Investment

Pattern
 Includes-
• Insurance
• Pension funds
• Mutual funds
 Insurance
q Insurance is a policy from a large financial
institution that offers a person,
company, or other entity reimbursement
or financial protection against possible
future losses or damages.
q Insurance can be classified as following –
q Life Insurance
q Medical Insurance
q General Insurance
 Investment Pattern of
Insurance
 The assets of insurer should be
invested in the following manner –
• 25% in government securities
• Not less than 50% in Government
Securities or other approved
Securities
• Not less than 15% in Infrastructure
and Social Sector
• Not exceeding 35% in the approved
investments.
 Provident Fund
• Provident Fund is the fund which
is composed of the
contributions made by the
employee during the time he
has worked along with an equal
contribution by his employers.
 Investment Pattern of
Provident Fund
• The assets of fund should be invested in the
following manner –
– 55% in Government securities; or Other
securities, as defined in section 2(h) of the
Securities Contract (Regulation) Act, 1956,
the principal whereof and interest
whereon is fully and unconditionally
guaranteed by the Central Government, or
any State Government, except those
covered under clause (ii)(a) below: and/or
– Or in units of mutual funds set up as
dedicated funds for investment in
Government securities and regulated by
the Securities and Exchange Board of
India
 Investment Pattern of
Provident Fund
• 40% in Debt securities with
maturity of not less than three
years tenure issued by Bodies
Corporate, including banks and
public financial institutions;(b)Term
Deposit Receipts of not less than
one year duration issued by
scheduled commercial banks.
 Investment Pattern of
Provident Fund
• 5% in Money market instruments
including units of money market
mutual funds.
• 15% in Shares of companies on
which derivatives are available in
Bombay Stock Exchange or
National Stock Exchange or equity
linked schemes of mutual funds
regulated by the Securities and
Exchange Board of India.
 Investment Pattern for Mutual
Fund
• Investment Objective:- A Mutual Fund
may invest money collected under
any of its schemes only in:-
a)Securities.
b)Money market instruments.
c)Privately placed debentures.
d)Securitized debt instruments, both
asset-backed and mortgage-
backed.
 Investment Pattern for Mutual
Fund
e) Gold/gold related instruments.
f) Real estate assets.

The investments should be accordance

with the investment objectives of the

relevant scheme.
Money collected under any money

market scheme of a mutual fund

should be invested only in money
market instruments.
 Investment Pattern for Mutual
Fund
• Similarly, money collected under any
gold exchange traded fund scheme
should be invested only in gold/gold
related instruments.
• Money collected under a real estate
mutual fund scheme should be
invested in accordance with the
SEBI regulations applicable to it.