AIM India Pvt. Ltd.

Day -1
HR session

1. Managing Payrolls-

Payroll Management System is the system by which an employer can manage the salaries of the
employees. The salary structure includes salary, allowances, deductions, and net payable to the
employees. It also deals with the generation of pay slips.

On boarding-
Onboarding definition is - the act or process of orienting and training a new employee. How to use
onboarding in a sentence.

Onboarding is a human resources industry term referring to the process of introducing a newly hired
employee into an organization. Also known as organizational socialization, onboarding is an
important part of helping employees understand their new position and job requirements.

Employee onboarding is the process of inducting new employees into your business. It typically
involves taking the necessary steps to ensure that new hires are welcomed into their new role, have
a thorough understanding of the company and its mission, and have clear expectations of their role’s
responsibilities.

From start to finish, there are several steps to cover to ensure that your new hire gets the best first
impression possible before, during and after starting in their new role. Some of these steps include
the job offer, pre-onboarding material, the schedule of their first day and set them up with any
resources they need to complete their job.

Employee onboarding is not a one and done process. It should start from the job offer and continue
into and far beyond their probationary period. By placing extra focus on your employee onboarding
strategy, you can ensure that your new hires feel empowered and motivated to start on the right
foot.

Gathering, Storing and Accessing employee information:

Keeping attendance records & tracking absenteeism

Performance Evolution

Benefit administration

Learning management

Employee self service

Employee scheduling

Analytics & informed decision making

2. Taxation
- Introduction (Setting the Context)
- Basics
 - Classifying your market activity
- Taxation for investors

Days-2

Applied to Deductible (ATD): The amount of money your insured client pays that goes towards
paying their annual deductible. The amount of the deductible can vary, depending on insurance plan
and provider. Assignment of Benefits (AOB): Insurance payments paid directly to the provider (that is
you).
80(c) = basically if you have 10 lakh and you spent 150000 in the given products then you don't have
to pay any tax on 150000.

GST

Type of GST

Previous year

PPF

FD

Mutual Fund

Karta

Karma

HUF

Proprietor

Tuition fee

Income Tax 1961

Section 80C

Section 10 10 D

ATC

ATD

OLD slab vs New Slab

Old Slab-
0-250000 - Nil

250000-500000 -@5%

500000-1000000 -@20%

Above 1000000 -@30%

34
 Day-3

Mutual Fund-

mutual funds are the diversified investments in which we invest the money according to the
requirement of the customer to get higher return with lesser risk.

Share market-

NSE

BSE

NIFTY is a market index introduced by the National Stock Exchange. It is a blended word – National
Stock Exchange and Fifty coined by NSE on 21st April 1996. NIFTY 50 is a benchmark-based index and
also the flagship of NSE, which showcases the top 50 equity stocks traded in the stock exchange out
of a total of 1600 stocks.

Share Market
A market where shares are publicly issued and traded is known as a share market. The answer to
‘what is stock market’ is pretty similar to that of a share market.

On a stock exchange, one can only buy and sell those stocks that are listed on it. Hence, buyers and
sellers meet on a stock market. India’s prime stock exchanges are the National Stock Exchange and
the Bombay Stock Exchange.

Advantages of Investing in Stock Market

1. Chances of Exceedingly Good Returns in Short Time

Even in the past people have gained exceedingly good returns on their stock market investments,
and you always stand a good chance to earn huge profits when you decide upon stock market
investing. So, when you invest in stock market India, although you put yourself at a lot of risks, you
are also in a position to earn good returns in a very short time.

2. Minority Ownership

Well, it does sound like an exaggeration, but when you put your money in a reputed company’s
stocks, you become a part-owner of the company, irrespective of however smaller your share may
be. You can improve your standing in the market by sagaciously putting your money in different
companies. Moreover, you can exit whenever you want.

3. Right to Vote

Minority ownership gives you the right to vote and voice your opinions at the corporate level.

Disadvantage

1. Volatile Investments

Investment in BSE is subjected to many risks since the market is volatile. The shares of a company go
up and come down so many times in just a single day. These price fluctuations are unpredictable
most of the times and the investor sometimes have to face severe loss due to such uncertainty.

2. Brokerage Commissions Kill Profit Margin

Every time an investor buys or sells his shares, he has to pay some amount as a brokerage
commission to the broker, which kills the profit margin.

3. Time Consuming

Investment in NSE is not as easy as investing in a lottery as you have to complete many formalities in
the process and hence is time consuming.

PPF

Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of
interest and returns on the amount invested. The interest earned and the returns are not taxable
under Income Tax. One has to open a PPF account under this scheme and the amount deposited
during a year will be claimed under section 80C deductions.

Advantage :

Safest Investment Avenue:

The biggest benefit of public provident fund is that it is backed by the government. This means that
there are no chances of defaults or your principal amount losing value. In other forms of investment
such as equities, your initial investment may reduce. While the probability of loss reduces in the long
term, many investors want a secure investment option that is fully backed by the government.

Assured returns

PPF comes with assured returns. The rate of interest is revised every quarter and you can easily
know the prevailing rate of interest. This gives comfort and helps you to sleep peacefully at night as
you know that your investments are safe and it is giving you a certain interest rate.Also, the returns
are compounded annually.

Tax benefits

PPF is one of the investment options that fall under Exempt-Exempt-Exempt (EEE) category. For
investments up to Rs.1.5 lakh per year, you can avail tax deductions under section 80C of the Income
Tax law. Also, the accumulated amount and interest is also exempted from tax at the time of
redemption.

Options to invest in PPF

You can invest in public provident fund by putting a standing instruction of auto-debit from your
savings account. This will allow you to invest in a systematic manner without facing any trouble to
invest a large amount near the financial year end. Also, lumpsum investment is also available and
you can invest as per your wish.

Disadvantage

• Accumulated Corpus may not high

• While PPF gives assured interest, the accumulated corpus may not be as high compared to
other equity investment options like equity-linked saving scheme. Past data shows that
 equity mutual funds have outperformed other asset classes in the long run. So, if you can
take risks and want a higher investment corpus, invest in equity mutual fund.

• Longer lock-in period

• Provident fund investment has a longer lock-in period of 15 years. Thus, it is not liquid like
other investment options like mutual funds that do not have any lock-in. Also, equity-linked
saving scheme(ELSS) a tax saving mutual fund under Section 80C has the lowest lock-in
period of 3 years.

• Upper limit

• PPF has an upper investment limit of Rs.1.5 lakh. Investments above this limit do not fetch
any returns. Other investment options do not have any upper limit.

Post Office

• Advantage-

• Tax efficiency is highly acknowledged feature of post office saving scheme. Some of the
schemes such as National Saving Certificates come with tax exemptions on deposit amount
under Section 80C. Also, some schemes like Kisan Vikas Patra offer tax deductions on the
earned interest.

• There is no TDS on interest from post office RD. However, income is taxable in the hands of
investor as per their individual tax slab. It's one of the best investment choices for every
investor who is looking for risk-free investment avenue to save some amount every month
systematically.

• it is safe as investments under Post Office bear sovereign guarantee of Government of India.
All these schemes are tax exempt up to a certain limit and some schemes like PPF, Sukanya
Samridhi Yojna have tax benefits on returns as well.

Disadvantage

• Post Office Savings Schemes are not digitized:

Unlike other investment avenues like Mutual Funds, Equity, Gold etc it is not possible to operate
your Post Office Savings Schemes account online i.e. you cannot track your account or invest online.

Mutual Fund

• A mutual fund is an open-end professionally managed investment fund that pools money
from many investors to purchase securities. Mutual funds are "the largest proportion of
equity of U.S. corporations." Mutual fund investors may be retail or institutional in nature.

• Advantage to invest money in mutual fund:

• Liquidity
• Diversification
• Expert Management
• Less cost for bulk transactions
• Invest in smaller denominations
• Suits your financial goals
• Cost- Efficiency
 • Quick and hassle-free process
• Tax –efficiency
• Automated payment
• Safety
• Systematic or one-time investment

Disadvantage

• Costs of managing the mutual fund

• Exit Load

• Dilution

Gold
Advantage of investing in gold

 Gold is hedge against inflation

 Liquidity

 Diversification

 Holds its value over a long period of time

 Most desired commodity

Disadvantage

• Gold is not a passive investment

• Gold is difficult to store

• Price correction can lead to losses

Real Estate

• Advantage

 Real Estate Can Be Easier to Understand

 Real Estate Is Improvable

 Real Estate is a Hedge Against Inflation

 Real Estate Properties Exist in an Inefficient Market

 Real Estate Can Be Financed and Leveraged

Disadvantage

• Real Estate Has Higher Transaction Costs

• Real Estate Has Low Liquidity

• Real Estate Requires Management and Maintenance

• Real Estate Markets Have Significant Inefficiencies

• Real Estate Creates Liabilities

Bank

• Advantage

 Bank Accounts are Insured

A bank account is one of the safest places you can invest your cash.

 Certainty of Future Funds

When you invest in a bank account, you can determine fairly accurately the amount
of money you will have at a specific date in the future. Bank accounts avoid market
fluctuations that are typical of other investments, such as stocks, and typically pay
fixed interest.

Disadvantage

• Low Returns
The interest you earn in a bank account is typically lower than the returns of other
investments. When you factor in income taxes on interest, your money might fail to keep up
with inflation, or the gradual increase in the prices of goods and services.

• Account Fees
Banks sometimes charge fees that can exceed the interest rate on your account and eat
away at your investment. Some fees might come standard with a particular account, such as
a maintenance fee or ATM fees.

Insurance

• Insurance provides benefits as well as a disadvantage to an individual, family, businessman

as well as a society. This note has information about advantages and disadvantages of
insurance.

• Advantages of insurance

 Provides economic protections

 Shares risks

 Maintain standard of living

 Encourage saving

 Eliminates dependency

 Grant loan

 Create employment opportunity

 Promotes foreign trade

 Helps to operate business smoothly

 Help to reduce inflation

 Help to develop economy

Disadvantage
 1. It does not compensate all types of losses which caused baisness to insured by insurance
company.

2. It takes more time to provide financial compensation because lengthy legal formalities.

3. Although insurance encourages savings, it does not provide the facilities that are provided
by bank.

4. It intentionally tries to compensate as less as possible to the sufferer with the aim of

maximizing profit rather than maximizing well-being of the insured.

5. It may lead to the crimes in the society as the beneficiaries of the policy may be tempted to
commit crimes to receive the insured amount.

6. Sometimes, the total amount of premium might be higher than the policy amount receivable
on maturity.

Portfolio management terms

Accpectation and
Investment bond +life cover
Product – bank of Baroda
1. Good return
- Most investors would view an average annual rate of return of 10% or more
as a good ROI for long-term investments in the stock market. However, keep
in mind that this is an average. Some years will deliver lower returns --
perhaps even negative returns. Other years will generate significantly higher
returns
2. Flexible tenure
- A type of shared ownership housing under which people can vary the stake
in the ownership of their home according to their circumstances.
3. Revisionary bonus
- A reversionary bonus is a bonus added to the value of a life insurance policy.
- The profits are allocated to each with-profit policy and are paid as
reversionary bonuses in addition to the specified sum insured.
- Holders of with-profits policies will receive a share in the surplus usually by
allocation as a reversionary bonus added to the sum assured and payable
with it.
- A reversionary bonus is a bonus added to the value of a life insurance policy.
4. Liquidity
- Liquidity refers to the efficiency or ease with which an asset or security can
be converted into ready cash without affecting its market price. The most
liquid asset of all is cash itself.
- Liquidity refers to the ease with which an asset, or security, can be
converted into ready cash without affecting its market price.
 - Cash is the most liquid of assets while tangible items are less liquid. The two
main types of liquidity include market liquidity and accounting liquidity.
- Current, quick, and cash ratios are most commonly used to measure
liquidity.
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5. Surrender
6. Liquidity
7. Transparency
8. Life cover
9. Ease of power
10. Ease of document
11. Digitalization
12. Customer support
13. Fixed and assured returns
14. Inflation
15. Allocation of the money
16. All the payment models options
17. Customization
18. Additional income
19. All age benefits
20. No extra charge
21. No penalties on premature
22. Loan facility
23. Good will and brand own investment
24. Nominee
25. Objective alignment
26. Two way communication
27. Timing rewards
28. Accessibility/ approachability
29. No blocking period
30. Govt. backbone in the sector
31. Company past performance
32. Retirement option
33. Sustainable growth
34. Legal involvement