Chapter 1 IAPM
Chapter 1 IAPM
Chapter 1 IAPM
Chapter 1
$100
Today
Defining an Investment
Any investment involves a current commitment of
funds for some period of time in order to derive
future payments that will compensate for:
the time the funds are committed (the real rate of return)
the expected rate of inflation (inflation premium)
uncertainty of future flow of funds (risk premium)
Investment Objectives
Lifestyle
Financial Security
Return
Value for Money
Peace of Mind
Elements of Investment
Return
Risk
Time
Liquidity
Tax Savings
Investment Alternatives
Shares
Debentures and Bonds
Public Deposits
Bank Deposits
Post Office Savings
Public Provident Fund (PPF)
Money Market Instrument
Contd.