Beruflich Dokumente
Kultur Dokumente
???
???
Categories of investments
Investment is done on two types of Asset Financial Asset Real Asset
` Crore
5 7,26,889 92,188 441,063 3,83,679 14,742 34,154 8,488 -5,070 7,441 231 446 -10,450 -27,551 271 -27,822 1,52,861 6 9,91,582 96,940 4,67,575 4,13,313 19,220 36,140 -1,097 45,338 12,758 954 606 33,041 42,872 389 42,484 2,24,487 7 10,43,977 1,39,344 4,93,237 4,38,048 30,343 25,943 -1,097 -4,636 12,483 766 828 -18,713 67,954 321 67,633 2,52,919
2009-10 R
3 100.0 9.8 47.2 41.7 1.9 3.6 -0.1 4.6 1.3 0.1 0.1 3.3 4.3 0.0 4.3 22.6
Financial Saving (Gross) a) Currency b) Deposits i) With Commercial Banks ii) With Non-banking Companies iii) With Cooperative Banks and Societies iv) Trade Debt (Net) c) Share and Debentures of which : i) Private Corporate Business ii) Banking iii) Bonds of public Sector undertakings iv) Mutual Funds (including UTI) d) Claims on Government i) Investment in Government securities ii) Investment in Small Savings, etc. e) Life Insurance Funds of which : i) Life Funds of LIC and private insurance companies f) Provident and Pension Funds R : Revised. P : Preliminary Estimates.
20.3
10.1
22.0
11.5
23.8
9.1
1,47,795
73,397
2,17,973
1,14,369
2,47,993
95,159
Note : Components may not add up to the totals due to rounding off.
Corporate Securities
Joint stock company in the private sector issue corporate securities. The corporate securities can further be divided into following categories Equity Shares Preference Shares Debentures/Bonds GDRs/ADRs Warrants Derivatives
Equity Share
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 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.
Preference Shares
Definition : Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Characteristics : Like common stock, preference shares represent partial ownership in a company. Preferred stock shareholders do not enjoy any of the voting rights of common stockholders. The main benefit to owning preference shares are that the investor has a greater claim on the company's assets than common stockholders. Preference shares pay a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid off before
Non Redeemable Preference shares cannot be redeemed repaid by the company except on winding up of the company.
Debentures :
Debenture is a long-term Debt Instrument issued by governments and big institutions for the purpose of raising funds. Characteristics : A Debenture is regarded as an unsecured investment because there are no pledges (guarantee) or liens available on particular assets Debentures are referred to as freely negotiable Debt Instruments. The Debenture holder functions as a lender to the issuer of the Debenture. In return, a specific rate of interest is paid to the Debenture holder by the Debenture issuer similar to the case of a loan.
Bond :
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and Nation and foreign governments to finance a variety of projects and activities.
Types of Debenture :
Convertible Debentures: This is a debenture which can be converted into some other type of securities (for example stocks). Corporate Debentures: Corporate Debentures are Debentures issued by companies and they are insecure in nature. Bank Debentures: This type of Debentures is issued by banks. Government Debentures: These include Treasury bond (T-Bond) and Treasury bill (T-Bill) issued by the government. They are usually regarded as risk-free investments. Subordinated Debentures: This is a particular type of Debenture, which ranks below regular Debentures, senior debt, and in some instances below specific general creditors.
Depository receipts
A depositary receipt (DR) is a type of negotiable (transferable) financial security that is traded on a local stock exchange but represents a security, usually in the form of equity, that is issued by a foreign publicly listed company. The DR, which is a physical certificate, allows investors to hold shares in equity of other countries.
Global depository receipt are instruments in the form of depository receipt or certificate created by the overseas depository bank outside India and issued to non- resident investor against ordinary shares or Foreign currency convertible bonds (FCCBs) of an issuing company
Characteristics of GDR :
These are special instruments created from ordinary share to generate funds abroad The cost of floating an ADR and GDR is very high and is only justifiable if the amount of finance to be raised is quite large The share of a company are deposited with a bank which will issue GDR and ADR of equivalent value in a foreign currency. The GDR holder doesnt have voting right
Dividend however are paid in Indian rupees due to which the foreign exchange risk or currency risk is placed totally on the investor
Warrants
A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. It can defined as the long term call option issued by a company on its share Warrants are listed on options exchanges and trade independently of the security with which it was issued. also called subscription warrant.
Derivative
A financial instrument whose characteristics and value depend upon the characteristics and value of an underlier typically a commodity, bond, equity or currency. Examples of derivatives include futures and options. Advanced investors sometimes purchase or sell derivatives to manage the risk associated with the underlying security, to protect against fluctuations in value, or to profit from periods of inactivity or decline. These techniques can be quite complicated and quite risky. Derivatives reduce market risk and increase the willingness to trade in stock market. Trading in derivatives involves lower cost of trading and it also leads to increased volume in the stock market