Post on 04-Jun-2018
8/13/2019 GV Portfolio Management
1/18
1/18
8/13/2019 GV Portfolio Management
2/18
Inside
1.Asset Classes
Equity Shares
Debt Instruments
Funds
2.Money Laundering
2/18
8/13/2019 GV Portfolio Management
3/18
Asset Classes
FINANCIAL MARKET
EQUITY
Ownership ofthe business
DEBT
Lending(Interest)
3/18
8/13/2019 GV Portfolio Management
4/18
Equity
What is a Share?
A share is a claim of ownership in a firm in proportion to the amount of money
invested and is freely tradable at exchanges after listing.
A firms capital is divided into smaller denominations called equity shares.
Ex: Capital is divided by the denomination of Rs.10 & has separate face value
When you buy a share it has a claim on the firms assets and income & youBecome one of the several owners in proportion to the number of shares bought.
4/18
8/13/2019 GV Portfolio Management
5/18
8/13/2019 GV Portfolio Management
6/18
Market Types
Primary Market
When a security is purchased directly from the issuer, it is called primary market.
When any entity makes available its newly issued securities in the market is called IPO.
Secondary Market
The Stock exchange is called Secondary market.
6/18
8/13/2019 GV Portfolio Management
7/18
Primary & Secondary Market
BSE (Bombay Stock Exchange)
Oldest stock exchange in Asia established in 1875.
Worlds no 1 exchange in terms of no of listed companies and no 5 th in transaction.
BSE Index & SENSEX is Indias first stock market index and is tracked worldwide
NSE (National Stock Exchange)
Indias leading stock exchange set up by leading financial institutions
NSE CNX , NIFTY is the most popular.
7/18
8/13/2019 GV Portfolio Management
8/18
Blue chip & CAP
Blue Chip
Means the common stock of a nationally known company that has a long record ofProfit, growth and dividend payment and a reputation for quality in management,Products and services.
Small Cap, Mid Cap, Large Cap
Less than Rs.500 crores of Market Capitalization Small Cap
Between Rs.500 Rs.1000 croes of Market Capitalization Mid Cap
More than Rs.1000 crores of Market Capitalization Large Cap
Market Capitalization = No. of Shares x Share Price
8/18
8/13/2019 GV Portfolio Management
9/18
Debt Instruments
Fixed income Securities
Pay regular income(fixed interest) decided at the beginning of transaction &principal repaid at the end of term.
Issued by Government and Corporate
Long term or short term
Examples of Debt are,
Govt Securities, Treasury Bills, Oil Bonds, Food Bonds, Fertilizer Bonds, issued by GOI
State Development Loans by State Government
Non Convertible Debentures(NCDs) Corporate, Financial Institutions, estd by State & Central Govts.
9/18
8/13/2019 GV Portfolio Management
10/18
Funds
How Fund Works?
Investors
Fund Managers
Securities
Returns
Invest money through
Invest inGenerate
Paid back
10/18
8/13/2019 GV Portfolio Management
11/18
Funds
Portfolio Diversification
Professional Management
Reduction of Risk (diversification)
Secured Returns Reduction of transaction costs
Liquidity
Transparency
Convenience & Flexibility
Wide Choice of Schemes
Tax Benefits
Liquid
Debt
Balanced
Equity
RETURNS
R ISK
11/18
8/13/2019 GV Portfolio Management
12/18
8/13/2019 GV Portfolio Management
13/18
Equity Vs Other Instruments
Inflation Gold Silver SENSEX GOI Bonds
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
7%
13%
15%
17%
12%
13/18
8/13/2019 GV Portfolio Management
14/18
Anti-Money Laundering Guidelines
What is Money Laundering?
Money Laundering is the process of moving illegally acquired cash through financialsystems so that it appears to be legally acquired.
Common Stages of Money Laundering
Placement(Process of disposing bulk cash into bank by small but regular deposits or investments)
Layering(Laundering the dirty funds by large volume of transaction, diff currencies & jurisdictions)
Integration(Using layered funds purchasing the legitimate assets)
14/18
8/13/2019 GV Portfolio Management
15/18
Money Laundering Regulations
In India AML measures are controlled by The Prevention of Money LaunderingAct 2002.
RBI, SEBI, IRDA has been under the provisions of PML Act.
PML applicable to all financial institutions, banks, insurance co, mutual funds& brokers.
Agency monitoring AML activities in india is called Financial Intelligence Unit(FIU IND)
15/18
8/13/2019 GV Portfolio Management
16/18
Money Laundering - Consequences
The PML Act, 2002 provides
whosoever directly or indirectly attempts to indulge or knowingly assists or Knowingly is a party or is actually involved in the process or activity connectedwith the proceeds of crime and projecting it as untainted property shall beguilty of money laundering
Under the Act, the offences will be punished with rigorous imprisonment for aTerm from 3 to 7 years and a fine upto Rs.5 lac
*KYC is the solution to avoid suspicious transactions
16/18
8/13/2019 GV Portfolio Management
17/18
Any Questions
?17/18
8/13/2019 GV Portfolio Management
18/18
Thank You
18/18