Bank Theory

Investment Management & Portfolio Concepts - Bank Theory Investment Management & Portfolio Concepts 1. Element of Investment Investment involves the allocation of resources, usually money, in expectation of generating an income or profit. The key elements include: Return: The gain or loss from an investment. Risk: The possibility of loss of capital. Time Horizon: The period the investor intends to hold the investment. Liquidity: The ease of converting the investment into cash. Tax Benefits: Associated with specific instruments like ELSS or PPF. 2. Basics of Investment Management Investment Management refers to the professional management of different securities and assets to meet specific investment goals. 3. Steps in Investment Management Setting investment objectives Portfolio strategy formulation Securities selection Portfolio execution Performance ev...

Banker Ancillary Services - Bank Theory Banker Ancillary Services - Bank Theory Remittances: Introduction Remittance services allow the transfer of funds from one person or entity to another through banks. These services play a vital role in enabling secure and timely fund movement both domestically and internationally. Demand Drafts (DD) and Banker’s Cheques (BC) Demand Drafts are prepaid negotiable instruments used for remitting money across locations. Banker’s Cheques are similar but used within the same city and are non-negotiable. Mail Transfer (MT) Mail Transfer refers to the instruction sent by a bank via post to another branch to pay a specified amount to a named person. Telegraphic Transfer (TT) TT involves remittance of funds through telegram or fax. Though obsolete, it was widely used before digital methods became prevalent. National Electronic Funds Transfer System (NEFT) NEF...