Page 291 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes 13.10 Keywords

Balanced Funds: The investor may wish to balance his risk between various sectors such as asset
size, income or growth. Therefore the fund is a balance between various attributes desired.

Convertible Bonds: Bonds or Preferred stock which may be converted into common stock.
Defensive Stock: The securities in this fund are chosen from a stock which usually is not impacted
by economic down turns.

Insurance: A social device to reduce or eliminate risk of life and property.
Rating: An opinion regarding securities, expressed in the form of standard symbols or in any
other standardised manner, assigned by a credit rating agency and used by the issuer of such
securities, to comply with a requirement specified by these regulations.

13.11 Review Questions

1. Critically evaluate the performance of UTI in the last decade.
2. What have been the major points of concern for Indian mutual funds market in past 5 years?

3. Where do you see Indian Mutual Fund market heading towards in next 5 years and why?
4. What has been the biggest limitation of the government supported mutual funds in India?
5. What do you think is better in performance and why- public mutual funds/private mutual
funds?
6. How do analyse Indian Mutual fund market as compared to that of developed economies?
7. What are the five main reasons for mutual funds to have got so popular in recent times?

8. What do you mean by insurance? What are the main insurance companies in public sector
in India?
9. Critically evaluate the effect of IRDA on insurance sector of India.

10. Insurance sector in India has come of age. Comment.
11. Which insurance company do you prefer for general insurance and why?
12. If you were to join the insurance sector in India, which company would you prefer to join
as an employee and why?
13. What is more important- life insurance or general insurance and why? (You cannot say
both are equally important)

Answers to Self Assessment

1. Strategy

2. Minimize
3. SEBI
4. 1963
5. Value stocks

6. Securities, investment management
7. Non-life

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