEUTICALSPHARMACEUTICALS9.9. DLF Ltd : CONSTRUCTIONDLF Ltd : CONSTRUCTION
10. GAIL (India) Ltd : GAS10. GAIL (India) Ltd : GAS
11.11. GrasimGrasimIndustries Ltd : CEMENT AND CEMENT PRODUCTSIndustries Ltd : CEMENT AND CEMENT PRODUCTS
12. HCL Technologies Ltd : COMPUTERS - SOFTWARE12. HCL Technologies Ltd : COMPUTERS - SOFTWARE
13.13. HDFC Bank Ltd : BANKSHDFC Bank Ltd : BANKS
14. Hero Honda Motors Ltd : AUTOMOBILES - 2 AND 3 WHEELERS14. Hero Honda Motors Ltd : AUTOMOBILES - 2 AND 3 WHEELERS
15.15. HindalcoHindalcoIndustries Ltd : ALUMINIUMIndustries Ltd : ALUMINIUM
16.16. Hindustan Unilever Ltd : DIVERSIFIEDHindustan Unilever Ltd : DIVERSIFIED17.17. Housing Development Finance CorporationHousing Development Finance CorporationLtd(HDFCLtd(HDFC) : FINANCE - HOUSING) : FINANCE - HOUSING
18.18. ITC Ltd : CIGARETTESITC Ltd : CIGARETTES
19.19. ICICI Bank Ltd : BANKSICICI Bank Ltd : BANKS
20. Idea Cellular Ltd : TELECOMMUNICATION - SERVICES20. Idea Cellular Ltd : TELECOMMUNICATION - SERVICES
http://lastbull.com/209/http://lastbull.com/209/http://lastbull.com/bharat-heavy-electricals-limited-bhel-sensex-stocks-10/http://lastbull.com/bharat-heavy-electricals-limited-bhel-sensex-stocks-10/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/dlf-limited-sensex-stocks-8/http://lastbull.com/dlf-limited-sensex-stocks-8/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/hdfc-bank-sensex-stocks-15/http://lastbull.com/hdfc-bank-sensex-stocks-15/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hindustan-unileverhul-sensex-stocks-17/http://lastbull.com/hindustan-unileverhul-sensex-stocks-17/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/itc-limited-sensex-stocks-13/http://lastbull.com/itc-limited-sensex-stocks-13/http://lastbull.com/icici-sensex-stocks-12/http://lastbull.com/icici-sensex-stocks-12/http://lastbull.com/icici-sensex-stocks-12/http://lastbull.com/itc-limited-sensex-stocks-13/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hdfc-sensex-stocks-15/http://lastbull.com/hindustan-unileverhul-sensex-stocks-17/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hindalco-sensex-stocks-23/http://lastbull.com/hdfc-bank-sensex-stocks-15/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/grasim-industries-sensex-stocks-26/http://lastbull.com/dlf-limited-sensex-stocks-8/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharti-airtel-sensex-stocks-3/http://lastbull.com/bharat-heavy-electricals-limited-bhel-sensex-stocks-10/http://lastbull.com/209/ -
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NIFTY Top 50 StocksNIFTY Top 50 Stocks
21.21. InfosysInfosysTechnologies Ltd : COMPUTERS - SOFTWARETechnologies Ltd : COMPUTERS - SOFTWARE22.22. Larsen &Larsen &ToubroToubroLtd : ENGINEERINGLtd : ENGINEERING23.23. MahindraMahindra&&MahindraMahindraLtd : AUTOMOBILES - 4 WHEELERSLtd : AUTOMOBILES - 4 WHEELERS
24.24. MarutiMarutiSuzuki India Ltd : AUTOMOBILES - 4 WHEELERSSuzuki India Ltd : AUTOMOBILES - 4 WHEELERS25.25. NTPC Ltd : POWERNTPC Ltd : POWER26. National Aluminium Co. Ltd : ALUMINIUM26. National Aluminium Co. Ltd : ALUMINIUM27.27. Oil & Natural Gas CorporationOil & Natural Gas CorporationLtd(ONGCLtd(ONGC) : OIL EXPLORATION/PRODUCTION) : OIL EXPLORATION/PRODUCTION28. Power Grid Corporation of India Ltd : POWER28. Power Grid Corporation of India Ltd : POWER29. Punjab National Bank : BANKS29. Punjab National Bank : BANKS30.30. RanbaxyRanbaxyLaboratories Ltd : PHARMACEUTICALSLaboratories Ltd : PHARMACEUTICALS31.31. Reliance Communications Ltd : TELECOMMUNICATION - SERVICESReliance Communications Ltd : TELECOMMUNICATION - SERVICES32.32. Reliance Industries Ltd : REFINERIESReliance Industries Ltd : REFINERIES
33.33. Reliance Infrastructure Ltd : POWERReliance Infrastructure Ltd : POWER34. Reliance Petroleum Ltd : REFINERIES34. Reliance Petroleum Ltd : REFINERIES35. Reliance Power Ltd : POWER35. Reliance Power Ltd : POWER36.36. SatyamSatyamComputer Services Ltd : COMPUTERS - SOFTWAREComputer Services Ltd : COMPUTERS - SOFTWARE37. Siemens Ltd : ELECTRICAL EQUIPMENT37. Siemens Ltd : ELECTRICAL EQUIPMENT38.38. State Bank of India : BANKSState Bank of India : BANKS39. Steel Authority of India Ltd(SAIL): STEEL AND STEEL PRODUCT39. Steel Authority of India Ltd(SAIL): STEEL AND STEEL PRODUCT40.40. SterliteSterliteIndustries (India) Ltd : METALSIndustries (India) Ltd : METALS41. Sun Pharmaceutical Industries Ltd : PHARMACEUTICALS41. Sun Pharmaceutical Industries Ltd : PHARMACEUTICALS42. Suzlon Energy Ltd : ELECTRICAL EQUIPMENT42. Suzlon Energy Ltd : ELECTRICAL EQUIPMENT
43. Tata Communications Ltd : TELECOMMUNICATION - SERVICES43. Tata Communications Ltd : TELECOMMUNICATION - SERVICES44.44.TataTataConsultancy ServicesConsultancy ServicesLtd(TCSLtd(TCS) : COMPUTERS - SOFTWARE) : COMPUTERS - SOFTWARE45.45.TataTataMotors Ltd : AUTOMOBILES - 4 WHEELERSMotors Ltd : AUTOMOBILES - 4 WHEELERS46.46.TataTataPower Co. Ltd : POWERPower Co. Ltd : POWER47.47.TataTataSteel Ltd : STEEL AND STEEL PRODUCTSSteel Ltd : STEEL AND STEEL PRODUCTS48. Unitech Ltd : CONSTRUCTION48. Unitech Ltd : CONSTRUCTION49.49. WiproWiproLtd : COMPUTERS - SOFTWARELtd : COMPUTERS - SOFTWARE50. Zee Entertainment Enterprises Ltd : MEDIA & ENTERTAINMENT50. Zee Entertainment Enterprises Ltd : MEDIA & ENTERTAINMENT
http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/ntpc-sensex-stocks-4/http://lastbull.com/ntpc-sensex-stocks-4/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/reliance-communications-sensex-stocks-6/http://lastbull.com/reliance-communications-sensex-stocks-6/http://lastbull.com/reliance-industries-limitedril/http://lastbull.com/reliance-industries-limitedril/http://lastbull.com/reliance-infrastructure-sensex-stocks-20/http://lastbull.com/reliance-infrastructure-sensex-stocks-20/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/state-bank-of-india-sensex-stocks-9/http://lastbull.com/state-bank-of-india-sensex-stocks-9/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/wipro-sensex-stocks-14/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/tata-steel-sensex-stocks-16/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-power-sensex-stocks-29/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-motors-sensex-stocks-27/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/tata-consultancy-servicestcs-sensex-stocks-7/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/sterlite-industries-sensex-stocks-24/http://lastbull.com/state-bank-of-india-sensex-stocks-9/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/satyam-computers-sensex-stocks-19/http://lastbull.com/reliance-infrastructure-sensex-stocks-20/http://lastbull.com/reliance-industries-limitedril/http://lastbull.com/reliance-communications-sensex-stocks-6/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/ranbaxy-laboratories-sensex-stocks-21/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/oil-and-natural-gas-corporation-limitedongc-sensex-stocks-2/http://lastbull.com/ntpc-sensex-stocks-4/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/maruti-suzuki-sensex-stocks-25/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/mahindra-mahindra-sensex-stocks-28/http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/larsen-toubrolt-sensex-stocks-11http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/http://lastbull.com/infosys-technologies-ltd-sensex-stocks-5/ 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How To Select Your StockHow To Select Your Stock
Broker ?Broker ?
It goes without saying that your stockIt goes without saying that your stockbroker is one who has to be trustworthbroker is one who has to be trustworthand have the ability to strike a bond withand have the ability to strike a bond with
the investor. Relationship Buildingthe investor. Relationship Buildingremains the key focus in the Indian Stockremains the key focus in the Indian StockMarkets as the investor is not savvyMarkets as the investor is not savvyenough to understand the nuances ofenough to understand the nuances of
how share markets in India functionhow share markets in India functionwhich may lead to the investor beingwhich may lead to the investor beingtaken for a ride by the stock broker.taken for a ride by the stock broker.
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Tips To Pick Your Stock BrokerTips To Pick Your Stock Broker
The investor should verify the credentials of a stock broker before entering into a relationship.The investor should verify the credentials of a stock broker before entering into a relationship.A stock broker should hold a valid license to transact in securities in the Indian stock markets.A stock broker should hold a valid license to transact in securities in the Indian stock markets.
It is important to understand the services that he is qualified to perform. In recent times, anIt is important to understand the services that he is qualified to perform. In recent times, anintegrated service provider is preferred who can provide a gamut of stock broking andintegrated service provider is preferred who can provide a gamut of stock broking andadvisory services including online and offline trading across exchanges.advisory services including online and offline trading across exchanges.
A referral can be useful and may give a direction to pick your stock broker.A referral can be useful and may give a direction to pick your stock broker.
A stock broker should have a good customer retention strategy and client servicingA stock broker should have a good customer retention strategy and client servicingcapabilities.capabilities.
A stock broker has to understand your risk profile before trading stocks on your advice.A stock broker has to understand your risk profile before trading stocks on your advice.
Your stock broker should have the time and the ability to explain stock market jargon for yourYour stock broker should have the time and the ability to explain stock market jargon for yourunderstanding and implementation.understanding and implementation.
Finally, it is fair to wait and think twice before taking your decision in selecting your stockFinally, it is fair to wait and think twice before taking your decision in selecting your stockbroker as a stock broker in the context of the Indian stock markets has an important role tobroker as a stock broker in the context of the Indian stock markets has an important role toplay as it also involves educating clients and investors to make the right choices in pickingplay as it also involves educating clients and investors to make the right choices in pickingtheir stocks and making buy and sell decisions.their stocks and making buy and sell decisions.
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List of Online Stock Market / Share Trading Websites (India)List of Online Stock Market / Share Trading Websites (India)
AS ON 2008AS ON 2008
5Paisa5Paisa -- www.5paisa.comwww.5paisa.com
AnandRathi securities-www.rathi.comAnandRathi securities-www.rathi.com Angel TradeAngel Trade -- www.angeltrade.comwww.angeltrade.com
GeojitGeojitFinancial services Ltd - Online Trading, Internet Trading ...Financial services Ltd - Online Trading, Internet Trading ...www.geojit.comwww.geojit.com
HDFC Securities Investor-HDFC Securities Investor- www.hdfcsec.comwww.hdfcsec.com
ICICIDirectICICIDirect-- www.icicidirect.comwww.icicidirect.com
IDBIIDBI PaisabuilderPaisabuilder- Online stock / share trading portal India ...- Online stock / share trading portal India ...www.idbipaisabuilder.inwww.idbipaisabuilder.inIndiaIndia
InfolineInfoline-- www.indiainfoline.comwww.indiainfoline.com
Invest smart-www.investsmartindia.comInvest smart-www.investsmartindia.com
IndiabullsIndiabulls-- www.indiabulls.comwww.indiabulls.com
Kotak Securities -Kotak Securities -www.kotaksecurites.comwww.kotaksecurites.com
Motilal Oswal Securities-Motilal Oswal Securities- www.motilaloswal.comwww.motilaloswal.com
NetworthNetworthStock Broking Ltd.Stock Broking Ltd. --www.networthstock.comwww.networthstock.com Reliance MoneyReliance Money --www.reliancemoney.comwww.reliancemoney.com
ReligareReligareSecuritiesSecurities-- www.religaresecurities.comwww.religaresecurities.com
SharekhanSharekhan-- www.sharekhan.comwww.sharekhan.com
UTI Securities Ltd (UTISEL)UTI Securities Ltd (UTISEL)-- www.utisel.comwww.utisel.com
http://weeksupdate.com/2008/07/list-of-online-stock-market-share.htmlhttp://weeksupdate.com/2008/07/list-of-online-stock-market-share.htmlhttp://www.5paisa.com/http://www.5paisa.com/http://www.5paisa.com/http://www.5paisa.com/http://www.angeltrade.com/http://www.angeltrade.com/http://www.angeltrade.com/http://www.angeltrade.com/http://www.geojit.com/http://www.geojit.com/http://www.geojit.com/http://www.geojit.com/http://www.geojit.com/http://www.geojit.com/http://www.hdfcsec.com/http://www.hdfcsec.com/http://www.hdfcsec.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.kotaksecurites.com/http://www.kotaksecurites.com/http://www.motilaloswal.com/http://www.motilaloswal.com/http://www.networthstock.com/http://www.networthstock.com/http://www.networthstock.com/http://www.networthstock.com/http://www.networthstock.com/http://www.networthstock.com/http://www.reliancemoney.com/http://www.reliancemoney.com/http://www.reliancemoney.com/http://www.reliancemoney.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.utisel.com/http://www.utisel.com/http://www.utisel.com/http://www.utisel.com/http://www.utisel.com/http://www.utisel.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.religaresecurities.com/http://www.reliancemoney.com/http://www.reliancemoney.com/http://www.networthstock.com/http://www.networthstock.com/http://www.networthstock.com/http://www.motilaloswal.com/http://www.kotaksecurites.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.idbipaisabuilder.in/http://www.icicidirect.com/http://www.icicidirect.com/http://www.hdfcsec.com/http://www.geojit.com/http://www.geojit.com/http://www.geojit.com/http://www.angeltrade.com/http://www.angeltrade.com/http://www.5paisa.com/http://www.5paisa.com/http://weeksupdate.com/2008/07/list-of-online-stock-market-share.html -
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SHARE INVESTMENTS TIPSSHARE INVESTMENTS TIPS
1.One of the simple concepts always preferred is buying shares at lower prices1.One of the simple concepts always preferred is buying shares at lower pricesand selling them at higher pricesand selling them at higher prices
2. Get Advice but make your own decision2. Get Advice but make your own decision
3. Gain Adequate Knowledge and make effective planning3. Gain Adequate Knowledge and make effective planning
4. See the Balance sheet and financial results of the company for every4. See the Balance sheet and financial results of the company for everyquarter. from news letters and news papers.quarter. from news letters and news papers.
1st Quarter -April to June. Results are declared in July1st Quarter -April to June. Results are declared in July 2nd Quarter- July to September. Results declared in October.2nd Quarter- July to September. Results declared in October. 3rd Quarter-October to December. Results declared in January.3rd Quarter-October to December. Results declared in January. 4th Quarter- January to April. Results declared in April4th Quarter- January to April. Results declared in April The 4th Quarter is considered as end of the financial year.The 4th Quarter is considered as end of the financial year.
5. Practice Disciplined Trade5. Practice Disciplined Trade
6. Invest for long period:6. Invest for long period:7. Purchase Emerging Stocks7. Purchase Emerging Stocks
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WHY DO WE NEEDWHY DO WE NEEDINSURANCE?INSURANCE?
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Insurance - MeaningInsurance - Meaning Insurance providesInsurance provides financialfinancial protectionprotection against a loss arising out ofagainst a loss arising out of
happening of an uncertain event. A person can avail this protection byhappening of an uncertain event. A person can avail this protection bypayingpaying premium to anpremium to an insurance companyinsurance company..
A pool is created through contributions made by persons seeking toA pool is created through contributions made by persons seeking toprotect themselves from common risk.protect themselves from common risk. PremiumPremium is collected byis collected byinsurance companiesinsurance companies which also act as trustee to the pool. Any losswhich also act as trustee to the pool. Any lossto theto the insuredinsured in case of happening of an uncertain event is paid out ofin case of happening of an uncertain event is paid out ofthis pool. The insurance premiums offered vary from company tothis pool. The insurance premiums offered vary from company tocompany and also from the policy to policy.company and also from the policy to policy.
Indian insurance companiesIndian insurance companies play a key role in India's financialplay a key role in India's financialsector. With India's population becoming more affluent and globalize,sector. With India's population becoming more affluent and globalize,insurance is growing rapidly.insurance is growing rapidly.
This increasing market is creating considerable competitionThis increasing market is creating considerable competitionamongamong Indian insurance companiesIndian insurance companies in an industry that 20 years agoin an industry that 20 years agowas relatively small.was relatively small.
Counting the existing public sector insurance companies, there areCounting the existing public sector insurance companies, there arecurrently 13currently 13 Indian insurance companiesIndian insurance companies in thein the Life insuranceLife insurance andand1313 Indian insurance companiesIndian insurance companies operating inoperating in general insurancegeneral insurance..
Life Insurance CorporationLife Insurance Corporation is the oldest player in the market. It is theis the oldest player in the market. It is themarket leader. However, some other companies also offer goodmarket leader. However, some other companies also offer goodinnovative products.innovative products.
General Insurance CorporationGeneral Insurance Corporation has been approved as the Indianhas been approved as the Indianreinsurer for underwriting only reinsurance businessreinsurer for underwriting only reinsurance business
All insurance companies are regulated by theAll insurance companies are regulated by the Insurance RegulatoryInsurance Regulatoryand Development Authority (IRDA)and Development Authority (IRDA)..
http://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.htmlhttp://e/fathima/Fathima%20Thabassum/investment%20avenues/basics.html -
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EXAMPLES TO UNDERSTAND HOW INSURANCE ACTUALLY WORKS
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TYPES OF INSURANCETYPES OF INSURANCE
The various fields covered by insurance companiesThe various fields covered by insurance companiesin India include:in India include:
Life InsuranceLife Insurance: For: For students, children, family,students, children, family,individualindividual etc.etc.
Health insuranceHealth insurance: For: For self, for family, accidentalself, for family, accidentalinsurance premium, medical claim policies etcinsurance premium, medical claim policies etc.. Non-life insuranceNon-life insurance:: Home or House Insurance andHome or House Insurance and
other property insurance, Auto Insuranceother property insurance, Auto Insurance (for cars,(for cars,motorcycle and other two-wheelers, commercialmotorcycle and other two-wheelers, commercial
vehicles),vehicles), Infrastructure Projects Insurance, TravelInfrastructure Projects Insurance, TravelInsurance, real estate insurance, mobile insuranceInsurance, real estate insurance, mobile insuranceetcetc..
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BancassuranceBancassurance
"Bancassurance" refers to a tie up arrangement"Bancassurance" refers to a tie up arrangement
of banks with insurance companies for selling theof banks with insurance companies for selling the
insurance products in life and non life segmentsinsurance products in life and non life segments
as corporate agents for fee based income. Thisas corporate agents for fee based income. This
income is risk-free, as the bank plays a role of aincome is risk-free, as the bank plays a role of aintermediary for souring business to insuranceintermediary for souring business to insurance
company. Bancassurance is a package of bankingcompany. Bancassurance is a package of banking
and insurance service at one roof. Theand insurance service at one roof. The
introduction of Bancassurance has broadened theintroduction of Bancassurance has broadened thescope of retail bankingscope of retail banking
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BONDS- RISK FREEBONDS- RISK FREE
INVESTMENTSINVESTMENTS
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WHAT ARE BONDS?WHAT ARE BONDS?
A bond is just an organization's IOU; i.e., a promise to repay aA bond is just an organization's IOU; i.e., a promise to repay asum of money at a certain interest rate and over a certain periodsum of money at a certain interest rate and over a certain periodof time. In other words, a bond is a debt instrument.of time. In other words, a bond is a debt instrument.
Other common terms for these debt instruments are notes andOther common terms for these debt instruments are notes anddebentures.debentures.
Most bonds pay a fixed rate of interest for a fixed period of time.Most bonds pay a fixed rate of interest for a fixed period of time. During this period, the investors receive a regular payment ofDuring this period, the investors receive a regular payment of
interest, semi-annually or annually, which is calculated as ainterest, semi-annually or annually, which is calculated as acertain percentage of the face value and know as acertain percentage of the face value and know as a 'coupon'coupon
payment.'payment.' . Based on the maturity period, bonds are referred to as bills or. Based on the maturity period, bonds are referred to as bills or
short-term bonds and long-term bonds.short-term bonds and long-term bonds. The debt market in India is amongst the largest in Asia. ItThe debt market in India is amongst the largest in Asia. Itincludes government securities, public sector undertakings,includes government securities, public sector undertakings,other government bodies, financial institutions, banks andother government bodies, financial institutions, banks andcompaniescompanies
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Benefits of debt instrumentBenefits of debt instrument
investments:investments:
Portfolio diversificationPortfolio diversification
Fixed and Regular IncomeFixed and Regular Income
Risk Free investmentsRisk Free investments Greater safetyGreater safety
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Disadvantages of bondsDisadvantages of bonds
Companies and municipalities can and doCompanies and municipalities can and dogo bankrupt, and if they do, your bondsgo bankrupt, and if they do, your bondswill lose value and possibly even becomewill lose value and possibly even becomeworthless.worthless.
Long-term bonds will have your moneyLong-term bonds will have your moneytied up in low yielding bonds shouldtied up in low yielding bonds shouldinterest rates go up.interest rates go up.
Unlike stocks, bonds don't offer theUnlike stocks, bonds don't offer thepossibility of high long-term returnspossibility of high long-term returns
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When should you buy bonds?When should you buy bonds?
Bonds are a good option for those who needBonds are a good option for those who need
a steady and relatively dependable source ofa steady and relatively dependable source of
income, including the elderly and disabled.income, including the elderly and disabled.
After retirement, bonds will provide a regularAfter retirement, bonds will provide a regular
interest check to live on. As you progressinterest check to live on. As you progress
from middle age and get within a few yearsfrom middle age and get within a few years
of retirement, you should start graduallyof retirement, you should start gradually
switching your assets from equity holdingsswitching your assets from equity holdings
(stocks) into bonds. As you get closer to(stocks) into bonds. As you get closer to
retirement you want to reduce yourretirement you want to reduce your
investment risk.investment risk.
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Impact of debt markets in IndianImpact of debt markets in Indian
economyeconomy Opportunity for investors to diversify theirOpportunity for investors to diversify their
investment portfolio.investment portfolio. Higher liquidity and control over credit.Higher liquidity and control over credit. Better corporate governance.Better corporate governance.
Improved transparency because of stringentImproved transparency because of stringentdisclosure norms and auditing requirements.disclosure norms and auditing requirements. Less risk compared to the equity markets,Less risk compared to the equity markets,
encouraging low-risk investments. This leads toencouraging low-risk investments. This leads toinflow of funds in the economy.inflow of funds in the economy.
Increased funds for implementation of governmentIncreased funds for implementation of governmentdevelopment plans. The government can raisedevelopment plans. The government can raisefunds at lower costs by issuing governmentfunds at lower costs by issuing governmentsecurities.securities.
Implementation of a monetary policy.Implementation of a monetary policy.
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A few sections of the Income Tax Act,A few sections of the Income Tax Act,1961 are mentioned below which are1961 are mentioned below which are
essential for the investment purpose.essential for the investment purpose.
d i d i 80C f d b iD d ti d ti 80C f d bt i t t
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Deductions under section 80C for debt instruments:Deductions under section 80C for debt instruments:
Contribution to Employee Provident Fund (EPF):Contribution to Employee Provident Fund (EPF):
Provident Fund is deducted from the salary. Both employer and employeeProvident Fund is deducted from the salary. Both employer and employeecontribute towards Provident fund. Employer's contribution is fully exempt fromcontribute towards Provident fund. Employer's contribution is fully exempt from
tax. Employee contribution is counted towards 80C. Voluntary contributions cantax. Employee contribution is counted towards 80C. Voluntary contributions canbe made by employee Current Rate of Interest is 8.5% annually and tax free.be made by employee Current Rate of Interest is 8.5% annually and tax free.
Pubic Provident Fund (PPF):Pubic Provident Fund (PPF):
Current Interest Rate = 8% tax freeCurrent Interest Rate = 8% tax freeMaturity period = 15 yearsMaturity period = 15 yearsMinimum Amount = Rs.500Minimum Amount = Rs.500Maximum limit = Rs.70,000 per annumMaximum limit = Rs.70,000 per annum
National Saving Certificate (NSC):National Saving Certificate (NSC):
Current Interest Rate = 8% compounded half yearlyCurrent Interest Rate = 8% compounded half yearlyMaturity period =6 yearsMaturity period =6 yearsMinimum amount = Rs.100Minimum amount = Rs.100
Maximum amount = No limitsMaximum amount = No limits Interest accrued every year is liable to tax.Interest accrued every year is liable to tax. If NSC is re-invested, it is eligible for deduction under 80C.If NSC is re-invested, it is eligible for deduction under 80C. There is also eligibility of deduction for the interest under section 80L underThere is also eligibility of deduction for the interest under section 80L under
Income Tax Act, 1961.Income Tax Act, 1961.
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Unit Linked Insurance Plans (ULIPs) :Unit Linked Insurance Plans (ULIPs) : ULIPs are covered under Life Insurance. There are three types ofULIPs are covered under Life Insurance. There are three types of
Funds under this scheme -Funds under this scheme - Equity Fund, Balanced Fund & DebtEquity Fund, Balanced Fund & DebtFundFund..
Tenure = 10 yearsTenure = 10 yearsEligible for tax deduction under section 80C.Eligible for tax deduction under section 80C.
Equity Linked Saving Scheme (ELSS):Equity Linked Saving Scheme (ELSS): Lock in period =3yearsLock in period =3years
Deduction up to Rs. 1 lakh allowed.Deduction up to Rs. 1 lakh allowed.Dividend and Bonus are not eligible for deduction.Dividend and Bonus are not eligible for deduction.
Tax exemption can be availed under section 88 also.Tax exemption can be availed under section 88 also. Some of the tax saver plans under Mutual funds areSome of the tax saver plans under Mutual funds are
Birla Tax Relief 96Birla Tax Relief 96 Stan Chart Tax Saver FundStan Chart Tax Saver Fund Kotak Tax SaverKotak Tax Saver UTI Equity Tax SaverUTI Equity Tax Saver Tata Tax Saving FundTata Tax Saving Fund HDFC Tax SaverHDFC Tax Saver ABN Amro Tax AverageABN Amro Tax Average SBI Tax Saving PlanSBI Tax Saving Plan Prudential ICICI Tax Saving plan.Prudential ICICI Tax Saving plan.
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Infrastructure BondsInfrastructure Bonds::These are issued by institutions/ banks such as ICICI, IDBI etc in the name of ICICIThese are issued by institutions/ banks such as ICICI, IDBI etc in the name of ICICIsafety bonds and IDBI Flexi bonds.safety bonds and IDBI Flexi bonds.Tax liability relief up to Rs.16000 per annum is available under section 88.Tax liability relief up to Rs.16000 per annum is available under section 88.
Senior Citizen Saving Scheme:Senior Citizen Saving Scheme:This scheme is considered to be lucrative and eligible for deduction under sectionThis scheme is considered to be lucrative and eligible for deduction under section
80C.80C.Current Rate of Interest = 8% for Government Employee & 9.5% half yearly forCurrent Rate of Interest = 8% for Government Employee & 9.5% half yearly forPublic sector employee.Public sector employee.Maturity period -3yearsMaturity period -3yearsMinimum Investment =Rs.10,000.Minimum Investment =Rs.10,000.Maximum Investment= Total Retirement BenefitMaximum Investment= Total Retirement BenefitInterest Income chargeable to tax.Interest Income chargeable to tax.
NABARD Rural Bonds:NABARD Rural Bonds:
There are two types of Bonds issued by NABARD-There are two types of Bonds issued by NABARD- NABARD Rural BondsNABARD Rural Bonds Bhavishya Nirman BondsBhavishya Nirman Bonds NABARD Rural Bonds are eligible for deductions under section 80C.At present,NABARD Rural Bonds are eligible for deductions under section 80C.At present,
subscriptions is not open.subscriptions is not open.
RBI Relief Bond:RBI Relief Bond:These bonds are issued by RBI.These bonds are issued by RBI.Interest compounded half yearlyInterest compounded half yearlyMaturity Period= 5yearsMaturity Period= 5yearsInterest received is tax free.Interest received is tax free.
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5 year Bank Fixed Deposits:5 year Bank Fixed Deposits:Rate of Interest =8.25% for general investment and 8.75% for seniorRate of Interest =8.25% for general investment and 8.75% for seniorcitizenscitizensMaximum limit= Rs 1,00,000 per annumMaximum limit= Rs 1,00,000 per annumInterest income is taxable.Interest income is taxable.
Post office schemes:Post office schemes:Post office offers numerous tax saving options in India and popularPost office offers numerous tax saving options in India and popularamong Indian citizens. This is similar to bank deposit.among Indian citizens. This is similar to bank deposit.
Post office schemes includesPost office schemes includes Post Office Term Deposit SchemePost Office Term Deposit Scheme Post Office Monthly Income SchemePost Office Monthly Income Scheme
Kisan Vikas Patra Time Deposit SchemeKisan Vikas Patra Time Deposit Scheme Deposits for Retired Government EmployeesDeposits for Retired Government Employees Post Office recurring DepositsPost Office recurring Deposits
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Deposit Schemes for Retiring Employees of Pubic Sector companiesDeposit Schemes for Retiring Employees of Pubic Sector companies..
Tenure: For 1 year -6.25% interest per annumTenure: For 1 year -6.25% interest per annumFor 2 years -6.50% interest per annumFor 2 years -6.50% interest per annumFor 3 years -7.25% interest per annumFor 3 years -7.25% interest per annumFor 5 years- 7.50% interest per annum.For 5 years- 7.50% interest per annum.
Maximum Rate of Interest =8% per annum and 10% bonus on principalMaximum Rate of Interest =8% per annum and 10% bonus on principalamount at the time of maturity.amount at the time of maturity.Interest is entirely taxableInterest is entirely taxable
Tax relief available under section 80L.Tax relief available under section 80L.
Mutual Fund Pension Plans:Mutual Fund Pension Plans:
Few Mutual Fund Pension Plans available in market areFew Mutual Fund Pension Plans available in market are Templeton India Pension PlanTempleton India Pension Plan UTI Retirement Benefit Pension Plan (UTI-RBT)UTI Retirement Benefit Pension Plan (UTI-RBT)
These Mutual Fund Pension Fund Plans are open-ended debt oriented mutualThese Mutual Fund Pension Fund Plans are open-ended debt oriented mutualfund schemes.fund schemes.Better returns are expected in Long terms.Better returns are expected in Long terms.Eligible for tax rebate under section 80C.Eligible for tax rebate under section 80C.
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Life Insurance:Life Insurance:
Any amount paid towards Life Insurance premium for the family and oneself isAny amount paid towards Life Insurance premium for the family and oneself iseligible for tax break under section 80C.eligible for tax break under section 80C.Life Insurance Saving Schemes include Government owned Life InsuranceLife Insurance Saving Schemes include Government owned Life InsuranceCorporation of India and Private Life insurance Companies such as BajajCorporation of India and Private Life insurance Companies such as BajajAlliance, Birla Sun Life, HDFC Life Insurance and ICICI Prudential etc.Alliance, Birla Sun Life, HDFC Life Insurance and ICICI Prudential etc.Public Sector Banks Tax saving Options:Public Sector Banks Tax saving Options:
6.5% Saving Bonds Cumulative Bonds6.5% Saving Bonds Cumulative Bonds 6.5& Saving bonds non-Cumulative bonds6.5& Saving bonds non-Cumulative bonds Lock in Period =5 yearsLock in Period =5 years
Rate of Interest =6.5%Rate of Interest =6.5%Complete Tax exemption under Income Tax Act,2961.Complete Tax exemption under Income Tax Act,2961.
Private Sector Banks Tax Saving Options:Private Sector Banks Tax Saving Options:
UTI Bank, HDFC, IDBI bank, ICICI Bank offer the following schemes to IndianUTI Bank, HDFC, IDBI bank, ICICI Bank offer the following schemes to IndianCitizensCitizens
8% Cumulative saving Bonds8% Cumulative saving Bonds 8% Non Cumulative Saving Bonds8% Non Cumulative Saving Bonds Lock in Period= 6yearsLock in Period= 6years
Entitled to pay tax on interest income of the bond but not deductible at source.Entitled to pay tax on interest income of the bond but not deductible at source.Tax Rebates can be availed under section 88 of Income Tax Act, 1961.Tax Rebates can be availed under section 88 of Income Tax Act, 1961.
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Deduction Under Section 80CCC(1)Deduction Under Section 80CCC(1)
In case of an Individual, in respect of contribution to pension scheme of anyIn case of an Individual, in respect of contribution to pension scheme of anyother Insurance companies deduction up to Rs.10,000 under section 80CCC(1)other Insurance companies deduction up to Rs.10,000 under section 80CCC(1)is available.is available.
The following are some tax saving plans available in the marketThe following are some tax saving plans available in the market
LIC Jeevan SurakshaLIC Jeevan Suraksha ICICI Prudential Life Time PensionICICI Prudential Life Time Pension Aviva Life Pension PlusAviva Life Pension Plus Max Easy Life PolicyMax Easy Life Policy Tata AIGs Nirvana Plus etc.Tata AIGs Nirvana Plus etc.
Deduction Under Section 80CCEDeduction Under Section 80CCE
Aggregate deduction Under Section 80C, 80CCC and 80CCD is available forAggregate deduction Under Section 80C, 80CCC and 80CCD is available forSection 80CCE. The maximum limit is Rs.1,00,000.Section 80CCE. The maximum limit is Rs.1,00,000.
Deduction under Section 80D:Deduction under Section 80D:
Deduction Up to Rs. 10,000 (Rs.15,000 in case of Senior Citizens is allowed inDeduction Up to Rs. 10,000 (Rs.15,000 in case of Senior Citizens is allowed inrespect of Premium paid by Cheque towards Health Insurance Policies.respect of Premium paid by Cheque towards Health Insurance Policies.Mediclaim on such premium can be paid towards health insurance of spouse,Mediclaim on such premium can be paid towards health insurance of spouse,dependent parents and dependent children.dependent parents and dependent children.
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Comparison of variousComparison of various
investment avenuesinvestment avenues
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THE DON'TS IN INVESTMENTTHE DON'TS IN INVESTMENT
DO NOT borrow to investDO NOT borrow to invest
DO NOT invest just to get quick andDO NOT invest just to get quick and
high returnhigh return
DO NOT invest in high-riskDO NOT invest in high-risk
investments unless you are ready forinvestments unless you are ready for
itit
DO NOT invest on the basis of 'hot'DO NOT invest on the basis of 'hot'
tips and rumourstips and rumours
f
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Project your interests for anyProject your interests for any
investment you makeinvestment you make Picking several different investments can be aPicking several different investments can be a
good way to manage riskgood way to manage risk Understand the investment and the risks involvedUnderstand the investment and the risks involved Select financial advisers carefully if you areSelect financial advisers carefully if you are
engaging one.engaging one. Dont be pressured into making a decision. WatchDont be pressured into making a decision. Watch
out for aggressive sales tactics that urge you toout for aggressive sales tactics that urge you todecide and act hastilydecide and act hastily
Keep records of all transactions you enter intoKeep records of all transactions you enter into Be wary of schemes which guarantee a quickBe wary of schemes which guarantee a quickprofit with minimal or no riskprofit with minimal or no risk
S t d R di f
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Suggested Readings forSuggested Readings for
InvestmentInvestment1.1. "The Intelligent Investor" (1949) by Benjamin Graham"The Intelligent Investor" (1949) by Benjamin Graham
2. "Common Stocks And Uncommon Profits" (1958) by Philip Fisher2. "Common Stocks And Uncommon Profits" (1958) by Philip Fisher
3.3. "Stocks For The Long Run" (1994) by Jeremy Siegel ."Stocks For The Long Run" (1994) by Jeremy Siegel .
4. "Learn To Earn" (1995), "One Up On Wall Street" (1989) or "Beating4. "Learn To Earn" (1995), "One Up On Wall Street" (1989) or "Beating
The Street" (1994) by PeterThe Street" (1994) by Peter
5. "A Random Walk Down Wall Street" (1973) by Burton G. Malkiel5. "A Random Walk Down Wall Street" (1973) by Burton G. Malkiel
6. "The Essays Of Warren Buffett: Lessons For Corporate America"6. "The Essays Of Warren Buffett: Lessons For Corporate America"(2001) by Warren Buffett and Lawrence Cunningham(2001) by Warren Buffett and Lawrence Cunningham
7. " How To Make Money In Stocks" (2003, 3rd ed.) by William J. O'Neil7. " How To Make Money In Stocks" (2003, 3rd ed.) by William J. O'Neil
8. " Rich Dad Poor Dad" (1997) by Robert T. Kiyosaki8. " Rich Dad Poor Dad" (1997) by Robert T. Kiyosaki
9. "Common Sense On Mutual Funds" (1999) by John Bogle9. "Common Sense On Mutual Funds" (1999) by John Bogle
10. "Irrational Exuberance" (2000) by Robert J. Shiller10. "Irrational Exuberance" (2000) by Robert J. Shiller
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THANK YOUTHANK YOU