Study of Various Investment Product

FIXED -DEPOSIT , MUTUAL

FUNDS & GOLD

Presented By:-
Pooja J Soni
GOLD
 Gold Exchange Traded Funds
There are enough reasons why gold should be included in any investor's
portfolio whether in physical or paper form. Investing in gold ETFs will
give the investor all the advantages of investing in gold while eliminating
drawbacks of physical gold -- cost of storage, liquidity and purity, among
others

Gold ETFs allow investment in gold in small denominations, which

makes it easier for the retail investor to participate. On the secondary
market, the minimum lot is one unit. This enables the investor to
accumulate units over time and reap the benefits of rupee cost averaging
The units can be redeemed either from the fund directly or from the
market.
Why should an investor invest in Gold
ETF?

Gold is considered as a Global Asset Class

Gold is used as a Hedge against Inflation

compared to equities

Held in Electronic Form

Store of value

Extremely Liquid
 Physical Gold

There are many savings and investment options available in India.

One of the options is gold. Gold has been valued since prehistoric
times and is the investment option that has been seen as the
ultimate form of safe haven investment and the only true form of
wealth.
Gold has been popular in India because it acted as a good
hedge against inflation. There is so much uncertainty in the world
in terms of economic growth and geopolitics, it is no surprise that
many investors, big and small have chosen to hedge(barrier of
closely growing bushes ) their investments through gold
 Gold is an important and popular
investment for many reasons
Gold remains as an integral part of social and religious customs, besides being
the basic form of saving.

Gold has aesthetic appeal .Its beauty recommends it for ornament making abov
all other metals.

Gold is a currency that has no borders and does not need to be

honored by any governmental obligations.

Gold has long proven ability to retain value and appreciate in value.

Gold is readily available in a standardized form.

Why invest in physical gold?
Top Reasons to Invest in Physical Gold

1.Gold has always been, and will always be, the most
legendary precious metal in the world.

2.Gold will always be in demand, and demand is increasing.

3.Gold is an inflation-proof investment.

4.Unlike paper currency, stocks and bonds, gold will never loses its
intrinsic value.

5.Gold maintains its value through political and social upheavals, wars,
and natural disasters.
6.A tangible and liquid asset, gold is the only truly international
currency.

7.The current U.S. debt and trade crisis will continue to push gold
prices up.

8.Physical (allocated) gold is the most secure way to invest in gold.

9.No other investment has the wealth preserving power of gold!

 Difference
Parameter Physical Gold Jeweller

How Gold is held Physical (Bars / Coins) Physical (Bars / Coins)

Linked to International Gold
Prices, 10%-20% mark-up
charged by banks on spot price. Differs from one to another.
Pricing
Neither transparent nor standard.

Making Charges Charges are incurred Charges are incurred

Impurity Risk High High
Storage Requirement Locker / Safe Locker / Safe

Resale Conditional and uneconomical Conditional and uneconomical

 Parameter Physical Gold Jeweller

Buying is not possible at a high

price where as selling is possible Less convenient, as Gold needs to
Convenience in Buying / Selling at high price. be moved physically

Risk of Theft Yes, possible Yes, possible

Wealth Tax Yes Yes
LTCG of 20 % only after 3 years. LTCG of 20 % only after 3 years.
Wealth tax of 1% of incremental Wealth tax of 1% of incremental
Long Term Capital Gains Tax amount over specified exemption amount over specified exemption
limit. limit.

Reliability No assurance of quality No assurance of quality

Regulatory Standards There are standard gold councils There are standard gold councils
which assure the purity of gold which assure the purity of gold
like the World Gold Council. for investors.

Liquidity It is easy to convert gold into Becomes difficult to sell jewellery

money at any time and will fetch and convert it into money. Also,
the current market price the investor will face the loss of
prevailing at that time. making charges at the time of
sale.
Mutual fund
 Concept of MUTUAL FUND
A mutual fund is “A professionally managed type of collective
investment scheme that pools money from many investors and invests it
in stocks, bonds, short-term money market instruments, and/or other
securities”.

“A pooled investment, in which several people give their money to a

professional fund manager to invest in return for a fixed annual fee.
The money will be invested in a range of different types of assets. The
assets in which the fund can invest are clearly stated in the fund
Prospectus.”
 Investor
passed back to
Returns Pool their money with

Fund
Manger

Invest In
Generates
Securitie
s
 Types of MUTUAL FUND Schemes

Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview
into the existing types of schemes in the Industry.

BY STRUCTURE :
* Open – Ended Schemes
* Close - Ended Schemes
* Interval Schemes
BY INVESTMENT OBJECTIVE
* Growth Schemes
* Income Schemes
* Balanced Schemes
* Money Market Schemes
OTHER SCHEMES
* Tax Saving Schemes
* Special Schemes
Sector Specific Schemes
 Regulatory of MUTUAL FUND in INDIA
SEBI

The capital market regulates the mutual funds in India. SEBI requires all mutual funds to
be registered with them. SEBI issues guidelines for all mutual funds operations-investment,
accounts, expenses etc. Recently, it has been decided that Money Market Mutual Funds of
registered mutual funds will be regulated by SEBI through (Mutual Fund) Regulations 1996.

RBI

RBI, a supervisor of the Banks owned Mutual Funds-As banks in India come
under the regulatory Jurisdiction of RBI, banks owned funds to be under supervision
of RBI and SEBI. RBI has supervisory responsibility over all entities that operate in
the money markets.

MINISTRY OF FINANCE (MOF)

Ministry of Finance ultimately supervises both the RBI and the SEBI and plays
the role of apex authority for any major disputes over SEBI guidelines.
COMPANY LOW BOARD

Registrar of companies is called Company Low Board. AMCs of Mutual Funds are
companies registered under the companies Act 1956 and therefore answerable to
regulatory authorities empowered by the Companies Act.

STOCK EXCHANGE

Stock Exchanges are Self-regulatory organizations supervised by SEBI. Many closed

ended funds of AMCs are listed as stock exchanges and are traded like shares.

OFFICE OF THE PUBLIC TRUSTEE

Mutual Fund being public trust is governed y the Indian Trust Act 1882. The Board of
trustee or the Trustees Company is accountable to the office of public trustee, which in
turn reports to the Charity commissioner.
Fixed deposit
 Fixed Deposits

If you believe in long-term investments and wish to earn higher interests on your savings,
invest your money in Fixed Deposit. A fixed deposit is an investment account where money is
deposited for a fixed period and the interest does not fluctuate.

A fixed deposit is meant for those investors who want to deposit a lump sum of money for
a fixed period; say for a minimum period of 15 days to five years and above, thereby earning a
higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity
of the deposit

Bank fixed deposits are one of the most common savings scheme open to an average
investor. Fixed deposits also give a higher rate of interest than a savings bank account.  The
facilities vary from bank to bank. These deposits are fairly safer because banks are subject to
control of the Reserve Bank of India
 Features

Choice of investment plans

Partial withdrawal permitted

Safe custody of fixed deposit receipts

Auto renewal possible

Loan facility available

 Benefits

Potential to earn compound interest by reinvesting the principal amount

along with the interest earned during the period.

No penalty for premature withdrawal.

Flexibility in altering period of deposit, maturity and payment instructions,

principal amount and rollover mode before maturity of the rollover deposit.

Higher rate of interest on Fixed Deposits for Senior Citizens.

 Conclusion
After studying the various aspects of investing in
mutual fund, F.D & Gold I came to know that the gold
ETFs is more convenient for investors due to it’s
benefits i.e. security, good price of gold and the
constant demand of gold.
Thank You