NVESTMENT

PRESENTED BY :HEMRAJ

ABRAHIMMADHURI

SAI KRISHNADIVYA

AGENDA WHAT IS INVESTMENT HISTORY TYPES OF INVESTMENTS IMPORTANCE WHAT IS INVESTMENT COMPANY INVESTMENT PROCESS WHAT IS RECENTLY HAPPENING IN

INVESTMENT SECTORS (FDI) INVESTMENT BANKING CONCLUSION

What is investment Investment has different meaning in finance &

economics Finance investment:- It is putting money into

something with expectation of gain, that upon through analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time.

In economics:-Investment is related to saving or deferring consumption. It involves in many areas like business management & finance whether for household, firms or government.

HISTORY

In 1700 BC provide a legal framework for investment establishing a means of pledge of collateral by codifying debtors & creditors right in regards to pledged land.

In early 1900s purchase of stock, bond & other securities were described in media, academia & commerce as speculator.

In 1950s the term investment had been co-opted by financial broker & their adverting agencies to promote speculation.

BONDS

FUNDS

OPTION S

INVESTMENT

DEPOSITS

CURRENCY

REAL STATE

STOCK MARKET

Types of investments

Autonomous investment:- Investment which does not change with the

change in income level, is called as autonomous or government investment.

Induced investment:- It is the investment which changes with

changes in income level. Financial investments:-

Investment made in buying financial instruments such as new shares, bonds, securities, etc. is considered as a Financial Investment

Real investment:- Investment made in new plant and equipment,

construction of public utilities like schools, roads and railways, etc., is considered as Real Investment.

Planned investment:- Investment made with a plan in several

sectors of the economy with specific objectives is called as Planned or Intended Investment.

Unplanned investment:- Investment done without any planning is

called as an Unplanned or Unintended Investment. In unplanned type of investment, investors make investment randomly without making any concrete plans.

Gross investment:- Gross Investment means the total

amount of money spent for creation of new capital assets like Plant and Machinery, Factory Building, etc .It is the total expenditure made on new capital assets in a period.

Net investment:- Net Investment is Gross Investment less

(minus) Capital Consumption (Depreciation) during a period of time, usually a year.

Importance of investment

Financial independence. Increase wealth. Fulfilling the personal goals. Desires Of Family members. Increase knowledge. Increase vision.

Methods of FDI a. By incorporating a wholly owned subsidiary or

companyb. By acquiring shares in an associated

enterprisec. Through a merger or an acquisition of an

unrelated enterprised. Participating in an equity joint venture with

another investor or enterprise...

What is investment company

An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.

There are 3 types of investment companies a. Open-End Management Investment Companies

(mutual funds)b. Closed-End Management Investment Companies

(closed-end funds)c. UITs (unit investment trusts)

Recently what is happing in investment sector

Foreign direct investment (FDI) Foreign direct investment (FDI) refers to the

net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.

There are two types of FDI:-a. inward foreign direct investmentb. outward foreign direct investment