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INVESTMENT ALTERNATIVES

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INVESTMENT AVENUE

A place where one can invest his surplus

Fixed or foatin return

Securit! versus non"securit! #or$

Invest$ent"acceptin orani%ation $iht havean o&liation or not

Neotia&le versus non"neotia&le

Ris' is the inherent part o# ever! avenue

Ma! &e in an orani%ed #or$ or unorani%ed#or$

Reulation

Mar'et"oriented versus others

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INVESTMENT AVENUES

Marketable fnancialassets* Money Market

Securities• T-bills and dated

securities•

Commercial papersand certifcate odeposit

• !e-posA" Capital Market

Securities

• E#uity s$ares• %reerences s$ares

Non-Marketablefnancial assets

• 'ank &eposit• %ost ()ce sain+s

account &eposit• %ost ()ce time &eposit• Mont$ly income sc$eme

o post o)ce• ,isan ikas patra• Insurance Sc$emes• Mutual und• Sc$emes o N'C• NSC

• Company deposits• E% sc$eme

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Mar'eta&le securities

Securit! #or$ o# invest$ent avenues are in the#or$ o# neotia&le instru$ent(

M(NE. MA!,ET SECU!ITIES

•  Treasur! )ills

• *ated Securities o#

+overn$ent

• ,o$$ercial -apers

• ,erti.cate o# *eposit

CA%ITA/ MA!,ET SECU!ITIES

• E/uit! Shares

• -re#erence Shares

• *e&entures

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)AN0 *E-1SITS

  Sain+s 'ank Account

le0ibility or deposits and 1it$dra1al ounds rom t$e account"

Most o t$e banks $ae rules or t$ema0imum number o 1it$dra1als in aperiod and t$e ma0imum amount o1it$dra1al3

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)an' deposits  !ecurrin+ &eposit Accounts

Special kind o Term &eposits suitable or people 1$odo not $ae lump sum amount o sain+s3 but are ready tosae a small amount eery mont$"

Suc$ deposits earn interest on t$e amount alreadydeposited 4t$rou+$ mont$ly installments5 at t$e samerates as are applicable or i0ed &eposits 6 Term &eposits"

Creatin+ und or your c$ild7s education or marria+e oyour dau+$ter or buy a car 1it$out loans or sae or t$euture"

 

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)an' deposit

i0ed &eposit Accounts

8ide ran+e o tenures or periods rom 9days to :; years"

&epositor can ask or closin+ 4or breakin+5t$e f0ed deposit prematurely by payin+ apenalty 4usually o :

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%ost o)ce sain+saccounts

13ered &! the Indian post o4ce as their savinsand invest$ent sche$es(

Adults can have a savins account with the posto4ce

A sinle individual or two"three individuals o#$ini$u$ o# 56 !ears o# ae can open a savinsaccount in the post o4ce(

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 Ti$e *eposit Account

Any individual (a single adult or two adults jointly) can open an account.

Group Accounts, Institutional Accounts and Misc. account not permissible.

Trust, Regimental und or !el"are und not permissible to invest.

# $ear, % $ear, & $ear and ' $ear Time eposit can be opened.

In case o" premature closure o" # year, % $ear, & $ear or ' $ear account on or a"ter

#.#%.%##, i" t*e deposit is wit*drawn a"ter + mont*s but be"ore t*e epiry o" oneyear "rom t*e date o" deposit, simple interest at t*e rate applicable to "rom time to

time to post o""ice savings account s*all be payable.

In case o" premature closure o" % year, & year or ' year account on or a"ter

#.#%.%##, i" t*e deposit is wit*drawn a"ter t*e epiry o" one year "rom t*e date o"

deposit, interest on suc* deposits s*all be calculated at t*e rate, w*ic* s*all be one per

cent less t*an t*e rate speci"ied "or a period o" deposit o" # year, % year or & years asmentioned in t*e concerned table given under Rule - o" ost o""ice Time eposit

Rules.

Rate o" interest / 0.12, 0.12, 0.12, 0.'2 compounded 3uarterly "or #,%,& 4 '

years T account respectively w.e.".#5#5%#1.

T*e investment in t*e case o" ' years T 3uali"y "or t*e bene"it o" 6ection 07 o" t*eIncome Ta Act, #8+# "rom #.1.%-.

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SE,URIT7 F1RM

An E#uity s$are  represents real ownership o#a co$pan!8 it carries votin riht #or theshareholder(

%reerence s$ares  have the pre#erence inter$s o# inco$e9asset distri&ution over anda&ove e/uit! shares( These carr! a .xed

percentae o# dividend( T!pes o# -re#erence

Shares:Redee$a&le versus non"redee$a&le

,onverti&le versus non"converti&le

-articipatin -re#erence shares

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SE,URIT7 MAR0ET ,LASSIFI,ATI1N 1F E;UIT7 S

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*E)ENTURE

A t!pe o# loan #ro$ eneral pu&licNo votin rihts

-a!$ent o# interest at a .xed rate is the

leal and contractual o&liation o# issuinco$pan!

,an &e secured aainst the assets o#issuin co$pan! or unsecured

-riorit! over pre#erence and e/uit! sharesInterest is a tax deducti&le expense

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INSURAN,E

An endo1ment policy 

A li#e insurance contract desined to pa! alu$p su$ a#ter a speci.c ter$ =on its

>$aturit!>? or on death(

  T!pical $aturities are ten@ .#teen or twent!!ears up to a certain ae li$it(

  So$e policies also pa! out in the case o#critical illness(

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INSURAN,E

Money back planA plan in w*ic* part o" t*e sum assured is paid bac9 to t*e policy*older at regular

intervals.

Whole life insurance 

 began as a ;term to age #; li"e insurance product in response to mar9etdemands "or an insurance policy t*at would remain in "orce "or as long as t*e

insured was still alive and t*at would provide some type o" guarantee o" bene"its

w*en t*e insured "inally did pass away.

T*ese early w*ole li"e products stressed t*e guaranteed nature o" t*e product as

well as level premiums.

As long as t*e premiums were paid, t*e contract remained in "orce.

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INSURAN,E

A Unit Linked Insurance Plan (ULIP)  is a product

o""ered by insurance companies t*at unli9e a pure

insurance policy gives investors t*e bene"its o" bot*

insurance and investment under a single integrated plan.

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REAL ESTATE

Residential house+ood total returns

Availa&ilit! o# loans

ealth taxB(((((((assessed on historical value-s!choloical satis#action

 

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-RE,I1US 1)CE,TS

+1L* AN* SILVER-RE,I1US ST1NES

ART 1)CE,TS

-AINTIN+SANTI;UES