Skip to main content

TYPES OF MUTUAL FUNDS

Mutual Funds

The investment companies collect the money from different investor and invest that money in different securities. The investment in those securities collections is called mutual funds investment.

Types of Mutual Funds
  1. Stock Funds or Shares
  2. Bonds Funds
  3. Money Market Funds


Stock Funds:
The company collect money from the investors and invest that money in the shares of different companies.

  • Large Cap (Capitalization)
  • Mid Cap
  • Low Cap
  • Sector Investment
  • International Investment

Large Cap:
The company which have more market share is called large cap (less risky) or other name is "Blue Chip" fast growing companies.

Mid Cap:
The companies which have less market shares as comparesd to large cap companies is called mid cap."risky as compare to large cap"

Low Cap:
The companies which have minimum capitalization or market share is called low cap. "more risky investment".

Sector Investment:
The investment in a perticular industry is called sector investment. If the company invest money in different sectors that investment is a less risky investment.

International Investment:
The investment in forign companies share is called international investment.

Exchange rate is big difference
1$=100Rs
1$=80Rs

The major risk faced by the investor due to the change in currency this risk is also called exchange rate risk.


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
Labels:

Comments

Post a Comment

Popular posts from this blog

MARKOWITZ MODEL

MARKOWITZ MODEL Portfolio Selection: If number of portfolio we use this method to select the portfolio. for example groups of protfolios sample A:  NBP, Nestle B:  NBP, Nestle, MCB C:  Lucky, Nestle Feasible Set of Portfolio: The number of portfolio which are available for their selection Efficent Portfolio: (Max. return, less risky) The portfolio which is selected from the feasible set of protfolio. Decision Rules 1: If the different portfolio have same return then we select that portfolio who's risk is minimum. Decision Rules 2: If the different protfolio have same risk then we should select that portfolio who's return is maximum. Draw Back: This model just focus only those portfolio who's return are same or risk are same. It ignore the other portfolio. Example: No. of Portfolio          Return          Risk A                       ...
Post a Comment
Read more

RETURN PORTFOLIO ANALYSIS

RISK AND RETURN  PORTFOLIO ANALYSIS To check how much return and risk will be faced by investor on portfolio investment is called risk and return protfolio analysis In this question we show only how to calculate return. Suppose after analysis we get these results     Pepsi E(R) = 12%    S.D= 9%        amount=50000 Nestle E(R) = 20%  S.D= 12%       amount=30000 Lucky Cement = E(R) = 10%  S.D= 5%     amount=20000 what will be tatal risk and return? Portfolio Return: R p = ∑W x  E (R)  Rp = Return on portfolio E(R) = Expected return ∑W = weights what formula will be for three securite return calculation Rp = Wa x  E (R)a + Wb x  E (R)b +Wc x  E (R)c Weight: The portion of your investment amount invest in a single security is called weight. Weight of single security = single security amount / total all securities amount Tatal amount = 50000 + 300...
Post a Comment
Read more

CAPM MODEL (CAPITAL ASSET PRICING MODEL)

According to this model company have to face two main types of risk. Risk= Systematic + un-systematic Systematic Risk: The risk face by the company due to its external environment is called systematic risk. This risk cannot be controled by the company. Example: Pocitical instability, war in the country, energy crises in the country etc. Un-Systematics Risk: The risk face by the company due to its internal environment is called un-systematic risk.This risk can be conroled by the company. Example: shortage of employees, Clash between the management etc. CAP MODEL: A model which shows the relationship between the systematic return and not shows un-systematic. _ R = R f + ( R m - R f) x    β (beta) _ R = Return (expected) R f = Risk free Return The minimum return which is desire by the investor R m = Market Return The return which is provided by the market β = systematic Risk Note = when minimum then always keep the Rf value less and Rm val...
Post a Comment
Read more