Important Points for IC 99 - Asset Management Exam
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As per IRDA Investment Regulations 2013, non-life insurers are required to invest in Central Government Securities, State Govt. Securities & or other approved securities for not less than 30% of Investment assets.
Classification of Bonds (based on nature, payment of interest and maturity aspects) : Fixed rate bonds - Floating rate bonds - Callable bonds - Convertible bonds
Mutual fund is a mechanism for mobilising and pooling funds from individual and institutional investors by issuing units to them and investing the mobilised and pooled funds in stocks and securities in accordance with policy and objectives of the funds concerned.
The different types of mutual fund schemes offered include : growth schemes, which provide capital appreciation over medium to long period - balanced schemes, which provide both growth and income by periodically distributing a part of income and capital gains they earn - money market schemes, which provide easy liquidity, preservation of capital and moderate income; and - tax saving schemes, which offer tax rebates to investors under tax laws as prescribed from time to time
Derivative is a financial instrument, or contract, between two parties that derive its value from some other underlying asset or underlying reference price, interest rate, or index. A derivative by itself does not constitute ownership; instead it is a contract to convey ownership. Generally for Derivatives arise out of the Underlying Securities or subject matters.
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