The LIC Mutual Fund was set up by the LIC of India in June, 1989 with the objective of mobilizing savings of people especially from rural and semi-urban areas and improving their income ensuring at the same time safety, liquidity and security of their investments. The Fund continued to work towards realizing these objectives. The Assets under Management (AUM) of LIC Nomura MF AMC Ltd. stood at Rs. 6112.16 crores as on 31st March, 2013 with a market share of 0.86%. Mutual Fund Industry‟ AUM as on 31st March, 2013 stood at Rs. 711137.38 crore. The total number of investors as at 31st March, 2013 was 321491. During the year dividends were distributed under debt and debt oriented schemes. It is expected that the LIC Mutual Fund will accord a high priority in its marketing strategy to tap the vast potential of semiurban and rural areas where LIC has already a strong presence.
6.7.4 Investment Policy of LIC’s Mutual Funds The main objective is to discuss the investment policy as disclosed by the mutual fund offer documents and as reflected in the asset allocation at the end of the accounting year. This is
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For implementing a policy so evolved, a decision or a set of decisions will have to be taken which may be regarded as policy decisions. For instance, a mutual fund or an income oriented scheme may decide not to invest more than 30% of its funds in equity shares and for a growth scheme, not to invest more than 40% of its funds in debentures and bonds. In accordance with the investment objectives of the scheme, mutual funds may select and invest in various types of securities such as equity shares, fixed income securities and money market securities. The allocation of securities in each scheme depends upon the investments objective of the scheme, subject to stipulations laid down by SEBI
Mutual funds were long considered one of the best available easy-to-invest instruments that minimized risk and maximized returns. In the 80’s and 90’s, the US financial markets made trillions of dollars with the mutual fund structure. The funds, especially the most actively managed ones, were expected to outperform the market index in the long run. However, with expense ratios ranging as high as 1.5% to 2.5%, the funds underperformed the index by the amount of their expense ratio.
What caused managed futures amid poor performance, and how will manage futures perform in a rising interest rate environment?
A investment that considers to be passive in securities that permits an investor to multiply his/her beginning capital investment on many securities all while earning profits.it consist of having power over securities by an investor along with active management by an investor over a certain period of time. The reason for the investment will be expected to be primarily for financial gain. During the course of this paper there will discussion trying to analyze a common portfolio including a beginning capital input of $10,000 given that the allocation to the portfolio. Also it will include certain investments started under the portfolio including their possible profit. This paper will consist of a table of their investment that has been offered for reference.
The advantages of retaining internal control on endowment allocation across asset classes and managers are the assets manage by internal managers. Because of it, the decision making between Kings College bursar and investment committee regarding the endowment performance is efficient. Moreover, Kings College has no relationship and no administrative burden to take care of. Finally, passive investment in equity index funds fit with the risk preferences of investment committee. The long-run objectives were to achieve total return of 3.35% with the least possible risk.
Over the previous five years, the return of the ProIndex fund have outperformed the S&P 500 index, as the 5-year-return is nearly 3 times than the benchmark and the annualised return is nearly 2 times than the benchmark. It means ProIndex fund has a significant increase in value within that period. However, the ProIndex Fund has a higher standard deviation which means it is more risk than the S&P 500 index. Especially for the annualised standard deviation, it is approximately 10% higher than the benchmark. The correlation coefficient between the ProIndex and benchmark is about 0.65 which means both two variables are positive changing consistently, but there are still some other factors which have impacts on the relationship between two variables as the correlation is less than 1. Furthermore, the higher beta, 1.0132, which is more than 1 and it may be one of the reasons for high risk as well since it is more sensitive to the market change. It means that the ProIndex fund would increase by 1.0132% if the market increased by 1%.
As the newly promoted manager for Morningstar, Inc. and with the agency considering dropping stocks and bonds and focusing solely on mutual funds, I would have to think about the prospect of this venture and do some research of the agencies financial status in order to be able to thoroughly analyze this undertaking.
Dimension’s higher detail into programs and course of action with investor funds give this maxim
Answer of the question one will give overview progress, update of the primary asset. Financial and performance information needed as major part of the investment planning phase. The investment decision making is then determined by Question two, where the answer will provide in brief the levels of servi...
This structure was beneficial for the decision-making and profit generation for the clients and gave incentive to the fund manager to get a good investment performance. If clients were solely focused on investment performance and the entire peer group also kept to adopt the traditional model, this approach proved effective to business growth.
According to Investopedia (Asset Allocation Definition, 2013), asset allocation is an investment strategy that aims to balance risk and reward by distributing a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. There are three main asset classes: equities, fixed-income, cash and cash equivalents; but they all have different levels of risk and return. A prudent investor should be careful in allocating each asset class to his portfolio. Proper asset allocation is a highly debatable subject and is not designed equally for everybody, but is rather based on the desires and needs of the individual investor. This paper discusses the importance of asset allocation, the differences and the proper diversification within the portfolio.
ensure that the investment of funds pertaining to any scheme is not contrary to the provisions of these
For an organisation to rise fund, they usually tend to look at the stock market and capital market to do it so. This is two markets are usually seemed similar by the investors as they both contributes to the development of an economy. But there are significant difference between them. The capital market is a market that consist of stock market as well as the bond market. As a result, the capital market provides a long-standing finance using the debt capital and the equity capital. Capital markets divided into two sectors known as primary markets and secondary markets. The primary market is where securities are issued for the first time whereas the secondary market is where securities that have been already issued are traded among investors (Difference...
The execution of our investment strategy occurred in three stages. First, we invested in t-bills and bonds according to our original set out investment plan. This was to decrease potential losses and risk associated with the declining equity market. Therefore, we invested about two hundred thousand of our funds into these low risk assets to maintain buying power. Due to inflation, we did not want to lose buying power by leaving funds in an account without earning interest. Further, we invested a small portion of funds into the commodity market. With a slumping equity market and a positive outlook on the gold commodity, we invested in Gold Corporation at the same time we invested in income assets.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
Our understanding and the concept of investment in behavioural finance combines economics and psychology to analyse how and why investors make final decision. As an investor one’s decision to invest is fully influence by different type of attitudes of behavioural and psychological ( Ricciardi & Simon, 2000). Yet, in order to maximize their financial goal, investors must have a good investment planning. Furthermore , to gain a good investment planning , there must be a good decision making among investors. They have to choose the right investment plan I order to manage the resources for different type of investments not only to gain profit wise but also to avoid the risk that occur from investment.