Saturday 26 October 2013

INVESTMENT COMPANIES

INVESTMENT COMPANIES


Direct Investment:
When the person invest his money in different securities own behalf is called direct investment.

Indirect Investment:
When a person invest his money through different investment companies that investment is called indirect investment.

What is investment companies?
The companies who collect the money from different investors and develop portfolios for them.

What is portfolios?
The investment in different securities is called portfolios.
Example:
suppose the company have 100000
and companies invest in differ securities

pepsi             coke                 lucky
50000          20000               30000

to reduce the risk invest in differ securities.

TYPES OF INVESTMENT COMPANIES


  • Open-ended companies
  • Close-ended Companies
  • UIT (unit investment trust)

Open-ended companies:

redeemable securities: investor can sell its securities only that company where he buy it for example if you will purchase the pepsi stock you can sell its stock only pepsi you cannot sell to other companies.

Not traded in market
NAT (net asset value): the value on which the company return back its securities.

Close-ended Companies:

Not redeemable: companies will not buy its stock from investor.
Sell in the markets
Market price: the securiteis will be sold on market price

UIT (unit investment trust):

This trust is created for a short time period
redeemable or not redeemable securities
eg: natioanl investment trust (NIT)


INVESTMENT AND PORTFOLIO MANAGEMENT
INVESTMENT VS SPECULATION AND GAMBLING
TYPES OF INVESTOR
INVESTMENT COMPANIES
TYPES OF MUTUAL FUNDS
TYPES OF BONDS FUNDS
MONEY MARKET FUNDS
SECURITIES MARKET
TYPES OF INDEX
TYPES OF BROKERS
BROKER'S ACCOUNT
MARGINAL ACCOUNT
ORDER AND ITS TYPES
RISK AND ITS TYPES
RETURN PORTFOLIO ANALYSIS
RISK PORTFOLIO ANALYSIS
RISK AND RETURN OF AN INDIVIDUAL SECURITIES
ANALYSIS OF COMMON STOCK VALUATION
CAPM MODEL (CAPITAL ASSET PRICING MODEL)
MARKOWITZ MODEL



MBA NOTES INVESTMENT AND PORTFOLIO MANAGEMENT

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