3. Introduction of Birla
Sun Life
A Joint Venture between the Aditya Birla Group and Sun Life Financial
Inc.
Its operations has contributed significantly to the growth and
development of the Life Insurance industry in India.
It pioneered the launch of Unit Linked Life Insurance Plans (ULIP)
amongst the private players in India.
4. Portfolio Management Service
In Simpler terms can also be referred as Investment Management.
Successful Investing demands expertise and time.
Investments need to be evaluated continuously and strategies are
formed accordingly.
7. Equity Market
Primary
Market
New Securities
Raising fresh
resources
All companies can
Enter
Subject to outside
control by SEBI,
SE, & Companies
Act
Secondary
Market
Existing Securities
Transfer of
Securities
Only Listed
Company can be
traded
Subject to control
by SEBI & Stock
Exchange
8. Initial Public Offering (IPO)
It is simply referred as an "offering" or "flotation,“ when a company
issues common stock or shares.
IPO can be a risky investment.
IPOs are of companies going through a transitory growth period.
9. Reasons for Listing
Initial Subscription amount goes directly to the company coming out
with IPO.
The company is never required to repay the capital.
Once a company is listed, it will be able to issue further shares via rights
issue, thereby again providing itself with capital required for expansion.
11. Benefits of an IPO
(From Investors point of View)
IPOs are attractive mainly because they may be undervalued.
IPOs are more attractive for investors as they are offered at a low rate
(Price band).
12. Indian Debt Market
Debt market refers to the financial market where investors buy and
sell debt securities, mostly in the form of bonds.
India debt market is one of the largest in Asia.
Returns are risk-free.
Indian debt market can be classified into two categories:
1) G-Sec Market 2) Bond Market
14. Insurance
Insurance is the act of providing assurance against a possible loss
It’s a business growing at the rate of 15-20 per cent annually
Nearly 80 per cent of Indian population is without life insurance cover
Insurance is generally considered as tax-saving device instead of its
other implied long term financial benefits.
15. Mutual Funds
It allows a group of investors to pool their money together.
A fund manager is responsible for investing the pooled money into
specific securities.
Diversification of Portfolio.
18. Calculation of NAV
Mkt Value +Receivables+Accr. Income– Liab-Accr. Expenses
Number of Outstanding units
Example :
If NAV on
Jan 1, 2014 was Rs. 12.75
June 30, 2014 was Rs. 14.35
Percentage change in NAV
= (14.35-12.75)/12.75*100=12.55%
Annualized return=12.55*12/6=25.10%
19. FUNDAMENTAL ANALYSIS
Fundamental analysis is the examination of the underlying forces that
affect the well being of the economy, industry groups, and companies.
APPROACHES :
Top-down approach
Bottom-up approach
20. Contd..
Fundamental analysis includes
Economic Forecast
Company Analysis
Business Plan
Management
Financial Analysis
21. TECHNICAL ANALYSIS
Technical analysis is all about studying stock price graphs and a few
momentum oscillators derived thereof.
It is the examination of past price movements to forecast future price
movements.
25. SECTORAL ANALYSIS
The sectors we covered are as follows:
Banking
Telecom
Auto
Cement
26. Future Prospects of Banking
Private sector Banks, are likely to face penetration concerns.
Entry of foreign banks and the acquisition of stake in Indian private banks.
Cabinet's approval to allow PSU banks to bring down the Govt. stake below 51%.
Major Operators and Top Performing Banks in India
Public Sector Banks Private Sector Banks Foreign Banks
State Bank of India HDFC Bank Citi Bank
State Bank of Mysore UTI Bank Standard Chartered Bank
Allahabad Bank ICICI Bank HSBC Bank
Vijaya Bank Axis Bank ABN Amro Bank
Punjab National Bank Centurion Bank of Punjab American Express Bank
Dena Bank Kotak Mahindra Bank
27. Future Prospects of Telecom
Demand & Internet Services
Subscriber base of 500 Mln.
Upcoming Services (4G,VOIP)
28. Future Prospects of Auto
Indian auto industry is saw 10-12 percent sales growth in 2010.
New players entering the Indian small car market.
Increasing penetration of global original equipment manufacturer.
By 2016 automotive sector would contribute 10% to GDP as from current level
of 5%.
29. overview of Cement sector
Cement consumption in India is forecasted to grow by 25% by
2010-11.
Among the states, Maharashtra has the highest share in
consumption at 13.5%, followed by Uttar Pradesh.
Housing Sector is expected to remain the largest cement
consumer in coming years.
31. RECOMMENDATION
• One should start financial planning and investing early.
• Take advice of professional fund managers if the investor does not have
appropriate knowledge about the financial market.
• Regularly analyse investments and track their performance.