ABSTRACT

The project ANANLYSIS OF INVESTMENT DECISIONS gives

the brief idea regarding the various investment options that are
prevailing in the financial markets in India. With lots of investment
options like banks, Fixed eposits, !overnment bonds, stock market,
real estate, gold and mutual funds the common investor ends up more
confused than ever. "ach and ever# investment option has its o$n merits
and demerits. In This project I have discussed about fe$ investment
options available.
%n# investor before investing should take into consideration the safet#,
li&uidit#, returns, entr#'exit barriers and tax efficienc# parameters. We
need to evaluate each investment option on the above(mentioned basis
and then invest mone#. Toda# investor faces too much confusion in
anal#)ing the various investment options available and then selecting the
best suitable one. In the present project, investment options are
compared on the basis of returns as $ell as on the parameters like safet#,
li&uidit#, term holding etc. thus assisting the investor as a guide for
investment purpose.
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CHAPTER 1
INTRODUCTION
+
INTRODUCTION
etermination of $here, $hen, ho$, and ho$ much capital to spend and'or debt to
ac&uire in the pursuit of making a p!"it. %n investment decision is often reached
bet$een an i#$e%t! and his'her i#$e%t&e#t ad$i%!%. epending on the t#pe of
b!'ea(e acc!)#t an investor has, i#$e%t&e#t &a#a(e% ma# or ma# not have
tremendous lee$a# in making decisions $ithout consulting the investor himself'herself.
Factors contributing to an investment decision include, but are not limited to capital on
hand, projects or opportunities available, general market conditions, and a specific
i#$e%t&e#t %tate(*.
%n# investment is a sacrifice of certain present value for the uncertain future. It chiefl#
entails decision making on t#pe, mix, amount, timing, grade etc., of investment as also
disinvestment. We invest for a positive rate of return, suitabl# adjusted for inflation and
risk. %ll saving must be converted into investment and there must be a balanced
approach in selected of securities. ,lanning is a precursor to an# t#pe of investment.
Investing $ithout planning entails losing mone#. Those $ho invested during the
secondar# market boom of *--+ and the primar# market boom of *--.(-/ lost heavil#.
0
NEED FOR THE STUDY
Investment anal#sis is ke# to sound portfolio 1management strateg#.
Investors not comfortable doing their o$n investment anal#sis can seek professional
advice from a financial advisor.
OB+ECTIVE OF THE STUDY
To make an anal#sis of various investment decision. The aim is to compare the
returns given b# various investment decision.
To cater the different needs of investor, these options are also compared on the
basis of various parameters like safet#, li&uidit#, risk, entr#'exit barriers, etc.
To creating a basis not onl# for ongoing anal#ses but also for structural changes
in the investment process.
The project $ork includes kno$ing about the investment descisions like e&uit#,
bond, real estate, gold and mutual fund. %ll investment descisions are discussed
$ith their t#pes, $orkings and returns.
.
METHODOLO,Y
"&uities, 2onds, 3eal "state, !old, 4utual Funds and 5ife Insurance $ere identified as
major t#pes of investment decision.
The secondar# date for the project regarding investment and various investment
"6I7I897 $ere collected from $ebsites, textbooks and maga)ines.
ABSOLUTE CHAN,E : ,+(,*
PERCENTA,E CHAN,E -./ : ,+ 1 ,*
p*
,* 1 ,resent #ear.
,+ 1 ,revious ;ear.
/
LIMITATIONS OF THE STUDY
The stud# $as limited to onl# six investment options.
4ost of the information collected is secondar# data.
The data is compared and anal#)ed on the basis of performance of the
investment options over the past five #ears.
While considering the returns from mutual funds onl# top performing schemes
$ere anal#)ed.
It $as ver# difficult to obtain the date regarding the returns #ielded b# real
estate and hence averages $ere taken
<
CHAPTER II
LITERATURE REVIE0
=
De"i#iti!#%1
2%n investment is a sacrifice of current mone# or other resources for future
benefits. The benefits I expected in the future and tends to be uncertain. In
some investments like government bonds the time element is the dominant
attribute. In other investments like stock options the risk element is the
dominant another attribute it seeks to improve #our abilities in the field of
investment34
5PRASANNA CHANDRA64
2Investment the stud# of the investment process. The term investing can cover a $ide
range of activities. If often refers to investing mone# in certificates of deposit, bonds,
common stocks or mutual funds. 4ore kno$ledgeable investors $ould include other
,aper assets, such as $arrants, puts and calls, futures contracts and convertible
securities as $ell as tangible assets, such as gold, real estate and collections. Investing
encompasses positions as $ell as aggressive speculation 34
5CHARLES P4+ONES
>
INVESTMENT ANALYSIS
Investment anal#sis is an ongoing process of evaluating current and potential
allocations of financial assets and choosing those allocations that best fit the investor?s
needs and goals. The t$o opposing considerations in investment anal#sis are gro$th
rate and risk, $hich are usuall# directl# proportionate in an# given investment vehicle.
This means that investments $ith a high degree of certaint#, such as @.7. Treasur#
securities, offer a ver# modest rate of return Ae.g., / percent annuall#B, $hereas high(
risk stock investments could double or &uadruple in value over a fe$ months. Through
investment anal#sis, investors must consider the level of risk the#?re able to tolerate and
choose investments accordingl#.
2e#ond $eighing the return of an individual investment, investors must also consider
taxes, transaction costs, and opportunit# costs that erode their net return. Taxes, for
instance, ma# be reduced or deferred depending on the t#pe of investment and the
investor?s tax status. Transaction costs ma# be incurred each time an individual
purchases or sells shares of stock or mutual funds. These fees are usuall# a percentage
of the dollar amount being transferred. 7uch fees ma# sift 0(< percent or more off the
initial investment and final return. If the# don?t seem $arranted, such expenses ma# be
avoided b# choosing no load mutual funds and dealing $ith discount brokers, for
instance. 4uch more nebulous is opportunit# cost, $hich is $hat the investment could
have earned had it been deplo#ed else$here. 8pportunit# cost is largel# the do$nside
of investing too conservativel# given one?s means and circumstances. %gain, both risk
and gro$th factor into opportunit# costs. For example, lo$ risk comes at a price of lo$
returns, but it ma# be $orth the lost opportunit# if the investor is retired and $ill be
depending on the invested funds for living expenses in the near future.
It is useful to contrast the multi(level approach to investments emphasi)ed in this $ork
$ith some alternatives. We present them roughl# in the order in $hich the# $ere
introduced historicall#. In simple societies, there is little distinction bet$een savings
and investment. 8ne saves b# reducing present consumption. 8ne invests in the hope of
increasing future consumption. Thus the $oodsman $ho spares a tree for another #ear
reduces consumption in the present Aa long $arm night b# the fireB in the hope of
increasing it in the future A$armer and longer nights b# the fire next #earB. The tree is a
-
productive investment (( barring floods, lightning strikes, etc., there $ill be more $ood
next #ear than there is this #ear. In most societies, intermediar# steps connect
individuals? savings $ith productive investments. 7uch investments are usuall#
undertaken b# firms, using resources generated b# the savings of individuals. In man#
cases governmental agencies perform roles similar to those of business firms.
In our terminolog#, the individual $ho saves Adefers consumptionB is an Investor. To
avoid confusion $ith Investment Firms, $e $ill use the term Business to refer to a firm
or governmental agenc# engaged in productive investment.
6ertainl# the simplest Aand no doubt earliestB form of investment is that in $hich each
business is funded b# one investor Aor perhaps one famil# of investorsB. The figure
belo$ illustrates this, $ith I representing an Investor and 2 a 2usiness.
In this case the problems associated $ith corporate governance are mitigated, since the
Investment Firm is in a position to serve as the exclusive monitor of each of the
2usinesses. 8n the other hand, the division of o$nership of the Investment Firm among
man# Investors ma# lessen incentives for the management of the Investment Firm to act
solel# in the interests of the Investors. ,erhaps most important, the use of a financial
intermediar# can greatl# reduce the re&uired number of contractual arrangements. For
example, if there $ere 9 investors and 4 businesses, direct investment $ith sufficient
diversification might re&uire 9C4 such arrangements. Do$ever, if one financial
intermediar# could provide all the needed diversification, onl# 9E4 contracts $ould be
re&uired.
7chema involving financial intermediaries lie behind traditional taxonomies for
classif#ing Businesses, Investment Firms, and Investors. 7uch entities differ primaril#
in their use of securities. The next figure sho$s this in terms of representative balance
sheets, $ith assets on the left and claims on assets on the right.
*F
I#$e%t&e#t% Deci%i!#%
I#t!d)cti!#
These da#s almost ever#one is investing in somethingG even if itHs a
savings account at the local bank or a checking account the earns interest
or the home the# bought to live in.
Do$ever, man# people are over$helmed $hen the# being to consider the
concept of investing, let alone the laundr# list of choices for investment
vehicles. "ven though it ma# seem the ever#one and their brothers kno$s
exactl# $ho, $hat and $hen to invest in so the# can make killing, please
donHt be fooled. 4ajorities of investor t#picall# jump on the latest
investment band$agon and probabl# donHt kno$ as much about $hatHs out
there as #ou think.
**
2efore #ou can confidentl# choose an investment path that $ill help #ou
achieve #our personal goals and objectives, itHs vitall# important that #ou
understand the basics about the t#pes of investments available. Ino$ledge
is #our strongest all# $hen it comes to $eeding out bad investment advice
and is crucial to successful investing $hether #ou go at it alone or use a
professional.
The investment option before #ou are man#. ,ick the right investment tool
based on the risk profile, circumstance, time available etc. if #ou feel the
market volatilit# is something, $hich #ou can live $ith then bu# stocks. If
#ou do not $ant risk, the volatilit# and simpl# desire some income, then
#ou should consider fixed income securities. Do$ever, remember that risk
and returns are directl# proportional to each other. Digher the risk, higher
the returns.
TYPES OF INVESTMENT OPTIONS
% brief previe$ of different investment options is given belo$J
E7)itie%1 Investment in shares of companies is investing in e&uities.
7tocks can be brought'sold from the exchanges Asecondar# marketB or via I,8Hs 1
Initial ,ublic 8fferings Aprimar# marketB. 7tocks are the best long(term investment
options $herein the market volatilit# and the resultant risk of losses, if given enough
time, are mitigated b# the general up$ard momentum of the econom#. There are t$o
streams of revenue generation from this from of investment.
14Di$ide#d1 ,eriodic pa#ments made out of the compan#Hs profits are termed as
dividends.
84,!9t:1 The price of the stock appreciates commensurate to the gro$th posted b#
the compan# resulting in capital appreciation.
8n an average an investment in e&uities in India has a return of +/K. !ood portfolio
management, precise timing ma# ensure a return of .FK or more. ,icking the right
*+
stock at the right time $ould guarantee that #our capital gains i.e. gro$th in market
value of stock possessions, $ill rise.
B!#d%1 It is a fixed income AdebtB instrument issued for a period of more than one #ear
$ith the purpose of raising capital. The central or state government, corporations and
similar institutions sell bonds. % bond is generall# a promise to repa# the principal
along $ith fixed rate of interest on a specified date, called as the maturit# date. 8ther
fixed income instruments include bank deposits, debentures, preference shares etc.
The average rate of return on bond and securities in India has been around *F(*0K p.a.
M)t)al F)#d1 These are open and close(ended funds operated b# an investment
compan#, $hich raises mone# from the public and invests in a group of assets, in
accordance $ith a stated set of objectives. It is a substitute for those $ho are unable to
invest directl# in e&uities or debt because of resource, time or kno$ledge constraints.
2enefits include diversification and professional mone# management. 7hares are issued
and redeemed on demand, based on the funs net asset value, $hich is determined at the
end of each trading session. The average rate of return as a combination of all mutual
funds put together is not fixed but is generall# more than $hat earn is fixed deposits.
Do$ever, each mutual fund $ill have its o$n average rate of return based on several
schemes that the# have floated. In the recent past, 4utual Funs have given a return of
*> 1 0/K.
Real E%tate1 For the bulk of investors the most important asset in their portfolio is a
residential house. In addition to a residential house, the more affluent investors are
likel# to be interested in either agricultural land or ma# be in semi(urban land and the
commercial propert#.
Peci!)% P!;ect%1 ,recious objects are items that are generall# small in si)e but highl#
valuable in monetar# terms. 7ome important precious objects are like the gold, silver,
precious stones and also the uni&ue art objects.
Li"e i#%)a#ce1 In broad sense, life insurance ma# be revie$ed as an investment.
Insurance premiums represent the sacrifice and the assured the sum the benefits. The
important t#pes of insurance policies in India areJ
"ndo$ment assurance polic#.
*0
4one# back polic#.
Whole life polic#.
Term assurance polic#.
@nit(linked insurance plan.
*.
CHAPTER III
COMPANY < INDUSTRY
PROFILE
*/
COMPANYPROFILE
9irmal 2ang 7ecurities ,vt. 5td
,eople are 8ur greatest asset. ra$n from a diversit# of professional backgrounds, their
blend of experience, skill and dedication is shared $ith all our clients.
Innovative and enthusiastic. We emphasi)e ade&uate, thorough research local and
$orld($ide developments, balancing these $ith the astute discover# of intrinsic values,
s#nergies and gro$th.
7impl# to help #ou maximi)e #our returns. ;our interests no matter ho$ big or small (
come first.
6omprehensive and available to meet ever# investment financial need.
To provide service, par excellence and become #our spirit of change.
6ompan# 8vervie$ 9irmal 2ang Financial 7ervices ,vt 5td is a 32I registered 9on
2anking Finance 6ompan# $hich offers margin funding facilit# to its clients. ,roduct
8vervie$ 4argin funding allo$s the investors to take leverage positions in the stock
market, client has to pa# margin of 0/ K to /FK depending upon the scrip and rest is
funded b# us. To put it simpl#, for example in case of scrip prescribed for 0/K margin,
if client pa#s cash margin of 3s.0/,FFF'(, he can bu# shares of 3s.*FFFFF'( and funding
b# us $ould be of 3s.</FFF'(.4argin can be provided in cash as $ell as approved
securities.
7cripsJ Funding onl# against approved securities as per the list approved b# the
management from time to time. 6lick here to Lie$ the %pproved 5istG.. 2enefits
6orporate %ction benefits like bonus, dividend etc continue to accrue to the
borro$er.
%n# appreciation in the value of the 7ecurities given as margin $ould
automaticall# allo$ enhancement in dra$ing po$er.
Interest $ill be calculated on the amount utili)ed M the actual period for $hich
it is utili)ed.
6lients can vie$ their financial statement and holdings online.
*<
3isk 4onitoring 7#stem In case of shortfall in the margin the client has to follo$ the
prescribed norms and replenish the short margin or else the shares $ould be li&uidated
to the extent of the shortfall. ocuments 3e&uirement %B Individuals
*. 6lient has to open a bank account $ith %xis 2ank and emat account $ith
9irmal 2ang 7ecurities ,vt 5td both under ,8% $ith us.
+. 5oan agreement to be dul# filled up and signed therein.
0. 6op# of ,%9 card
.. 6op# of %ddress ,roof
/. T$o passport si)ed photographs
<. 6op# of latest t$o #ears IT3s
=. T$o ,ost dated che&ues , one for principal M other for interest in the name of
9irmal 2ang Financial 7ervices ,vt 5td
>. 6he&ue of 3s <FF to$ards the loan documentation charges
-. 6he&ue of 3s <FFF'( in favour of %xis bank for maintaining minimum balance,
this che&ue $ill be credited in clientHs %xis bank a'c onl#
2B 6ompan# %ll documents as mentioned in point no * to > in case of individual are
re&uired. %dditional documents to be collected areJ
*. 6op# of annual report of last t$o #ears
+. 4emorandum and article of association
0. 5ist of directors
.. T$o photographs of all the directors.
/. 2oard resolution on letter head of the compan#
<. 6he&ue of 3s **FFF'( in favour of %xis bank for maintaining minimum balance,
this che&ue $ill be credited in clientHs %xis bank a'c onl#
Iindl# note
%ll documents should be self attested
%ll ,hotographs and signatures should match $ith the proof given
%dditional documents need to be submitted in case of an# discrepanc# is
noticed.
,ortfolio 4anagement 7ervices A,47B(6ultivating a taste for success Investing is no
longer a means to save the extra income earned, but has become an essential ingredient
of high living. ,47, as a product categor#, is designed to help clients navigate the
increasingl# tough and uncertain terrain of the investment $orld $ith total ease and
*=
e&uanimit#. 6oncentrated calls taken b# professionals $ho have the experience of
negotiating a number of market c#cles over the #ears, help investors both defend their
investments'savings and consistentl# perform better than the markets. Thus, 9irmal
2ang ,47 offers the vehicles for a comfortable and smooth journe# to $ealth creation
in the investment arena. We have plans for a range of products, occup#ing various
positions along the risk(return matrix, thus catering to the needs of clients $ith different
approaches to investing. In continuation $ith the tradition of delivering &ualit# $ith
sincerit# at 9irmal 2ang, this marks #et another step to$ards becoming a complete
financial solutions provide
Investing in the stock market re&uires in(depth anal#sis of the scrip and the companies
and the business that the# are involved in. 3etail investors seldom have the time and
expertise to anal#se stocks.
In India, 4utual funds come to the rescue of such investors. %ll $ar# investors kno$
that the best $a# to make mone# is to involve in stock market investing and bu#ing
Indian mutual funds.
4utual Funds in India comprise of a group of investors come together and create a
corpus $hich in invested in the stock market b# a fund manager. Thus, the investors can
depend on the expertise of the fund manager in order to maximise the returns on their
mutual fund portfolio.
In India, 4utual Funds invest in different securities subject to the investment objective
as set forth in the prospectus. The prospectus is a legal document under 7"2I la$s and
contains a lot of information about the mutual fund.
Investing in mutual funds in India has man# benefitsJ
o The expertise of the fund manager of the %46 that manages mutual funds
mone# in India helps the investor to maximise the profits on the amount
invested in the mutual fund.
o Indian 4utual Funds invest mone# in a $idespread basket of shares and
e&uities, depending on the nature of the Fund and s$itch investments to
different securities depending on the "&uit# market conditions
*>
o In India, 4utual funds are an eas# and cost efficient $a# of investing along $ith
tax benefits.
There are man# kinds of mutual funds available for the investors to choose from.
7ector 7pecific 4utual Fund
5arge'7mall'4id 1 cap 4utual Fund
Index 4utual Funds
Dere is some information on companies that $ould enable #ou to invest in some of the
best mutual funds in IndiaJ
o 72I 4utual Fund
o Franklin Templeton 4utual Fund
o 3eliance 4utual Fund
o Tata 4utual Fund
o 7undaram 29, ,aribas 4utualFund
o Fidelit# Investments 4utual Fund
C!&&!dit* Ma'et i# I#dia
% commodit# ma# be defined as a product or material or an# ph#sical substance like
food grains, processed products and agro(based products, metals or currencies, $hich
investors can trade in the commodit# market. 8ne of the characteristics of a commodit#
is that its price is determined as a function of its market as a $hole. Well(established
ph#sical commodities are activel# traded in spot and derivative commodit# market.
6ommodities actuall# offer immense potential to become a separate asset class for
market(savv# investors, arbitragers and speculators. 3etail investors, $ho claim to
understand the e&uit# market, ma# find commodit# market &uite trick#. 2ut
commodities are eas# to understand as far as fundamentals of demand and suppl# are
concerned. 3etail investors should understand the risks and advantages of trading in
commodit# market before taking a leap. Distoricall#, prices of commodities have
remained extremel# volatile.
The gradual evolution of commodit# market in India has been of great significance for
the countr#?s economic prosperit#. The commodit# futures exchanges $ere evolved in
*-
*>FF $ith the sole objective of meeting the demand of exchangeable contracts for
trading agricultural commodities. For example, the cotton exchange located at 6otton
!reen in 4umbai Athen 2omba#B $as the one of the first organised commodit# market
in the countr#.
% commodit# market is a market $here various commodities and derivatives products
are traded. 4ost commodit# market across the $orld trade in agricultural products and
other ra$ materials Alike $heat, barle#, sugar, mai)e, cotton, cocoa, coffee, milk
products, pork bellies, oil, metals, etc.B and contracts based on them. These contracts
can include spot prices, for$ards, futures and options on futures. 8ther sophisticated
products ma# include interest rates, environmental instruments, s$aps, or ocean freight
contracts.
6ommodities exchanges usuall# trade futures contracts on commodities, such as trading
contracts to receive a particular commodit# in ph#sical form. 7peculators and investors
also bu# and sell the futures contracts at commodit# exchanges to make a profit and
provide li&uidit# to the s#stem.
The Indian commodit# market offers a variet# of products like rice, $heat, coal,
petroleum, kerosene, gasolineN metals like copper, gold, silver, aluminum and man#
more. There are some commodities such as sugar, cocoa, and coffee, $hich are
perishable, so cannot be stocked for long time. These da#s, a $ide range of agricultural
products, energ# products, perishable commodities and metals can be sold under
standardised contracts on futures exchanges prevailing across the globe. 6ommodities
have gained importance $ith the development of commodit# futures indexes along $ith
the mobilisation of more resources in the commodit# market.
India has around +/ recognised commodit# future exchanges including three national(
level commodit# exchanges. The# areJ
*. 9ational 6ommodit# M erivatives "xchange 5imited A96"OB
+. 4ulti 6ommodit# "xchange of India 5imited A46OB
0. 9ational 4ulti(6ommodit# "xchange of India 5imited A946"B %ll these
exchanges are under the control of the For$ard 4arket 6ommission AF46B of
!overnment of India.
+F
9ational 6ommodit# M erivatives "xchange 5imited A96"OB located in 4umbai is
a public limited compan# incorporated on %pril +0, +FF0 under the 6ompanies %ct,
*-/< and commenced its operations on ecember */, +FF0.This is the onl# commodit#
exchange in the countr# promoted b# national level institutions like I6I6I 2ank
5imited, 5ife Insurance 6orporation of India A5I6B, 9ational 2ank for %griculture and
3ural evelopment A9%2%3B and 9ational 7tock "xchange of India 5imited A97"
IndiaB. It is a professionall# managed online multi(commodit# exchange. It is a
technolog# driven de(mutualised on(line commodit# exchange $ith an independent
2oard of irectors and professional management.
4ulti 6ommodit# "xchange of India 5imited A46OB in 4umbai, is also an
independent and de(mutualised exchange recogni)ed b# the !overnment of India. This
commodit# exchange $hich started operations in 9ovember +FF0 has above .F
commodities on its platform and has a market share of around >FK in the Indian
commodit# market. Ie# shareholders of 46O are Financial Technologies AIndiaB 5td.,
7tate 2ank of India, @nion 2ank of India, 6orporation 2ank, 2ank of India and 6anara
2ank. This commodit# exchange facilitates online trading, clearing and settlement
operations for commodit# futures market across the countr#.
9ational 4ulti 6ommodit# "xchange of India 5imited A946"B is the first de(
mutuali)ed, "lectronic 4ulti(6ommodit# "xchange to be formed in India. 8n +/th
Pul#, +FF*, it $as granted approval b# the !overnment of India to organise trading in
the edible oil complex. It started operating in the commodit# market from 9ovember
+<, +FF+. 946" is the onl# "xchange in India to have investment and technical
support from commodit# relevant institutions like 6entral Warehousing 6orporation
5td., !ujarat 7tate %gricultural 4arketing 2oard, 9eptune 8verseas 5td, 9ational
%gricultural 6ooperative 4arketing Federation of India A9%F"B, !ujarat %gro(
Industries 6orporation 5td. A!%I65B, !ujarat 7tate %gricultural 4arketing 2oard
A!7%42B and the 9ational Institute of %gricultural 4arketing A9I%4B.
%s compared to other markets in the last ten #ears, commodit# market has performed
relativel# better than other markets like bonds , e&uit# or currenc#. Do$ever, the
participation in future trading in Indian commodit# market is ver# lo$ as compared to
other countries as there is lack of kno$ledge about this market to the investors and
+*
traders. It is not for mere trading purposeN commodit# trading is also used for hedge
against inflation, price discover# of the commodit# and also as a sound investment.
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96"O'T64'683,'FF=/ 96"O 7,8T 4ember I J *FF>. I6"O membership I J
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++
9irmal 2ang caters to the need of customers across India through a net$ork of offices
encompassing almost ever# Indian states. ;ou can locate branch near #ou...
+0
INDUSTRY PROFILE
%55 %28@T "Q@IT; I9L"7T4"9T
7tocks are investments that represent o$nership ((( or e&uit# ((( in a corporation. When
#ou bu# stocks, #ou have an o$nership share ((( ho$ever small ((( in that corporation
and are entitled to part of that corporationHs earnings and assets. 7tock investors (((
called shareholders or stockholders ((( make mone# $hen the stock increases in value
or $hen the compan# the issued the stock pa#s dividends, or a portion of its profits, to
its shareholders.
7ome companies are privatel# held, $hich means the shares are available to a limited
number of people, such as the compan#Hs founders, its emplo#ees, and investors $ho
fund its development. 8ther companies are publicl# traded, $hich means their shares
are available to an# investor $ho $ants to bu# them.
T:e IPO
% compan# ma# decided to sell stock to the public for a number of
reasons such as providing li&uidit# for its original investor or raising
mone#. The first time a compan# issues stock is the initial public
offering AI,8B, and the compan# receives the proceeds from that sale.
%fter that, shares of the stock are treaded, or brought and sold on the
securities markets among investors, but the corporation gets no
additional income. The price of the stock moves up or do$n depending
on ho$ much investors are $illing to pa# for it.
8ccasionall#, a compan# $ill issue additional shares of its stocks, called
a secondar# offering, to raise additional capital.
T*pe% O" St!c'%1
With thousands of different stocks trading on @.7. and international securities markets,
there are stocks to suit ever# investor and to complement ever# portfolio.
For example, some stocks stress gro$th, $hile others provide income. 7ome stocks
flourished during boom time, $hile others ma# help insulate #our portfolioHs value
against turbulent or depressed markets. 7ome stocks are price#, $hile others are
+.
comparativel# inexpensive. %nd some stocks are inherentl# volatile, $hile others tend
to be more stable in value.
,!9t: < I#c!&e1
7ome stocks are considered gro$th investments, $hile others are considered value
investments. From an investing perspective, the best evidence of gro$th is an
increasing price over time. 7tocks of companies that reinvest their earnings rather than
pa#ing them out as dividends are often considered potential gro$th investments. 7o are
stocks of #oung, &uickl# expanding companies. Lalue stocks, in contrast, are the stocks
of companies that problems, have been under performing their potential, or are out of
favor $ith investors. %s result, their prices tend to be lo$er than seems justified, though
the# ma# still be pa#ing dividends. Investors $ho seek out value stocks expect them to
stage a comeback.
Ma'et Capitali=ati!#1
8ne of the main $a#s to categori)e stocks is b# their market capitali)ation, sometimes
kno$n as market value. 4arket capitali)ation Amarket capB is calculated b# multipl#ing
a compan#Hs current stock price b# the number of its existing shares. For example, a
stock $ith a current market value of R0F a share and a hundred million shares of
existing stock $ould have a market cap of R0 billion.
P>E ati!1
% popular indicator of a stockHs gro$th potential is its price(to(earnings ratio, or ,'" 1
or multiple 1 can help #ou gauge the price of a stock in relation to its earnings. For
instance, a stock $ith a ,'" of +F is trading at a price +F times higher than its earnings.
% lo$ ,'" ma# be a sign that a compan# is a poor investment risk and that its earnings
are do$n. 2ut it ma# also indicate that the market undervalues a compan# because its
stock price doesnHt reflect its earnings potential. 7imilarl#, a stock $ith a high ,'" ma#
live up to investor expectations of continuing gro$th, or it ma# be overvalued.
I#$e%t! de&a#d1
,eople bu# a stock $hen the# believe itHs a good investment, driving the stock price up.
2ut if people think a compan#Hs outlook is poor and either donHt invest or sell shares
the# alread# o$n, the stock price $ill fall. In effect, investor expectations determine
the price of a stock.
For example, if lots of investors bu# stock %, its price $ill be driven up. The stock
becomes more valuable because there is demand for it. 2ut the reverse is also true. If a
lot of investors sell stock S, its price $ill plummet. The further the stock price falls, the
more investors sell it off, driving the price do$n even more.
+/
T:e Di$ide#d%1
The rising stock price and regular dividends that re$ard investors and give them
confidence are tied directl# to the financial health of the compan#.
ividends, like earnings, often have a direct influence on stock prices. When dividends
are increased, the message is that the compan# is prospering. This in turn stimulates
greater enthusiasm for the stock, encouraging more investors to bu#, and riving the
stockHs price up$ard. When dividends are cut, investors receive the opposite message
and conclude that the compan#Hs future prospects have dimmed. 8ne t#pical
conse&uence is an immediate drop in the stockHs price.
6ompanies kno$n as leaders in their industries $ith significant market share and name
recognition tend to maintain more stable values than ne$er, #ounger, smaller, or
regional competitors.
Ea#i#(% a#d Pe"!&a#ce1
Investor enthusiasm for a stock can sometimes take on a momentum of its o$n, driving
prices up independent of a compan#Hs actual financial outlook. 7imilarl#, disinterest
can drive prices do$n. 2ut to a large extent, investors base their expectations on a
compan#Hs sales and earnings as evidence of its current strength and future potential.
When a compan#Hs earnings are up, investor confidence increases and the price of the
stock usuall# rises. If the compan# is li-sin g mone#Tor not making as much as
anticipated (( the stock price usuall# falls, sometimes rapidl#.
I#ti#%ic Val)e1
% compan#Hs intrinsic value, or underl#ing value, is closel# tied to its prospects for
future success and increased earnings. For that reason, a compan#Hs future as $ell as its
current assets contributes to the value of its stock.
;ou can calculate intrinsic value b# figuring the assets a compan# expects to receive in
the future and subtracting its long(term debt. These assets ma# include profits, the
potential for increased efficienc#, and the proceeds from the sale of ne$ compan#
stock. The potential for ne$ shares affects a compan#Hs intrinsic value because offering
ne$ shares allo$s the compan# to raise more mone#.
%nal#sts looking at intrinsic value divide a compan#Hs estimated future earnings b# the
number of it s existing shares to determine $hether a stockHs current price is a bargain.
This measure allo$s investors to make decisions based on a compan#Hs future potential
independent of short(term enthusiasm or market h#pe.
+<
St!c' Split%1
If a stockHs price increases dramaticall# the issuing compan# ma# split the stock to
bring the price per share do$n to a level that stimulates more trading. For example, a
stock selling at R*FF a share ma# be split + for * doubling the number of existing shares
and cutting the price in half.
The split doesnHt change the value of #our investment, at least initiall#. If #ou had *FF
shares $hen the price $as R*FF a share, #ouHll have +FF shares $orth R/F a share after
the split. "ither $a#, thatHs R*FFFF. 2ut if the price per share moves back to$ard the
pre(split price, as it ma# do #our investment $ill increase in value. For example if the
price goes up to R=/ a share #our stock $ill be $orth R*/FFF, a /FK increase.
Investors $ho hold a stock over man# #ears, through a number of splits, ma# end up
$ith a substantial investment even if the price per share drops for a time.
% stock ma# be split + for *, 0 for *, or even *F for * if the compan# $ishes, though +
for * is the most common.
St!c' Re%eac: a#d E$al)ati!#1
2efore investing in a stock, its important to research the issuing compan# and
understand ho$ the investment is likel# to perform, for example, #ouHll $ant to kno$
ahead of time $hether #ou should anticipate a high degree of volatilit#, or more stable
slo$er gro$th.
% good place to start is the compan#Hs *F k report, $hich it must file $ith the 7ecurities
and "xchange 6ommission A7"6B each #ear. Its extremel# detailed and &uite dr#, but it
is through. ;ouHll $ant to pa# attention to the footnotes as $ell as the main text, since
the# often provide hints of potential problems.
C!&pa#* Ne9% a#d Rep!t%1
6ompanies are re&uired b# la$ to keep shareholders up to date on ho$ the business is
doing. 7ome of that information is provided in the firmHs annual report, $hich
summari)es the compan#Hs operations for individual investors. % summar# of current
performance is also provided in the compan#Hs &uarterl# reports.
B)*i#( a#d Selli#( St!c'1
To bu# or sell a stock #ou usuall# have to go through a broker. !enerall# the more
guidance #ou $ant from #our broker the higher the brokerHs fee. 7ome brokers usuall#
called full(service brokers provide a range of service be#ond filling bu# and sell orders
for clients such as researching investments and helping #ou develop long and short(term
investment goals.
+=
iscount brokers carr# out transactions for clients at lo$er fees than full(service
brokers but t#picall# offer more limited services. %nd for experienced investors $ho
trade often and in large blocks of stock there are deep(discount brokers $hose
commissions are even lo$er.
8nline Trading is the cheapest $a# to trade stocks. 8nline brokerage firms offer
substantial discounts $hile giving #ou fast access to #our accounts through their Web
7ites. ;ou can research stocks track investments and #ou to trade before and after
normal market hours. 4ost of toda#Hs leading full(service and discount brokerage firm
make online trading available to their customers. 8nline trading is an extremel# cost(
effective option for independent investors $ith a solid strateg# $ho are $illing to
undertake their o$n research. Do$ever the ease of making trades and the absence of
advice ma# tempt some investors to trade in and out of stocks too &uickl# and magnif#
the possibilit# of locking in short(term losses.
V!latilit*1
8ne of the risks #ouHll need to plan for as a stock investor is volatilit#. Lolatilit# is the
speed $ith $hich an investment gains or loses value. The more volatile an investment is
the more #ou can potentiall# make or lose in the short term.
Ma#a(i#( Ri%'1
8ne thing for certainJ ;our stock investment $ill drop in value at some point. ThatHs
$hat risk is all about. Ino$ing ho$ to tolerate risk and avoid selling #our stocks off in
a panic is all part of a smart investment strateg#.
7etting realistic goals allocating and diversif#ing #our assets appropriatel# and taking a
long(term vie$ can help offset man# of the risks of investing in stocks. "ven the most
speculative stock investment $ith its potential for large gains ma# pla# an important
role in a $ell(diversified portfolio.
+>
%ll %28@T 2897 I9L"7T4"9T
Dave #ou ever(borro$ed mone#U 8f course #ou have $hether $e hit our
parents up for a fe$ bucks to bu# cand# as children or asked the bank
for a mortgage most of us have borro$ed mone# at some point in our
lives.
Pust as people need mone# so do companies and governments. %
compan# needs funds to expand into ne$ markets, $hile governments
need mone# for ever#thing from infrastructure to social programs. The
problem large organi)ations run into is that the# t#picall# need far more
mone# than the average bank can provide. The solution is to raise mone#
b# issuing bonds Aor other debt instrumentsB to a public market.
Thousands of investors then each lend a portion of the capital needed.
3eall# a bond is nothing more than a loan for $hich #ou are the lender.
The organi)ation that sells a bond is kno$n as the issuer. ;our can think
of a bond as an I8@ given b# a borro$er Athe issuerB to a lender Athe
investorB.
8f course, nobod# $ould loan his or her hard(earned mone# for nothing.
The issuer of a bond must pa# the investor something extra for the
privilege of using his or her mone#. This VextraH comes in the form of
interest pa#ments, $hich are made at a predetermined rate and schedule.
The interest rate is often referred to as the coupon. The date on $hich
the issuer has to repa# the amount borro$ed Akno$n as face valueB is
called the maturit# date. 2onds are kno$n as fixed(income securities
because #ou kno$ the exact amount of cash #ouHll get back if #ou hold
the securit# until maturit#. For example, sa# #ou bu# a bond $ith a face
value of R*FFF a coupon of >K and a maturit# of *F #ears. This means
#ouHll receive a total of R>F AR*FFFC>KB of interest per #ear for the next
*F #ears. %ctuall# because most bonds pa# interest semi(annuall# #ouHll
+-
receive t$o pa#ments of R.F a #ear for *F #ears. When the bond
matures after a decade, #ouHll get #our R*FFF back.
Face Val)e > Pa Val)e
The face value Aalso kno$n as the par value or principalB is the amount
of mone# a holder $ill get back once a bond matures. 9e$l# issued
bond usuall# sells at the par value. 6orporate bonds normall# have a par
value of R*FFF but this amount can be much greater for government
bonds. What confuses man# people is that the par value is not the price
of the bond. % bondHs price fluctuates throughout its life in response to a
number of variables Amore on this laterB. When a bond trades at a price
above the face value, it is said to be selling a premium. When a bond
sells belo$ face value it is said to be selling at a discount.
C!)p!# -T:e I#tee%t Rate/
The coupon is the amount the bondholder $ill receive as interest
pa#ments. ItHs called a VcouponH because sometimes there are ph#sical
coupons on the bond that #ou tear off and redeem for interest. Do$ever
this $as more common in the past. 9o$ada#s records are more likel# to
kept electronicall#.
%s previousl# mentioned most bonds pa# interest ever# six months but
itHs possible for them to pa# monthl#, &uarterl# or annuall#. The coupon
is expressed as a percentage of the par value. If a bond pa#s a coupon of
*FK and its par value is R*FFF then itHll pa# K*FF of interest a #ear. %
rate that sta#s as a fixed percentage of the par value like this is a fixed(
rate bond. %nother possibilit# is an adjustable interest pa#ment kno$n
as a floating(rate bond. In this case the interest rate is tied to market rates
through an index such as the rate on Treasur# bills.
;ou might think investors $ill pa# more for a high coupon than for a
lo$ coupon. %ll things being e&ual a lo$er coupon means that the price
of the bond $ill fluctuate more.
0F
Mat)it*
The maturit# date is the date in the future on $hich the investorHs
principal $ill be repaid. 4aturities can range from as little as one da# to
as long as +F #ears Athough terms of *FF #ears have been issuedB.
% bond that matures in one #ear is much more predictable and thus less
risk# than a bond that matures in +F #ears. Therefore in general the
longer the time to maturit#, the higher the interest rate. %lso all things
being e&ual a longer(term bond $ill fluctuate more than a shorter(term
bond.
Issuer
The issuer of a bond is a crucial factor to consider, as the issuers stabilit#
is #our main assurance of getting paid back. For example, the @.7
government is far more secure than an# corporation. Its default risk Athe
chance of the debt not being paid backB is extremel# small 1 so small
that @.7 government securities are kno$n as risk(free assets. The reason
behind this is that a government $ill al$a#s be bale to bring in future
revenue through taxation. % compan# on the other hand must continue
to make profits, $hich is far from guaranteed. This added risk means
corporate bond must offer a higher #ield in order to entire investors 1
this is the risk ' return tradeoff in action.
The bond rating s#stem helps investors determine a compan#Hs credit
risk. Think of a bond rating as the report card for a compan#Hs credit
rating. 2lue(chip firms, $hich are safer investments, have a high rating,
$hile risk# companies have to lo$ rating. The chart belo$ illustrates the
different bond rating scales from the major rating agencies in the @.7
.
0*
2ond 3ating
!rade 3isk
4ood#Hs 7M, ' Fitch
%aa %%% Investment Dighest Qualit#
%a %% Investment Digh Qualit#
% % Investment 7trong
2aa 222 Investment 4edium !rade
2a, 2 22, 2 Punk 7peculative
6aa'6a'6 666'66'6 Punk
Dighl#
7peculative
6 Punk In efault
9otice that if the compan# falls belo$ a certain credit rating, its grade
changes from investment &ualit# to junk status. Punk bonds are aptl#
namedJ the# are the debt of companies in some sort of financial
difficult#. 2ecause the# are so risk#, the# have to offer much higher
#ields than an# other debt. This brings up an important pointJ not all
bonds are inherentl# safer than stocks. 6ertain t#pes of bonds can be
just risk#, if not riskier, than stocks.
Yield t! Mat)it*
8f course, these matters are al$a#s more complicated in real life. When
bond investor refers to #ield, maturit# A;4TB. ;T4 is more advanced
#ield calculation that sho$ the interest pa#ment #ou $ill receive Aand
assumes that #ou $ill reinvest the interest pa#ment at the same rate as
the current #ield on the bondB plus an# gain Aif #ou purchased at
discountB or loss Aif #ou purchased at a premiumB.
Ino$ing ho$ to calculate ;T4 isnHt important right no$. In fact, the
calculation is rather sophisticated and be#ond the scope of this tutorial.
The ke# point here is that ;T4 is more accurate and enables #ou to
compare bond $ith different maturities coupons.
0+
T:e li#' bet9ee# Pice a#d *ield
The relationship of #ield to price can be summari)ed as follo$sJ $hen
price goes up, goes do$n and vice versa. Technicall#, #ouHd sa# the bonds
and its #ield are inversel# related.
DereHs a commonl# asked &uestionJ Do$ can high #ield and high prices
both be good $hen the# canHt happen at the same timeU The ans$er
depends on #our point of vie$. If #ou are a bond bu#er, #ou $ant high
#ields. % bu#er $ants to pa# R>FF for the R*,FFF bond, $hich gives the
bond, a high #ield of *+./K. 8n the other hand, if #ou alread# o$n a
bond, #ouHve locked in #our interest rate, so #ou hope the price of the bond
goes up. This can cash out b# selling #our bond in the future.
Pice i# t:e Ma'et
7o far $eHve discussed the factors of face value, coupon, maturit#, issuers
and #ield. %ll if these characteristics of a bond pla# a role in its price,
Do$ever, the factor that influences a bond more than an# other is the level
of prevailing interest rates in the econom#. When interest rates rise, the
prices of bonds in the market fall, thereb# raising the #ield of older bonds
and bringing them into line $ith ne$er bonds being issued $ith higher
coupons. When interest rates fall the prices of bonds in the market rise,
thereb# lo$ering the #ield of the older bonds and bringing them into line
$ith ne$er bonds being issued $ith lo$er coupons.
ifferent T#pes of 2onds
,!$e#&e#t B!#d%
In general, fixed(income securities are classified according to the length of
time before maturit#. These are the three main categoriesJ
2ill 1 debt securities maturing in less than one #ear,
9otes 1 debt securities maturing in one to *F #ears.
2onds ( debt securities maturing in more than *F #ears.
00
M)#icipal B!#d%
4unicipal bonds, kno$n as munis, are the next progression in terms of
risk. 6ities donHt go bankrupt that often, but it can happen. The major
advantage to munis is that the returns are free from federal tax.
Furthermore, local governments $ill sometimes make their debt non(
taxable for residents, thus making some municipal bonds completel# tax(
free. 2ecause of these tax savings, the #ield on a muni a usuall# lo$er
than that of a taxable bond. epending on #our personal situation, a muni
can be great investment on an investment on an after(tax basis.
C!p!ate B!#d%
% compan# can issued bonds just as it can issue stock. 5arge corporations
have a lot of flexibilit# as to ho$ much debt the# can issueJ the limit is
$hatever the market $ill bear. !enerall#, a short(term corporate bond is
less than five #earsN intermediate is five to *+ #ears, and long term is over
*+ #ears.
6orporate bonds are characteri)ed b# higher #i>eld because there is a
higher risk of a compan# defaulting than a government. The upside is that
the# can also be the most re$arding fixed(income investments because of
the risk the investor must take on. The compan#Hs credit &ualit# is ver#
importantJ the higher the &ualit#, the lo$er the interest rate the investor
receives.
8ther variations on corporate bonds include convertible bonds, $hich the
holder can convert into stock, and callable bonds, $hich allo$ the
compan# to redeem an issue prior to maturit#.
Ri%'%
%s $ith an# investment, there are risks inherent in bu#ing even the most
highl# related bonds. For example, #our bond investment ma# be called,
or redeemed b# the issuer, before the maturit# date. "conomic do$nturns
and poor management on the part of the bond issuer can also negativel#
affect #our bond investment. These risks can be difficult to anticipate, but
0.
learning ho$ to better recogni)e the $arning signs and kno$ing ho$ to
respond $ill help #ou succeed as a bond investor.
%55 %28@T !85 I9L"7T4"9T
!old is the oldest precious metal kno$n to man. Therefore, it is a timel#
subject for several reasons. It is the opinion of the more objective market
experts that the traditional investment vehicles of stocks and bonds are in
the areas of their all(time highs and ma# due for a severe correction.
Wh# gold is good as old is an intriguing &uestion. Do$ever, $e think
that the more pragmatic ancient "g#ptians $ere perhaps more accurate in
observing that goldHs value $as a function of its pleasing ph#sical
characteristics its scarcit#.
0ORLD ,OLD INDUSTRY
!old is primaril# monetar# asset and partl# a commodit#.
The !old market is highl# li&uid and gold held b# central banks,
other major institutions and retail Pe$eler keep coming back to the
market.
"conomic forces that determine the price of gold are different from,
and in man# cases opposed to the forces that influence most
financial assets.
Indian is the $orldHs largest gold consumer $ith an annual demand
of >FF tons.
0!ld ,!ld Ma'et%
,h#sical ( 5ondon, Surich, Istanbul, ubai, 7ingapore, Dong Iong,
4umbai.
Futures 1 9;4"O in 9e$ ;ork, T8684 in Tok#o.
I#dia# ,!ld Ma'et
!old is valued in India as a savings and investment vehicle and is
the second preferred investment after bank deposits.
0/
India is the $orldHs largest consumer of gold in je$eler as
investment.
In Pul# *--= the 32I authori)ed the commercial banks to import
gold for sale or loan to je$elers and exporter. %t present, *0 banks
are active in the import of gold.
This reduced the disparit# bet$een international and domestic prices
of gold from /= percent during *->< to *--* to >./ percent in +FF*.
The gold hoarding tendenc# is $ell ingrained in Indian societ#.
omestic consumption is dictated b# monsoon, harvest and marriage
season. Indian je$eller# off takes is sensitive to price increase and
even more so to volatilit#.
In the cities gold is facing competition from the stock market and a
$ide range of consumer goods.
Facilities for refining, assa#ing, making them into standard bars in
India, as compared to the rest of the $orld, are insignificant, both
&ualitativel#.
H!9 (!ld %tac'% )p a% i#$e%t&e#t !pti!#
!old and silver have been popular in India because historicall# these acted
as a good hedge against inflation. In that sense these metals have been
more attractive than bank deposits or gilt(edged securities.
espite recent hiccups, gold is an important and popular investment for
man# reasonsJ
In man# countries gold remains an integral part of social and
religious customs, besides being the basic form of saving.
7hakespeare called it Vthe saint(seducing goldH.
7uperstition about the healing po$ers of gold persists. %#urvedic
medicine in India recommends gold po$der and pills for man#
ailments.
0<
!old is indestructible. It does not tarnish and is also not corroded b#
acid(except b# a mixture of nitric and h#drochloric acids.
!old is so malleable that one ounce of the metal can be beaten into a
sheet covering nearl# a hundred s&uare feet.
!old is so ductile that one ounce of it can be dra$n into fift# miles
of thin gold $ire.
!old is an excellent conductor of electricit#N a microscopic circuit of
li&uid gold VprintedH on a ceramic strip saves miles of $iring in a
computer.
!old is so highl# valued that a single smuggler can carr# gold $orth
3s./F lakh underneath his shirt.
!old is so dense that all the -F,FFF tones estimated to have been
mined through histor# could be transported b# one single modern
super tanker.
Finall#, gold is scam(free. 7o far, there have been no 4undra(t#pe
or 4ehta(t#pe scams in gold.
T:)% t:e l)e !" t:i% *ell!9 &etal c!#ti#)e%4
8ne the other hand, it is interesting to note that apart from its aesthetic
appeal gold has no intrinsic value. ;ou cannot eat it, drink it, or even smell
it. This aspect of gold compelled Denr# Ford, the founder of Ford 4otors,
to conclude that Vgold is the most useless thing in the $orld.H
0:* Pe!ple B)* ,!ld
A%B Industrial applications take advantage of goldHs high
resistance to corrosion, its malleabilit#, high electrical conductivit#
and its abilit# to adhere firml# to other metals. There is a $ide range
of industries from electronic components to porcelain, $hich use
gold. entistr# is an important user of gold. The je$eller# industr#
is another.
0=
A2B%c&uisition of gold because of its long(proven abilit# to retain value
and to appreciate in value.
A6B,urchases b# the central banks and international monetar#
organi)ations like the International 4onetar# Fund AI4FB.
I#$e%t&e#t Opti!#%
There has been a shift in demand from je$eller# AornamentationB to coins
and bars AinvestmentsB. 6oins cost less $hen compared to je$eller#
A$hich has additional making chargesB. %ssa#ed, certified coins and bars
are available through authori)ed banks. emand for je$eller# remains
strong in traditional circles though gold(plated je$eller# is also becoming
popular.
!old futuresJ 3ight no$, =/K of Indians demand is for je$eller#, the rest
is for coins and bars. Investors can also dabble in gold futuresN $ith demat
deliver# on stock exchanges. This is lo$ cost and ph#sical deliver# is at
F.--/ purit#. !old futures trading clocked a recent turnover of 3s., 0FF
crore.
!old "TFsJ 4ore sophisticated investment products $ill come. 8ne
possibilit# is exchange traded funds A"TFsB $here gold is the underl#ing
asset. Investors can trade "TF units $ith real time &uotes. !old "TF is
long overdue, sa#s 9aveen Iumar, Dead of Financial Initiatives, World
!old 6ouncil. !old "TFs could be launched soonN it is a a$aiting
clearance from the Finance 4inistr#.
World$ide more than <FF exchange listed structured products based on
gold are available. 7treet track an "TF o$ned b# the World !old 6ouncil
is listed on the 9;7". 6ommodit# brokers like Iotak are offering capital
protected bondsN these are open for a specific period Ausuall# one #earB
$ith gold as the underl#ing asset. 8n appreciation profit is shared and if
the price falls the capital is safe.
0>
,!ld Ba#'i#(
Indian je$elers offer gold accumulation plan. 4one# can be deposited on a
regular basis and je$eler converts into gold at prevailing prices. Interest is
earned during the fixed period of tenure of investment. 8n redemption, the
corpus is converted into gold coins. This is like a forced structure saving
scheme.
0-
%55 %28@T 4@T@%5 F@9 I9L"7T4"9T
% 4utual Fund is an entit# that pools the mone# of man# investorsTits @nit(Dolders ((
to invest in different securities. Investments ma# be in shares, debt securities, mone#
market securities or a combination of these. Those securities are professionall#
managed on behalf of the @nit(Dolder and each investor hold a pro(rata share of the
portfolio i.e. entitled to an# profits $hen the securities are sold but subject to an# losses
in value as $ell.
4utual Funds and sell stocks, bonds or other securities. % Fund raises mone# to make
its purchases, kno$n as its underl#ing investments b# selling shares in the fund.
"arnings the fund reali)es on its investment portfolio, after the trading costs and
expenses of managing and administering the fund are subtracted are paid out to the
funds shareholders.
M)t)al F)#d Set Up
% 4utual Fund is set up in the form of a trust, $hich has 7ponsor, Trustees, %sset
4anagement 6ompan# A%46B, and custodian. The trust is established b# a sponsor or
more than one sponsor $ho is like promoter of a compan#. The trustees of the mutual
fund hold its propert# for the benefit of the unit holders. %sset 4anagement 6ompan#
A%46B approved b# 7"2I manages the funds b# making investments in various t#pes
of securities. 6ustodian, $ho is registered $ith 7"2I, holds the securities of various
schemes of the fund in its custod#. The trustees are invested $ith the general po$er of
superintendence and direction over %46. The# monitor the performance and
compliance of 7"2I 3egulations b# the mutual fund.
7"2I 3egulations re&uire that at least t$o thirds of the directors of Trustee 6ompan# or
board of trustee must be independent. I.e. the# should not be associated $ith the
sponsors. %lso /FK of the directors of %96 must be independent. %ll mutual funds are
re&uired to be registered $ith 7"2I before the# launch an# scheme. Do$ever, @nit
Trust of India A@TIB is not registered $ith 7"2I Aas on Panuar# */, +FF+B.
T*pe% !" F)#d%
7tock funds also called e&uit# funds( invest primaril# in stocks.
2ond funds invest primaril# in corporate or government bonds
2alanced funds invest in both stocks and bonds.
4one# market funds make short(term investment and tr# to keep their share
value fixed at R* a share.
.F
"ver# fund in each categor# has a price kno$n as its net asset value A9%LB and each
9%L differs based on the value of the funds holdings and the number of shares
investors o$n. The price changes once a da#, at a . pm "7T, $hen the markets close
for the da#. %ll transactions for the da# 1 bu#s and sells 1are executed at that price.
Sc:e&e% Acc!di#( t! Mat)it* Pei!d
% mutual fund scheme can be classified into open(ended scheme or close(ended scheme
depending on its maturit# period.
Ope# E#ded F)#d>Sc:e&e
%n open(ended fund or scheme is one that is available for subscription and repurchase
one continuous basis. These schemes do not have a fixed maturit# period. Investors can
convenientl# bu# and sell units at 9et %sset Lalue A9%LB related prices, $hich are
declared on a dail# basis. The ke# feature of 8pen("nd 7chemes is li&uidit#.
Cl!%e5E#ded F)#d > Sc:e&e
% 6lose("nded Fund or 7cheme has a stipulated maturit# period e.g. /(= #ears. The
fund is open for subscription onl# during a specified period at the time of launch of the
scheme. Investors can invest in the scheme at the time of the initial public issue and
thereafter the# can bu# or sell the units of the scheme on the stock exchanges $here the
units are listed. In order to provide an exit route to the investors, some close(ended
funds give an option of selling back the units to the mutual fund through periodic
repurchase at 9%L related prices. 7"2I 3egulations stipulate that at least one of the
t$o exit routes is provided to the investor i.e. either repurchase facilit# or through
listing on stock exchanges. These mutual funds schemes disclose 9%L generall# on
$eekl# basis.
Sc:e&e% acc!di#( t! I#$e%t&e#t Ob;ecti$e
% 7cheme can also be classified a gro$th scheme, income scheme or balanced scheme
considering its investment objective. 7uch schemes ma# be open(ended or close(ended
schemes as described earlier. 7uch schemes ma# be classified mainl# as follo$s.
.*
,!9t: > E7)it* Oie#ted Sc:e&e
The aim of gro$th funds is to provide capital appreciation over the medium to long(
term. 7uch schemes normall# invest a major part of their corpus in e&uities. 7uch funds
have comparativel# high risks. These schemes provide different options to the investors
like dividend option, capital appreciation etc. %nd the investors ma# choose an option
depending on their preference. The investors must indicate the option in the application
form. The mutual funds also allo$ the investors to change the options at a later date.
!ro$th schemes are good for investors having a long(term outlook seeking
appreciation over a period of time.
I#c!&e >Debt Oie#ted Sc:e&e
The aim of income funds is to provide regular and stead# income to investors. 7uch
schemes generall# invest in fixed income securities such as bonds, corporate
debentures, !overnment securities and mone# market instruments. 7uch funds are less
risk# compared to e&uit# schemes. These funds are not affected because of fluctuations
in e&uit# markets. Do$ever opportunities of capital appreciation are also limited in
such funds. The 9%Ls of such funds are affected because of change in interest rates in
the countr#. If the interest rates fall, 9%Ls of such funds are likel# to increase in the
short run and vice versa. Do$ever long term investors ma# not bother about these
fluctuations.
Bala#ced F)#d
The aim of balanced funds is to provide both gro$th and regular income as such
schemes invest both in e&uities and fixed income securities in the proportion indicated
in their offer documents. These are appropriate for investors looking for moderate
gro$th. The# generall# invest .FK(<FK in e&uit# and debt instruments. These funds
are also affected because of fluctuations in share prices in the stock markets. Do$ever,
9%Ls of such funds are likel# to be less volatile compared to pure e&uit# funds.
Sect! %peci"ic F)#d%>?%c:e&e%
These are the funds'schemes, $hich invest in the securities of onl# those sectors or
industries as specified in the offer documents. ".g. ,harmaceuticals, 7oft$are, Fast
4oving 6onsumer !oods AF46!B, ,etroleum stocks etc. the returns in these funds are
dependent on the performance of the respective sectors'industries. While these funds
.+
ma# give higher returns, the# are more risk# compared to diversified funds. Investors
need to keep a $atch on the performance of those sectors'industries and must exit at an
appropriate time. The# ma# also seek advice of an expert.
Ta@ Sa$i#( Sc:e&e%
These schemes offer tax rebates to the investors under specific provisions of the Income
Tax %ct, *-<* as the !overnment 8ffers Tax Incentives for investment in specified
avenues. ".g. "&uit# 5inked 7avings 7chemes A"577B. ,ension schemes launched b#
the mutual funds also offer tax benefit. These schemes are gro$th oriented and invest
pre(dominantl# in e&uities. Their gro$th opportunities and risks associated are like an#
e&uit#(oriented scheme.
T:e Appeal !" M)t)al F)#d%
4utual Funds simplif# $hat #ou ma# find most complicated about investingTfiguring
out $hat to bu# and $hen to sell to meet #our particular goals or objectives. For
example, if #ou are seeking gro$th b# investing in blue chip stocks, there are a $ide
variet# of funds to chose from that pursuing precisel# this strateg#.
To chose the fund that $ill help #ou meet a specific goal, #ou can compare its long(
term performance 1 over / or *F #ears 1 to other funds $ith similar objectives learn
about $hom the manager is and ho$ the fund is run and check out its fee structure.
;ou can use the funds prospectus, information on the fund compan#Hs Web 7ites and
professiFonal advice. 4utual funds can help #ou diversif# #our portfolio or spread out
the mone# #ou have to invest to meet different goals. 8ne $a# to diversif# is to chose
funds $ith different objectives aligned $ith #our o$n, or representing different
segments of the market. For example, #ou might bu# a blue(chip fund, a small compan#
gro$th fund, an international stock fund and a government fund.
DIVERSIFICATION
4ost expert agrees that itHs more effective to invest in a variet# of stocks and bonds
than to depend on a strong performance of just one or t$o securities. 2ut diversif#ing
can be a challenge because bu#ing a portfolio of individual stocks and bonds can be
expensive. %nd kno$ing $hat to bu# 1 and $hen 1 taken time and concentration.
4utual funds can offer solution. When #ou put mone# in to a fund, itHs pooled $ith
mone# from other investors to create much greater bu#ing po$er than #ou build a
.0
diversified portfolio. 7ince a fund ma# o$n hundreds of different securities, its success
isnHt dependent on ho$ one or t$o holding do.
INVESTMENT OB+ECTIVES
To achieve its investment objective 1 $hether it is long 1 term gro$th or capital
preservation or an#thing in bet$een 1 the fundHs manager invests in securities he or she
believes $ill provide the result the fund seeks. To identif# those securities, a fundHs
research staff often uses $hatHs kno$n as a bottom 1 up st#le, $hich involves a detailed
anal#sis of the individual companies issuing the securities. When the object is small1
compan# gro$th or the focus is on emerging markets, the process can be more difficult
because thereHs limited information available.
;ou ma# choose mutual funds $ith specific investment objectives to round out #our
portfolio of individual holdings. 8r #ou ma# choose a number of mutual funds $ith
different objectives creating a diversified portfolio in that $a#.

P!"e%%i!#al Ma#a(e&e#t
%nother reason investors are attracted to mutual funds is that each fund has a
professional manager $ho sets its investment bu#ing st#le and directs the ke# bu# and
sell decisions.
% bu#ing st#le defines the particular investments or t#pes of investments a fund makes
from the pool that ma# be appropriate for meeting its objective. For example, in
seeking long(term capital appreciation, some e&uit# fund managers stress value
investments, $hich mean the# bu# stocks $hose prices are lo$er than might be
expected. 8thers stress gro$th investmentsN often #ounger, d#namic companies the
manager believes $ill become major pla#ers in their industr# or in the econom# as a
$hole.
7ome experts believe that a fundHs manager has a major role in determining the results a
fund achieves. The# advise that #ou confirm that a successful manager is still $ith the
fund before #ou invest and that #ou consider selling #our shares if that manager leaves.
Rei#$e%t&e#t
2eing able to reinvest #our distributions to bu# additional shares is another advantage
of investing in mutual funds. ;ou can choose that option $hen #ou open a ne$ account,
or at an# time $hile #ou o$n shares. %nd of course #ou also have the option to receive
#our distributions if #ou need the income the fund $ould provide.
2# investing regularl#, #ou build the investment base on $hich future earnings $ill be
able to accumulate, a process kno$n as compounding. The more #ou have invested, the
..
greater #ouHre potential for future gro$th. %nd because the fund handles the process,
rolling over distributions into ne$ shares as the# are paid, #ou donHt have to budget for
investing or remember to $rite the check.
Ri%'
There is al$a#s the risk that a mutual fund $ont meet its investment objective or
provide the return #ou are seeking. %nd some funds are b# definition, riskier than
others. For example a fund that invests in small ne$ companies($hether for gro$th or
value 1exposes #ou to the risk that the companies $ill not perform as $ell as the fund
manager expects. %nd in market do$nturns, falling prices for a funds underl#ing
investment ma# produce a loss rather than a gain for the fund.
S:!t5Te& ,ai#
"ach time a mutual fund sells an investment for more than the fund paid to bu# it, the
fund reali)es a capital gain. %nd those gains are passed along to the funds investors in
proportion to the number of shares in the fund that investor o$ns.
4ost activel# managed funds donHt $ait more than a #ear before selling investments.
That means that an# profit on the sale is a short(term capital gain, $hich is taxed at #our
regular tax rate. %nd since a fund t#picall# doesnHt $ithhold taxed on #our behalf, as an
emplo#er does, #ou must come up $ith the amount #our o$e from other sources if #ou
donHt $ant to sell shares(at a potential additional gain 1 to raise the mone# #ou o$e.
%55 %28@T 3"%5 "7T%"7 I9L"7T4"9T
2efore the stock market and mutual funds became popular places for people to put their
investment dollars, investing in real estate $as extremel# popular. We still maintain that
investing in real estate is not just for land barons or the rich and famous. %s a matter of
fact, the home $e bu# and live in is often our biggest investment.
Fl#ing high on the $ings of booming real estate, propert# in India has become a dream
for ever# potential investor looking for$ard to dig profits. %ll are e#eing Indian
propert# market for a $ide variet# of reasons ItHs ever gro$ing econom#, $hich is on a
continuous rise $ith >.* percent increase $itnessed in the last financial #ear. The boom
in econom# increases purchasing po$er of its people and creates demand for real estate
sector
8nce #ou have made the decision to become a homeo$ner, it usuall# means #ou $ill
have to borro$ the largest amount #ou have ever borro$ed to purchase something. This
./
reali)ation ma# make #ou $ant to bur# #our head in the sand and sign on the dotted
line, but #ou shouldnHt. For most people, this is the largest purchase the# $ill ever make
during their lifetime, and this makes it all the more important to gather as much
kno$ledge as possible about $hat the#Hre getting into.
We give #ou the information #ou need, including making the decision on $hether,
$hen and $hat #ou should purchaseN finding the t#pes of mortgages and financing
availableN handling the closingN and kno$ing $hat #ouHll need $hen its time to sell #our
home. We also explain the income tax conse&uences and asset protection advantages of
home o$nership.
;ou can also use real estate, $hether land or building strictl# as investment vehicles,
and depending on #our individual situation, #ou can do it on a grand or smaller scale.
5etHs look at the $orld of real estate and the investing options available.
Dome as an InvestmentJ 8$ing a home is the most common form of real estate
investing. 5et us sho$ #ou ho$ #our home is not just the place #ou live, but its also
perhaps #our largest and safest investment as $ell.
Investment 3eal "stateJ The in and outs of investing in real estate and $hether itHs
the right investment vehicle for #ou. Whether #ou are thinking in terms of renting
out #our first home $hen #ou move on to a bigger one or investing in a building full
of apartments $e $ill explain $hat #ou need to kno$.
Real E%tate < P!pet*
@suall#, the first thing #ou look at $hen #ou purchase a home is the design and the
la#out. 2ut if #ou look at the house as an investment, it could prove ver# lucrative #ears
do$n the road. For the majorit# of us, bu#ing a home $ill be the largest single
investment $e make in our lifetime. 3eal estate investing doesnHt just mean purchasing
a house( it can include vacation homes, commercial prosperities, land Aboth developed
and undevelopedB, condominiums and man# other possibilities.
When bu#ing propert# for the purpose of investing, the most important factor to
consider is the location. @nlike other investments, real estate is dramaticall# affected
b# the condition of the immediate area surrounding the propert# and other local factors.
7everal factors need to be considered $hen assessing the value of real estate. This
includes the age and condition of the home, improvements that have been made, recent
.<
sales in the neighborhood, changes to )oning regulations etc. ;ou have to look at the
potential income a house can produce and ho$ it compares to others houses in the area.
Ob;ecti$e% a#d Ri%'%
3eal estate investing allo$s the investor to target his or her objectives. For example, if
#our objective is capital appreciation, then bu#ing a promising piece of propert# in a
neighborhood $ith great potential $ill help #ou achieve this. 8n the other hand if $hat
#ou seek is income then bu#ing a rental propert# can help provide regular income.
There are significant risks involved in holding real estate. ,ropert# taxes maintenance
expenses and repair costs are just some of the costs of holding the asset. Furthermore
real estate is considered to be ver# illi&uid 1 it can sometimes be hard to find a bu#er if
#ou need to sell the propert# &uickl#.
H!9 t! B)* ! Sell it4
3eal estate is almost exclusivel# bought through real estate agents or brokers their
compensation usuall# is a percentage of the purchase price of the propert#. 3eal estate
can also be purchased directl#= from the o$ner, $ithout the assistance of a third part#.
If #ou find bu#ing propert# too expensive, then consider investing in real estate
investment trusts A3"ITsB $hich are discussed in the next section.
5etHs take a look at the different t#pes of investment real estate #ou might contemplate
o$ing.
Fi@e5Uppe%
;ou can make mone# through investing in real estate if #ou bu# houses,
condominiums, buildings etc., $hich need some $ork at a bargain price and fix them
up. ;ou can probabl# sell the real estate for a higher price than #ou paid and make a
profit. Do$ever, donHt underestimate the $ork, time and mone# that goes into bu#ing,
repairing and selling a home $hen #ou are determining $hether it $ill be profitable for
#ou to invest. %lso remember that different tax rules $ill appl# to the purchase and sale
of a home if it is not #our principal residence.
Re#tal P!pet*
;ou can bu# real estate for rental purposes and receive an income stream from renters.
;ou ma# also be able to eventuall# sell the propert# for more than #ou bought it for and
make a good profit. %lthough, donHt forget that #ou $ill no$ be a landlord $ho ma#
have to deal $ith nonpa#ing tenants and destructive tenants. "ven if #ou have the
$orlds best tenants, #ou still have to deal $ith upkeep of the propert# and an# problems
that come up. 7ome investors hire a propert# manager or management compan# to
.=
manage their investment real estate. This is fine but donHt forget to factor in the
management fees $hen #ou are calculating #our profit from the investment.
,lease remember that rental real estate is subject to different tax rules than the home
#ou reside in. #ou ma# be able to take tax deductions for losses, capital expenditure and
depreciation if #ou meet certain re&uirements, but other deductions specific to principle
residence ma# not be available to #ou.
U#i&p!$ed La#d
@nimproved land is difficult investment to make a profit in. @nless #ou manage to bu#
a piece of land that is extremel# desirable at a good price and are certain that it is not
barred from profitable use for the neighborhood it is located in Abecause of )oning or
other issuesB, it $ill probabl# cost #ou more to o$n the propert# than #ou $ill ever
make selling it. A3emember #ou $ill still have to pa# propert# taxes and $ill also likel#
incur other upkeep costs on the land and #ou $onHt be receiving an# income from
rentsB.
If #ou have some sort of inside scoop on a piece of land Afor example the person in the
house on the lot next to the land is a $ealth# recluse and does not $ant the propert#
built upon so #ou can name #our price to sell it to himB or plan on developing it #ourself
Abuilding #ou home on a piece of propert# next to a lakeB, in that case it ma# be a good
investment.
Sec!#d H!&e%
7econd Domes or vacation homes should be purchased primaril# for vacation purposes
not investment purposes. 4ost people end up $ith a loss on their vacation home
properties because even if #ou can manage to rent the home, the costs of o$ning the
home almost al$a#s exceed the rental income it bring in.
%55 %28@T 5IF" I97@3%96" I9L"7T4"9T.
5ife Insurance is income protection in the event of #our death. The person #ou name, as
#our beneficiar# $ill receive proceeds from an insurance compan# to offset the income
lost as a result of #our death. ;ou can think of life insurance as a morbid from of
gamblingJ if #ou lived longer than the insurance compan# expected #ou to then #ou
$ould lose the bet. 2ut if #ou died earl#, then #ou $ould $in because the insurance
compan# $ould have to pa# out #our beneficiar#.
.>
Insurers Aor under$ritersB look carefull# at decades $orth of data to tr# to predict
exactl# ho$ long #ou $ill live. Insurance under$riters classif# individuals based on
their height, $eight, lifest#le Ai.e. $hether or o not the# smokeB and medical histor# Ai.e.
if the# have had an# serious health complicationsB. %ll these variables $ill determine
$hat rate class categor# a person fits into. This doesnHt mean that smokers and people
$ho have had serious health problems canHt be insured, it just means the#Hll pa#
different premiums.
There are t$o ver# common kinds of life insurance term life and permanent life. Term
life insurance is usuall# for a relativel# short period of time, $hereas a permanent life
polic# is one that #ou pa# into throughout #our entire life. These pa#ments are usuall#
fixed from the time #ou purchase #our polic#. 2asicall#, the #ounger #ou are $hen
#ou sign(up for this t#pe of insurance, the cheaper #our monthl# pa#ments $ill be.
Need "! li"e i#%)a#ce
3isks and uncertainties are part of lifeHs great adventure 1 accident, illness, theft natural
disaster 1 the#Hre all built into the $orking of the @niverse, $aiting to happen.
Insurance then is manHs ans$er to the vagaries of life. If #ou cannot beat man(made and
natural calamities, $ell at least be prepared for them and their aftermath.
T*pe% !" li"e I#%)a#ce
4ost of the products offered b# Indian 5ife insurers are developed and structured
around these basic policies and are usuall# an extension or a combination of these
policies. 7o, the different t#pes of insurance policies are
Te& I#%)a#ce P!lic*
% term insurance polic# is a pure risk cover for a specified period of time. What
this means is that the sum assured is pa#able onl# if the polic#holder ides $ithin
the polic# term. For instance, if a person bu#s 3s.+ lakh polic# for *F(#ears
periodU Well, then he is not entitled to an# pa#mentN the insurance compan#
keeps the entire premium paid during the *F(#ear period.
What if he survives the *F(#ear periodU Well, then he is not entitled to an#
pa#mentN the insurance compan# keeps the entire premium paid during the *F(
#ear period.
7o, there is no element of savings or investment in such a polic#. It is a *FF
percent risk cover. It simpl# means that a person pa#s a certain premium to
protect his famil# against his sudden death. De forfeits the amount if he outlives
.-
the period of the polic#. This explains $h# the Term Insurance ,olic# comes at
the lo$est cost.
E#d!9&e#t P!lic*
6ombining risk cover $ith financial savings, an endo$ment polic# is the most popular
policies in the $orld of life insurance.
In an "ndo$ment ,olic#, the sum assured is pa#able even if the insured survives
the polic# term.
If the insured dies during the tenure of the polic#, the insurance firm has to pa#
the sum assured just as an# other pure risk cover.
% pure endo$ment polic# is also a form of financial saving $hereb# if the
person covered remains alive be#ond the tenure of the polic#N he gets back the
sum assured $ith some other investment benefits.
In addition to the basic polic#, insurers offer various benefits such as double
endo$ment and marriage ' education endo$ment plans. The cost of such a polic# is
slightl# higher but $orth its value.
0:!le Li"e P!lic*
%s the name suggests, a Whole 5ife ,olic# is an insurance cover against death,
irrespective of $hen it happens.
@nder this plan, the polic#holder pa#s regular premiums until his death,
follo$ing $hich the mone# is handed over to his famil#.
This polic#, ho$ever fails to address the additional needs of the insured during his post(
retirement #ears. It doesnHt take into account a personHs increasing needs either. While
the insured bu#s the polic# at #oung age, his re&uirements increase over time. 2# the
time he dies, the value of the sum assured is too lo$ to meet his famil#Hs needs. %s a
result of these dra$backs, insurance firms no$ offer either a modified Whole 5ife
,olic# or combine in $ith another t#pe polic#.
M!#e* Bac' P!lic*
These policies are structured to provide sums re&uired as anticipated expenses
Amarriage, education etcB over a stipulated period of time. With inflation
becoming a big issue, companies have reali)ed that sometimes the mone# value
of the polic# is eroded. That is $h# $ith 1profit policies are also being
introduced to offset some of the losses incurred on account of inflation.
% portion of the sum assured is pa#able at regular intervals. 8n survival the
remainder of the sum assured is pa#able.
/F
In case of death, the full sum assured is pa#able to the insured.
The premium is pa#able for a particular period of time.
UNIT5li#'ed i#%)a#ce
2ima ,lus is a unit(linked endo$ment plan. The plan is available over a duration of *F
#ears. ,remium can be paid either #earl#, half(#earl#, or at one shot.
The premium is used to purchase units in a fund of one?s choice, after the necessar#
deductions.
The value of the units varies $ith the investment performance of the assets in the fund.
Investments can be made in one of three t#pes of fundsJ 7ecured fund, $hich invests
predominantl# in debt and mone# market instrumentsN 3isk fund, in $hich the tilt is
to$ards e&uitiesN and a 2alanced Fund, a blend of the t$o.
7$itching bet$een funds is allo$ed t$ice during the polic# term, subject to the
condition that the# are at least t$o #ears apart. 6harges for s$itching are + per cent of
the fund?s cash value.
0:at t:e be#e"icia* ecei$e% depe#d% !# 9:e# t:e deat: !" t:e p!lic*:!lde
!cc)%4
If death occurs $ithin the first six months of the polic#, the pa#out is 0F per cent
of the sum assured plus the cash value of the units.
2et$een months seven and *+ of the polic#, the pa#out is <F per cent of the sum
assured plus cash value of units.
%fter first #ear, the sum assured and cash value of the units is paid.
uring the *Fth #ear, *F/ per cent of the sum assured and cash value of units is
paid out.
If death occurs due to an accident, a sum e&ual to the sum assured, over and
above the benefit mentioned above is paid.
8n survival up to maturit#, the polic#holder $ill receive / per cent of the sum
assured plus the cash value of the units.
%s is the case $ith unit(linked plans, this plan, too, comes $ith a set of charges. This
includes a level annual mortalit# charge, the &uantum of $hich is a function of the
polic#holder?s entr# ageN accident benefit charge at 3s.F./F per thousand sum assuredN
annual administrative and commission chargesN and a fund management charge.
8n surrendering the polic#, the cash value of the units, subject to certain deductions that
depend on the #ear surrendered, is paid out to the polic#holder.
/*
A##)itie% a#d Pe#%i!#
In annuit#, the insurer agrees to pa# the insured a stipulated sum of mone# periodicall#.
The purpose of an annuit# is to protect against risk as $ell as provide mone# in the
form of pension at regular intervals.
8ver the #ears, insurers have added various features to basic insurance policies in order
to address specific needs of a cross section of people.
Ob;ecti$e% a#d Ri%'%
9o matter $ho #ou are, one benefit of life insurance is the peace of mind it gives #ou.
If an#thing happens to #ou, #our beneficiar# $ill receive a check in a matter of da#s.
5ife Insurance can also be used to cover an# debts or liabilities #ou leave behind. The
bank doesnHt just $rite off #our mortgage once #ou pass a$a# 1 these pa#ments must
be made or #our house ma# be li&uidated. 5ife Insurance can also create an inheritance
for #our heirs or it can be used to leave a legac# if itHs put to$ard donations to
charitable organi)ations.
4ost life insurance policies carr# relativel# little risk because insurance companies are
usuall# stable and heavil# regulated b# the government. In cash value policies #ou
are allo$ed to invest #ou polic# in stock, bond or mone# market funds. In these t#pes of
policies the value of #our insurance depends on the performance of those funds.
H!9 t! B)* ! Sell it
There are thousands of insurance brokers and banks across 9orth %merica. Ieep in
mind that #ou $ill usuall# have to pa# a commission for the salesperson
Ste#(t:%
5ife insurance provides excellent peace of mind 1 it eases concerns about $hat
$ill happen to #our loved ones if #ou die suddenl#.
% life insurance polic# is a relativel# lo$ risk investment
0ea'#e%%e%
If #ou live a long life, #our famil# likel# $onHt get the full value out of #our
polic#.
6ash value funds can fluctuate depending on the financial markets.
T:ee Mai# U%e%
Income ,rotection
6apital %ppreciation
/+
Tax(eferred 7avings.
Realit* C:ec'
WhatHs the verdictU o #ou have the time, discipline and financial a$areness to take
charge of #our finances and not count on the lo$l# returns from endo$ment plansU o
#ou $ant absolutel# certaint# in #our investmentsU If the ans$er to the first &uestion is
a VnoH and the second a V#esH, #our options $ill be severel# limited. There are a fe$
endo$ment plans that offer guaranteed returns and the best it gets is about < percent. If
on the other hand, #ou are $illing to take calculated risks, #ou can certainl# do better
than that $ith a mix of post office schemes and bank deposits at the ver# lo$(risk end
of the spectrum to e&uit# funds and stock s at the other end, $ith debt funds and
balanced funds featuring some$here in the middle. Fine #our comfort level and #ou
$ill kno$ if insurance plans can double up #our investments for #ou.
/0
CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION
/.
PERFORMANCE ANALYSIS OF RETURNS
"&uit# returns at a glance
If $e have a look at e&uit# returns of the past < #ears it is like thisJ
SENSEA1
Yea Ope# Cl!%e Ab%!l)te .
8BBC DE884ED 1FGCH4D1 EFHE4E8 EH4F1D1C
8BBD 1FC8G4GG 8B8CH4DD HEID488 EH4G11DE
8B1B 8BF8I48G DHEG4F1 51BHGC 5I84IFIE
8B11 DG8B4II 1GEHE4C1 GGEE48H GD4HHCDI
8B18 1GEGF4EI 8BIBD4BD FBFI4HE 1G4FG8CG
8B1F 8BH814H1 1IEIE4D8 5I1HH4HD 58I4BIEG
TABLE 1.1
//
FIG 1.1
I#tepetati!#%1
*. There $as absolute change in the #ear of +FF> is .<.0.
+. The market $as slightl# increase in +FF- #ear is .<.=*.
0. In +F*F #ear the sensex market declining is (/+./0.
.. 2ut in the +F** #ear their $as huge increased sensex market is =-.<<, $hile
comparing to the previous #ear is (/+./0 and the next #ear ie,.(+/.F/..
/<
27"*FF
Yea Ope# Cl!%e Ab%!l)te
c:a#(e
.
8BBC EDHE4HE HDC84IH 8B1G4D8 EB4HEICI
8BBD HDDD4G 111IE48C E1IE4IC ID4FIFHD
8B1B 111CH4EI EDCC4BE 5H1DC4E1 5II4E1
8B11 IB814IC D88D4G1 E8BC41F CF4CBBD8
8B18 D8184GE 1BHGI4B8 1EH848C 1I4CG8FG
8B1F 1BG8F4FC GD8G4DE 58GDI4EE 58H4BHCH
TABLE 148
FI, 148
I#tepetati!#%1
*. The absolute change in the percentage for the #ear +FF> is .F.<K.
+. Their $as increase in the percentage for the #ear +FF- is /-.0K.
0. Their $as drastic change in the #ear +F** is >0.>FK , $hen compare to the
previous and next #ear changes.
/=
27"+FF
Yea Ope# Cl!%e Ab%!l)te
c:a#(e
.
8BBC 11CC4GC 1HII4GE EHH4DH FD48CBH1
8BBD 1HII48C 8HIH4I8 1BB148E HB4ECGHI
8B1B 8HHE4HG 11IH4ID 51IBC4BC 5IH4IDIE
8B11 11HF4HG 81CB48I 1B1H4IC CG4FIDC8
8B18 81GC4B1 8IFF4D FII4CD 1H4FEB1I
8B1F 8IEF4DH 1CIB4CD 5HDF4BG 58G48EFG
TABLE 14F
FI, 14F
I#tepetati!#1
*. There $as absolute change in the #ear +FF> is 0-.+K.
+. There $as increased percentage in the #ear +FF- is <F..K.
0. There $as highl# increasing percentage in the #ear +F** >=.0K, $hen
comparing to the previous #ear and the next #ear is (+=.+.K.
B!#d% et)#% at a (la#ce
If $e have a look at the average return, $hich the central government
securities have given over a period of one #ear, it is -.**K. 9o$ if $e
/>
look at the average return, $hich the state government securities have
given over a period of one #ear, it is -.+>K.
,!ld et)#% at a (la#ce
!old shines $hen ever#thing else falls apart goes an old adage. True,
the glitter is back. uring the /Fs gold appreciated marginall#. The next
decade, *-<F(*-=F, it moved from R0/ to R.F and bet$een *-=F(*->F
came the massive rise from R.F to R<*., a $hopping *.F=K.The trend
of gold prices in India in the last fe$ #ears is given in the
Follo$ing table.
YEAR OPEN CLOSE Ab%!l)te
c:a#(e
.
8BBC IFB HF8 1B8 1D48EI8C
8BBD HEB CFE 1DE FB4F18I
8B1B CEG CGB 8F 84G1IEHH
8B11 CGD 1BCG 8BC 8F4HHF8I
8B18 1181 1EBI 8CE 8I4FFEI8
8B1F 1FCC 1IF1 1EF 1B4FB8ID
TABLE 14E
FI, 14E
/-
I#tepetati!#%1
*. Their $as absolute change in the #ear +FF> is *-.+.K.
+. Their $as increased percentage in the #ear +FF- is 0F.0*K .
0. Their $as drastic change percentage in the #ear +F** is +0.<<K,$hile comparing to
the previous #ear and the next #ear ie,.*F.0FK.
,rice indicates ecember end prices of that particular #ear
4utual Funds return at a glance.
E7)it* ta@ %a$i#( NAV
8BBC
8BBD 8B1B 8B11 8B18 8B1F
-SBI/Ma(#)& ta@ (ai# F1488 EE4CEF HC4D F14HE IC4FI HI4IH
Pi#cipal ta@ %a$i#( IG41F C148E 1FC4IH EI4IG G84DD CF4H
HDFC Ta@ %a$e 11B4FBI 1ED4B1I 8BG4GF1 1B14CHH 1DC41B1 8ED4DF
-SBI/Ma(#)& I#c!&e
")#d
1C4DIH 1D4GE8 81 884D 884BI 8F4BD
J!ta' Bala#ced 8841FF 8F4D8F FF4GE 1H4IEH 8F4DG 8F4H1
HDFC Bala#ced ")#d 8I4HC F84E8G E14 IG 8H4I8H EI4FH IH4IC
<F
TABLE 14I
FI, 14I
INTREPRETATION1
*. The above graph indicates the e&uit# tax savings for different mutual funds ,the
9%L V s from the #ears +FF> to +F*0.
<*
+. %s per the above table and !raph the 9%L has been increased from +FF> to
+F*0 in all the cases
Real E%tate Ret)#%
3eal "state industr# in India has come of age and competes $ith other investment
options in the structured markets. 6ommercial real estate continues to be a desirable
investment option in India. 8n an average the returns from rental income on an
investment in commercial propert# in metros is around *F./K, $hich is the highest in
the $orld. In case of other investment opportunities like bank deposits and bonds, the
returns are in the range of /./K ( <./K. 3ejuvenated demanded since earl# +FF. has led
to the firming up of real estate markets across the three sectors 1 commercial,
residential and retail. The suppl# just about matches demand in almost all metros
around the countr#. There has been an up$ard pressure on the real estate values. From a
technical perspective, robust demand and up$ard prices are helping revive investment
and speculative interest in real estate and this is being further aided b# excess mone#
suppl#, stock market gains and polic# changes in favor of the real estate sector.
I#$e%t&e#t Yield
Increasing demand from the IT'IT"7 and 2,8 sector has led to approximatel# +FK (
.FK increase in capital values for office space in the last *+(*> months across major
metros in India. !rade(% office propert# net #ields have come do$n from *+K (*/K in
+FF0 and currentl# average around *F./K ( **K p.a. The fall in #ields has resulted
from decreasing interest rates and increasing appetite from investors. This has in turn
resulted from abundant li&uidit# options available coupled $ith the acceptabilit# of real
estate as a conventional class of asset. 5o$er interest rates, eas# availabilit# of housing
finance, escalating salaries and job prospects have been lending buo#anc# to the
residential sector. The net #ields Aafter accounting for all outgoingsB on residential
<+
propert# are currentl# at .K ( <K p.a. Do$ever, these investments have benefited from
the improving residential capital values. %s such, investor can count on potential capital
gains to improve their overall returns. 6apital values in the residential sector have risen
b# about +/K ( .FK p.a. in the last */ 1 *> months. The retail market in India has been
gro$ing due to increasing demand from retailers, higher disposable incomes and dearth
of &ualit# space as on date. Though the net #ields on retail propert# have registered a
fall from *FK ( *0K p.a. reported earlier to -K ( *F./K p.a. currentl#, the capital
appreciation in this sector is close to +FK .FK p.a. Do$ever, the risks associated $ith
this sector are higher as retailers are prone to c#clical changes t#pical of a business
c#cle. 6hanging consumer ps#chographics combined $ith increasing disposable
incomes $ill ensure further gro$th of the retail sector in India.
Li"e I#%)a#ce et)#% at a (la#ce
5ife Insurance as Investment
Insurance is an attractive option for investment. While most people recogni)e the risk
hedging and tax saving potential of insurance, man# are not a a$are of its advantages as
an investment option as $ell. Insurance products #ield more compared to regular
investment options and this is besides the added incentives AbonusesB offered b#
insurers.
;ou cannot compare an insurance product $ith other investment schemes for the simple
reason that it offers financial protection from risks something that is missing in non(
insurance products.
In fact, the premium #ou pa# for an insurance polic# is an investment against risk.
Thus, before comparing $ith other schemes, #ou must accept that a part of the total
amount invested in life insurance goes to$ards providing for the risk cover, $hile the
rest is used for savings.
In life insurance except for term insurance, unlike non(life products #ou get maturit#
benefits on survival at the end of the term. In other $ords, if #ou take a life insurance
polic# for +F #ears and survive and survive the term, the amount invested as premium
in the polic# $ill come back to #ou $ith added returns. In the unfortunate event of
death $ithin the tenure of the polic# the famil# of the deceased $ill receive the sum
assured.
9o$ let us compare insurance as an investment options. If #ou invest I93 *FFFF in
,,F, #our mone# gro$s to 3s.*F-/F at -./K interest over a #ear. 2ut in this case, the
<0
access to #our funds $ill be limited. 8ne can $ithdra$ /FK of the initial deposit onl#
after . #ears.
The same amount of 3s.*FFFF can give #ou an insurance cover of up to approximatel#
3s./ 1 ** lakh Adepending upon the plan, age and medical condition of the life insured
etcB and this amount can become immediatel# available to the nominee of the
polic#holder on death. Thus insurance is a uni&ue investment avenue that delivers
sou>nd returns in addition to protection.
Li"e I#%)a#ce a% 2Ta@ Pla##i#(3
Insurance serves as an excellent tax saving mechanism too. The !overnment of India
has offered tax incentives to life insurance products in order to facilitate the flo$ of
funds into productive assets. @nder section >> of income tax act *-<*, an individual is
entitled to a rebate of +FK on the annual premium pa#able on his'her and life of his'her
children or adult.
<.
CHAPTER V
FINDIN,S6 CONCLUSION
AND
SU,,ESTIONS
</
FINDIN,S
"valuating an investment option is never an attempt to run do$n the
credentials of other instruments in the block. 3ather the aim is to uncover $a#s to
make the scene more persuasive and more rational. 4utual funds are an ideal
investment in more $a#s than one. %fter a number of investigation and back seat
s&uabbling over the latest budget, investors have finall# started asking for the right
investment instrument that trul# fits his needs. %t the backdrop of this uncertaint# I am
tr#ing to si)e up the depts. %nd breadth of benefits of six investment instruments in this
section of triggering thoughts. %bandoning the marketing tricks, I stretched out m#
anal#sis $ith a ranking scale of *F as a fundamental figure crunching exercise.
!raduall#, I have identified and categori)ed all the investment re&uirements into three
broad heads to sei)e the fla$s into procedure. %nd in a remarkable finding, mutual
funds appears to act as a treat to all embodies investment at its best and $idel#
addresses the savings component of safet# to suite #our income tolerance.
Pi&a* Need%
The basic re&uirements an investor looks for in an investment are safet#, returns and
li&uidit#. %fter the @7(<. fiasco, man# people are confused $hether to invest in an#
government backed financial institutions. 4ost of them are no$ transferring their
mone# to bank F?s, $hich according to them is one of the safest investment options.
4an# state that V I donHt mind getting lo$ returns, but I should be sure to receive themH.
Sec!#da* Need%
%ncillar# re&uirements for an investment are absence of entr# barrier, tax efficientl#
and cash flo$ effectiveness. In an attempt to encourage real estate or the housing
business in the countr# a lot of tax soaps have been given to this sector. % taxpa#er can
claim the deduction of up to 3s.*./ lakh per #ear on the interest pa#able on the funds
borro$ed for the purchase of the house or for construction. 6oming to mutual funds,
though the dividends are being taxed i-n the hands of the investor this #ear, there is
another route to save to tax 1 the gro$th option or the s#stematic $ithdra$al plans. In
<<
the case of lone term capital gain tax, one has the option of either pa#ing +FK tax $ith
indexation benefits or a flat rate of *FK. %part from good tax soaps mutual funds also
enjo# the benefits of entr# barriers i.e. unlike in bonds, an# person need not have to
$ait for an issue to be open to invest in a mutual fund, instead can enter an#time he
$ishes to do so. 8ne ma# think that $ith so man# advantages mutual funs need huge
investment to start off, but one can start investing in mutual funds $ith a nominal
amount of 3s./FF'( in case of s#stematic investment plan.
Tetia* Need%
The stock market is one of the options for investing #our mone#. 7tocks are unmatched
to an# other investment tool. The# are the best $a# to make mone# and sta# ahead of
inflation over time. This is ideal if #ou have long(term investment goals. When #ou
bu# stock in a compan# and if the# go bankrupt then the stock $ill not be the $orth the
price #ou paid for it. These thing do happen, 2ut if invest $ith proper strategies #ou
$ill usuall# come out a $inner.
For e.g. If someone had invested 3s.* lakh in the e&uit# market ++ #ears back, the thing
$ould have appreciated to 3s.+/ lakhs toda#. %nother classic example is the Infos#s
stock $here in if one had invested 3s.*FFFF in Pune *--0, $hen it came out $ith its
maiden I,8, #our holding $ould be $orth more than 3s.>/ lakhs. 8ver the same period
debt has generated an annual return of *+K $hereas gold 0..K and real estate, though it
gave *FK during this period it continued to be bogged $ith problems relating valuation,
li&uidit#, sale proceeds etc. another good option is the s#stematic investment plan A7I,B
in the mutual funds. This is feature in most of the mutual funds specificall# designed for
those $ho are interested in building $ealth over long(term and plans a better future for
themselves and their famil#. There are three major benefits of 7I,. The# are benefit of
compounding rupee cost averaging and convince. With cost averaging one need not
$orr# about the price of the unit, instead just invest regularl# over a long(term period.
This approach turns the odds in #our favor over the long(term period.
Indeed the last couple of #ears $ere bad for the mutual fund industr#. Do$ever as the
sa#ing goes Vever# dark cloud has a silver liningH so the same is happening to mutual
fund industr#. With most of %46Hs coming up $ith innovative products to beat the
dra$backs of $hat the# faced in the past, definitel# the industr# $ill take a ne$ high
from here. For a better understanding, after a through anal#sis our in house research
<=
team has &uantified the investment options, as figures speak louder than $ords. With
the help of the asset grid one can easil# make a choice of investment. % careful look at
those figures belo$ reflects that investing in mutual stand at an advantage over the
others.
"&uit# 2onds !old 3eal
"state
"&uit#
4F
ebt 4F
,rimar#
9eeds
+.00 *.-F +.00 +./. +.-* +.<.
7econdar#
9eeds
+..+ *.00 *.</ F.-. +.</ +.0+
Tertiar#
9eeds
*./F +..< *.+= *..* +.+F +.0F
Lalue of
7pecific
Instrument
<.+/ /.<- /.+/ ..>- =.=< =.+<
P!ced)e "!ll!9ed
Firstl#, the primar# re&uirements have been broadl# classified into three i.e. 2asic
3e&uirements, %ncillar# 3e&uirements and ,ortfolio Fit. These have been further
classified into ,rimar# needs, 7afet# returns and 5i&uidit#. 7econdar# needs 1 tax
efficienc#, entr# barriers and cash flo$ effectiveness. Tertiar# needs 1 long term goals
and holdings'li&uidation cost. The primar# secondar# and tertiar# needs have been
assigned .FK, 0FK, 0FK respectivel# and each of the subcategories have also been
assigned individual $eights.
These ranks are multiplied $ith respective $eights each categor# and in turn the sum of
these are multiplied $ith b# the $eights assigned to the primar# re&uirements. For
safet# as the parameter, in comparison $ith mutual funds e&uit# is ranked the lo$est
because of the risk it carries $ith it. 4ost of the scripts are market driven. %n#thing or
an#one can affect the market. 8n the other hand bonds are ranked the highest because
the# are government backed. 6ontrast e&uit# is ranked the highest for returns, as it is
one of the best investment options to give good returns. 2ond are rated the lo$est
because of the assured returns promised b# the government. 2oth of them pa# around
>K ( -K of annual returns.
<>
For li&uidit# mutual funds and gold are ranked the highest as these can be converted
into cash immediatel# as and $hen the investor $ishes to do so. Do$ever that is not
the case $ith the real estate or ,,F account as the former is not eas# to dispose and the
later has a lock in period of */ #ears. "ven in case of entr# barrier, e&uit# and mutual
funds are ranked the highest at the# can be bought at an# point of time $ith minimal
investment. 2ut, it s is not the same $ith the real estate, since #ou cannot bu# the land
#ou $ish to until and unless there is someone $ishing to sell it.
Taking into consideration the tax angle of an investment, then the most advantageous
are the real estate and e&uit# mutual funds. In case of real estate, a maximum amount
of 3s.*./ lakhs is allo$ed as deduction for the interest paid for the loan taken to either
bu# a house or construct it. "ven in case of mutual funds, if the units are held for more
than a #ear, onl# *FK of the capital appreciation is taxed and not at the peak rates.
2ank FHs are the $rong choice if one is looking for the tax aspect because, firstl# the
amount of interest paid is less and secondl# T7 is applicable. There are a fe$ options,
$hich meet our long(term goals. The s#stematic investment plan, a special feature in
mutual funds is the best option to meet #our long(term re&uirements for the same
mutual funds has the highest score in the asset grid. The same thing is even applicable
to the real estate, as there is a high possibilit# of appreciation over time and ever#
chances of depreciation. 2ank FHs are ranked the least because the capital
appreciation is not huge.
Investment
9eeds
Weight
AKB
"&uit# 2onds !old 3eal
"state
"&uit#
4F
ebt
4F
7afet# .F + = = > / =
<-
3eturns .F > . / / > /
5i&uidit# +F = . > + = -
"ntr# barrier <F - / / * > =
Tax
"fficienc#
+F 0 < 0 - = >
6ash Flo$
"ffectiveness
+F > 0 - . > -
5ong Term
!oals
.F . / < - - =
Dolding '
5i&uidation
cost
<F / - 0 + = >
N!te1 D 1 indicates highest positive value on a parameter and * 1 indicates the lo$est
positive value on a parameter.
=F
CONCLUSION
There are several investments to choose from these include e&uities, debt, real
estate and gold. "ach class of assets has its peculiarities. %t an# instant, some of those
assets $ill offer good returns, $hile others $ill be losers. 4ost investors in search of
extraordinar# investments tr# hard to find a single asset. 7ome look for the next
infos#s, other bu#s real estate or gold. 4an# of them deposit their savings in the ,ublic
,rovident Fund A,,FB or post office deposits, others plump for debt mutual funds. Ler#
fe$ bu# across all asset classes or diversif# $ithin an asset class. Therefore it has been
$idel# said that onHt put all #our eggs in one basket. The idea is to create a
portfolio that includes multiple investments in order to reduce risk.
Things changed in earl# ma# +FF> since then the stock market moved up more than
=FK, $hile man# stocks have moved more. 3eal estate prices are also s$inging up,
although it is difficult to map in this fragmented market. !old and 7ilver prices have
spurted.
2onds continue to give reasonable returns but it is no longer leads in the comparative
rankings. 3ight no$ e&uit# looks the best bet, $ith real state coming in second. The
&uestion is ho$ long $ill this lastU If it is a short(term phenomenon, going through the
hassle of s$itching over from debt ma# not be $orth it. If itHs a long(term situation,
assets should be moved into e&uit# and real estate. This ma# be long(term situation.
The returns from the market $ill be good as long as profitabilit# increases. 7ince the
econom# is just getting into recover# mode, that could hold true for several #ears. 3eal
estate values, especiall# in suburban areas or small to$ns could improve further. The
improvement in road net$orks $ill push up the value of far(flung development. There
is also some attempt to amend tenanc# la$s and lift urban ceilings, $hich have stunted
the real estate market.
4# gut feeling is that a large $eightage in e&uit# and in real estate $ill pa# off during
+FF-(+F*F. 2ut donHt exit debt or sell off #our gold. Tr# and bu# more in the $a# of
e&uit# and research real estate options in small to$ns'suburbs.
3egardless of #our means of method, keep in mind that there is no generic
diversification model that $ill meet the needs of ever# investor. ;our personal time
=*
hori)on, risk tolerance, investment goals, financial means, and level of investment
experience $ill pla# a large role in dictating #our investment experience $ill pla# a
large role in dictating #our investment mix. 7tart b# figuring out the mix of stock,
bonds and cash that $ill be re&uired to meet #our needs. From there determine exactl#
$hich investments to in completing the mix, substituting traditional assets for
alternatives as needed.

=+
SU,,ESTIONS1
T:ee i% #! (!9t: i# I#dia# Ec!#!&* i# 8B1F6 %! (!$e#&e#t %:!)ld ta'e
&ea%)e% t! i#cea%e t:e (!9t: i# I#dia# Ec!#!&* b* i&p!$i#( t:e
%ect!% li'e Ba#'i#( a#d Real E%tate4
Hi(: pice% a#d de&a#d "! (!ld :a% bee# decea%ed !$e t:e pei!d6 %!
,!$e#&e#t %:!)ld ta'e app!piate &ea%)e% i# t:i% e(ad4
=0
BIBLIO,RAPHY
=.
BIBLIO,RAPHY
0eb%ite%
9994b%ei#dia4c!&
9994&)t)al")#d%i#dia4c!&
9994(!ld4!(4c!&
9994&!#e*c!#t!l4c!&
9994i#$e%t!pedia4c!&
9994lic!"i#dia4c!&
Te@t B!!'%
Investment %nal#sis and ,ortfolio 4anagement ( ,rasanna
6handra
Investment %nal#sis (,unithavath# ,andian

Investment %nal#sis 16harles.p Pones

Ma(a=i#e%
2usiness $orld
2usiness Toda#
=/