...without the hassle of putting a lump sum value Lets look at how fixed deposit fairs when compared to different mutual fund scheme and evaluate the returns both of these financial instruments produce Fixed deposits vs. equity mutual fund: Equity markets offer highest return potential among any other asset classes i.e. if u look at Indian stock markets CAGR of 13% for 35 years but let’s take a example public sector of bank such as state bank of India which is safest bank in India fixed deposit offers 8 % patting up fixed deposit against equity mutual fund is unfair comparison but fixed deposit win with respect to risk which is no risk free fixed deposit need not be monitored only time when you think about fixed deposit is when you want to exit but equities need to be monitored and requires processing of information and capability of judgement but fixed deposit can be done by uneduacated also Fixed deposit vs debt mutual fund: Debt markets are fair comparison for fixed deposits because both have certain qualities such as time to maturity both produce returns by interest repayments even though debt instruments have capital appreciation that is the rare case Debt mutual funds invests in so many debt instruments such as commercial paper, bonds, T-bills and many other instruments...
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...NIKE INC. Cost of capital estimation | GROUP FINN- 400 | NIKE INC. Cost of capital estimation | GROUP FINN- 400 | Background: The case is built around the stock buy decision of Nike Incorporation by the North-Point Large Cap fund. The mutual fund manager, Kimi Ford is evaluating Nike’s financial performance. Nike’s revenues had stabilized at $9 Billion since 1997 and Net Income had fallen from $800 Million to about $580 Million. In sum, Nike was experiencing a decline in sales growth, profits as well as its market share in US. In a meeting in 2001, the management sought to increase its market exposure in the mid-priced footwear and apparel lines to revitalize growth and to cut down expenses to increase profits. These measures were expected to yield higher growth in revenues and consequently income of Nike Inc. The Issue: “The issue is the Buy or Not Buy decision of Nike Stock by the mutual fund manager.” The Issues requires the analysis of Market price per share of Nike Inc. and to value it according to the estimates of future growth. Analysts provide contradictory evidence on Buy Vs Sell of Nike Inc. Shares as well: Lehman Brothers: Buy UBS Warbug & CSFB: Not Buy The Decision Criteria: The decision to buy the stock of Nike is based upon the valuation of its share price. The current share price of Nike Inc. may be overpriced or underpriced. If it’s underpriced, the decision would be to buy the stock and if...
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...finance and corporate finance Personal finance investing in properties,fd,shares,lic mutual funds,insurance,real estates,currencies Avenues for investing and choice of investment The more risk you take the more returns yu get. Corporate finance –how activities help financial planning of Organisations Markets-financial markets(money market(short time maturity time less than 1 year) and capital market(maturity time more than I year long term eg equity shares,bonds,debentures,company puts money in fixed deposits)) Debt market vs equity market Equity is your own money.owners capital eg quity eowners equity and shareholder.it carries voting rights which means equity.no maturity period.on liquidation no promise od dividends Debt is borrowed money eg car loan,housing loan. Primary market –ipo fpo,raise issue first time,qip-the first time a shareholders buys stock from company Secondary market-shareolder starts selling on stock exchange becomes secondary market Financial securities/instrumentswhich is uniform coomon denomination or common issues same features eg every debenture 10 rs face value eg fd is not a security .security can be listed(in order to be listed it has to be uniform one common feature in all ) and traded(buying and selling) in stock market () Eg Preference shraes ,equity shares .plain borrowing and lending of money from institutions like bank Methods of fund raising ipo(initial public offer) ist time company goes to market that is not listed...
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...Abbreviations IV 1 Overview of Hedge Funds Strategies 1 2 What are Emerging Markets and why are they so important? 2 3 Why do Hedge Funds invest in Emerging Markets 6 4 DWS Invest Global EM Equities LC 8 4.1 Inside the DWS Invest Global EM Equities LC fund 8 4.2 Performance of the fund 10 5 Hedge Funds Performance in EM scientific paper review 11 6 Hedge Funds Strategies in EM and Africa 12 6.1 Investment strategies in more developed EM. 16 6.2 Hedge Fund Strategies within Africa and Sub Saharan Africa 19 7 Risk exposures in emerging markets 23 8 Conclusion 25 References 26 Tables Table 1: Hedge Fund Strategies 1 Figures Figure 1: Emerging Markets vs. Developed Markets 2 Figure 2: Emerging Markets vs. Developed Markets GDP growth in percentage 3 Figure 3: Development of the working-age population 3 Figure 4: EM vs. US: Consumption levels 4 Figure 5: EM dept. has exceeded EM 5 Figure 6: MSCI World vs. MSCI Emerging Markets 6 Figure 7: CS Hedge Fund Index vs CS EM Hedge Fund Index 7 Figure 8: Country distribution 8 Figure 9: Industry Sectors 9 Figure 10: Equity Share Distribution 9 Figure 11: Perfomanc of the fund 10 Figure 12: EM performance 13 Figure 13: Performance of EM 14 Figure 14: Hedge Fund Strategies in Africa 17 Figure 15: Hedge Fund Strategies in Asian-pacific region 17 Figure 16: Brazil Asset Class Performance 19 Figure 17: Russia and Eastern Europe Focused Hedge Funds 19 Figure 18: African Market Sources...
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...attractive to the household savers than the claims directly issued by corporations, asset transformation o FIs purchase primary securities issued by finance corporations, they finance these purchases by selling secondary securities to household investors and other sectors in the form of deposits and insurance • FIs monitor the corporations keeping agency costs to a minimum • Liquidity risk: FI securities have better liquidity than corporate securities Functions of FIs • Provide a brokerage function along with asset transformation function o Asset transformation: issuing deposits to buy primary securities • Provide transaction services and information specialists • Enact monetary policy Primary Vs secondary securities • Primary o Financial claims issued by commercial corporations are invested in real assets • Secondary- FIs buy primary securities with money from savers o Savers indirectly buy the primary securities o The information and evaluation (ex-ante), monitoring, liquidity costs and price risk are reduced through the FI FIs as delegated monitors • Depositors delegate an...
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...ssA Summer Training Project Report ON “A STUDY ON MUTUAL FUND COMPANIES IN INDIA WITH SPECIAL REFERENCE TO RELIANCE MUTUAL FUND AND UTI MUTUAL FUND.” IN [pic] SUBMITTED TOWARDS THE PARTIAL FULFILMENT OF THE MASTER’S DEGREE IN BUSINESS ADMINISTRATION 2009-2011, AFFILIATED TO GAUTAM BUDDH TECHNICAL UNIVERSITY (GBTU), LUCKNOW UNDER THE GUIDANCE OF: Mr. Sanjeev Kumar Shukla (Cluster Head- Delhi/NCR) KARVY, Ghaziabad SUBMITTED BY: SUNIL KUMAR Roll No.: 0903070054 MBA- 3rd Sem. [pic] SCHOOL OF MANAGEMENT, INDERPRASTHA ENGINEERING COLLEGE, GHAZIABAD, 201010 DECLARATION I, SUNIL KUMAR the student of Master of Business Administration, IPEC- Semester 3rd (2009-11) hereby declare that, I have completed this project on “A STUDY ON MUTUAL FUND COMPANIES IN INDIA WITH SPECIAL REFERENCE TO RELIANCE MUTUAL FUND AND UTI MUTUAL FUND.” The submitted information is true & original to the best of my knowledge. Date: Student’s Signature Place: (SUNIL KUMAR) Roll No. 0903070054 ACKNOWLEDGEMENT Before we get into thick of things, I would like to add a few words of appreciation for the people who have been a part of this project right from its inception. The writing of this project has been one of the significant academic challenges I have faced and without the support...
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...organisations, and individuals that engage in the transaction of financial instruments (securities), as well as regulatory institutions. The basic role of Financial System is essentially channelling of funds within the different units of the economy – from surplus units to deficit units for productive purposes. 1.1 COMPONENTS OF FINANCIAL SYSTEM: There are mainly three components of financial system. These are: I. Financial Market II. Financial Intermediaries III. Financial Instrument I. FINANCIAL MARKET Financial markets are a mechanism enabling participants to deal in financial claims. The markets also provide a facility in which their demands and requirements interact to set a price for such claims. Financial markets perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds. At any point in time in an economy, there are individuals or organizations with excess amounts of funds, and others with a lack of funds they need for example to consume or to invest. Exchange between these two groups of agents is settled in financial markets. The first group is commonly referred to as lenders. The second group is commonly referred to as the borrowers of funds. * There exist two different forms of exchange in financial markets. The first one is direct finance, in which lenders and borrowers meet directly to exchange securities. * Securities are claims...
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...opportunities: corporations can raise capital easier to take advantage of these opportunities. * Liquidity: an asset value also depends on how easy it is to sell it. Management’s primary goal Our focus: profit, publicity held companies Management’s goal: maximize shareholder wealth, which translates into maximizing the stock price. Maximizing shareholder value: A company’s shareholder wealth is equal to the number of shrares outstanding times market value per share. * We need to know what factors affect the stock price. * The value of a share of stock is the present value of the cash flows an “average investor” expects to receive in the future id he or she bought the stock. * Long-term view important. Market price VS intrinsic value Stock’s market price: actual market price of the share of stock. Value based on perceived returns and risk. (could be wrong) Intrinsic value: what a fully informed analyst would estimate as the “true” value of a stock...
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...the matching of sellers and buyers of various securities and advising institutional investors, government and companies on their investment strategies, on their financing needs (helping them to raise money) and their acquisitions. Two main areas: (1) Securities or capital markets divisions: trading in the equity, fixed income ,FX and commodities markets and advising and intermediating for institutional investors in those markets. (2) Corporate Finance and public finance (often referred to as investment banking) advising corporations and governments on their financing needs, including the underwriting of securities, on their merger and acquisition activities, or on their restructuring. Securities and capital markets divisions Clients are usually * Institutional investors, corporates or public entities, not private clients; * Mutual funds asset managers; * Pension Fund asset managers; * The insurance companies; * Private Banks; * Hedge Funds; * The treasury departments of large banks or large companies. Capital markets divisions * Equity division: equity research, equity sales, equity trading on cash, flow derivatives and structured products * FIRC or FICC (Fixed Income, currencies and derivatives): * Fixed income cash products, interest and credit derivatives, structured products; * FX: all currency transactions, from plain vanilla spot currency trades to sophisticated derivatives; ...
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...Savings & Mutual Funds Group 4 How can a mutual fund earn from its securities investments ? 2 ways: (1) dividends and interest (2) a security can rise in value What is a mutual fund? A Mutual Fund is an investment company that pools the funds of many individual and institutional investors to form a massive asset base. 4 Basic Types of Mutual Funds Stock Funds(also called equity), Bond Funds, Money Market Funds and Balanced Funds The two primary types of mutual funds are stock funds and bond funds. Many like to invest in index funds Stock Fund A mutual fund that invests principally in stocks. Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography: Stock funds are also categorized by whether they are domestic or international. These can be broad market, regional or single-country funds. There are so-called "specialty" stock funds that target business sectors such as healthcare, commodities and real estate. Bond Fund A fund invested primarily in bonds and other debt instruments. The exact type of debt the fund invests in will depend on its focus, but investments may include government, corporate, municipal and convertible bonds, along with other debt securities like mortgage-backed securities. bond funds provide capital preservation while maintaining a conservative stance in terms of asset allocation Money Market Fund Like bond funds, money market funds also have...
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...Case Study Outlines Part One: A New Era Founding Performance P f Trading strategy Mutual Fund & Hedge Fund u ua u d edge u d Part Two: When Genius Failed Downturn: 1998 Russian Financial Crisis Chain Reaction In the end: Bailout & Characters Part Three: Enemies are ourselves Risk Measurement Diligence, Ethics and Honesty Dili Ethi dH t Part One: A NEW ERA Founding of LTCM LTCM was founded in 1994 by John Meriwether, the former vice‐ chairman and head of bond trading at Salomon Brothers t di tS l B th LTCM was a speculative hedge fund based in Greenwich, Connecticut that utilized absolute‐ h l d b l return trading strategies combined with high leverage. The fund's operation was designed to have extremely low overhead; trades were conducted through a partnership with Bear Stearns and hi i h B S d client relations were handled by Merrill Lynch. LTCM Partners John Meriwether Former vice chair and head of bond trading at Solomon Brothers; MBA, University of Chicago Leading scholar in finance; Prof. at Harvard Co-author of Black-Scholes model; Prof. at Stanford St f d Vice chairman of the Fed; Prof. at Harvard; Arbitrage g p at Salomon; former Harvard g group ; Prof. Arbitrage group at Salomon; former Harvard Prof. Arbitrage group at Salomon; Ph D MIT Ph.D. Arbitrage group at Salomon; Ph.D. MIT Bond trader B dt d Executive at Salomon Arbitrage group at Salomon; Master in Finance, LSE Robert C. Merton Myron Scholes David W. Mullins Eric Rosenfeld...
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...first, successful companies have skilled people at all levels inside the company. Second, successful companies have a strong relationship outside the company. Third, successful companies have enough funding to execute their plans and support their operations. The skills provided are to identify and select the corporate strategies and individual projects that add value to their firm and also to forecast the funding requirements of their company, and devise strategies for acquiring those funds. B. d. Proprietorship is an unincorporated business owned by one individual. i. Advantages 1. Easy to set up 2. Few government regulations 3. Income is not subject to corporate taxation but is taxed as part of the proprietor’s personal income ii. Disadvantages 4. May be difficult for a proprietorship to obtain the capital needed for growth 5. The proprietor has unlimited personal liability for the business’s debts which can result in losses that exceed the money invested in the company 6. The life of a proprietorship is limited to the life of the founder e. Partnership exists whenever two or more persons or entities associate to conduct a noncorporate business for profit. iii. Advantages 7. A partnership have the same advantages and disadvantages as a proprietorship f. Corporation is a a legal entity separate from its owners and managers ...
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...personalised solutions to achieve your goals and objectives. Mr. Susilo Hatono Your Team of Trusted Specialists Steffi Tedjo Relationship Manager Teo Shih Jie Economist Benjamin Chong Portfolio Manager Lim Chang Tat Equity Product Specialist Cheryl Ong Fixed Income Product Specialist Natasha Wan Alternative Product Specialist 2 1 11/4/2011 Agenda for today’s meeting INTRODUCTION INTRODUCTION + + MACROMACROECONOMIC ECONOMIC OUTLOOK OUTLOOK REVIEW OF MACROREVIEW OF INVESTMENT ECONOMIC INVESTMENT OBJECTIVES OUTLOOK OBJECTIVES - Updated investment - Updated objectives investment objectives current - Review of investments - Review of current investments - Overview of Portfolio PROPOSED PROPOSED ASSET ASSET ALLOCATION ALLOCATION Equities Equities Fixed Income Fixed Income Alternative Alternative Investments Investments - Recap of Portfolio POTENTIAL POTENTIAL CONSIDERACONSIDERATIONS TIONS + + CONCLUSION CONCLUSION 3 Macroeconomic Outlook The Current Investment Environment 4 2 11/4/2011 Global Financial Markets Will there be another global economic downturn? Emerging Markets US Economy Eurozone Debt 5 Euro-zone Crisis – An Introduction Sources of Debt Tax Evasion Debt from Olympics 2004 Pension Rights...
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...explain those decisions to the people who report to them. Understanding corporate finance gives managers the information they need to inform and motivate others. There are three main forms of business organization are: sole proprietorships, partnerships, and corporations. They may start as a sole proprietorship or partnership and evolve into corporations as they grow. The proprietorship has three important advantages: it’s easily and inexpensively formed, it’s subject to few government regulations, and the business pays no corporate income taxes. The proprietorship also has three important limitations: it’s difficult for a proprietorship to obtain large sums of capital, the proprietor has unlimited personal liability for the business’s debts, and the life of a business organized as a proprietorship is limited to the life of the individual who created it.The major advantage of a partnership is its low cost and ease of formation. The disadvantages are similar to those associated with proprietorships: unlimited liability, limited life of the organization, difficulty of transferring ownership, and difficulty of raising large amounts of capital. The tax treatment of a partnership is similar to that for proprietorships, which is often an advantage.The corporate form of business has three major advantages: unlimited life, easy transfer of ownership interest, and limited liability. While the corporate form offers significant advantages over proprietorships and partnerships,...
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...Ownership Investments Ownership investments are what comes to mind for most people when the word "investment" is batted around. Ownership investments are the most volatile and profitable class of investment. The following are examples of ownership investments: Stocks Stocks are literally certificates that say you own a portion of a company. More broadly speaking, all traded securities, from futures to currency swaps, are ownership investments, even though all you may own is a contract. When you buy one of these investments, you have a right to a portion of a company's value or a right to carry out a certain action (as in a futures contract). Your expectation of profit is realized (or not) by how the market values the asset you own the rights to. If you own shares in Sony and Sony posts a record profit, other investors are going to want Sony shares too. Their demand for shares drives up the price, increasing your profit if you choose to sell the shares. Business The money put into starting and running a business is an investment. Entrepreneurship is one of the hardest investments to make because it requires more than just money. Consequently, it is also an ownership investment with extremely large potential returns. By creating a product or service and selling it to people who want it, entrepreneurs can make huge personal fortunes. Bill Gates, founder of Microsoft and one of the world's richest men, is a prime example. Real Estate Houses, apartments or other dwellings that...
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