3. investment avenues

8/11/2019 3. Investment Avenues

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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

3. investment avenues

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