Financial Investment Options

Summarised below are the short-term and long-term financial investment options available for Indian investors. Click on the instrument names to see a short explanation.

Short-term investing

Savings bank account  Use only for short-term (less than 30 days) surpluses  Money market funds  Offer better returns than savings account without compromising liquidity  Bank fixed deposits  For investors with low risk appetite, best for 6-12 months investment period

Long-term investing

Post Office savings  Low risk and no TDS  Public Provident Fund  Best fixed-income investment for high tax payers  Company fixed deposits  Option to maximise returns within a fixed-income portfolio  Bonds and debentures  Option for large investments or to avail of some capital gains tax rebates  Mutual Funds  Unless you rate high on our Investment IQ Test, use mutual funds as a vehicle to invest  Life Insurance Policies  Don't buy life insurance solely as an investment  Equity shares  Maximum returns over the long-term, invest funds you do not need for at least five years

1. Savings Bank Account

Use only for short-term (less than 30 days) surpluses  Often the first banking product people use, savings accounts offer low interest (4%-7% p.a.), making them only marginally better than safe deposit lockers. Interest is calculated on daily basis. Old interest calculation on saving accounts has been removed.

2. Money Market Funds (also known as liquid funds)

Offer better returns than savings account without compromising liquidity  Money market funds are a specialized form of mutual funds that invest in extremely short-term fixed income instruments. Unlike most mutual funds, money market funds are primarily oriented towards protecting your capital and then, aim to maximise returns. Money market funds usually yield better returns than savings accounts, but lower than bank fixed deposits. With the flexibility to issue cheques from a money market fund account now available, explore this option before putting your money in a savings account.

3. Bank Fixed Deposit (Bank FDs)

For investors with low risk appetite, best for 6-12 months investment period  Also referred to as term deposits, this product would be offered by all banks. Minimum investment period for bank FDs is 30 days.  The ideal investment time for bank FDs is 6 to 12 months as normally interest on bank less than 6 months bank FDs is likely to be lower than money market fund returns.  It is important to plan your investment time frame while investing in this instrument because early withdrawals typically carry a penalty.

1. Post Office Savings Schemes (POSS)

Low risk and no TDS  POSS are popular because they typically yield a higher return than bank FDs. The monthly income plan could suit you if you are a retired individual or have regular income needs.  Besides the low (Government) risk, the fact that there is no tax deducted at source (TDS) in a POSS is amongst the key attractive features.  The Post Office offers various schemes that include National Savings Certificates (NSC), National Savings Scheme(NSS), Kisan Vikas Patra, Monthly Income Scheme and Recurring Deposit Scheme.

2. Public Provident Fund (PPF)

Best fixed-income investment for high tax payers  PPF is a very attractive fixed income investment option for small investors primarily because of -  1. An 11% post-tax return - effective pre-tax rate of 15.7% assuming a 30% tax rate 2. A tax-rebate - deduction of 20% of the amount invested from your tax liability for the year, subject to a maximum Rs60,000 for a tax rebate 3. Low risk - risk attached is Government risk So, what's the catch? Lack of liquidity is a big negative. You can withdraw your investment made in Year 1 only in Year 7 (although there are some loan options that begin earlier).  If you are willing to live with poor liquidity, you should invest as much as you can in this scheme before looking for other fixed income investment options.

3. Company Fixed Deposits (FDs)

Option to maximise returns within a fixed-income portfolio  FDs are instruments used by companies to borrow from small investors. Typically FDs are open throughout the year. Invest in FDs only if you have surplus funds for more than 12 months. Select your investment period carefully as most FDs are not encashable prior to their maturity.  Just as in any other instrument, risk is an embedded feature of FDs, more so because it is not mandatory for non-finance companies to get a credit rating for this instrument.  Investors should consciously (either though a credit rating or through an expert) select the companies they invest in. Quite a few small investors have lost their life's savings by investing in FDs issued by companies that have run into financial problems.

4. Bonds and Debentures

Option for large investments or to avail of some capital gains tax rebates  Besides company FDs, bonds and debentures are the other fixed-income instruments issued by companies. As a result of an illiquid secondary market and a lack-lustre primary market, investment in these instruments is largely skewed towards issues from financial institutions.  While you might find some high-yielding options in the secondary market, if you do not want the problems associated with bad deliveries and the transfer process or you want to invest a large sum of money, the primary market is the better option.

5. Mutual Funds

Unless you rate high on our Investment IQ Test, use mutual funds as a vehicle to invest  Have you ever made an investment in partnership with someone else? Well, mutual funds work on more or less the same principles. Investors pool together their money to buy stocks, bonds, or any other investments.  Investing through mutual funds allows an investor to -  1. Avail the services of a professional money manager (who manages the mutual fund) 2. Access a diversified portfolio despite making a limited investment  Our primer Investing in Mutual Funds should educate you a lot more on the benefits of investing in mutual funds and strategies you could employ.

6. Life Insurance Policies

Don't buy life insurance solely as an investment  Life insurance premiums, depending upon the policy selected, include the costs of -  1) death-benefit coverage  2) built-in investment returns (average 8.0% to 9.5% post-tax) 3) significant overheads, including commissions.  This implies that if you buy insurance solely as an investment, you are incurring costs that you would not incur in alternate investment options.  It is, however, important to insure your life if your financial needs and profile so require. Use our Are You Adequately Insured planning tool to find out if you need life insurance, and if yes, how much.

7. Equity Shares

Maximum returns over the long-term, invest funds you do not need for at least five years  There are two ways in which you can invest in equities-  1. through the secondary market (by buying shares that are listed on the stock exchanges)  2. through the primary market (by applying for shares that are offered to the public)  Over the long term, equity shares have offered the maximum return to investors. As an investment option, investing in equity shares is also perceived to carry a high level of risk.

Admission to BBA/MBA in IIPM

Please contact Ankur Kumar Goel @9958797172 and ankurkumar.goel@gmail.com for admission in IIPM for BBA and MBA program:

Details of program is following:

UNDERGRADUATE

There are different kind of courses:

1. ISBE BBA(B)- This is a normal BBA programme in which student gets his/her degree from Gulbarga University, Karnataka. He gets additional laptop and study material in this course. The approx fees structure would be 6.25 lac for 3 yrs.

2. IIPM BBA-MBA(A)- This is a 3 year course in which students complete his BBA and MBA.

Ø  Study trip to USA/UK for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Certificate on Advance Global Management

Ø  Triple Specialization course- 1.Marketing compulsory, 2. Select from HR or Finance and 3. Select from Leadership, Entrepreneurship, Supply Chain Management, IB, Int. Marketing and IT

Ø  Student get Diploma after 3 years and get Degree after 2 years of work experience.(in short 5 yr course which includes 3 yrs of study and 2 yrs of work exp.)

Ø  Approx fee structure 18 lacs

2. IIPM BBA-MBA(B)- This is a 3 year course in which students complete his BBA and  MBA.

Ø  Study trip to Europe for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Certificate on Advance Global Management

Ø  Dual Specialization course- 1.Marketing compulsory, 2. Select from HR or Finance.

Ø  Student get Diploma after 3 years and get Degree after 2 years of work experience.(in short 5 yr course which includes 3 yrs of study and 2 yrs of work exp.)

Ø  Approx fee structure 17 lacs

3. IIPM BBA-MBA(C)- This is a 3 year course in which students complete his BBA and  MBA.

Ø  Study trip to Dubai for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Single Specialization course- Select from Marketing/HR/Finance/IT/Marcom

Ø  Student get Diploma after 3 years and get Degree after 2 years of work experience.(in short 5 yr course which includes 3 yrs of study and 2 yrs of work exp.)

Ø  Approx fee structure 16.25 lacs

4. ISBE BBA-MBA(A)- This is a 3 year course in which students complete his BBA and  MBA.

Ø  Study trip to Singapore for 1 weeks

Ø  Degree awarded from Gulbarga University, Karnataka.

Ø  Diploma From IIIPM School for Business and Economy

Ø  Single Specialization course- Select from Marketing/HR/Finance/IT/Marcom

Ø  Student get Diploma after 3 years and get Degree after 2 years of work experience.(in short 5 yr course which includes 3 yrs of study and 2 yrs of work exp.)

Ø  Approx fee structure 11.75 lacs

ü  Fee is paid in one retention and 6 equal installment in 1 and half year time.

ü  We have 2 batches ie July and April

ü  Laptop is included in all the courses

POSTGRADUATE

There are different kind of courses:

1. ISBE MBA(B)- This is a normal MBA programme in which student gets his/her degree from Gulbarga University, Karnataka.He gets diploma along with a degree from ISBE. He gets additional laptop and study material in this course. The approx fees structure would be 6 lac for 2 yrs.

2. IIPM MBA(A)- This is a 2 year course in which students complete his MBA.

Ø  Study trip to USA/UK for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Certificate on Advance Global Management

Ø  Triple Specialization course- 1.Marketing compulsory, 2. Select from HR or Finance and 3. Select from Leadership, Entrepreneurship, Supply Chain Management, IB, Int. Marketing and IT

Ø  Approx fee structure 13.25 lacs

5. IIPM MBA(B)- This is a 2 year course in which students complete MBA.

Ø  Study trip to Europe for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Certificate on Advance Global Management

Ø  Dual Specialization course- 1.Marketing compulsory, 2. Select from HR or Finance.

Ø  Approx fee structure 12.15 lacs

6. IIPM MBA(C)- This is a 2 year course in which students complete his MBA.

Ø  Study trip to Dubai for 2 to 3 weeks

Ø  Degree awarded from IMI, Belgium.

Ø  Diploma From IIPM

Ø  Single Specialization course- Select from Marketing/HR/Finance/IT/Marcom

Ø  Approx fee structure 11.45 lacs

7. ISBE MBA(A)- This is a 2 year course in which students complete his MBA.

Ø  Study trip to Singapore for 1 weeks

Ø  Degree awarded from Gulbarga University, Karnataka.

Ø  Diploma From IIIPM School for Business and Economy

Ø  Single Specialization course- Select from Marketing/HR/Finance/IT/Marcom

Ø  Student get Degree after 2 years.

Ø  Approx fee structure 8.55 lacs

ü  Fee is paid in one retention and 4 equal installment in 1 year time.

ü  We have 2 batches ie July and April

ü  Laptop is included in all the courses

Higher Education in India

India is a vast pool of talent despite of a large number of population is not completed its post graduation. In west post graduation is the most valued thing but in our country student does not think about completing post graduation due to various factors like lack of knowledge about PG, funds,and good institutions.  Our leaders have been approved numerous pilot projects to strengthen PG education system but somehow those projects have not succeed. There are several reasons why those were not successful.
Coalition govt is one of the reason of failure of the these system. One some govt implemented that higher education should not be more then one third of average income of Indian house hold. Most of the universities and institution had agreed to this rule but some exceptional institute had objected and as soon as that govt fell, next govt abolished this rule and roll backed fee structure to original one. That decision impacted the dream of a common man to become a post graduate at nominal fee because one could not eligible to education loan due to low income group. Now you will see that student from sound financial background does his post graduation. A very small number of students from poor background reaches to the level of post graduation.
One HRD minister had approved large number of private universities to cater higher education but he forgot to underline quality of education provided by those universities. Some of universities do not have proper infrastructure to facilitate research work and post graduation. Those do not have proper faculty which can provide best teaching to their students.
In my opinion, these universities must run under public private partnership. Private group will facilitate the infrastructure and public companies will provide best teaching experience.