Comparative Analysis Of Investment Options

Comparative Analysis of Investment Options Prepared by: Nayan Patel 08BS0001817

Investment The

money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.

Investment Options Equity Mutual

Fund

Gold Fixed

Deposits (FD's) Public Provident Fund (PPF) National Savings Certificate (NSC) Kisan Vikas Patra (KVP) Post Office - Monthly Income Scheme (MIS) Post Office Time Deposit Account

Objectives o To find out best investment option for different categories of investors for different goals o Study of liquidity, Risk and Return of each investment options. o To find out preference of the investors for investment options.

Methodology Data Collection: ü Primary Data ü Secondary Data Data Analysis: üGraph üTable

Mahindra & Mahindra Financial Services Ltd. Mission

Company

Profile

Products

- Investment Advisory Service - Mutual Fund Distribution

Equity Best

instrument to beat the inflation BSE and NSE provide platform to trade the shares. Last five year return for Sensex is 101% and nifty return is 93.4% Last five year average return 27.2% with S.D 19.95%

Strategy to invest in equity market Current

quarterly earning per

share Annual earning per share New Things Shares outstanding Leaders Institutional sponsorship General Market

Mutual Fund Regulated

by AMFI a apex body Many investor with common financial objectives pool their money Concept of mutual fund

Advantages of mutual fund Professional

Management Diversification Convenient administration Return potential Low cost Liquidity Transparency Flexibility Choice of Scheme Well regulated

Strategy to invest in Mutual Fund Identify

investment needs Choose the right mutual fund Select the ideal mix of scheme Invest regularly Start Early

Gold Historical

value Negative co relation with equity Best hedging instrument. ETF advantages Taxation

Fixed Deposits A)Bank Fixed Deposits Return 4-10% B) Company Fixed Deposits Generally gives 2-3% more return than bank.

Public Provident Fund Tax

free interest at the rate of 8 per cent per annum compounded annually. Deposit up to Rs.70,000 per annum qualifies for tax rebate under Section 88 of the Income Tax Act Entire deposit in the Account exempt from the Wealth Tax Balance in the Account cannot be

NSC

KVP

Post Office Monthly Income Scheme

Post Office Time Deposit Account

Comparisons of Different Government Scheme

LIQUIDIT Y

RETUR N LIQUIDITY Vs RETURN

RISK Vs RETURN

R ISK

RETUR N

RESEARCH AND ANALYSIS & FINDINGS (1)AWARNESS ABOUNT THE INVESTMENT OPTIONS

(2)PREFERRED AVENUES FOR INVESTMENT

(3)GOAL OF THE INVESTMENT

(4)BEST INVESTMENT OPTION FOR WEALTH CREATION

(

5)BEST INVESTMENT OPTION FOR RETIREMENT PLANNING

(6)BEST INVESTMENT OPTION FOR TAX PLANNING

(7)CRITERIA TO COMPARE INVESTMENT OPTIONS

8)SOURCES OF INFORMATION FOR INVESTOR (

(9)MODE OF THE INVESTMENT

10)INVESTMENT STRATEGY FOR TODAY VALATILE MARKET

(11)BEST INVESTMENT OPTION TO BEAT INFLATION

12)WEIGHTAGE OF FIXED RETURN INVESTMENT OPTIONS IN INVESTOR PORTFOLIO (

SUGGESTION AND RECOMMANDATION  The

most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.   Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. 

 Before

making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration.  Systematic Investment Plan (SIP) is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.   There is huge potential for fixed deposit in the today volatile market. Company should concentrate on the high safety with high return. ‘Brand’ name is the key factor.

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