Disadvantages and advantages of mutual funds

Disadvantages And Disadvantages Of Mutual Funds
3.1INTRODUCTION: A Mutual Fund is a kind of trust that pools money which shares common financial goals from a group of investors and invest
the money. The Fund is mainly a corporation where sole business is to collect and invest money or fund. You combine the pool by buying shares in
the fund. Then the money is invested by a team of professionals who research bond, stock and other assets and then place the money as good they can
earn the returns. There are several kinds of mutual fund. Funds can also be open ended and close ended funds. Open ended schemes sell their shares to
those who are willing to buy. The money collected is invested in capital market instruments such as debentures, shares and other securities. The income
which is been earned or got from this investment or even from capital appreciation is distributed or shared by its unit holders in proportion to the
number of units owned by them.
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Indian Mutual Fund Industry Profile Essay
Chapter 1 comprises of introduction to the topic, industry profile of Indian mutual fund, theoretical background of the study and need of the study.
Introduction is talking about what is the project is all about and how it related to the topic. The profile of Indian mutual fund industry includes history,
structure and performance of Indian mutual fund industry etc. Theoretical background of the study talks about structure of the study, and how the
theory is formulated. Need of the study is about which public sector or private sector mutual is better in case of returns.
DEFINITION
The securities and Exchange Board of India (Mutual Funds) Regulation, 1993 defines a mutual fund "a fund established in the form of a trust by a
sponsor, to raise monies by the trustees through the sale of units to the, public, under one or more schemes, for investing in securities in accordance
with these regulations".
In this study the study on the performance evaluation of public and private sector mutual funds in India is carried out through relative performance
index, risk–return analysis, Treynor 's ratio, Sharp 's ratio, Jensen 's measure. The data used is daily closing NAVs. The source of data is website of
Association of Mutual Funds in India (AMFI). The results of performance measures suggest that most of the mutual fund have given positive return
during 2013 to 2015. The financial system includes of financial institutions, instruments and markets that deliver an active

Mutual Fund : An Open End Investment
A mutual fund is an open–end investment company that invests money of its shareholders in a usually diversified group of securities of other
corporations, as defined in the Merriam–Webster dictionary. Mutual funds help with financing and investing opportunities. They give the small
investors a chance to invest their money in other areas besides stocks and bonds. There is multiple mutual funds to choose from and different reasons
why shareholders should choose them. As popular as mutual funds have become, there is downfalls to them like most investment opportunities. In
2003, mutual funds were giving a bad name when a scandal was brought public. These opportunities and issues will be discussed. Becoming major
suppliers of funds in the financial market, mutual funds have become a very popular investment in recent years. Because of the diversity of
investments, portfolio management's expertise, and liquidity, mutual funds have grown rapidly over the past few years. One of the most popular
group's investing in mutual funds is people with self–driven retirement plans. This provides professionally handled money and pooled risk. There are
more than 8,000 different mutual funds, with more than 88 million households owning shares of one or more. Mutual funds pool investments by
individual investors and use the funds to accommodate financing needs of governments and corporations in the primary markets. Investments in
securities in the secondary markets are made as well. Mutual funds

Mutual Fund Advantages And Disadvantages
There are various investment opportunities available today in financial market for an investor to avail and earn returns. An investor has different
options available today ranging from bank deposits, debentures, fixed income, etc. where there is low risk as well as low return; to equity market
having a higher return to higher relative risk. Mutual Fund is an investment scheme which pools money from investors to invest in a diversified
portfolio of stocks. Every investor wants to invest in that investment where risk minimized and the return of investment maximized. Mutual funds
investment is becoming significant all over the world and its popularity and demand is rising steadily (Nazir & Nawaz, 2010).Mutual funds in Pakistan
are created and managed by Asset Management Companies and regulated by Securities and Exchage Comission of Pakistan. The investor purchase
share with in the fund however the quantity of shares in issue varies consistent with demand,thus the term open ended.This implies that the value of
share reflects the underlying net asset value ... Show more content on Helpwriting.net ...
The second initiation in this business sector was the Investment Corporation of Pakistan (ICP), instituted in 1966.In 2001 the development of this
sector was inconsequential with just 12 AMCs and just 38 mutual fund (Asghar, e Kausar, Afza, & Bodla, 2013) After 2001, due to privatization and
liberalization strategy of government this sector indicated noteworthy development in the first decade of this century i–e in 2010 we had altogether 135
funds including 105 open–ended funds managed by 28 AMCs (Ahmad Abbasi & Syed Muhammad Amir Shah, 2012) The capital market confronted
difficult times amid 2008 and 2009, which decreased the demand for funds managed by financial specialists and subsequently the retreat was a hard
beginning of the month of June 2008. According to SECP in 2014 the mutual fund investment assets are about 462.97

Federal Reserve: Open Market Operations
The Fed makes these debt transactions with banks in order to alter total reserves in the banking system. The Fed uses three tools of monetary policy,
trying to influence the amount of reserves in private banks. They are Open Market Operations, Discount Rate and Reserve requirements. Open market
operations are purchases and sales of U.S. Treasury and federal agency securities. This is the Federal Reserve's principal tool for implementing
monetary policy. The Federal Reserve's objective for open market operations has varied over the years. In the 1980's the focus shifted toward
attaining a specified level of the federal funds rate. This process was largely complete by the end of the decade. Discount rate is the interest rate charged
to commercial banks and other depository institutions or loans they receive from their regional Federal Reserve Bank's lending facility. Reserve
requirements are the amount of funds that a depository institution must hold in reserve against specified deposit liabilities. ... Show more content on
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The objective of price stability refers to the general level of prices in the economy. It implies avoiding both prolonged inflation and deflation. Price
stability contributes to achieving high levels of economic activity and employment by improving the transparency of the price mechanism. Under price
stability people can recognize changes in relative prices without being confused by changes in the overall price level. This allows them to make
well–informed consumption and investment decisions and to allocate resources more efficiently. It reduces inflation risk premia in interest rates (i.e.
compensation creditors ask for the risks associated with holding nominal assets). This reduces real interest rates and increases incentives to invest and
avoiding unproductive activities to hedge against the negative impact of inflation or deflation. It also

The Effect Of Aggregate Demand On The Economy
As supported by the minutes released from the November meeting of the Federal Open–market Committee, the economy continues to strengthen and
looks as though it will remain healthy through the foreseeable future. The economy has returned to normalcy in terms of Consumer Price since the
hurricanes hit Florida and Texas, as evidenced by the Consumer Price Index for All Urban Consumers: Gasoline(all types) which is portrayed in the
graph below. The FOMC has also reported that inflation is projected to remain below the two–percent for at least the next two quarters. The the
inflation rate is expected to increase to two–percent by the medium term which will stabilize it at the Fed's target goal. This growth in the inflation rate
is demonstrated ... Show more content on Helpwriting.net ...
The concern with the current slow growth of the Fed Funds Rate is that there is a similar pattern as there was prior to the decline in 2008, where
inflation tanked and the Fed Funds Rate, which was high at 4.24% was not enough to halt the inflation drop. The similar pattern in inflation and the
Fed Funds Rate can be seen in the two graphs below. If the Federal Open Market Committee does not increase the rate of the growing Fed Funds Rate
within the next few quarters the likeliness of another recession increases. Although it would not be as extensively damaging as the recession in 2008,
a recession would be nonetheless detrimental to the economy, as we would be set back in all the economical progress that has been made in the past
10 years, as shown in the graphs above. Currently, the Federal Reserve has set the rate to rest at a target range of 1 to 1–1/4 percent. The Federal Open
Market Committee acknowledged in their November meeting that inflation has more headway to make until it is at the two–percent mark they have set
as a long term target. This situation contains both positive and negative elements. A low inflation rate benefits consumer confidence, because
consumers are easily able to manage the gradual inflation and do not see change reflected in day to day consumption since inflation rises slowly.
However, with a low Federal Funds Rate, and the potential for inflation to decline for any

The Efficient Market Hypothesis ( Emh )
1. Introduction Ever since Fama (1970) developed the Efficient Market Hypothesis (EMH) and defined the market efficiency as the strength to fully
reveal all available information on the asset prices, there has been endless discussions around this hypothesis. As no arbitrage is implied, multiple
theories are introduced to explore arbitrage activities and their limitations. Stephen Ross once said: "To make a parrot into a learned financial
economist it needs to learn just one word – arbitrage." Under the Efficient Market Hypothesis, there should be no trading techniques that yield positive,
expected, risk–adjusted excess returns (Dothan, 2008), which in turn suggests the absence of arbitrage opportunity. Sharpe and Alexander (1990)
defined arbitrage as the act to buy and sell the equivalent, or fundamentally comparable, security in two different markets at the same time to benefit
from their price difference. Arbitrageurs normally look for mispriced securities and make profit through opposite positions. They long undervalued
stocks and short overvalued stocks, creating upward and downward pressures on security prices towards their fundamental values. In Section2, this
paper aims to study the three limits to arbitrage: fundamental risk, implementation cost, and most importantly, noise trading risk. Three components of
noise trading risk are reviewed: horizon risk, margin risk and short covering risk. Section 3 explores the DSSW model of investor sentiment developed
by four

A Reasonable Explanation For Closed End Fund Puzzles
1.Introduction
Stock mutual funds consist of open–end funds and closed–end funds. There are different operations between these two funds. Open–end funds are
purchased and sold by investors directly, however, investors should purchase and sell closed–end fund via stock market, then stock market trade with
closed–end funds. Closed–end funds' characteristics decide that investors should sell closed–end funds to another investors, once they want to switch
funds to liquidity. The price of closed–end funds always meets some aberrant circumstances, which are called closed–end fund puzzles.
Closed–end fund puzzles summarize four abnormal phenomenons which occur in funds price. Lee, Shleifer and Thaler (1991) state that three elements
(agency costs, tax liabilities and illiquidity of assets) may quote for explanations of these puzzles in traditional finance. Nevertheless, they advocate that
analyzing puzzles base on behaviour finance, such as noise trader risk theory and individual investor sentiment theory, can expound puzzles better.
This paper aim to find out a more reasonable explanation for closed–end fund puzzles. In part one, the description of puzzles will be given. Traditional
standard explanation will be introduced and discussed in part two. Part three will represent explanation in behaviour finance methods. Part four will
compare different articles' evidences and findings. Part five will make conclusions.
2.Closed–end funds' puzzles
Four puzzles summarize these

The Relative International Diversification Benefits Of...
Using data from various countries, subsequent studies continue to investigate the relative international diversification benefits of ADRs. However, the
empirical findings are inconclusive. For example, ussing weekly data of 113 ADRs from 8 countries (Australia, France, Japan, Netherlands, South
Africa, Spain, Sweden and UK) during the period of January 1980 to September 1994, Jiang (1998) find that US portfolio with investment in ADR
portfolios achieves better risk–adjusted returns than that containing foreign market index portfolios. Differing from Jiang, Bekaert and Urias (1999)
investigate the gains from holding the emerging market closed–end mutual funds, open–end mutual funds, and ADRs in a global equity portfolio.35
Using mean–variance spanning tests, they find that 35Their sample of closed–end funds consists of 23 U.S. funds and 19 U.K. funds investing in
emerging markets as 70 diversification benefits from emerging equity markets are sensitive to the time periods of the tests, and in some cases, to the
particular investment vehicle. There are similar diversification benefits accruing to direct exposure to emerging market indexes, managed funds and
ADR portfolios. Their findings confirm that ADRs are useful for international diversification purpose. Using monthly data from 17 countries – seven
developed economies and 10 emerging economies over the period of 1976 to 1993, Errunza et al. (1999) comprehensively analyze the gains from
investing in three types of US traded

The Characteristics And Features Of Mutual Funds
1.1General Introduction
The term investment refers to the commitment of funds made with an expectation of some positive returns. Two essentials aspects of investment are
that–firstly it involves waiting for returns, and secondly it involves an element of risk of not getting what is expected of the investment. Basically
investment means purchase of financial asset that yield a return, which is proportionate to risk assumed over some future period of time.
In finance, investment means buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or other in
fairly liquid real assets, such as good as an investment, real estate or collectibles with a view to earn some gain over a period of time.
1.2Features of Investment
All the investment have the following features:
Return
Risk
Safety
Liquidity
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Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the
performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.
2. Diversification
Mutual Funds invest in a number of companies across a broad cross–section of industries and sectors. This diversification reduces the risk because
seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through aMutual Fund with far less money
than you can do on your own.
3. Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with
brokers and companies. Mutual Funds save your time and make investing easy and convenient.
4. Return Potential
Over a medium to long–term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.
5. Low

Making A Great Investment, Questions and Answers
1.Outline the reasons why investors purchase mutual funds.
There are varies reasons why investors purchase mutual funds. Professional management is one of the reasons investors purchase mutual funds. The
second reason investors purchase mutual funds is for diversification purposes. Mutual funds are "investment companies that pools the money of many
investors" (Hughes, 2009,P.513). "Amutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real
estate, or other securities, according to its charter"(CNNMoney). Mutual funds may be go up and down. "And while some mutual funds consistently
showed positive returns, many shareholders experienced a roller coaster ride, with prices for mutual fund shares increasing and decreasing over the
first seven years of the century" (Hughes, 2009, p.514) Mutual funds closed–end–funds, open–ended funds, and exchange change funds. Investors
should know the characteristics of their mutual funds. While closed–ended–funds are given by the investment company open–ended–funds are
requested for the investor. For example, with closed–ended–fund the company deals with the funds. Furthermore, open–ended–funds allow the investor
to deal with the funds and make request for them.
2.Go online to the site of The Motley Fool (www.fool.com) that deals with investing on the Internet. Analyze this Web site and write a brief report of
your findings that are pertinent to the average investor. This website

Financial Investment Essay
What type of financial investments would you invest in if you were given 10,000 dollars, what made you choose these investments, as well as; how
did your choices affect your decision as to tracking these financial investments through the usage of financial strategies and trends. While finding the
right pecuniary investment to finance in is never an easy decision, one must first do their research as to what type of financial resources are available
on the market to invest in; then apply those financial decisions and strategies to their financial market plan. Let's begin with what a financial market
does, "financial markets perform a vital function: they transfer funds from savers (individuals and organizations willing to defer using some... Show
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160–161). Once these options are reviewed then one can make that optimal decision as to what type of investment would be the best options to
choose from. Next, is bonds which is a financial instrument, that is issued by a corporation or government entity and is required to be paid back;
known as an IOU. These will mature overtime and gain face value, and usually come in all types and varieties to choose from; some taking as long as
100 years to reach it maturity date. Lately, is mutual funds and EFT's, these are securities that are held in different sectors and eliminate any form of
risk compared to other investment; known as the closed–end fund or the open–ended fund. So, what is a "close–end fund, is a fixed amount of
dividends in a portfolio of assets; where shares of a closed–end funds can be traded among investors much like stocks" (Kelly & Williams, 2017, pg.
163).
For instance, like with this case study, if you were given 10,000 dollars to invest what financial investments would you choose; for me my decision
would be as follows: First, I'd choose to invest in General Motors stock which currently cost on average about $6.25 a share, and the current quarterly
dividend is rounding up to just over 0.37; or about $1.50 yearly. "Thus, growing in profits with ending results in today's stock market reaching at the
end of day at $45.50 –0.46 – 1.01 %, and after hours at $45.50 0.35 0.78% with an ending volume at 71,447, accordingly, up since the

Mutual Funds
Chapter 04 Mutual Funds and Other Investment Companies Multiple Choice Questions 1. Which one of the following invests in a portfolio that is
fixed for the life of the fund? A. Mutual fund B. Money market fund C. Managed investment company D. Unit investment trust 2. ______ are
partnerships of investors with portfolios that are larger than most individual investors but are still too small to warrant managing on a separate basis. A.
Commingled funds B. Closed–end funds C. REITs D. Mutual funds 3. A __________ is a private investment pool open only to wealthy or institutional
investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds. A. commingled pool B. unit trust C.
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Gross Asset Value D. Total Asset Value 21. Net Asset Value is defined as ________________________. A. book value of assets divided by shares
outstanding B. book value of assets minus liabilities divided by shares outstanding C. market value of assets divided by shares outstanding D.
market value of assets minus liabilities divided by shares outstanding 22. Assume that you have just purchased some shares in an investment
company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the Net Asset Value (NAV) of
these shares? A. $12.00 B. $9.00 C. $10.00 D. $1.00 23. Assume that you have recently purchased 100 shares in an investment company. Upon
examining the balance sheet, you note the firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding.
What is the Net Asset Value (NAV) of these shares? A. $25.50 B. $22.50 C. $19.50 D. $1.95 24. The Vanguard 500 Index Fund tracks the
performance of the S&P 500. To do so the fund buys shares in each S&P 500 company __________. A. in proportion to the market value weight of
the firm's equity in the S&P500 B. in proportion to the price weight of the stock in the S&P500 C. by purchasing an equal number of shares of each
stock in the S&P 500 D. by purchasing an equal dollar amount of shares of each stock in the S&P500 25. Which of the following is not a type of
managed investment company? A. Unit investment trusts B.

Investment Vehicles For Emerging Muslim Economy
Investment Vehicles for Emerging Muslim Economy: Which is which? Introduction Capital market play vital role in financial growth. Mutual fund is
one of the securitization vehicles that commonly practice in today's modern economics environment. Levy and Post (2005) mentioned investors,
regardless of the type of investment they choose, have one common goal which is to get return out of their investment. Investors often have risk and
return trade–off in determining their desire return. Thus, it is important to understand the financial stance of the investors in order to determine types of
investments that suit them. This essay's aim first to discuss 2 types of mutual funds, open end and close end investment. Going further is to relate them
with the emerging Muslim's economy conditions. It is believed that Muslim's economy is way far behind due to their weakness in the capital market.
Honohan (2008) discovered more than 70% Muslims do not utilize financial services due to their concern of the financial instrument principle which
seems to them contradict with the Islamic law. Second to suggest the type of funds that suitable for the emerging Muslims economy in order to
promote social wealth and long–suffered poverty issues amongst the country. Open–end Vs Close–end Fund Diagram 1.0 Overview of Mutual Funds
Diagram 1.0 illustrated overview of mutual funds type available in the market. This section will compare and contrast in 5 dimensions, the advantages
and disadvantages

Selected Questions
Chapter 19:Types of Risks Incurred by Financial Institutions
46. Why do banks continue to make credit card loans even though credit card default rates are often at least twice as high as other loan types?
Answer: Credit card loss rates are higher than many other loan types, but FIs charge high enough interest rates (and fees) to make them worthwhile. FIs
also extend credit card loans to large numbers of borrowers and the ensuing diversification reduces the risk.
Level: Medium
47. A bank has $150 million in 1 year loans earning a fixed rate equal to 4.75%. The assets are funded by $150 million in liabilities that have a cost of
4.25% and a maturity of 3 years. If all interest rates are projected to fall 100 basis points ... Show more content on Helpwriting.net ...
Level: Difficult
Chapter 17:Mutual Funds and Hedge Funds
46. Why are mutual funds popular with individual investors?
Answer: They provide opportunities for small investors to obtain: low cost diversification; professional fund management according to specific
objectives; economies of scale in investing (lower commissions and research costs); higher rates of return than available on bank deposits; and
convenience services such as switching funds, low cost reinvestment and sometimes even check writing capabilities.
Level: Medium
49. How are money market mutual funds similar to and different from bank deposits?
Answer: Both are safe and earn fairly low rates of return. Bank deposits are insured by the FDIC however and money market mutual funds are not. That
is the biggest difference, but money market mutual funds almost never experience financial difficulty. Because banks may have to meet reserve
requirements to back their deposits and pay deposit insurance premiums, bank deposits typically pay a lower rate of return than money market funds.
Money funds also typically require higher minimum

A Study on Mutual Funds of India
CHAPTER 1
INTRODUCTION
MEANING| A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is
then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the
capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low
cost. In other words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds ... Show more content
on Helpwriting.net ...
It includes swot analysis, products and services.Chapter IV : Conceptual study.This chapter gives a detailed information on the various concepts of
mutual funds, types of mutual funds, fund houses operating in India,Chapter V :Data analysis.This chapter analyses and interprets the data collected
from the questionnaire.Chapter VI : Findings suggestions and conclusion.This chapter gives details about the findings from the study, suggestions for
improvement and the conclusion.CHAPTER 2INDUSTRYPROFILEORIGIN, GROWTH AND DEVELOPMENT OF THE MUTUAL FUND
INDUSTRYThe mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India
and Reserve Bank of India.First Phase – 1964–87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978, UTI was de–linked from
the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme

How To Evaluate And Choose Mutual Funds. By Anthony C Caruso|
How to Evaluate and Choose Mutual Funds
By Anthony C Caruso | Submitted On September 07, 2012
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Expert Author Anthony C Caruso
Many investors today utilize mutual funds as part of their overall investment plan. Whether you must make your own mutual fund selections for your
401(K) or employer sponsored retirement plan, or use a professional investment advisor for other types of investment accounts, mutual funds can ...
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Closed–end funds have a fixed number of shares issued to the public. If you want to purchase a piece of the fund, you have to purchase an existing
share from a shareholder that is selling.
Open–end funds have an unlimited number of shares. If you want to purchase a piece of the fund, the fund creates a new share and sells it to you.
There are significantly more open–end funds than there are closed–end funds. Closed end funds can trade at values that are above or below their NAV,
while open end funds only trade at their end of day NAV.
Mutual Fund Research – Do Your Homework
Expenses
All mutual funds have expenses. Some funds ' expenses are low while other funds ' have very high expenses. These include everything from the
advisory fee paid the fund manager to administrative costs like printing and postage.
With a little bit of homework, you can determine a fund 's expenses before you invest. This is important because those expenses can have a dramatic
effect on your investment returns. The three expenses you should be aware of are loads, redemption fees and operating expenses.

Loads are commissions or fees that can be charged either when you buy or sell a mutual fund. A front–end load (usually associated with class "A"
shares) can be up to 8.5% of your investment. A back–end load (usually called redemption fees, are associated with class "B" shares) can also be quite
high, but reduces over the years, the longer you keep your investment in the fund.

The Best Way For Paying Tax Free Income Essay
The Best Way to Earn Tax Free Income
Everyone would like to receive income free from income taxes, especially individuals in higher income tax brackets. For tax free income investors
have turned to municipal bonds. These are bonds issued by state and local municipalities to provide essential services, such as roads, hospitals,
schools, sewers and utilities. Municipal bonds have been around since before the Civil War.
While many investors are generally familiar with municipal bonds, in reality the municipal bond market is complex and much different than any other
market. This is because the market is very fragmented. There are over one million individual bonds outstanding, from 55,000 different issuers, that
comprise this $3.7 trillion market. Contrast one million different municipal bonds with the fact that in the U. S. stock market we have roughly 5–6,000
stocks.
Due to the massive size and number of issuers in this market, it is extremely difficult –maybe impossible – for the average investor to do their own
research, however almost half of the $3.7 trillion of municipal bonds trading in the market today are held directly by individuals.
With this as your backdrop, let's look at the mechanics of buying and owning municipal bonds and what might be the best way for investors seeking
tax free income to proceed. There are three options for owning tax free municipal bonds: individual bonds, open end bond funds or closed end bond
funds.
Individual Municipal Bonds:
Will

The Payment System Used For Settlement Of Retail Payment...
In this competitive era, it is imperative for a well functioning economy to imply effective methods for businesses to pay their employees, suppliers and
investors, for households to purchase goods and services, and for governments to collect taxes and make payments, such as pensions and interest on
bonds. These payments, known as retail or low value payments include debit and credit card transactions, cheques and direct entry transactions (Hunt &
Terry 2014). In order to improve the efficiency of the payment system, Reserve Bank of Australia introduced a new settlement arrangement. The new
'same day' settlement system would increase the rate of supply of funds and reduce the risks associated with deferred net–payment system. The ... Show
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According to the Reserve Bank of Australia (2015), large–value payments are settled one–by–one on a real–time gross settlement (RTGS) basis, while
retail payments (which make up to 10% of the value of RITS interbank settlement) are settled on a net–settlement basis. However, for several years, net
clearing was undertaken after hours of tallying ADIs deposited amounts during the day. The ADIs would calculate the net amounts each of them owed
to one–another to settle their obligations on payment orders. Only then, the RBA would be advised of the cleared net obligations and the transferring
of ES funds would take place the next day at 9 A.M. Although this system, referred to as deferred net payment system(DNS) handles very large
payment orders deposited each day by net clearing to reduce the amount of funds ADIs have to pay for settlement of obligations(Hunt & Terry 2014),
the payments are still deferred until the next day. This phenomenon generally poses a disadvantage of settlement risk (an ADI might default on their
obligations). Moreover, if an ADI was unable to settle their obligations due to insufficient funds, the whole settlement process would be delayed. "The
longer the period between settlements, the larger these credit exposures could become, and the greater the opportunity for an institution to default on
these obligations" (Fraser & Gatty 2014). Hence, the payment system board decided to make a

Questions On Mutual Fund Analysis Essay
TRAINING REPORT
ON
MUTUAL FUND ANALYSIS
Submitted to
AMITY UNIVERSITY, NOIDA
UTTAR PRADESH
In partial fulfillment of the requirements
For the award of the degree of
BACHELOR OF COMMERCE (HONS.) Submitted By Name : Pallavi Gaur Roll No. : A3104612045
Mutual fund is a fund that exhibitions as a wander vehicle, pools the trusts of different theorists to place assets into distinctive budgetary instruments
like stocks, securities, debentures, et cetera engaging monetary experts to achieve their money related targets. SEBI (Mutual Funds) Regulation 1993,
describes Mutual Fund as "Normal Fund intimates a trust secured as a trust by a sponsor to raise money by the trustee through the offer of units to the
all inclusive community under one or more plans for placing assets into securities according to these regulations".
Mutual funds are the new cash related instruments of store supports and wanders. The element incorporation of regular finances in fiscal change can be
seen from dominating region of imparted backings in budgetary markets over the globe. Examiners of Mutual Funds require not stretch much over the
return as normal stores are managed professionally by and large arranged and finished Managers. The premiums in imparted trusts are general improved
thusly the monetary experts all around don 't run the risk of keeping all the speculations tied up on one spot. Exchange inclination of enthusiasm toward
imparted store

The Influence Of Ownership Structure And Determinants On...
The data used to compile this report is retrieved from the Hong Kong Investment Fund Association (HK IFA), the Securities and Futures Association of
Hong Kong, the Hang Seng Index and the Hang Seng China Entreprise Index. The sample size drawn from Hong Kong Investment Fund Association is
200 mutual fund companies although the HK IFA provides over 1000 companies. The data is assessed to establish the influence of ownership structure
and determinants This report applies the Jensen Alpha, Fama and French's three factor model to assess the impact of ownership structure and
determinants on the performance of open–end mutual funds in Hong Kong. Jensen's Alpha Fama and French's three factor models of assessment
employ the single–index CAMP... Show more content on Helpwriting.net ...
The data also shows companies whose percentage is negative indicating loss in the stipulated time. An example of a company that experiences loss is
Pictet Strategic Income P dm USD at –0.60%. The data also reveals that the company bounces back in six months making 0.38% in returns. The data
is consistent with the data provided by Securities and Futures Commission as it provides a Net Asset Value by fund type provided by the fund
companies. The Net Asset Value recorded is at 31 of December from 1997 to 2016 however, this paper will consider data from year 2000 to 2016.
The data on returns relates to the size of the funds as each fund type contributes to the overall returns that a company earns. The different mutual funds
represent the stock market appearance of the Hong Kong securities and how they vary in terms of performance for the different mutual fund companies
sampled in this report.
Measuring Fund Performance
Fund performance is measured through several benchmarks models that include the domestic four–factor model, Capital Asset Pricing Model, Jensen's
Alpha model and the Fama–French 3 factor model. These models of calculating the performance of mutual funds considers both domestic and foreign
because Hong Kong is host to several foreign mutual fund companies that influence

Sec Bd
Activities of SEC regarding secondary market:
Mutual Fund:
Bangladesh security and exchange commission is concern about activities of Mutual fund. According to the Securities and Exchange Commission
(Mutual Fund) Rules, 2001 SEC can registers mutual fund. Later on 16 March 2009 SCE established Mutual Fund and SPV department. At present one
mutual fund is listed in the private sector.
There are two types of mutual funds
1.Open– Ended Mutual fund
2.Closed–Ended Mutual Fund
The list of mutual funds in Bangladesh is given below
Closed end mutual fund
SL Name of the Mutual Fund Year of Floatation Face ValueFund Size
(TK in Crore)
011st ICB 1980100Tk 0.75
022nd ICB 1984100Tk 0.50
033rd ICB 1985100Tk ... Show more content on Helpwriting.net ...
Initially Stock Market regulates dictation of market manipulation, price range and other regulatory functions. To ensure that these functions are
monitored properly, SEC keeps regular vigilance through online and offline surveillance system. Surveillance department uses online and offline
market surveillance systems to find out violations of securities related laws and also find out whether any abnormal activities exists in securities
transaction.
Recent activities of Surveillance Department:
Comparative statistics of abnormal activities in securities transactions found by Surveillance Department during 2011–2012 and actions undertaken by

SEC are given below:
Financial yearNumber of
Irregularities
foundRefer to
Stock ExchangesInspectionEnquiryRefer to
Enforcement
Department Refer to
Registration
DepartmentRefer to
SRMID
Department Refer to
CDS
Department DSECSE
2010–201141178214029010
2009–20103383191416000
2008–200936562889001
Surveillance Department has increased its activities through supervision of Depository Participants activities with daily market surveillance. As a result
small investors become more interested about capital market.
Supervision and regulation:
Supervision and Regulation of Market and Issuer (SRMI) department supervise the activities of stock exchange. The functions of SRMI are:
1.Monitor the declaration of sale/purchase

Personal Finance Unit 4
Brittany James
FIN 1100
Module 4 Home Work Assignments
[Answer all questions in details]
1.|Matthew Boyd asks for your help! He has saved $10,000 and wants to invest in common stock. Choose one of the long–term or short–term
techniques described in this chapter and – long term technique: Dollar cost averaging explain how that method could help Matthew achieve his
investment goals. – this method Dollar cost averaging is a long–term technique used by investors who purchase an equal dollar amount of the same
stock at equal intervals. This could help Matthew, because he could avoid the common pitfall of buying high and selling low. He could make money if
the stock is sold at a price higher than the average ... Show more content on Helpwriting.net ...
(F) convertible bond |
9.|Explain the difference between a load fund and a no–load fund. From a performance standpoint, is there a significant difference between mutual
funds that charge commissions and those that do not?
– the difference between load fund and no–load fund is Load fund is a mutual fund in which investors pay a commission every time they purchase
shares, and no–load fund is a mutual fund in which the individual investor pays NO sales charge. There is no significant performance difference
between mutual funds that charge commissions and those that do not.|
10.|Describe the steps involved in a typical stock transaction.
–A market order which is a request to buy or sell a stock at the current market value.
–limit order which is a request to buy or sell a stock at a specified price.
–stop order which is an order to sell a particular stock at the next available opportunity after its market price reaches a specified amount.
|
11.|Choose four of the investment alternatives presented in Chapter 13
– Stocks, bonds, mutual funds, and real estate describe how the factors of safety, risk, income, growth, and liquidity affect that investment alternative.
–All these factors matter when choosing an investment alternative. Because you want to make sure theres safety (minimal risk of loss) in the
investment. there are many different risk such as inflation risk, interest

Aqr's Momentum Funds (a) Essays
1. What is a momentum investment strategy? Momentum is the phenomenon that stocks which have performed well in the past will continue to
perform well in the future, and that stocks which have performed poorly will continue to perform poorly. Therefore a momentum investment strategy is
to invest in short term portfolios that have high returns in the past, and to short those with low returns over the same period. 2. Analyze these
portfolios. By analyzing monthly returns of all 10 portfolios from 1927–2012 and 2000–2012, we can see that there is a general pattern that stocks with
higher momentum have higher return, which confirms the momentum strategy. The average return of stocks with high minus low momentum is a little
lower than that... Show more content on Helpwriting.net ...
One is that since the ten portfolios are grouped according to their performance, portfolios are usually made up by similar stocks and thus cannot
diversify the risks. The other is that both skewness and kurtosis have effect on the risk a stock bears and thus cause the pattern of variance. (Results
are shown in Exhibit A) 3. Does momentum work? In general, we could say that the momentum does work. To justify whether it works, we first ran a
regression on the Three–Factor Fama French Model (Market Excess Return, SMB and HML) from Jan 1972 to Dec 2012 respectively for the High–,
5–, Low–, and High–Minus–Low Portfolio. Then, we added momentum into the model to create a four–factor model (Momentum, Market Excess
Return, SMB and HML) for the same period on a monthly basis. (See Exhibit 2). The absolute value of intercept (alpha) in the Three–Factor Model for
Low Portfolio is 1.1159, 0.1347 for 5 Portfolio, 0.6354 for High Portfolio, and 1.4591 for High–Minus–Low Portfolio. They all are larger than those in
the Four–Factor Model, given 0.2081 for Low Portfolio, 0.0961 for 5 Portfolio, 0.0412 for High Portfolio, and 0.0402 for High–Minus–Low Portfolio.
Therefore, alpha, a measurement of deviation from the model, is much smaller in the Four–Factor Model than in the Three–Factor Model. It shows that
the Four–Factor Model fits the real situation better. In addition, we could see that R–Square (percentage of data that can be explained by the model) for
the

Mutual Funds Advantages And Disadvantages
1.Mutual Funds(Open ended) A Mutual Fund is an investment vehicle that is made up of a pool of funds collected from many investors for the
purpose of investing in securities such as bonds, stocks, money market instruments and identical assets. Advantages: 1.Liquidity An advantage of
mutual funds is the ability to get in and out with relative ease. In general, you are able to sell your mutual funds in a short period of time without there
being much difference between sale price and the most current market value. 2.Diversification By purchasing mutual funds, you are provided with the
immediate benefit of instant diversification and asset allocation without the large amounts of cash needed to create individual portfolios 3.Professional
selection of individual... Show more content on Helpwriting.net ...
Certainty about the specific investments in trust The money placed in an investment trust is used to capitalize a fixed portfolio. Unlike mutual funds or
hedge funds, for some investors, this is a key advantage because they are given the ability to always know what they own. Disadvantages:
1.Opportunity cost This means that by putting money in unit trust, you lost the opportunity to use it elsewhere. Of course there is no guarantee that
putting the money elsewhere will yield better returns. In the same way, putting money in unit trust prevents you from investing it elsewhere, such as,
directly in the stock market. 2.Fees and charges The services provided by the unit trust fund managers are not free. There are fees and charges payable
by the unit holders to the unit trust schemes. Granted these fees are almost negligible compared to the professional expertise received by the investors,
it is something the unite holders have to bear. 5. Other type of funds 1.Money market funds It is open–ended funds which normally invest in short–term
securities, usually one year, for example treasury bills or Government bonds. Money market funds are greatly recognize as being really safe and give a
great

A Mutual Fund Is An Open End Speculation Organization
A mutual fund is an open–end speculation organization that puts cash of its shareholders in a typically expanded gathering of securities of different
companies, as characterized in the Merriam–Webster word reference. Common assets help with financing and contributing open doors. They allow the
little financial specialists to put their cash in different ranges other than stocks and bonds. There is numerous common assets to browse and distinctive
reasons why shareholders ought to pick them. As mainstream as common assets have ended up, there is ruins to them like most speculation
opportunities. In 2003, mutual funds were giving an awful name when an outrage was brought open. Getting to be real suppliers of assets in the
budgetary business sector, mutual fund have turned into an extremely prominent interest as of late. On account of the assorted qualities of ventures,
portfolio administration 's mastery, and liquidity, shared assets have become quickly in the course of recent years. A standout among the most
prominent gathering 's putting resources into common assets is individuals with self–propelled retirement arranges. This gives professionally took care
of cash and pooled hazard. There are more than 8,000 diverse common assets, with more than 88 million families owning shares of one or more. Mutual
funds pool ventures by individual speculators and utilize the assets to oblige financing needs of governments and companies in the essential markets.
Interests

Continous Problem
Continuous Problem – City of Everlasting Sunshine Continuous Problem – City of Everlasting Sunshine TO ACCOMPANY ESSENTIALS OF
ACCOUNTING FOR GOVERNMENTAL AND NOT–FOR–PROFIT ORGANIZATIONS: TENTH EDITION Chapters 2 through 8 describe
accounting and financial reporting by state and local governments. A continuous problem is presented to provide an overview of the reporting process,
including preparation of fund basis and government–wide statements. The problem assumes the government is using fund accounting for its internal
record–keeping and then at year–end makes necessary adjustments to prepare the government–wide statements. The problem that follows is presented
in the same order as the textbook (beginning with Chapters 3, and... Show more content on Helpwriting.net ...
Record the budget and post to the ledger. 4–C. Part 1. General Fund Transactions Required: a. Record journal entries for the following transactions for
FY 2012. Make any computations to the nearest dollar. Journal entry explanations are not required. Use control accounts for revenues, expenditures
and budgetary accounts. It is not necessary to reflect subsidiary ledger entries. (1) Encumbrances of $ 31,000 outstanding at the end of 2011 were
re–established. (2) The January 1, 2012, balance of $20,000 in Deferred Revenues relates to the amount of the 2011 levy that was expected to be
collected more than 60 days after December 31. This amount should be recognized as 2012 revenues. (3) A general tax levy in the amount of
$6,700,000 was made. It is estimated that 3 percent of the tax will be uncollectible. (4) Tax anticipation notes in the amount of $500,000 were issued.
(5) Goods and supplies related to all encumbrances outstanding as of December 31, 2011 were received, along with invoices amounting to $30,000;
the invoices were approved for payment. The City maintains immaterial amounts in supply inventories and it is the practice of the City to charge
supplies to expenditure when received. (6) All vouchers and the amount due other funds were paid. (7) The General Fund collected the following in
cash: 3 Continuous Problem

Malala Thesis
Malala Yousafzai
Did you know that Malala Yousafzai was the youngest person ever to win the Nobel peace prize. But what for? Malala won the Nobel peace prize
because she stood stood up for all kid's right to education.
Malala is a fierce girl with many goals and accomplishments. She lives in Mingora, Pakistan with her mother, father, and two brothers. Malala did not
have the opportunity to go to school because the Taliban closed her school. But Malala and her father stood up for education. Which is what Malala
wants every girl to do. Malala says, "I tell My story not because it is unique, but because it is the story of many girls."
Malala also organized a program called the Malala fund to help defenseless girls get the education they need. The Malala fund is different from
most programs that help girls get an education. Although it's called the Malala fund, its target isn't about money. Instead of opening schools for
girls, the Malala fund empowers girls to speak out and do it for themselves. Cnn.com describes that a main focus of the Malala fund is to get girls
around the world to socialize with Malala. I assume that they want girls to socialize with Malala because she is such an inspiration when you feel
insignificant. If the Malala fund is trying to make girls feel more courageous, Malala's words can definitely do that. ... Show more content on
Helpwriting.net ...
This bold feminist wants girls to have the education and opportunities that they deserve. Even though Michelle will be moving out of the white house
she assured the girls around the world that she wouldn't stop fighting for them.
Michelle was actually inspired by Malala Yousafzai. She was amazed at Malala's fierceness. Michelle met with Malala and said that it was another
spark for her let girls learn

Disadvantages Of Life Insurance
INVESTMENT AVENUES 1. Life Insurance Life insurance is a contract for payment of a sum of money to the person assured (or to the person
entitled to receive the same) on the happenings of event insured against. Usually the contract provides for the payment of an amount on the date of
maturity or at specified dates at periodic intervals or if unfortunate death occurs. Among other things, the contracts also provide for the payment of
premium periodically to the corporation by the policy holders. Life insurance eliminates risk. The major advantages of life insurance are given below:
пѓ Protection Saving through life insurance guarantees full protection against risk of death of the saver. The full assured sum is paid, whereas in other
schemes... Show more content on Helpwriting.net ...
The maturity period may range from 5 years to 10 years in India. They may be redeemed in installments. Redemption is done through a creation of
sinking fund by the company. A trustee Incharge of the fund buys the debentures either from the market or owners. Creation of the sinking fund
eliminates the risk of facing financial difficulty at the time of redemption because redemption requires huge sum. Buy back provisions help the
company to redeem the debentures at a special price before the maturity date. Usually the special price is higher than the par value of the debenture.
Indenture It is a trust deed between the company issuing debenture and the debenture trustee who represents the debenture holders. The trustee takes
the responsibility of protecting the interest of the debenture holders and ensures that the company fulfills the contractual obligations. Financial
institutions, banks, insurance companies or firm attorneies act s trustees to the investors. In the indenture the terms of the agreement, description of
debentures, rights if the debenture holders, rights of the issuing company and the responsibilities of the company are specified clearly. Debentures are
classified on the basis of the security and convertibility

Indian Mutual Fund Industry: Challenges and Future Prospects
INDIAN MUTUAL FUND INDUSTRY: CHALLENGES AND FUTURE PROSPECTS Ms.Renu Introduction India has been the fastest growing
markets for mutual fund industry. With progressive liberalization of economic policies, there has been rapid growth of capital market, money market and
financial services Industry including merchant banking, leasing and venture capital (Tripathy, 1996). The increasing globalization of financial groups,
rapid spread of ... Show more content on Helpwriting.net ...
21,805 crores.
Fourth Phase (Since February 2003): Following the repeal of UTI ACT 1963, it was bifurcated into two separate entities in February 2003. One is the
specified undertaking of UTI, functioning under rules framed by government of India. Hence does not come under the purview of mutual fund
regulations. The second undertaking, UTI Mutual Fund Ltd, (registered with SEBI) ; was sponsored by State Bank of India, Punjab National Bank,
Bank of Baroda and Life Insurance Corporation. It functions under the mutual fund regulations and at the end of January 2003 had assets under
management worth Rs. 29,835 crore.
Benefits of Mutual Fund Investment
Mutual fund investors enjoy the benefits of portfolio diversification, professional management at low cost and greater transparency compared to other
financial institutions, such as banks, thrifts, insurance companies and pension funds.
Diversification: Investor can diversify his portfolio through mutual funds without requiring large amount of funds as mutual funds invest in a number
of companies across different sectors and industries. It also helps him in spreading the risk over a range of securities. So the diversification reduces
the risk as all the stocks do not decline at the same time and in the same proportion.
Professional Management: Investment in mutual funds also enables the investors to reap the benefits of professional management. Mutual fund team
includes the

Mutual Fund : An Open End Investment Company
A mutual fund is a collection of diversified investments combined into one fund chosen by the investment company. The mutual fund is classified by
what type of funds are included within the fund. When an investor choses to invest in a mutual fund, he or she is adding their money to a pool of other
investors money. This money is used to invest in a number of different securities based on specific investment goals. Investment companies choose to
include many different stocks, as well as bonds or money market instruments in order to reduce risk and completely diversify the fund (Tyson, 2007).
The investor owns shares of the funds rather than owning the underlying investments (Morris & Morris, 2005).
A mutual fund is considered an open–end investment company because the securities within each fund can be bought or sold regularly. This means that
the funds that are in the fund as well as the number of shares held within the fund may change periodically. They are not purchased on the stock market
nor are the purchased from other holders. They are specifically bought from the fund manager at that day's closing net asset value. (Kelly, 1996)
Types of Mutual Funds There are three main categories of mutual funds: stock funds, bond funds and money market funds. There are also allocation
funds or balanced funds and targeted date funds. Other fund types include international and global funds. Most funds specifically choose to diversify by
choosing a wide variety of investment

What 's A Mutual Fund?
What 's a Mutual Fund?
By Amy E. Buttell | Submitted On February 11, 2013
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this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share
this article on Pinterest
Mutual funds are pools of money. Money from many different individual investors can be pooled with money from, say, the retirement fund of a global
corporation.
This money is managed full time by professionals who are paid for their financial management expertise.
Mutual funds invest in a portfolio of stocks (equities), bonds, or money ... Show more content on Helpwriting.net ...
You can also transfer your money from one fund to another.
Selection: There is a fund available for virtually any type of market sector that you might be interested in. Amutual fund screener is a good way to find
high–quality funds for your portfolio. There are also mutual fund newsletters that provide investors with fund profiles and information.
Liquidity: They offer an important combination of appreciation potential plus liquidity. Shares can be redeemed at the end of each day, based on the
fund 's net asset value (NAV).
Concise information: Based on mandates from the Securities and Exchange Commission (SEC), fund companies are obligated to provide a simple,
easy–to–understand prospectus and investor reports. A prospectus spells out a fund 's goals, strategies, fees, and expenses. The shareholder report
describes the fund 's most recent performance.
Protection: While investors are not insured against investment loss, rules do exist that regulate mutual fund transactions, advertising, and
communications with investors.

The Disadvantages of Mutual Fund Investing
No guarantee: As previously noted, mutual fund investors are not protected by any guarantees against losses in their fund investments. Stock funds
invest in stocks, and the stock market rises and falls. Individual holdings within a fund, and individual funds, fluctuate in value.

Central Bank Of The United States
The Federal Reserve is the central bank of the United States, its structure combines centralization with regional authority: including a Board of
Governors in Washington D.C., a Federal Government Agency, and twelve regional Reserve Banks. One branch in particular, the Federal Open Market
Committee, made of twelve Federal officials, is committed to fulfilling its ordinance from congress to promote maximum employment, maintain stable
prices, and moderate long–term interest rates. According to the Federal Reserve System online, "The Federal Reserve, the central bank of the United
States, provides the nation with a safe, flexible, and stable monetary and financial system." In order to do this, the Fed meets every six weeks to
consider changes in interest rates, and may have an unscheduled meeting at any time in between. The Fed's responsibilities rest in four categories:
monetary policy, financial intermediation through emergency liquidity (as the lender of last resort), supervision of certain types of banks and other
financial firms, and establishment of payment system services to financial firms and the government. The primary method of monetary policy is
through open market operations and involves the purchase of existing U.S Treasury securities. Through this type of purchase, the Fed increases the
reserve base and thereby facilitates the ability of depository institutions, banks, to make loans and expand money and or credit. The Fed traditionally
conducts these open

Financial Institutions
International Technological University FINN 918 Financial Institutions Final Exam: Answers Textbook: Foundations of Financial Markets and
Institutions, 4th Edition, Fabozzi, Modigliani, and Jones, Prentice Hall, 2010,| ISBN –13: 978–0–13613531–9| ISBN –10: 0–13–613531–5| 1. Indicate
whether each of the following instruments trades in the money market or the capital market: a. General Motors Acceptance Corporation issues a
financial instrument with four months to maturity. b. The U.S. Treasury issues a security with 10 years to maturity. c. Microsoft Corporation issues
common stock. d. The State of Alaska issues a financial instrument with eight months to maturity. e. GMAC issue trades in the money... Show more
content on Helpwriting.net ...
It also prohibited banks from engaging in insurance activities. Chapter 4 1. What is the role of a central bank? The role of a central bank has several
functions: risk assessment, risk reduction, oversight of payment systems, and crisis management. It can do this through monetary policies, and through
the implementation of regulations. 2. Why is it argued that a central bank should be independent of the government? Central banks should be
independent of the short–term political interests and political influences generally in setting economic policies. 3. What is the discount rate, and to
what type of action by a bank does it apply? The discount rate is the rate a bank pays to borrow at the "discount window" of the Fed. Such
borrowings are often undertaken to meet temporary liquidity needs. Bank needs are monitored and the Fed likes to state that borrowing from it is a
"privilege and not a right." 4. a. What is an open market purchase by the Fed? b. Which unit of the Fed decides on open market policy, and what unit
implements that policy? c. What is the immediate consequence of an open market purchase? a. An open market purchase by the Fed consists of the
purchase of U.S. Treasury securities. b. The FOMC decides on open market policy and directs the Federal Reserve Bank of New York to implement it
through sales and purchases of these

The Investors Behavior Towards Mutual Fund Essay
A
SUMMER INTERNSHIP PROJECT
ON
"To study the Investors Behaviour towards Mutual Fund in surat city"
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide:Company Guide:
Mr. Paresh DaveMr.Jignesh Madhvani
(Asst. Professor)Internal Trainer (Torin Wealth Management.)

Submitted by
Mr. ATMIYA J. PATEL [Batch No. 2014
–16, Enrollment No.148050592045]
MBA SEMESTER III
S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
August, 2015 Student's Declaration
I, Mr. Atmiya J. Patel, hereby declare that the report for Summer Internship Project entitled "To Study the Investors Behaviour towardsMutual Fund in
surat city" is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.
Place: Surat
Date: _____________
__________________
(Atmiya J. Patel) Institute's Certificate
Certifiedthat this Summer Internship Project Report Titled "
To Study the Investors Behaviour towards Mutual Fund in surat city" is the bonafide work of Mr. Atmiya J. Patel (Enrollment No.148050592045),
who has carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form
part of

Fundamentals of Indirect Investing
Chapter 3
INDIRECT INVESTING
Multiple Choice Questions
Investing Indirectly
1.Which of the following is not a characteristic of investments companies?
a.pooled investing b.diversification c.managed portfolios d.reduced expenses
2.In order to avoid paying income taxes, an investment company must:
a. be classified as a non–profit organization b. invest only in municipal bonds. c. pass on interest, dividends, and capital gains to the stockholders. d. be
registered as a closed–end investment company.
3.Investment companies must register with the SEC under the provisions of the:
a. Securities Act of 1933 b. Securities Exchange Act of 1934... Show more content on Helpwriting.net ...
d.All of the above are true.
16.If a mutual fund holds a substantial amount of Treasury bills, this is probably a(an):
a. tax–exempt fund. b. conservative bond fund. c. income fund d. money market mutual fund.
17.Which of the following is true regarding value funds and growth funds?

a.Value funds seek stocks that are cheap by fundamental standards while growth funds seek stocks with high current earnings. b.Growth funds typically
outperform value funds. c.Value funds and growth funds tend to perform well at different times. d.All of the above are true.
18. In general, index funds:
a. are higher risk than other funds. b. are traded on the exchanges. c. have lower expenses than other funds. d. all of the above.
The Mechanics of Investing Indirectly
19.Net asset value takes into account:
a. both realized and unrealized capital gains. b. only realized capital gains. c. only unrealized capital gains. d. neither realized or unrealized capital gains.
20.If NAV > market price of a fund, then the fund:
a.is selling at a discount. b.is selling at a premium. c. is an index fund. d.is an ETF.
21.Mutual funds may be affiliated with an underwriter. This means:
a. the underwriter

What Are Mutual Funds? Essay
What Are Mutual Funds and Different Types of Mutual Funds
By Vaibhav Bhadange | Submitted On June 06, 2012
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Reddit Share this article on Pinterest
Mutual funds are a type of certified managed combined investment schemes that gathers money from many investors to buy securities. There is no such
accurate definition of mutual funds, however the term is most commonly used for collective investment schemes that are regulated and available to the
general public and open–ended in nature. Hedge funds are not considered as any type of mutual funds.
Mutual funds are identified by their principal investments. They are the 4th largest category of funds that are also known as money market funds,
bond or fixed income funds, stock or equity funds and hybrid funds. Funds are also categorized as index based or actively managed.
In a mutual fund, investors pay the fund 's expenditure. There is some element of doubt in these expenses. A single mutual fund may give investors a
choice of various combinations of these expenses by offering various different types of share combinations.
The fund manager is also known as the fund sponsor or fund management company. The buying and selling of the fund

Global Exchange Traded Products Industry
Over the past 5 years, ETFs have surged in popularity as they continue to grow and evolve. Just this past year, the global exchange traded products
industry reached another milestone, topping $3 trillion in combined assets under management. Now investors are searching for the next asset class
which will expected to explode on the scene as ETFs have recently. They may have found it last week when Eaton Vance rolled out the first of its
Nextshares products. The funds, commonly called exchange traded mutual funds, are actively managed and traded at the funds net asset value but carry
low fees found with traditional ETFs.
Where Can You Find Them?
After receiving approval of the whole concept in late 2014, Eaton Vance's pipe dream of an mutual fund ETF has finally become a realty. A little over
a year follow its approval, the first fund has final hit the market under the symbol EVSTC. Eaton Vance debuted its new asset with a momentous
ringing of the Nasdaq opening bell. The exchange traded managed fund segment could help provide the next surge in the industry as multi–asset
managed increasingly adopt ETFs. The first of these funds are exclusively available via Foliofn's investment platform. Foliofn is the first broker dealer
to distribute NextShares, rolling out to hem out to the robust catalog of advisors and consumers on Folio's platform. The company's innovative
platform and pioneering technology made it possible for security to reach the market.
Investors have been long

Mutual Fund Performance in Bull and Bear Market: The Case...
Chapter 2
Overview of the Mutual Funds in Pakistan
2.1History of Mutual Fund
There are main two types of mutual funds are available open end and closed end funds for the Pakistani investors. Close End mutual funds are traded
in stock exchange, directly every investor can buy or sell these funds in the stock market. Prices of these funds are determined on the basis of demand
and supply of the shares rather than net assets value in case of closed end mutual funds.
In 1962, Government of the Pakistan established open end mutual fund with the name of National Investment Unit Trust (NITL) commonly known as
NIT. Later, first closed end mutual fund in Pakistan was established in the year 1967 with the name of Investment Corporation of... Show more content
on Helpwriting.net ...
Francis and Fabozzi (1979) find that fund manager of the mutual funds do not reduce the beta of fund in bear market and increase it in bull market in
order to earn high risk adjustment returns for the shareholders and mutual funds managers do not shift over the beta of funds to take high return of
market movements.
McDonald (1974 ) indicates that stated objectives are significantly related to subsequent measure of systematic risk and total variability and to realize
mean excess returns. During the discussed period more aggressive objectives generally produced better performance of the funds when we find out the
ratios of mean return to beta or mean return to total variability. Higher risk funds usually appeared to produce better return to risk performance than
lower risks funds.
Madden, Nunn and Wiemann (1986) show that the alpha for the small capitalization mutual funds is positive and significantly different from zero on
consistent basis, while the capital of mutual funds is not significant for the largest mutual funds. The overall results provide strong support for
consistent and significant inverse relation between performance of the mutual funds and the size of market.
Malkiel (1995) conclude that mutual funds not provide any clarification to keep a faith that securities markets are extremely efficient. Most of the
investor keep in mind the purchasing a low expense index fund than give

Disadvantages and advantages of mutual funds

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