GV Portfolio Management

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Inside

1.Asset Classes

Equity Shares

Debt Instruments

Funds

2.Money Laundering

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Asset Classes

FINANCIAL MARKET

EQUITY

Ownership ofthe business

DEBT

Lending(Interest)

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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.

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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.

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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.

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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

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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.

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Funds

How Fund Works?

Investors

Fund Managers

Securities

Returns

Invest money through

Invest inGenerate

Paid back

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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

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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%

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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)

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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)

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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

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Any Questions

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Thank You

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GV Portfolio Management

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