Prods n Servs

8/8/2019 Prods n Servs

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14.

Products and services:

1.Equity & Derivatives Advisor:Derivative:

A security whose price is dependent upon or derived from one or more

underlying assets. The derivative itself is merely a contract between two or more

parties. Its value is determined by fluctuations in the underlying asset. The most

common underlying assets include stocks, bonds, commodities, currencies,

interest rates and market indexes. One main use of Derivatives is as a tool fortransferring/reducing risk on a commodity/item.

It is a financial contract with a value linked to the expected future price

movements of the asset it is linked to - such as a share, or a currency.

Say, I go to another electronics shop to buy a TV. After searching around I decide

on a model that costs Rs. 26000/- Though I like the model I am not too sure if this

is the best model for me and at the same time I am predicting the price of TV sets

to come down in one week. Along with this I am also worried that if I do not buythis TV, somebody else may buy it. Thus, I talk to the salesman to put aside this TV

for two weeks so that I can arrange cash and come for purchase. The salesman in

return asks for a small non refundable deposit which I pay to block the TV in my

name. If the price of the TV falls then I may not opt to buy the same TV but if I

want I can always walk in to the shop after a few days make the payment and

take the TV. This is effectively an "Options" contract, wherein I have the option of

executing it at my will and wish. The shop owner took a non refundable deposit,

which is to compensate for the few days that he may have to hold on to his item

without selling it. Even if I do not go to buy the TV he would have made a meagerprofit.

For example, the changing value of a crude oil futures contract depends primarily

on the upward or downward movement of oil prices.


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Certain investors, called hedgers, are interested in the underlying instrument.

For example, a baking company might buy wheat futures to help estimate the

cost of producing its bread in the months to come.

Hedging:

One main use of Derivatives is as a tool for transferring/reducing risk on a

commodity/item. Say you are a manufacturer who uses Rice as the ingredient in

your product. You would not want the price or availability of Rice to affect your

production in any way. You can decide to enter into a contract with a Rice farmer

to buy a specified quantity of Rice in a future date say after 3 months at a

specified price. Here you are hedging to reduce your risk of availability. The

farmer would also be avoiding a risk of lack of prospective buyers. By entering

into agreement with you, he has reduced that risk and he has a buyer who wouldbe buying his product on the agreed date at the agreed price. Of course there are

some external factors that may cause the agreement to become null. For e.g., if

due to a flood all his crops are destroyed, you cannot expect the farmer to honour

the agreement. Similarly if you go bankrupt the farmer would have to find a new

buyer for his products. So Derivatives can act as a tool to mitigate risk but it

cannot help us avoid it altogether. Also this risk reduction will happen only

between the two parties who are entering into the agreement. Any other

manufacturer may end up without rice supplies or any other farmer may end up

without buyers.

EQUITY:

What Does EquityMean?

1. A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the

owners (the stockholders) plus the retained earnings (or losses). Also referred to

as "shareholders' equity".

3. In the context of margin trading, the value of securities in a margin account


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minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value

of the property and the amount the owner still owes on the mortgage. It is the

amount that the owner would receive after selling a property and paying off the

mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset

classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These

are used in asset allocation planning to structure a desired risk and return profile

for an investor's portfolio.

2. Wealth mgt service: is a type of financial service that assists clients in

long-term wealth creation. wealth management means not only giving

investment advices, it includes all parts of a person's financial life like the

persons investments etc

3. Asset mgt service: Asset is something which you own and can beconverted into cash. This company provides you to select and invest in the

best available assets.

4. Insurance Brokerage: The Company now distributes products of major

insurance companies through its subsidiary India Infoline Insurance Brokers

Ltd. Customers can choose from a wide bouquet of products from several

insurance companies including Max New York Life Insurance, MetLife,

Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life Insurance

Corporation, Kotak Life Insurance and others.


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5. Commodity Trading: IIFL offers commodities trading to its customers toMCX

(Multi Commodity Exchange -- This is the exchange for trading commodities;

just like the BSE is for trading stocks of companies. You can trade gold, silver

and other precious metals along with agri commodities like cotton, coffee etc.

-- Multi Commodity Exchange (MCX) is an independent commodity exchange

based in India. It was established in 2003 and is based in Mumbai. The

turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in

terms of contracts traded, it was in 2009 the world's sixth largest commodity

exchange. MCX offers futures trading in bullion, ferrous and non-ferrous

metals, energy, and a number of agricultural commodities (mentha oil,

cardamom, potatoes, palm oil and others)

and the NCDEX

(National Commodities And Derivatives Exchange -- India's largest and most

recognized commodities exchange, which was established in 2003. The

exchange was founded by some of India's leading financial institutions such as

ICICI Bank Limited, the National Stock Exchange of India and the National Bank

for Agricultural and Rural Development, among others. -- Trading is done on 45

commodities that are integral to India's economy. These include gold, silver,

Brent Crude oil, and rice, along with other agricultural products and base

metals.). They actually provide the complete info to their customers about the

behavioral patterns of these markets. Our customers are ideally positioned to

make informed investment decisions with a high probability of success. )Its a member of MCX and NCDX.


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6. Investment banking: Includesbusiness entities dealing with creation ofcapital for other companies. They also advise companies on matters related

to the issue and placement of stock and to manage all kinds of investment

banking transactions.

7.Credit & finance: IIFL offers a wide array of secured loan products.Currently, secured loans include mortgage loans, margin funding, loans

against shares.. These comprise 94% of the loan book. The Company has

discontinued its unsecured products.

15.

Contributions to the society:

Not only in the professional front, II also focuses on the

betterment of the society and keeping this in mind, they have

setup the IIFL foundation, which will work for the support and upliftment

of the underprivileged sections of society.

Some of the activities undertaken by the IIFL Foundation:

Barsana eye camp: over 2,600 people underwent eye tests and over

1,800 dental procedures were done.

Pandharpur medical camp: Free medical treatment was given to

approximately 49,815 pilgrims who had come to Pandharpur. The pilgrims

were treated for fever, injuries, fractures, etc during the camp.

Blood donation drive:IIFL regularly organizes blood donation drives via

camps at its various locations across India. Over 800 employees have

participated in these camps.


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Studying the LOGO:

If we see the logo of India Infoline, there are clearly defined boundaries

for each and every triangle. In the same way the company clearly

studies and analyzes the market and gives advices on what is good and

what is bad which makes it a good advisor to companies as well as

investors.

Here in this logo the triangles r connected 2gether as a network..Having a good network is very important in this financial world to trade

in stock exchanges The company believes in this concept and does

this.

And the logo appears confusing at first... But when u observe it clearly n

deeply, v can understand the exact pattern. In the same way while

analyzing the market or a problem, India Infoline bifurcates and

analyzes it layer by layer and reaches the root of the problem so that itcan give apt and correct advice to its clients

India Infoline was the 1st

corporate in India to get the agency license in early 2001

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