4. MEANING OF INVESTMENT
Investment is the application of
present resources which have
been saved or put aside from
current consumption in the hope
that some benefit will occur in
the future.
5. NEED FOR INVESTMENT
Increase in income level
Increase in life expectancy
Retirement benefits
Minimise inflation pressure
Tax benefits
8. INVESTMENT PROCESS
Determining investment objectives and policy
Security analysis
Construction of portfolio
Portfolio revision/rebalancing
Portfolio evaluation
Note: KYC from SEBI is mandatory
( registered office) for mutual funds & stock
market entry – Individual investors only
10. INVESTMENT ALTERNATIVES/AVENUES
• FINANCIAL
ASSETS
• Non marketable
financial
securities
• Bonds
• Mutual funds
• Shares
• Money market
instruments
• Life insurance
policies
• REAL
ASSETS
• Precious
stones
• Real estate
• Precious
metals
• Art objects
• FINANCIAL
DERIVATIVES
12. NON MARKETABLE SECURITIES
Bank deposits
Post office savings
Monthly income scheme of post office
Kisan Vikas Patra
National savings certificate
Company deposits
Employee provident fund scheme (EPF)
Public Provident fund deposits
21. MATRIX APPROACH TOWARDS INVESTMENT
The below are the criteria for evaluation of
investment alternatives or matrix approach
towards investment decisions.
Rate of return
Risk
Marketability
Tax shelter
Convenience
Liquidity
24. RISK & UNCERTAINTY
Types of Risk
SYSTEMATIC
• Market risk
• Interest rate risk
• Purchasing
power risk
UNSYSTEMATIC
• Business risk
• Financial risk
• Credit risk
25. RETURN
Realized return - The actual or
income which has been earned
Expected return – It is the return
which an investor expects or
anticipates earning over some
future period