Page 51 - DCOM504_SECURITY_ANALYSIS_AND_PORTFOLIO_MANAGEMENT

Security Analysis and Portfolio Management

Notes
8. Precious objects
(a) Gold and Silver

(b) Precious Stones
(c) Art Objects
9. Insurance policies
(a) Endowment Assurance

(b) Money Back Plan
(c) Whole Life Assurance
(d) Unit Linked Plan
(e) Term Assurance

(f) Immediate Annuity
(g) Deferred Annuity

While some plans accrue short term profits some are long term deposits. The first step towards
investing in Indian market is to evaluate individual requirements for cash, competence to
undertake involved risks and the amount of returns that the investor is expecting.

Investments in Bank Fixed Deposits (FD)

Fixed Deposit or FD is accrues 8.5% of yearly profits, depending on the bank’s tenure and
guidelines, which makes it’s widely sought after and safe investment alternative. The minimum
tenure of FD is 15 days and maximum tenure is 5 years and above. Senior citizens are entitled for
exclusive rate of interest on Fixed Deposits.

Investments in Insurance policies

Insurance features among the best investment alternative as it offers services to indemnify your
life, assets and money besides providing satisfactory and risk free profits. Indian Insurance
Market offers various investment options with reasonably priced premium. Some of the popular
Insurance policies in India are Home Insurance policies, Life Insurance policies, Health Insurance
policies and Car Insurance policies.

Some top Insurance firm in India under whom you can buy insurance scheme are LIC, SBI Life,
ICICI Prudential, Bajaj Allianz, Birla Sunlife, HDFC Standard Life, Reliance Life, Max NewYork
Life, Metlife, Tata AIG, Kotak Mahindra Life, ING Life Insurance, etc.

Investments in National Saving Certificate (NSC)

National Saving Certificate (NSC) is subsidized and supported by government of India as is a
secure investment technique with a lock in tenure of 6 years. There is no utmost limit in this
investment option while the highest amount is estimated as 100. The investor is entitled for
the calculated interest of 8% which is forfeited two times in a year. National Saving Certificate
falls under Section 80C of IT Act and the profit accrued by the investor stands valid for tax
deduction up to 1, 00,000.

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