Advantages And Disadvantages Of Mutual Fund
A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.
The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV).
The advantages of investing in a Mutual Fund are:
• Professional Management
• Diversification
• Convenient Administration
• Return Potential
• Low Costs
• Liquidity
• Transparency
• Flexibility
• Choice of schemes
• Well regulated
• Affordability
• Variety
• Tax benefits
TYPES OF MUTUAL FUND SCHEMES
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The figure below gives an overview into the existing types of schemes in the Industry.
BASED ON STRUCTURE
OPEN ENDED FUNDS An open-end fund is one that is available for subscription all through the year. These do not have a fixed
Jackson National Life Mission Statement
1153 Words | 5 PagesJackson National Life sells three types of annuities, variable annuities, fixed index annuities, and fixed annuities. According to Jackson National Life, variable annuities are, “long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value” (Products, n.d.). There are three variable annuity options for customers to choose from, Elite Access, Perspective Adversary, Perspective II. Fixed index annuities according to Anunityfyi.com are, “a type of annuity that grows at the greater of an annual, guaranteed minimum rate of return; or the return from a specified stock market index reduced by certain expenses” (Equity Indexed Annuities, n.d.). Jackson National Life has four fixed index annuities to choose from, Elite Choice, Elite Choice Rewards, Select Annual Reset, and the Jackson Ascender Plus Select option.
Pension Plans: GASB Vs. FASB
740 Words | 3 PagesPension Plans By Tay’veun Glenn Introduction Pensions are known as a retirement account that most employers maintain to give employees who have stayed with the company a payout upon retirement. Most employers give recipients of pension accounts a choice between a lump-sum payment or monthly annuity payments that are based upon the amount of time that the employee worked and their final salary prior to leaving the company. There are different types of pension plans and the use of each one is dependent on the employer. The Governmental Accounting Standards Board and Financial Accounting Standards Board both have to report pensions and have designated different ways to account for it.
Pros And Cons Of W-4 Tax Deductions
1008 Words | 5 PagesMake sure that this is the correct type of investment option for the individual’s current situation. After retirement, many individual’s tax situation will change, and the tax rate for withdrawals will be determined based off of their current taxable
Target Income Taxes And Pension Case Study
677 Words | 3 PagesTarget’s Pension plan is referred to as a defined benefit plan. This type of policy provides an already determined monthly retirement amount depending on the retiree 's specific age and service length. Additionally, for this kind of arrangement, each employee understands the agreement and its associated terms while Target agrees to invest in the fund to reach its obligation to its employees. The policy covers employees who are eligible and meet the requirement of age and length of service. The plans allocation of assets within the program work together to reduce the cost of funding the pension obligations (Target 2016 Annual Report).
Case Study: Skilled Nursing Facilities
667 Words | 3 PagesThe general payment method for SNFs has been per diem payments. For cost reporting periods beginning on or after July 1, 1998, SNFs are paid a comprehensive per diem under a prospective payment plan This SNF prospective per diem payment represents Medicare’s payment
Virgin Australia's Legitimacy Theory
1680 Words | 7 PagesThese disclosures generally suggest that the corporation’s reports were audited and that the statements conformed to the appropriate legislations and standards (Virgin Australia Holdings Ltd 2013, 166). In relation to social and environment disclosure that is not regulated, the corporation has referred to appropriate initiatives like the Global Reporting Initiative (GRI) (Virgin Australia Holdings Ltd 2013, 164). Its corporate governance disclosures covered mainly on the internal business control such as the structure and role of the board of directors, remuneration, responsible and ethical decision-making, integrity in financial reporting, recognising and managing risk, and disclosure and the rights of shareholders (Virgin Australia Holdings Ltd 2013,
What Are The Advantages And Disadvantages Of Target Company
843 Words | 4 PagesTarget Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.
Chick Fil A Essay
1591 Words | 7 PagesFourth, it has a private, family-controlled ownership structure and its management philosophy was based on biblical principles (Hitt, Ireland, & Hoshisson, 2015). On its website, as part of its expansion plan, CFA invites the public to submit proposal for real estate site for its franchisees, calling attention to the separation of the franchisee selection process from the real estate site selection process (“Real Estate,”
Automatic Income Coach Case Study
1187 Words | 5 PagesInstead of expecting any reliable compensation plan, you should instead be expecting other up sells from this program. Should You Join Automatic Income
Tabung Haji Case Study
2223 Words | 9 Pages3.2 Tabung Haji Tabung Haji or Lembaga Tabung Haji is the Malaysian hajj pilgrims fund board. It was formerly known as Lembaga Urusan dan Tabung Haji (LUTH). The main headquarters is located at Jalan Tun Razak, Kuala Lumpur. Tabung Haji facilitates savings for the pilgrimage to Mecca through investment in Shariah-compliant vehicles.
Advantages And Disadvantages Of Emerging Market
1883 Words | 8 PagesDefinition of emerging market In terms of investors emerging markets are used to describe developing countries, in which investment would be expected to achieve higher returns but it would be ac-companied by a higher risk. Emerging markets are between developed markets. “Even index providers cannot agree on precisely what constitutes an emerging mar-ket. MSCI, the US company that introduced the benchmark MSCI Emerging Market index in 1988, defines an emerging market in terms of the number of quoted compa-nies of a certain size and “free float” (the proportion of shares available for ordinary investors to buy), plus a market’s openness to foreign ownership and capital.
Advantages Of Risk Metrics
919 Words | 4 PagesA recommended sample for investment policy and its requirement is summarized in below
Case Study Of Motilal Oswal Company
815 Words | 4 PagesInvestment philosophy of Motilal oswal Motilal oswal securities limited organization structure Motilal oswal franchise structure Motilal oswal securities Ltd management key people Name Position Motilal oswal Chairman and managing director Raamdeo agarwal Joint managing director sudhir dhar Associate director and hear hr admin Hitungshu debnath Director retail business Navin agarwal MD of institutional equities and investment banking Sameer kamath Associate director CFO Ramnik chabra Associate director Head marketing Ajay menon Chief operating officer Rajesh dharamshe Director –institutional derivatives and corporate broking Vijay goel Broking , distribution and wealth management Vishal Tulsyan Private equity Motilal oswal financial services Ltd Subsidiaries
Essay On Importance Of Financial Management
812 Words | 4 Pages• Accomplishment of funds Financial management involves the accomplishment of required fund to the business organization. Accomplishing needed funds play a major part of the financial management in an organization which involve possible source of finance at minimum cost. • Proper Use of Funds Financial management systems help to proper use and allocation of funds which leads to improve the operational activity of the business organization. If the funds use properly, so it helps to reduce the cost of capital and maximizing the value of the firm. • Financial
Role Of Corporate Governance In Nestle
1346 Words | 6 PagesAs stated in Principle 1, The Board of Directors directs the Group’s risk assessment, strategic planning, succession planning and financial and operational management to ensure that obligations to shareholders and other stakeholders are understood and met. The board of directors has a collective responsibility for the management of the group to make sure the group is on the way to approach to their objectives while the non-Executive Directors are responsible for bringing independent judgment and scrutiny to decisions taken by the Board of Directors and providing objective challenges to management. Besides, the board of directors also function as formalising and adopting a set of Code of Ethics through the Code of Conduct as Recommendation 1.3 as stated in the Malaysian Code on Corporate Governance 2012 to make sure its compliance, establishing an appropriate set of corporate disclosure policies and procedures and ensuring a whistleblowing mechanism is in place. The Board of Directors recognizes the importance of independence and objectivity in its decision making process. The Directors are professionals of high calibre and integrity and possess in-depth knowledge and experience of the business to enable them to discharge their duties effectively.
More about Advantages And Disadvantages Of Mutual Fund
Jackson National Life Mission Statement
1153 Words | 5 PagesPension Plans: GASB Vs. FASB
740 Words | 3 PagesPros And Cons Of W-4 Tax Deductions
1008 Words | 5 PagesTarget Income Taxes And Pension Case Study
677 Words | 3 PagesCase Study: Skilled Nursing Facilities
667 Words | 3 PagesVirgin Australia's Legitimacy Theory
1680 Words | 7 PagesWhat Are The Advantages And Disadvantages Of Target Company
843 Words | 4 PagesChick Fil A Essay
1591 Words | 7 PagesAutomatic Income Coach Case Study
1187 Words | 5 PagesTabung Haji Case Study
2223 Words | 9 PagesAdvantages And Disadvantages Of Emerging Market
1883 Words | 8 PagesAdvantages Of Risk Metrics
919 Words | 4 PagesCase Study Of Motilal Oswal Company
815 Words | 4 PagesEssay On Importance Of Financial Management
812 Words | 4 PagesRole Of Corporate Governance In Nestle
1346 Words | 6 Pages