Investment planning involves balancing risk and return. Lower risk investments like savings accounts and fixed deposits have lower potential returns, while higher risk investments like equity and real estate may offer higher returns but more volatility. Different investment options suit different goals based on risk tolerance and time horizon. Cash management involves saving programs, budgeting, and using appropriate products like FDs, RDs, and money market instruments. Bonds, mutual funds, PPF, and tax-free bonds are good options for debt investments suitable for medium-term goals. Equity is best for long-term goals due to higher potential returns over long periods.
Investing through systematic investment plans (SIPs) in mutual funds reduces the average cost of investment compared to lump sum investing. By investing a fixed amount every month through SIPs, more units are purchased when the market is down and fewer units when the market is up, averaging out the overall cost. The example shows an SIP of Rs. 5,000 per month for 12 years in an equity fund, with a total investment of Rs. 7.85 lakhs growing to Rs. 44.66 lakhs, achieving a CAGR return of 24.38%. SIPs help investors benefit from rupee cost averaging and stay invested in volatile markets.
In a rising interest rate environment, short duration plans like liquid funds, ultra short term funds, and fixed maturity plans (FMPs) are the best choice. These products have maturity periods of less than one year, so they are less impacted by rising interest rates than long duration debt instruments. They provide better returns than savings accounts while still allowing flexibility to withdraw funds without penalty. When interest rates are increasing, it is preferable to invest in short term plans that minimize interest rate risk and allow reinvesting funds at higher rates.
This document summarizes the benefits of liquid funds compared to traditional savings accounts. Liquid funds are open-ended debt mutual funds that invest in short-term money market instruments and provide higher returns than savings accounts while still maintaining liquidity and safety of capital. They can be considered an alternative to parking surplus cash in savings accounts. Liquid funds have historically offered returns as high as 7.5-8% annually compared to 4-6% from savings accounts and are ideal for surplus cash needs of 1 week to 3 years. Key advantages include higher post-tax returns, avoidance of premature withdrawal penalties of fixed deposits, and tax efficiency.
Saber Funds offers pension-backed loan investment programs that allow eligible public employees to borrow against their pension accounts at 3.33% and invest the funds with Saber at higher fixed rates of return. Their flagship Pension Max program invests funds in tax lien certificates and ETFs and offers a 12% annual return, providing investors an 8.67% net spread to repay their loans. The program allows investors to either accept bimonthly disbursements of returns to make loan payments or retain all returns, earning the full 12% annually on their investments. Upon loan satisfaction, investors may rollover funds, deposit in another Saber program, or withdraw their returns.
Vishal Paleja wants to buy a home in Mumbai but is short of funds. He represents many urban homeowners who want to buy but cannot due to high real estate prices. There are some options to get funding when short on funds, such as taking loans against existing investments like life insurance policies, PPF accounts, or mutual funds. Loans can provide needed funds until the home purchase while avoiding postponing or losing the property deal. Interest rates on these loans range from 9-13% depending on the type of investment used as collateral.
Why Shouldn’t I Invest in a Fixed Deposit?Sachin Karpe
Why Shouldn’t I Invest in a Fixed Deposit? Sachin Karpe Explains Why shouldn't I invest in a Fixed Deposit? is the most common question asked by the investors. Will you invest in a FD of 10k, if the net return will be 6.3% instead of an overall return of 9%?
This document provides information on debt markets and debt funds, including:
1. It outlines the risks associated with debt markets like interest rate risk and credit risk. SEBI regulations have mitigated some risks.
2. Interest rate fluctuations can impact returns in debt funds depending on their duration. Shorter duration funds have less interest rate risk.
3. The document recommends matching a debt fund's duration to an investor's horizon and provides examples of suitable funds for different time periods.
4. Scenario analyses show how different debt funds could perform under various interest rate changes to help educate investors.
Investment planning involves balancing risk and return. Lower risk investments like savings accounts and fixed deposits have lower potential returns, while higher risk investments like equity and real estate may offer higher returns but more volatility. Different investment options suit different goals based on risk tolerance and time horizon. Cash management involves saving programs, budgeting, and using appropriate products like FDs, RDs, and money market instruments. Bonds, mutual funds, PPF, and tax-free bonds are good options for debt investments suitable for medium-term goals. Equity is best for long-term goals due to higher potential returns over long periods.
Investing through systematic investment plans (SIPs) in mutual funds reduces the average cost of investment compared to lump sum investing. By investing a fixed amount every month through SIPs, more units are purchased when the market is down and fewer units when the market is up, averaging out the overall cost. The example shows an SIP of Rs. 5,000 per month for 12 years in an equity fund, with a total investment of Rs. 7.85 lakhs growing to Rs. 44.66 lakhs, achieving a CAGR return of 24.38%. SIPs help investors benefit from rupee cost averaging and stay invested in volatile markets.
In a rising interest rate environment, short duration plans like liquid funds, ultra short term funds, and fixed maturity plans (FMPs) are the best choice. These products have maturity periods of less than one year, so they are less impacted by rising interest rates than long duration debt instruments. They provide better returns than savings accounts while still allowing flexibility to withdraw funds without penalty. When interest rates are increasing, it is preferable to invest in short term plans that minimize interest rate risk and allow reinvesting funds at higher rates.
This document summarizes the benefits of liquid funds compared to traditional savings accounts. Liquid funds are open-ended debt mutual funds that invest in short-term money market instruments and provide higher returns than savings accounts while still maintaining liquidity and safety of capital. They can be considered an alternative to parking surplus cash in savings accounts. Liquid funds have historically offered returns as high as 7.5-8% annually compared to 4-6% from savings accounts and are ideal for surplus cash needs of 1 week to 3 years. Key advantages include higher post-tax returns, avoidance of premature withdrawal penalties of fixed deposits, and tax efficiency.
Saber Funds offers pension-backed loan investment programs that allow eligible public employees to borrow against their pension accounts at 3.33% and invest the funds with Saber at higher fixed rates of return. Their flagship Pension Max program invests funds in tax lien certificates and ETFs and offers a 12% annual return, providing investors an 8.67% net spread to repay their loans. The program allows investors to either accept bimonthly disbursements of returns to make loan payments or retain all returns, earning the full 12% annually on their investments. Upon loan satisfaction, investors may rollover funds, deposit in another Saber program, or withdraw their returns.
Vishal Paleja wants to buy a home in Mumbai but is short of funds. He represents many urban homeowners who want to buy but cannot due to high real estate prices. There are some options to get funding when short on funds, such as taking loans against existing investments like life insurance policies, PPF accounts, or mutual funds. Loans can provide needed funds until the home purchase while avoiding postponing or losing the property deal. Interest rates on these loans range from 9-13% depending on the type of investment used as collateral.
Why Shouldn’t I Invest in a Fixed Deposit?Sachin Karpe
Why Shouldn’t I Invest in a Fixed Deposit? Sachin Karpe Explains Why shouldn't I invest in a Fixed Deposit? is the most common question asked by the investors. Will you invest in a FD of 10k, if the net return will be 6.3% instead of an overall return of 9%?
This document provides information on debt markets and debt funds, including:
1. It outlines the risks associated with debt markets like interest rate risk and credit risk. SEBI regulations have mitigated some risks.
2. Interest rate fluctuations can impact returns in debt funds depending on their duration. Shorter duration funds have less interest rate risk.
3. The document recommends matching a debt fund's duration to an investor's horizon and provides examples of suitable funds for different time periods.
4. Scenario analyses show how different debt funds could perform under various interest rate changes to help educate investors.
This document provides information on making investments work for you through saving and investing regularly from an early age. It discusses starting small investments early in life to benefit from compound returns over time. The key is for investment returns to exceed inflation rates over the long run. Various low and high risk investment options are outlined including fixed deposits, mutual funds, real estate, and gold. The document emphasizes that while fixed deposits are safe, their returns may be outpaced by inflation, making higher-return investments like mutual funds more suitable for achieving long-term financial goals when invested in for periods of 3-5 years or more despite short-term volatility. It provides contact information for a financial planner to help readers develop an optimal investment strategy.
How do investors achieve financial freedom? How do you establish your financial goals? Understand the benefits of diversification and following an asset allocation strategy.
www.Quantumamc.com
This document discusses how investing in an Equity Linked Savings Scheme (ELSS) can help save taxes while also building a retirement corpus. It shares the story of Suresh, who started an SIP of Rs. 12,500 per month in ELSS at age 25 and was able to accumulate over Rs. 2 crore by age 50. The document also compares the growth and returns of investing Rs. 1.5 lakh annually for 10 years in ELSS versus other tax saving instruments like PPF, NSC and FD, finding that ELSS provided the highest returns. It concludes that making smart long-term investments in ELSS can help save taxes while planning for financial goals, but tax planning should not be left for
This is to compare the Returns of Fixed Deposits and Debt Oriented Hybrid Funds [Capital Protection Oriented Fund / Scheme (CPOF), Mutual Fund Monthly Income Plan / Scheme (MIP), Equity Savings Funds], to demonstrate how the latter is better.
Capital budgeting is the process of evaluating potential long-term investments and capital expenditures. It involves estimating cash flows, assessing risk, determining discount rates, and calculating metrics like net present value and internal rate of return to determine which projects to accept. Capital is a limited resource, so management must carefully evaluate projects and allocate capital to the most economically acceptable and profitable opportunities. However, net present value and internal rate of return sometimes select different projects, usually due to differences in project size, life, or cash flow patterns. Both metrics can be reliably used if the discount rate reflects true risk and an internal rate of return is reasonably achievable.
1) Retail investors are fleeing both the stock market and mutual funds, with a record number of folios being closed since the start of 2013.
2) Before redeeming investments, investors should keep exit loads, taxes, and lock-in periods in mind. For mutual funds, short-term capital gains are taxed at 15% if sold within a year.
3) For systematic investment plans and closed-ended funds like ELSS, each installment has a one year lock-in, so it may take two years to redeem without taxes. Stocks sold within a year also incur a 15% short-term capital gains tax.
Islamic and conventional banking differ in their core principles and operations. Islamic banking prohibits interest and invests according to Sharia law, focusing on profit/loss-sharing. It aims to stimulate broad business activity and equitable wealth distribution. In contrast, conventional banking charges interest to maximize shareholder wealth, concentrating resources among a few. Their objectives, financing modes, investment practices, risk-sharing approaches and impact on income distribution distinguish Islamic and conventional banking.
Strategic Financial Analysis JS vs Arif HabibM.Ali Jehangir
The document compares the financial performance and capital structure of two Pakistani non-bank financial institutions, JSCL and AHL. It analyzes key ratios related to capital structure, leverage, working capital management and asset utilization. The analysis finds that JSCL has a lower debt reliance and better current ratio, while AHL has higher leverage, weaker current position and relies more on debt financing. Both companies can improve working capital management and asset intensity to enhance efficiency.
Mutual Funds does not always mean Up and Down, Risky and gives a feeling of "No, not for me".
Debt Mutual Funds can be a great Portfolio diversifier and
This document compares and contrasts current accounts (C.A.) and savings accounts (S.A.). It notes that C.A.s allow overdrafts while S.A.s do not, C.A.s have no minimum balance requirements while S.A.s do, and businesses prefer C.A.s for overdraft facilities while individuals prefer S.A.s for interest earnings. It also discusses CASA accounts, which combine savings and checking accounts to attract customer deposits, flexi fixed deposits which allow funds to be swept between savings and fixed deposit accounts, and recurring deposits which allow regular monthly deposits into a fixed deposit.
SBI Dynamic Asset Allocation Fund: An Open-ended Dynamic Asset Allocation Sch...SBI Mutual Fund
SBI Dynamic Asset Allocation Fund is an open-ended dynamic asset allocation scheme which aims to provide investors an opportunity to invest in a portfolio of a mix of equity and equity-related securities and fixed-income instruments which will be managed dynamically so as to provide investors with long-term capital appreciation.To know more about this mutual fund check SBI Mutual Fund page
https://www.sbimf.com/Products/HybridSchemes.aspx
Investing retirement savings in a leveraged stock portfolio when young can significantly increase returns with lower risk compared to traditional investment strategies. Specifically:
1) Using historical stock market data back to 1871, simulations show that investing retirement savings in stocks on margin when young (e.g. 2:1 leverage) and then reducing leverage over time results in expected retirement wealth that is 90% higher than a traditional life-cycle investing approach and 19% higher than investing entirely in stocks.
2) This leveraged approach when young allows people to retire almost 6 years earlier or maintain their standard of living 27 years longer in retirement compared to traditional strategies.
3) The leveraged approach provides better diversification over time compared
The document discusses systematic investment plans (SIPs), public provident funds (PPFs), and compares the two options. SIPs allow regular small investments in funds and benefit from compounding returns over time. PPFs offer lower but guaranteed returns and have restrictions including a 15-year lock-in period. While both can fund long-term goals, SIPs provide more flexibility and opportunity for higher returns compared to PPFs. The document provides details on investment limits, interest rates, liquidity, and tax benefits of SIPs and PPFs to help decide which may be a better fit depending on an individual's needs and goals.
The document discusses sharing financial decisions between spouses. Merging investments strengthens a household's financial position and gives a comprehensive view. The tax authority sets limits but allows gifting between spouses without tax. Strategies discussed include loaning money for a house purchase and investing in tax-free options like PPF or gold. Gifting gold to a spouse avoids income generation. A wife's separate savings from household expenses are also tax-free if invested.
Olympic Wealth Fund, 'Javelin' Fund fact sheet class 'B' February 2015Olympic Wealth Fund
The Javelin Global Fund Fact Sheet provides performance data and details about the fund. Over the past year, Class B saw returns of 81.84% and since its launch in January 2012, returns have been 90.42%. The top three holdings are Suncor Energy Inc, Alibaba Group Holding Ltd, and Microsoft Corp, making up 39%, 33%, and 28% of the fund respectively. The fund seeks to provide capital appreciation over the medium to long term through a focus investing approach in well-run global businesses.
This document provides information on investing in Equity Linked Savings Schemes (ELSS), a type of mutual fund that allows tax deductions under Section 80C. ELSS funds invest primarily in equities and provide tax-free capital gains after three years. They offer benefits like tax savings up to Rs. 2 lakhs, higher returns potential than other savings instruments, and wealth creation over the long run. The document analyzes the performance of sample ELSS funds and provides tips for selecting funds based on factors like credit ratings, fund size, risk level, and past returns. It also offers recommended ELSS funds for different age groups.
This document analyzes balanced mutual funds in India that invest in both equities and debt instruments. It aims to determine if there is a relationship between assets under management (AUM) and returns for selected balanced funds, and if returns differ significantly among the funds. The analysis focuses on HDFC, ICICI, UTI, and DSP balanced funds. It is hypothesized that either a relationship exists between AUM and returns for at least one fund, or returns significantly differ between funds. Secondary data will be used to conduct descriptive and causal analyses to test the hypotheses.
ELSS (Equity Linked Savings Scheme) are mutual funds that invest primarily in equities and offer tax benefits under Section 80C. Key features include a 3 year lock-in period, high potential returns, and tax deductibility of investments. Top performing ELSS funds include Axis Long Term Equity, Aditya Birla Sun Life Tax Relief, and Tata India Tax Savings. ELSS provides an effective way to save taxes while gaining exposure to equity markets for long term capital appreciation.
The document discusses issues with the current structure of Islamic banking and calls for restructuring. It notes that Islamic banking is meant to solve economic problems from a moral perspective by integrating ethics and prohibiting interest, but currently most Islamic banks operate parallel to conventional banks and rely on fixed returns rather than profit/loss sharing. This exploits depositors and does not ensure justice. The document argues that Islamic banking needs to move to purely profit/loss sharing models and discard fixed return techniques to better achieve its goals of encouraging savings, equitable distribution, and justice between parties.
This document discusses the importance of investors being aware of a country's monetary policy when planning investments. It provides an overview of key monetary policy concepts like objectives, instruments used by the central bank like CRR, SLR, repo rate, and bank rate. It then illustrates the implications of changes in these instruments on three investment options - bank deposits, stock market, and government securities. The conclusion emphasizes that awareness of monetary policy benefits investors by allowing them to better anticipate economic conditions and make informed financial plans.
This document discusses Islamic real estate investment trusts (REITs) and provides an overview of REITs globally. It outlines the advantages of investing in REITs, including tax benefits, liquidity, diversification, and high dividends. Issues with Islamic REITs are discussed, such as lower reinvestment rates leading to slower growth. The document also describes Malaysia's guidelines for Islamic REITs, including the first Islamic REIT launched there in 2006. In conclusion, universal regulatory frameworks and Shari'a consensus on asset types are needed to further develop Islamic REITs as a viable investment alternative.
Akhuwat is a non-profit microfinance organization in Pakistan that provides interest-free loans and various social services through innovative programs and projects such as education assistance, health services, clothes banks, and support for transgender individuals, with the goal of supporting over 2.5 million families by 2020. It operates according to principles of using indigenous institutions, volunteerism, interest-free loans, and converting borrowers into donors to serve humanity. Akhuwat's services and projects also include a university, college, schools, leadership programs, health centers, and camps.
This document provides information on making investments work for you through saving and investing regularly from an early age. It discusses starting small investments early in life to benefit from compound returns over time. The key is for investment returns to exceed inflation rates over the long run. Various low and high risk investment options are outlined including fixed deposits, mutual funds, real estate, and gold. The document emphasizes that while fixed deposits are safe, their returns may be outpaced by inflation, making higher-return investments like mutual funds more suitable for achieving long-term financial goals when invested in for periods of 3-5 years or more despite short-term volatility. It provides contact information for a financial planner to help readers develop an optimal investment strategy.
How do investors achieve financial freedom? How do you establish your financial goals? Understand the benefits of diversification and following an asset allocation strategy.
www.Quantumamc.com
This document discusses how investing in an Equity Linked Savings Scheme (ELSS) can help save taxes while also building a retirement corpus. It shares the story of Suresh, who started an SIP of Rs. 12,500 per month in ELSS at age 25 and was able to accumulate over Rs. 2 crore by age 50. The document also compares the growth and returns of investing Rs. 1.5 lakh annually for 10 years in ELSS versus other tax saving instruments like PPF, NSC and FD, finding that ELSS provided the highest returns. It concludes that making smart long-term investments in ELSS can help save taxes while planning for financial goals, but tax planning should not be left for
This is to compare the Returns of Fixed Deposits and Debt Oriented Hybrid Funds [Capital Protection Oriented Fund / Scheme (CPOF), Mutual Fund Monthly Income Plan / Scheme (MIP), Equity Savings Funds], to demonstrate how the latter is better.
Capital budgeting is the process of evaluating potential long-term investments and capital expenditures. It involves estimating cash flows, assessing risk, determining discount rates, and calculating metrics like net present value and internal rate of return to determine which projects to accept. Capital is a limited resource, so management must carefully evaluate projects and allocate capital to the most economically acceptable and profitable opportunities. However, net present value and internal rate of return sometimes select different projects, usually due to differences in project size, life, or cash flow patterns. Both metrics can be reliably used if the discount rate reflects true risk and an internal rate of return is reasonably achievable.
1) Retail investors are fleeing both the stock market and mutual funds, with a record number of folios being closed since the start of 2013.
2) Before redeeming investments, investors should keep exit loads, taxes, and lock-in periods in mind. For mutual funds, short-term capital gains are taxed at 15% if sold within a year.
3) For systematic investment plans and closed-ended funds like ELSS, each installment has a one year lock-in, so it may take two years to redeem without taxes. Stocks sold within a year also incur a 15% short-term capital gains tax.
Islamic and conventional banking differ in their core principles and operations. Islamic banking prohibits interest and invests according to Sharia law, focusing on profit/loss-sharing. It aims to stimulate broad business activity and equitable wealth distribution. In contrast, conventional banking charges interest to maximize shareholder wealth, concentrating resources among a few. Their objectives, financing modes, investment practices, risk-sharing approaches and impact on income distribution distinguish Islamic and conventional banking.
Strategic Financial Analysis JS vs Arif HabibM.Ali Jehangir
The document compares the financial performance and capital structure of two Pakistani non-bank financial institutions, JSCL and AHL. It analyzes key ratios related to capital structure, leverage, working capital management and asset utilization. The analysis finds that JSCL has a lower debt reliance and better current ratio, while AHL has higher leverage, weaker current position and relies more on debt financing. Both companies can improve working capital management and asset intensity to enhance efficiency.
Mutual Funds does not always mean Up and Down, Risky and gives a feeling of "No, not for me".
Debt Mutual Funds can be a great Portfolio diversifier and
This document compares and contrasts current accounts (C.A.) and savings accounts (S.A.). It notes that C.A.s allow overdrafts while S.A.s do not, C.A.s have no minimum balance requirements while S.A.s do, and businesses prefer C.A.s for overdraft facilities while individuals prefer S.A.s for interest earnings. It also discusses CASA accounts, which combine savings and checking accounts to attract customer deposits, flexi fixed deposits which allow funds to be swept between savings and fixed deposit accounts, and recurring deposits which allow regular monthly deposits into a fixed deposit.
SBI Dynamic Asset Allocation Fund: An Open-ended Dynamic Asset Allocation Sch...SBI Mutual Fund
SBI Dynamic Asset Allocation Fund is an open-ended dynamic asset allocation scheme which aims to provide investors an opportunity to invest in a portfolio of a mix of equity and equity-related securities and fixed-income instruments which will be managed dynamically so as to provide investors with long-term capital appreciation.To know more about this mutual fund check SBI Mutual Fund page
https://www.sbimf.com/Products/HybridSchemes.aspx
Investing retirement savings in a leveraged stock portfolio when young can significantly increase returns with lower risk compared to traditional investment strategies. Specifically:
1) Using historical stock market data back to 1871, simulations show that investing retirement savings in stocks on margin when young (e.g. 2:1 leverage) and then reducing leverage over time results in expected retirement wealth that is 90% higher than a traditional life-cycle investing approach and 19% higher than investing entirely in stocks.
2) This leveraged approach when young allows people to retire almost 6 years earlier or maintain their standard of living 27 years longer in retirement compared to traditional strategies.
3) The leveraged approach provides better diversification over time compared
The document discusses systematic investment plans (SIPs), public provident funds (PPFs), and compares the two options. SIPs allow regular small investments in funds and benefit from compounding returns over time. PPFs offer lower but guaranteed returns and have restrictions including a 15-year lock-in period. While both can fund long-term goals, SIPs provide more flexibility and opportunity for higher returns compared to PPFs. The document provides details on investment limits, interest rates, liquidity, and tax benefits of SIPs and PPFs to help decide which may be a better fit depending on an individual's needs and goals.
The document discusses sharing financial decisions between spouses. Merging investments strengthens a household's financial position and gives a comprehensive view. The tax authority sets limits but allows gifting between spouses without tax. Strategies discussed include loaning money for a house purchase and investing in tax-free options like PPF or gold. Gifting gold to a spouse avoids income generation. A wife's separate savings from household expenses are also tax-free if invested.
Olympic Wealth Fund, 'Javelin' Fund fact sheet class 'B' February 2015Olympic Wealth Fund
The Javelin Global Fund Fact Sheet provides performance data and details about the fund. Over the past year, Class B saw returns of 81.84% and since its launch in January 2012, returns have been 90.42%. The top three holdings are Suncor Energy Inc, Alibaba Group Holding Ltd, and Microsoft Corp, making up 39%, 33%, and 28% of the fund respectively. The fund seeks to provide capital appreciation over the medium to long term through a focus investing approach in well-run global businesses.
This document provides information on investing in Equity Linked Savings Schemes (ELSS), a type of mutual fund that allows tax deductions under Section 80C. ELSS funds invest primarily in equities and provide tax-free capital gains after three years. They offer benefits like tax savings up to Rs. 2 lakhs, higher returns potential than other savings instruments, and wealth creation over the long run. The document analyzes the performance of sample ELSS funds and provides tips for selecting funds based on factors like credit ratings, fund size, risk level, and past returns. It also offers recommended ELSS funds for different age groups.
This document analyzes balanced mutual funds in India that invest in both equities and debt instruments. It aims to determine if there is a relationship between assets under management (AUM) and returns for selected balanced funds, and if returns differ significantly among the funds. The analysis focuses on HDFC, ICICI, UTI, and DSP balanced funds. It is hypothesized that either a relationship exists between AUM and returns for at least one fund, or returns significantly differ between funds. Secondary data will be used to conduct descriptive and causal analyses to test the hypotheses.
ELSS (Equity Linked Savings Scheme) are mutual funds that invest primarily in equities and offer tax benefits under Section 80C. Key features include a 3 year lock-in period, high potential returns, and tax deductibility of investments. Top performing ELSS funds include Axis Long Term Equity, Aditya Birla Sun Life Tax Relief, and Tata India Tax Savings. ELSS provides an effective way to save taxes while gaining exposure to equity markets for long term capital appreciation.
The document discusses issues with the current structure of Islamic banking and calls for restructuring. It notes that Islamic banking is meant to solve economic problems from a moral perspective by integrating ethics and prohibiting interest, but currently most Islamic banks operate parallel to conventional banks and rely on fixed returns rather than profit/loss sharing. This exploits depositors and does not ensure justice. The document argues that Islamic banking needs to move to purely profit/loss sharing models and discard fixed return techniques to better achieve its goals of encouraging savings, equitable distribution, and justice between parties.
This document discusses the importance of investors being aware of a country's monetary policy when planning investments. It provides an overview of key monetary policy concepts like objectives, instruments used by the central bank like CRR, SLR, repo rate, and bank rate. It then illustrates the implications of changes in these instruments on three investment options - bank deposits, stock market, and government securities. The conclusion emphasizes that awareness of monetary policy benefits investors by allowing them to better anticipate economic conditions and make informed financial plans.
This document discusses Islamic real estate investment trusts (REITs) and provides an overview of REITs globally. It outlines the advantages of investing in REITs, including tax benefits, liquidity, diversification, and high dividends. Issues with Islamic REITs are discussed, such as lower reinvestment rates leading to slower growth. The document also describes Malaysia's guidelines for Islamic REITs, including the first Islamic REIT launched there in 2006. In conclusion, universal regulatory frameworks and Shari'a consensus on asset types are needed to further develop Islamic REITs as a viable investment alternative.
Akhuwat is a non-profit microfinance organization in Pakistan that provides interest-free loans and various social services through innovative programs and projects such as education assistance, health services, clothes banks, and support for transgender individuals, with the goal of supporting over 2.5 million families by 2020. It operates according to principles of using indigenous institutions, volunteerism, interest-free loans, and converting borrowers into donors to serve humanity. Akhuwat's services and projects also include a university, college, schools, leadership programs, health centers, and camps.
Istisna' is an Islamic contract where one party contracts another to manufacture a specific good, with the price being paid in installments or upon delivery. It allows buyers to pay for custom goods over time rather than upfront. The document provides examples of istisna' being used to finance the manufacturing of agricultural equipment and greenhouses. It also outlines key differences between istisna' contracts and salam contracts, noting istisna' allows for deferred payment, unspecified delivery timelines, and early cancellation before production begins.
The document discusses Islamic banking and finance principles and the progress of the Islamic banking industry in Pakistan. It provides an overview of Islamic banking products and compares Islamic and conventional banking. The summary highlights that Islamic banking prohibits interest and is based on asset-backed financing, risk-sharing, and Shariah compliance. It also notes that the Islamic banking industry has grown significantly in Pakistan and globally in recent years.
The document discusses differences in the interpretation of Shariah law across Islamic countries and financial institutions. It notes that while some differences are natural and expected given the diversity in Islamic jurisprudence, destructive differences can fragment the Muslim society. The document advocates for greater standardization efforts through organizations like AAOIFI to increase consistency and convergence, while still allowing for diversity of opinions among Islamic scholars. It also examines how English courts may not fully recognize Shariah law for dispute resolution involving Islamic financial contracts.
The document discusses Diminishing Musharaka, an Islamic financing structure used for home financing in Pakistan. Under Diminishing Musharaka, the bank and customer jointly purchase a property, with the customer gradually buying out the bank's shares over time and making rental payments. The key steps are: 1) the bank and customer enter a Musharaka agreement and rental contract for the property; 2) ownership is transferred as the customer purchases shares from the bank each period; 3) by the end, the customer owns the entire property. Risks to the bank include default, impairment, and reputational risks, which are mitigated through measures like insurance requirements and periodic Sharia compliance reviews.
1. The document discusses the need for an Islamic inter-bank market in Pakistan to promote liquidity among Islamic banks.
2. Currently, Islamic banks manage reserve requirements through high cash reserves and limited liquidity due to the lack of Shariah-compliant securities and no lender of last resort.
3. For an effective Islamic inter-bank market, the document recommends developing a range of Shariah-compliant securities, establishing settlement and trading systems, and allowing participation from both Islamic and conventional institutions.
This document discusses liquidity issues in Islamic finance. It provides an overview of key regions including Malaysia, Bahrain, Pakistan, and Brunei and their respective Islamic money markets. It then examines typical balance sheets of Islamic financial institutions in the Gulf Cooperation Council and notes they have higher liquidity ratios due to assets like murabaha that have shorter tenors. The document addresses components needed for a good Islamic interbank money market, including short-term sukuk issuances, and efforts by the International Islamic Financial Market to develop the market. It concludes more issuances and greater participation is needed to further develop Islamic money markets.
This document provides details of various global Sukuk (Islamic bond) issues, including the issuer, date of issue, issuing country, arrangers/advisors, issue size, margin/tenor, and ratings. The table lists over 100 Sukuk issues ranging from 2002 to 2006 from numerous countries such as Bahrain, Saudi Arabia, United Arab Emirates, Pakistan, and others. The majority of issues are corporate Sukuk but some are government issues, with issue sizes ranging from USD26 million to USD1000 million.
Hum Securities presents Pakistan's premier Islamic financial brokerage services. They offer Shariah-compliant professional brokerage services through their department, Hum Islamic Brokerage Services (HIBS). HIBS aims to provide profitable and Shariah-compliant investment options like stocks, Islamic investment pools, and expert advisory services. Stocks provide a liquid and interest-free investment option when screened according to strict Shariah principles. The KMI-30 index tracks the performance of 30 Shariah-compliant stocks and serves as a benchmark for Islamic investments in Pakistan. HIBS products include brokerage services conducted according to Islamic rules, zero-commission investment pools, and profit/loss sharing investment pools.
Diminishing Musharakah is a type of partnership where one partner gradually purchases the other partner's share. It can be used for house financing like purchase, construction, renovation, and balance transfers. The bank and client enter a Musharakah agreement where they jointly own the property based on their investment ratios. The bank's share is divided into units that the client promises to purchase at a pre-agreed price. An Ijarah agreement is signed where the bank rents its share to the client until the units are purchased. The rent covers the bank's profit and recovery of the principal amount. Units are purchased through offer and acceptance on a monthly basis.
The document provides information about the 4th Global Islamic Microfinance Forum organized by AlHuda Center of Islamic Banking & Economics (AlHuda CIBE) in Dubai, UAE from November 1-2, 2014. The forum aims to promote Islamic microfinance worldwide and discuss challenges and opportunities in the industry. It includes details about the objective, agenda, speakers and sponsorship opportunities of the event. Some of the topics to be discussed are the Akhuwat model of interest-free loans, use of zakat and waqf for microfinance, innovation and IT in Islamic microfinance products.
This document discusses the concept of mudarabah, a type of partnership in Islamic finance. In a mudarabah, one partner provides capital while the other provides management and labor. Profits are shared according to a predetermined ratio, while losses are absorbed by capital first. There are two types of mudarabah - restricted and unrestricted - which differ in how much freedom the mudarib is given to make investment decisions. The document outlines rules around profit and loss distribution, duties of each partner, and circumstances under which the mudarabah contract can be terminated.
The document provides an overview of Islamic banking in Pakistan, including the history, current strategies and progress, and key financing modes such as Ijara. It discusses past efforts to establish Islamic banking since the 1970s and reasons for their failure. The current strategy involves a gradual multi-pronged approach to transform the economy and establish full-fledged Islamic banks and subsidiaries. Key points covered include the role of the State Bank of Pakistan, industry growth targets, and clarification of common misconceptions about Islamic banking practices.
The document provides an overview of Islamic banking in Pakistan, including its history, current state, and key features that distinguish it from conventional interest-based banking. It notes that Islamic banking grew gradually in Pakistan starting in the 1970s-80s due to various efforts, with the current strategy involving full-fledged Islamic banks, Islamic banking subsidiaries, and standalone branches. Today, Islamic banking is available across major cities in Pakistan through 6 full-fledge banks and 13 conventional banks with Islamic banking divisions comprising over 500 branches in total.
This document provides an overview of Islamic banking including:
1. Definitions of Islamic banking from a public and economic perspective focusing on profit and loss sharing.
2. A comparison of Islamic and conventional banking systems in terms of how deposits are handled and profits/losses distributed.
3. An explanation of profit distribution mechanisms in Islamic banking including the concept of weightages which determine share of profits.
The document provides definitions and explanations of basic business and commerce terms including:
- Unit Linked Investment Plans (ULIPs) and mutual funds
- Equity vs. debt and zero coupon bonds
- Regional Rural Banks (RRBs), lead bank schemes, clearing, and cheque types
- ATMs, debit vs. credit cards, drafts, and money transfers
- Asset Liability Management (ALM), cartels, ombudsmen, and banking organizations
- Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), bank rate, prime lending rate (PLR), and interest rates
- Inflation types, deficit financing, fiscal policy, and expenditure types
This document discusses objections to interest-free banking systems and evaluates arguments against their practicability. It argues that contrary to objections, interest-free banking using profit-and-loss sharing can effectively allocate resources through projected profit rates. It also notes that Islamic systems discourage idle funds through zakat and potential taxes. The document then provides an overview of Islamic banking principles, areas of operations including various financing modes, and the potential of Islamic banks going forward given the Muslim population.
- There has been close to a 1000% rise in women investing in stocks and mutual funds according to a recent survey, with a significant increase in SIP openings and inquiries from women.
- More women are now preferring to invest their savings rather than just keeping money idle in fixed deposits or savings accounts due to education about financial products.
- The document discusses various investment strategies and products that are suitable for women investors, focusing on safety, liquidity, and ease of investing through SIP.
1) There has been a whopping 1000% rise in women investing in equity stocks and mutual funds according to a recent survey, with a significant increase in SIP openings and inquiries by women.
2) Previously in 2019, 58% of women preferred safer investments like fixed deposits, PPF, and savings accounts. However, things have now changed as more women are taking investment decisions and learning about financial markets.
3) The document discusses strategies for women investors, including real case studies of women who have benefited from long-term SIPs and using SIP to achieve different financial goals. It promotes SIP as a convenient way to invest in mutual funds through monthly deductions.
- Women investors are increasingly investing in equity stocks and mutual funds, with a reported 1000% rise in women accounts and actions in these areas. This represents a significant change from previous cautious behaviors like keeping savings in fixed deposits.
- The document discusses factors that women investors look for, like safety, liquidity, and ease of investing. It provides testimonials from three women investors about their positive investing experiences and lessons learned.
- The rest of the document discusses SIP as an investment tool, current market indicators, a case study of an annuity planner using mutual funds, and benefits of using systematic withdrawal plans from mutual funds for retirement income needs.
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The document discusses the importance of financial planning for homemakers. It highlights three key points:
1. Financial planning is essential for everyone as it helps people meet life goals like buying a home, saving for children's education, and planning for retirement through proper management of finances.
2. It is important for homemakers to understand household finances so they are prepared in case the primary income earner can no longer manage the budget. This involves creating a budget, understanding expenses, and making sure the homemaker has access to financial accounts and documents.
3. The power of compounding interest is an important concept for long-term wealth creation. Even small regular investments can grow substantially over time due to compounding
The document discusses capital structure decisions and financial management. It defines capital structure as the combination of capital used by a firm. An optimal capital structure minimizes costs while managing risks. The document then discusses theories of capital structure, the risks associated with leverage, and the tradeoff between debt and equity financing. It provides an example problem analyzing different capital structure options.
This document provides an overview of shares and debentures for students of social entrepreneurship programs. It discusses how to issue and redeem debentures, accounting treatments for premiums and discounts on debentures, requirements for debenture redemption funds, and methods for paying interest on debentures. Key terms like cum interest and ex interest are also explained. The document aims to spread knowledge of these financial concepts to support the development of social entrepreneurship.
The document provides an introductory lesson on shares and debentures for social entrepreneurship students. It discusses key concepts such as how shares and debentures are issued, redeemed, and used to raise capital for business ideas and social transformation. The document also addresses accounting treatments for premiums/discounts on debentures and the importance of budgeting and financial control systems for entrepreneurial ventures.
This document provides an overview of key banking concepts including:
- Banking involves protecting money for others through lending and generating interest for profits.
- Loans generate interest that borrowers must pay back to the bank over time. There are different types of interest calculations like simple and compound interest.
- Cash flow tracks money flowing in and out of a bank over a period of time through credits and debits.
- Financial statement analysis uses ratios to evaluate a company's financial health before approving loans.
- Graphs like bar charts and pie charts help visualize banking data to facilitate analysis.
- There has been close to a 1000% rise in women opening investment accounts and taking investment actions in equity stocks and mutual funds. A survey found that women now prefer safety and liquidity over returns when investing.
- The article profiles three women investors and their experiences with investing. It highlights how SIP can help women investors meet their financial goals like home repairs, anniversary celebrations, and children's education.
- The document provides information about SIP and its benefits as a convenient way to invest in mutual funds through automatic monthly deductions. It emphasizes assigning SIPs to specific financial goals to maintain investment discipline.
Bank Alfalah was incorporated in 1997 as a public limited company and began banking operations in November 1997. It is now majority owned by an Abu Dhabi group. The presentation analyzes Bank Alfalah's financial performance using the CAMEL framework, finding that the bank maintains adequate capital ratios and liquidity, with improving asset quality and earnings. Management is deemed effective based on various productivity and profitability metrics.
This document promotes an "anti-tax money strategy" using equity index life insurance policies. It claims these policies allow tax-free growth and withdrawals during retirement, allowing people to spend 25-46% more income compared to traditional taxed retirement plans. It discusses using the policies to reduce taxes on social security benefits and fund retirement in a way that benefits the individual rather than the government. Key risks mentioned include the small risk of an insurance company bankruptcy and that the tax benefits could potentially be eliminated in the future.
The presentation provided an overview of Islamic banking in Pakistan, including:
1) A brief history of Islamic banking in NWFP including the conversion of Bank of Khyber to an Islamic bank in 2003.
2) Details on the Shariah Supervisory Committee that oversees Islamic operations.
3) Key differences between Islamic and conventional banking, with Islamic banking prohibiting interest but allowing for asset-backed and value-adding financial activities.
- There has been a 1000% rise in women opening investment accounts and taking investment actions like equity stocks and mutual funds. A survey found that previously, 58% of women preferred to save in fixed deposits, PPF, or savings accounts.
- The document discusses women investors' preferences for safety and liquidity over returns. It provides testimonies from three women investors about their positive investment experiences and lessons learned.
- The rest of the document discusses topics like the power of SIP investments, current market indicators, and a case study of a retired person using dynamic asset allocation mutual funds to generate monthly income.
AlHuda Center of Islamic Banking and Economics (CIBE) is a well established name in Islamic Banking and Finance with state-of-the-art advisory, consultancy, education, training, research and product development services. AlHuda CIBE has organized number of international customized training workshops on Islamic Banking and Finance to build the capacity of young Islamic finance professionals. As a matter of fact that Pakistan keeps enough potential for the growth of Islamic Banking and Finance, AlHuda CIBE is going to organize Training workshop on Islamic Banking for capacity building in Islamic Banking Professionals.
Uzbekistan Lessor Association (ULA) signed a Memorandum of Understanding (MoU) with AlHuda Center of Islamic Banking and Economics (CIBE), to implement promote Islamic leasing business in the country with the help of its association members.
AlHuda CIBE is going to organize "Three Days Specialized Training Workshop on Islamic
Banking, Takaful and Islamic Microfinance" on 17 - 18 June, 2019 at Tajikistan
AlHuda CIBE is pleased to announce Islamic Finance prestigious Training series in USA Titled: “Islamic Banking & Finance- 26-27 June, 2019 at Washington, DC” and “Islamic Finance & Islamic FinTech- 29-30 June, 2019 at San Francisco, USA”.
AlHuda Centre of Islamic Banking and Economics (CIBE) provides advisory, consultancy, education, training, research and product development services related to Islamic banking and finance. It has organized many international training workshops on Islamic banking and finance to build capacity. As Pakistan has potential for growth in Islamic banking, AlHuda CIBE plans to organize a training workshop there for professionals in the field. The document discusses the need to address the lack of skilled human capital in Islamic banking and finance.
AlHuda CIBE is going to organize "Global Takaful Forum" on August 26, 2019 at Istanbul - Turkey.
The objective of the event is to provide adequate knowledge and benefits of Takaful industry to the relevant market. The platform will help analyzing the problems hindering rapid development of Takaful worldwide that would surely help increasing financial inclusion.
CIS Islamic Banking and Finance Forum Auspiciously Concluded in Tashkent.
CIS Islamic Banking and Finance Forum was successfully concluded in Tashkent-Uzbekistan, yesterday. The purpose of that forum was to promote, strengthen and unite the Islamic Banking and Finance industry of the CIS countries, the theme of the forum was “CIS as new destination for Islamic Finance” which also addressed financial inclusion, fintech, Sukuk, Takaful, Islamic capital markets Islamic Microfinance, potential and opportunities of Islamic finance in CIS countries. Distinguished Speakers and industry experts from well serving organizations related to Islamic banking and finance, Islamic insurance (Takaful), and banking industry participated in the event. The aim of the forum was also to discuss the potential of Islamic finance in CIS countries, Investment avenue’s, FinTech, Sukuk, Takaful and Islamic capital markets by gathering stakeholders under one roof. The forum was organized by AlHuda Centre of Islamic Banking and Economics in partnership with multilateral organization Islamic Corporation for Development of Private Sector (ICD) – Islamic Development Bank (IsDB), Uzbekistan Bank Association.
The document provides information about an upcoming conference on Islamic banking and finance in the Commonwealth of Independent States (CIS) countries. The conference will explore the untapped potential of Islamic banking in the CIS region, and provide insights into global trends and innovations in Islamic banking, takaful, sukuk, and financial inclusion. It will take place on May 2-4, 2019 in Tashkent, Uzbekistan and include sessions on regulatory frameworks, investment opportunities, and a post-event workshop on Islamic banking, takaful and microfinance.
AlHuda Centre of Islamic Banking and Economics (CIBE) provides advisory, consultancy, education, training, research and product development services related to Islamic banking and finance. It has organized numerous international training workshops on Islamic banking and finance to build the capacity of young professionals. As the potential for Islamic banking and finance is growing in Pakistan, AlHuda CIBE plans to hold a training workshop there to provide capacity building for Islamic banking professionals.
AlHuda Centre of Islamic Banking and Economics (CIBE) provides advisory, consultancy, education, training, research and product development services related to Islamic banking and finance. It has organized many international training workshops to build the capacity of Islamic finance professionals. Given Pakistan's potential for growth in Islamic banking and finance, AlHuda CIBE plans to hold a training workshop there on Islamic banking to further develop professionals in the field. The document also notes that while Islamic finance has grown, there remains a lack of skilled human capital, which requires immediate attention.
AlHuda CIBE is going to organize "Three Days Specialized Training Workshop on Islamic
Banking, Takaful and Islamic Microfinance" on 21 - 23 March, 2019 at Dakar, Senegal
AlHuda Centre of Islamic Banking and Economics (CIBE) is a recognized name in Islamic banking and finance Market for trainings, research and advisory over the last 13 years. The prime goal has always been to remain stick to the commitments and provide state-of the-art Advisory Consultancy and Education through various well recognized modes viz. Campus programs, Distance learning programs, Trainings Workshops, Awareness Programs and Islamic Microfinance Products Development all side by side through our distinguished and generally acceptable and known Publications in Islamic Banking and Finance. We are dedicated to serve the community as a unique institution providing trainings, education and consultancy in the field of Islamic Banking & Finance not only in Pakistan but all over the world. We have so far organized more than 300 trainings, 32 successful campus programs and training courses with numerous national and international students.
AlHuda CIBE is pleased to announce its upcoming event the "African Interest-free Banking and Finance Forum" on 6th February, 2019 followed by Post Event Workshop “Interest-Free Banking & Finance, Insurance & Microfinance” on 7th - 8th February, 2019 at Addis Ababa, Ethiopia. The aim of this forum is to address the latest trends, challenges, and opportunities in Finance Industry of Africa.
The aim of this forum is to address the latest trends, challenges and opportunities in Islamic Financial Industry of Africa. This forum will also give an opportunity to all the institutions, organizations and professional to network and exchange business ideas.
AlHuda CIBE going to organize Two days specialized training workshop on Islamic Banking & Finance in Azerbaijan
E: info@alhudacibe.com
http://www.alhudacibe.com/conference2018/
AlHuda CIBE going to organize Two days specialized training workshop on Islamic Banking & Finance on 06-07 September, 2018 at London - United Kingdom
E: info@alhudacibe.com
http://www.alhudacibe.com/conference2018/IBFUK/
The document summarizes information about AlHuda Centre of Islamic Banking and Economics (CIBE), an organization that promotes Islamic banking and finance. It discusses AlHuda CIBE's services and recognition over its 11 years of operations. It also provides background information on the Philippines, Islamic banking and finance, and the agenda for AlHuda CIBE's two-day specialized training event on Islamic banking and microfinance in Marawi, Philippines.
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