This document presents information on different types of investment options available for retail investors in India when the economy is growing. It discusses short-term investments like national savings certificates and recurring deposits as well as long-term options such as equity-linked savings schemes, public provident fund, and life insurance plans. The document recommends diversifying investments between traditional safer plans (80% of funds) and higher-risk equity-linked avenues (20%) to achieve a balanced investment portfolio. It aims to help new investors understand their investment opportunities.

1. “WHEN ECONOMY IS GROWING”
PRESENTED BY: Enrollment No.:
1. APARNA KABIRAJ : E14CC1027227
2. JOYDEEP SAHA : E14CC1027752
3. SANJIB SHARMA : E14CC1026898
4. KAMLENDU JANA : E14CC1027283
ForRetailInvestors…

2. Investment is an Assets or item that is purchased with the
hope that it will generate income or appreciate in the
future.
Investment is the commitment of money or capital to
purchase financial instruments or other assets in order to
gain profitable returns in the form of interest, income or
appreciation of the value of the instruments.
Investment means the use of money in the hope of making
more money.
Investment can be either bonds, stocks, CD’s etc.

3. One of the most important things that you can do as an
investors is to get an early start on the investing. The old
saying “THE EARLY BIRD, GETS THE WORM”- certainly
applies to investing in a big way.
This helps a lot because of the following benefits:
» Time is on your side
» Compounding Returns
» Improves spending habits
» Ahead of the personal finance games
» Quality of life

4. Types of Investment
Short-term
Investment
Long-term
Investment
 NSC
 ELSS
 5 YEAR FD
 RD
 RGESS
 PPF
 NPS
 LIC NEW ENDOWMENT PLAN

5. NATIONAL SAVING CERTIFICATE(NSC) :
 Indian Government saving bond
 popularly used for small saving and income tax saving
 can be purchased from any post office in India.
» No maximum limit for investment
» No TDS
» Lock-in-period is 5years
» Certificate can be kept as Collateral security to get loan.
» Trust and HUF cannot invest.
» Rate is 8.50%

6. EQUITY LINKED SAVINGS SCHEME (ELSS) :
 Type of mutual fund related to equity product
Key Features:
» 3yrs lock in period
» Growth potential of equity
» Tax Free dividends
» No tax on long term capital gain
» Tax saving instrument under sec. 80c
» Denominations – Rs. 100, Rs. 500, Rs. 1000, Rs. 5000
and Rs. 10000
» Tenure : 5 years ( NSC VIII ) and 10 years ( NSC IX )

7. 5-YEAR FIXED DEPOSIT
» Maximum exemption limit up to 1.5lakh under sec. 80c
» Tenure is 5 year
» The interest income is taxable
» Interest rate are decided by respective banks
» No partial or premature withdrawal is allowed.
» Sweep-in or overdraft facility in such a FD is not allowed.

8. RECURRING DEPOSIT :
Suitable for those who can save regularly and expect to earn a fair
return on the deposits over a period of time.
» To deposit a fixed amount once in a month for a certain
period.
» The total deposit along with interest is payable.
» The depositor is allowed to close the account before its
maturity and get back the money along with interest.
» The rate on interest on RD is higher than saving bank
deposit rate and lower than fixed deposit rate.

9. 5. RAJIV GANDHI EQUITY SAVING SCHEME:
New investment option.
Tax saving scheme whose income is less than 12 lakh rupees.
» Only for first time retail investors in equity
market.
» Tax benefits under sec 80CCG
» The deduction is 50% of the amount invested up
to a maximum of Rs. 25000
» The benefit is available for a period of three
years.

10. PUBLIC PROVIDENT FUND (PPF) :
Savings-cum-tax-saving instrument
It offers security being operated by the government.
» Minimum investment –Rs. 500
Maximum investment – Rs. 1,50,000
» Tax free interest and maturity amount.
» PPF is not Inflation protected.
» Minimum tenure - 15 years, can be further extended
to block of 5 years.
» Interest rate - 8.7% p.a.

11. NATIONAL PENSION SCHEME (NPS) :
It is a fixed contribution based pension system implemented by
government of india and regulated by PFRDA.
» All citizen between age group of 18 to 60 can join.
» Investor is free to choose the percentage amount that has
to go towards debt and equity as well.
» Tax deduction on investments up to Rs. 1 lakh under sec
80C.

12. LIC NEW ENDOWMENT PLAN:
It is a participating non-linked plan which offers an attractive
combination of protection and saving feature.
Features :
» New endowment plan is unit linked insurance plan(ULIP)
» 10 times risk coverage of the annualized premium
» Lock in period - 5 year
» Accidental benefit
»Minimum premium is yearly Rs. 20000, half yearly Rs. 13000,
quarterly Rs. 8000, and monthly (ECS) Rs. 3000.
»Minimum entry age is 90days(completed) and maximum entry age is
50 year.
»Policy term is 10 to 20 years.
»Maximum premium - no limit.

13. DEATH BENEFIT:
BASIC SUM ASSURED
OR FUND VALUE
WHICHEVER IS
HIGHER IS PAYABLE
AS DEATH CLAIM TO
NOMINEE.
MATURITY BENEFITS:
IF POLICY HOLDER
SURVIVES BEYOUND
THE MATURITY DATE,
MATURITY BENEFITS
ARE EQUAL TO THE
AMOUNT OF FUND
VALUE.
TAX BENEFITS:
1.)TAX REBATE ON
PREMIUM PAID UNDER THIS
PLAN IN 80C OF INCOME
TAX ACT.
2.)MATURITY PROCEEDS
ARE TAX FREE UNDER SEC
10(10)(D)

14. So, as you can see that we have ample investment portfolios
available to invest in and get a profitable return out of
them. As a start up, his investment must be diversified into
various portfolios.
He should also invest 20% of historical share in risky avenues
like ELSS which we have already discussed in the previous
slides.
The rest 80% should be into traditional plans.
This would create a balanced investment scenario for him.

15. I would like to thanks Mr. Subhashis Haldar Sir for giving as
this topic which I guess was indeed important to us too, as
we are also going to get started soon with our career.
I would also like to thank my other group members who are
a great listener throughout.
Last but not the least a lot of thanks goes to my group
member without whose support the presentation would
not have been a success.