From the above, it is evident that the policy has clearly specified the types of investments and proportion of investment to be made in each instrument. In September, 1994, LIC Mutual Fund launched Dhanasamridhi, a pure growth oriented scheme. The investment policy, as stated in its offer document, contains the types of investments, their risk and the proportion of investment, the policy also contains in which industries the funds are going to be invested. In the case of debt investments, LIC Mutual Fund has stated the quality of instrument in terms of rating. It is a welcome trend in the disclosure practice of the investment policy. However, the risk indicated in the offer documents is descriptive and provides only rough idea about the risk. …show more content…
The basis and policy of investment underlying the scheme is to invest in equity and equity related instruments, and a small portion in debentures and money market instruments. Dhanvarsha (12) launched on 1st April, 1998 as a five year close ended cum growth scheme was made open ended with effect from 1st June, 2003 and renamed as LIC Nomura MF Monthly Income Plan. The investment objective of the scheme is to provide regular income by investing mainly in quality debt and money market instruments. It also seeks to generate long term capital appreciation by investing in equity and equity related instruments. This scheme has four options like monthly dividend option, quarterly dividend option, yearly dividend option and growth option. The basis and policy of investment underlying the scheme is to invest in quality debt instruments, equity and equity related instruments and money market …show more content…
This scheme offers dividend payout and growth option. The primary investment objective of the scheme is to seek to generate capital appreciation, from a portfolio that is substantially constituted of equity securities which are specified as eligible securities for Rajiv Gandhi Equity Saving Scheme (RGESS). The Scheme may also invest a certain portion of its corpus in cash & cash equivalent and money market instruments from time to time. There is no assurance that the investment objective of the scheme will be realized.
The investment policy followed by LIC Nomura MF is governed by the type of scheme. A growth scheme would have a predominant accent on equities. For an income scheme, high
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degree of investment in debt instrument is required to generate a steady flow of returns to investors. LIC Nomura MF mobilizes funds from various mutual funds schemes. These funds are invested in different categories such as equity shares, debentures and bonds, government securities, deposits and others. The funds are invested keeping in mind the safety, liquidity and yield. Table 6.4 shows the performance of LIC Nomura MF on the basis of number of investors, fund mobilized from all live schemes and Asset Under Management
According to popular history, democracy, acceptance and equal opportunities for all, were integral parts of society in the United States ever since the settlement of the New England colonies. In Lockridge 's book, he attempts to dispel these myths by using the New England town of Dedham as a case study showing that although Dedham had some these uniquely 'American ' aspects, the majority of them were in fact gradually developed over time.
approach was to be utilized as a framework for financing (Kronenfeld, 2011). In 1972, benefits
Ross, S.A., Westerfield, R.W., Jaffe, J. and Jordan, B.D., 2008. Modern Financial Management: International Student Edition. 8th Edition. New York: McGraw-Hill Companies.
This paper will serve as a discussion on the topic of investment banking. In this paper the author includes various articles and thoughts that help to understand the background and principle of investment banking. This discourse will attempt to address this issue through explaining what investment banking is, introducing major investment bankers, and how investment banking affects our globally economy. Investment Banking Defined Investopedia (2008) stated this definition about investment banking, “A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
According to Kim (2000), utilizing bond markets for financing is important for several reasons: (i) it helps to diversify the sources of infrastructure financing; (ii) it alleviates the uncertainties caused by the global bank disintermediation; (iii) it contributes to transforming short-term bank deposit into long-term development resources; and (iv) it contributes to enhancing ...
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.
Brealey, Richard A., Marcus, Alan J., Myers, Stewart C. 1999, Fundamentals of Corporate Finance, 2nd edn, Craig S. Beytien, USA.
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.
The Dhammapada is a Pali version of one of the most popular text of the Buddhist canon. The Dhammapada, or “sayings of the Buddha”, is a collection of 423 verses that tell about the ideals and teachings of the Buddha. When taken together, these verses provide a structured form of teaching within the Buddhist religion. These verses are a kind of guiding voice to the path of true enlightenment.
For issuing preference share there is no need to create mortgage on assets. So, companies have option to raise extra fund without any hurdles by creating charge on assets.
Functions performed by financial intermediaries can be categorized into three functions; (1) maturity transformation, (2) risk transformation, and (3) convenience denomination. With maturity transformations, intermediaries convert short-term liabilities to long term assets. This conversion is common with banks and other institutions that provide liquidity for entrepreneurs, giving a short term debt a match with a long term loan. Rather than constantly evaluating short term loan options and rolling over the debt balance, a longer term commitment is able to be made that locks in a lower rate to benefit all parties. Additionally, intermediaries can provide risk transformation, which offer the ability to convert risky investments into relatively risk-free by lending to multiple borrowers to spread the risk. By pooling the funds of multiple investors, the intermediary – such as a mutual fund – inherently provides diversification and tolerance against a single investment producing undesirable results. Finally, convenience denomination is provided by an intermediary. With a large quantity of deposits being held at a financial intermediary, they are able to match small deposits with large loans, and larger deposit...
Machiraju, H. R. , 2002. International Financial Markets And India. 1st ed. New Delhi: New Age International.
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.
I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more! The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.