Q1. WHAT IS DIFFERENCE BETWEEN PREFERENCE AND EQUITY SHARES?

1)Preference Shares have 2 preferences first payment of dividend in every year in which
dividend is proposed & first share capital of preference shares will be payab;e @ winding up or
liquidation of the company,where as equity share holders dividend after preference share holders
& even share capital capital is also paid after paying to preference share holders.
2)preference share holders are not owners of the company and do not enjoy any voting right.
Where as Equity Shares has voting right & they are the real owners of company.
3)Preference Shares have a finite tenure and carry a fixed rate of dividend where as dividend to
equity shares is payable rest of the dividend payable after preference share holders.

Q2. DIFFERENCE BETWEEN SHARES AND MUTUAL FUNDS

A share is a unit of ownership of a company that is issued by the company to raise finance to
enable it to extend its scope or fund other growth related initiatives. A shareholder is a part
owner of the company who can influence decisions related to new business ventures and the like
and also receives a share of the profits generated known as dividends.

Mutual funds on the other hand are investment opportunities offered by a finance institution
which may be in the form of shares, bonds and other forms of securities that are then reinvested
in other ventures with the institution taking care of the entire transactions.

The essential difference between the two is that a share has the advantage of the holder
discerning market trends with respect to the specific company while in a mutual fund the
investor often cannot determine the exact channels of return on investment which is the domain
of the portfolio manager in charge of the mutual fund.

However unlike shares where often the individual has to handle the entire financial element
which may not be his domain in a mutual fund one's money is taken care of professionally.

Also since mutual funds typically invest in different sections of the economy the risk factor in
case the investment fails, is spread out as compared to shares; also mutual funds are easier to
liquidate than shares owing to the nature of investment.

Mutual funds with respect to their working are a better option as compared to investing in stocks,
being affordable as also all inclusive in nature. However both shares as well as mutual funds
require the holder to pay charges like transaction fees in case of shares and annual fees in case of
a mutual fund as well as the payment of taxes by the beneficiary.

Q3. portfolio analysis

Definition

Analyzing elements of a firm's product mix to determine the optimum allocation of its
resources. Two most common measures used in a portfolio analysis are market growth
rate and relative market share
Q4. What are infrastructure bonds?

In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (“Income Tax
Act”) to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant
to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated
July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of
investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh
deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act.
Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.

Long term infrastructure Bonds by IDFC

IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the
second public issue of long-term infrastructure bonds by IDFC in the nature of secured, redeemable, non-
convertible debentures of the Company of face value of Rs. 5,000 each, having benefits under section 80
CCF of the Income Tax Act for an aggregate amount not exceeding Rs. 29,289.64 million (“Tranche 2
Bonds”) issued pursuant to the Prospectus - Tranche 2 dated January 4, 2011 (“Prospectus – Tranche
2”) (the “Issue”). These bonds have got rating of LAAA by rating agency ICRA and AAA (ind) by FITCH
indicating a stable outlook.