Financial sets is a term used to refer to the sets provided by the finance market. Financial sets is also the term used to describe organisations that deal with the management of money. Examples are the edges, investment edges, insurance companies, credit card companies and stock brokerages.
It is part of financial system that provides different types of finance by various credit instruments, financial products and sets.
These are the types of firms comprising the market, that provide a variety of money and investment related sets. These sets are the largest market resource within the world, in terms of earnings.
The challenges faced by the these sets market are forcing market participants to keep speed with technological advances, and to become more proactive and efficient while keeping in mind to reduce costs and risks.
These sets have been able to represent an increasingly meaningful financial driver, and a meaningful consumer of a wide range of business sets and products. The current Fortune 500 has listed 40 commercial banking companies with revenues of almost a $341 trillion, up a modest 3% since last year.
Importance of Financial sets:-
It serves as the bridge that people need to take better control of their finances and make better investments. The financial sets offered by a financial planner or a bank institution can help people manage their money much better. It offer clients the opportunity to understand their goals and better plan for them.
It is the presence of financial sets that enables a country to enhance its economic condition whereby there is more production in all the sectors leading to economic growth.
The assistance of economic growth is reflected on the people in the form of economic wealth wherein the individual enjoys higher standard of living. It is here the financial sets permit an individual to acquire or acquire various consumer products by hire buy. In the time of action, there are a number of financial institutions which also earn profits. The presence of these financial institutions promote investment, production, saving etc.
Customer-Specific: These sets are usually customer focused. The firms providing these sets, study the needs of their customers in detail before deciding their financial strategy, giving due regard to costs, liquidity and maturity considerations.
Intangibility: In a highly competitive global ecosystem brand image is very crucial. Unless the financial institutions providing financial products and sets have good image, enjoying the confidence of their clients, they may not be successful.
Concomitant: Production of these sets and supply of these sets have to be concomitant. Both these roles i.e. production of new and inventive financial sets and supplying of these sets are to be performed simultaneously.
inclination to Perish: Unlike any other service, financial sets do tend to perish and hence cannot be stored. They have to be supplied as required by the customers. Hence financial institutions have to ensure a proper synchronisation of need and supply.
People Based sets: Marketing of these sets has to be people intensive and hence it’s placed under tendency to change of performance or quality of service.
Market Dynamics: The market dynamics depends to a great extent, on socioeconomic changes such as disposable income, standard of living and educational changes related to the various classes of customers. consequently financial sets have to be regularly redefined and perfected taking into consideration the market dynamics.
Promoting investment: The presence of these sets creates more need for products and the producer, in order to meet the need from the consumer goes for more investment.
Promoting savings: These sets such as mutual funds provide abundant opportunity for different types of saving. In fact, different types of investment options are made obtainable for the convenience of pensioners in addition as aged people so that they can be assured of a reasonable return on investment without much risks.
Minimizing the risks: The risks of both financial sets in addition as producers are reduced by the presence of insurance companies. Various types of risks are covered which not only offer protection from the fluctuating business conditions but also from risks caused by natural calamities.
Maximizing the Returns: The presence of these sets enables businessmen to maximize their returns. This is possible due to the availability of credit at a reasonable rate. Producers can avail various types of credit facilities for acquiring assets. In certain situations, they can already go for leasing of certain assets of very high value.
assistance to Government: The presence of these sets enables the government to raise both short-term and long-term funds to meet both revenue and capital expenditure. by the money market, government raises short term funds by the issue of Treasury Bills. These are purchased by commercial edges from out of their depositors’ money.
Capital Market: One of the barometers of any economy is the presence of a vibrant capital market. If there is hectic activity in the capital market, then it is an indication of the presence of a positive economic condition. These sets ensure that all the companies are able to acquire adequate funds to raise production and to reap more profits ultimately.