Definition
Large-cap funds or also known as the large-capitalization or big-cap funds, generally invests in companies with greater market values. It is less volatile as compared with funds that invest in small companies. Smaller returns can be expected, but lately, large-cap can outperform all others. That is why many investors run for the relative stability of large and established companies.
Advantage of investing into large-cap funds
1. As compared to mid-cap funds, large-cap funds is less volatile.
2. It may offer low returns but on the other hand, it can outperform other funds.
Large-cap future performance
1. Large-capitalization growth stocks are likely to benefit more than any others.
2. large-cap fund is one of the best among those with substantial assets, meaning they have huge shareholder basis.
3. Large-cap portfolio performance holds stocks with more in market capitalization, with their weights reflecting their liquidity in the marketplace. It is generally selected from the outperform ratings.
Examples of large-cap where you can invest
1. HDFC Top 200
2. UTI Large Cap Fund
3. Franklin India Blue Chip
4. Kotak 30
5. DSPML Top 100 Equity
6. Principal Large Cap Fund
7. Reliance Growth Fund
Quote of the day:
Large-cap funds are mutual funds that seek capital appreciation by investing mostly on a high-quality common stocks issue of a leading company that pays regular dividends.
Best Readings:
Conclusion:
It is advisable to invest in large-cap funds especially when volatile times. Because of its less volatile characteristic and also offers greater growth potential than bonds.
Sunday, October 18, 2009
Saturday, October 17, 2009
Tips to celebrate eco friendly diwali
The Diwali is a light festival in India, Nepal, Malaysia, Singapore and etc. which is celebrated to acknowledge the victory of good over evil. The lighting of lamps, diyas, on the night symbolizes a new beginning of enlightenment.
It is also celebrated with friends and families and as for the tradition and fun, firecrackers has been played. Celebrating with firecrackers could add a risk to each and everyone’s health and a risk to environment due to air pollution, noise pollution and soil pollution.
As for each and everyone’s health, it will lead us to various health problems like the hearing loss or hearing problems because of the firecrackers’ noise, high blood pressure, sleeping disturbance, asthma or respiratory problems because of the smoke the firecrackers will bring, headache, irritability, skin allergies due to the harmful chemicals found in the firecrackers, fatigue and eye related problems. For each and everyone, it’s better to wash the hands or better take a bath. If more problems persist, it’s better to seek a physician for the good.
Below are some tips to follow in order to celebrate the Diwali an eco-friendly:
1. Instead of celebrating alone, celebrate the Diwali with friends and families for the lesser use of space. Also for us, it will reduce the celebration cost because we have others to help us in the cost talk. Also, usage of the things including the area of the celebration will be in a limited use. It will lessen the pollution as to compare with the individual celebration.
2. When celebrating the Diwali make sure that the celebration will take for a limited time. Your celebration may last for 3-4 hours. This is to conserve energy.
3. If you are going to select a place where to celebrate the Diwali, make sure that it is away from the hospitals or far away from noisy places. Serene Places or open ground places are the best places to celebrate. It is much enjoys celebrating it quietly with friends and families.
4. If you want to go with firecrackers, it is better to choose eco-friendly firecrackers rather than of the traditional chemical made firecracker. The eco-friendly firecrackers are more on paper fluffers and have different color lights instead of the noisy chemical made firecrackers.
5. Still go for the traditional diyas rather than the electric illumination. This is to lessen your electric consumption. The traditional diyas are more attractive rather than of the electric illumination and are very natural. Although the lamps need oil but it will cost you less than that of the electric illumination and it will give you light that is up to 3-4 hours.
6. This Diwali celebration, many people buys new things. But try not to buy unneeded items. The excess consumerism is directly related to the consumption of raw materials used to manufacture those things. It increases the undue pressure on the natural resources.
7. Instead of buying 1-time use items, go for recyclable things. And if you are going to clean your home for Deepawali, instead of disposing thingsm it is better to give it to the poor or under-privilege people as for your help.
QUOTE OF THE DAY
Celebrate Diwali with a different meaning. You can celebrate the Diwali in an Eco-friendly way.
CONCLUSION
These are some tips for an eco-friendly for celebrating the Diwali. By thism your help is in the extension to everybody and also to the environment as well.
It is also celebrated with friends and families and as for the tradition and fun, firecrackers has been played. Celebrating with firecrackers could add a risk to each and everyone’s health and a risk to environment due to air pollution, noise pollution and soil pollution.
As for each and everyone’s health, it will lead us to various health problems like the hearing loss or hearing problems because of the firecrackers’ noise, high blood pressure, sleeping disturbance, asthma or respiratory problems because of the smoke the firecrackers will bring, headache, irritability, skin allergies due to the harmful chemicals found in the firecrackers, fatigue and eye related problems. For each and everyone, it’s better to wash the hands or better take a bath. If more problems persist, it’s better to seek a physician for the good.
Below are some tips to follow in order to celebrate the Diwali an eco-friendly:
1. Instead of celebrating alone, celebrate the Diwali with friends and families for the lesser use of space. Also for us, it will reduce the celebration cost because we have others to help us in the cost talk. Also, usage of the things including the area of the celebration will be in a limited use. It will lessen the pollution as to compare with the individual celebration.
2. When celebrating the Diwali make sure that the celebration will take for a limited time. Your celebration may last for 3-4 hours. This is to conserve energy.
3. If you are going to select a place where to celebrate the Diwali, make sure that it is away from the hospitals or far away from noisy places. Serene Places or open ground places are the best places to celebrate. It is much enjoys celebrating it quietly with friends and families.
4. If you want to go with firecrackers, it is better to choose eco-friendly firecrackers rather than of the traditional chemical made firecracker. The eco-friendly firecrackers are more on paper fluffers and have different color lights instead of the noisy chemical made firecrackers.
5. Still go for the traditional diyas rather than the electric illumination. This is to lessen your electric consumption. The traditional diyas are more attractive rather than of the electric illumination and are very natural. Although the lamps need oil but it will cost you less than that of the electric illumination and it will give you light that is up to 3-4 hours.
6. This Diwali celebration, many people buys new things. But try not to buy unneeded items. The excess consumerism is directly related to the consumption of raw materials used to manufacture those things. It increases the undue pressure on the natural resources.
7. Instead of buying 1-time use items, go for recyclable things. And if you are going to clean your home for Deepawali, instead of disposing thingsm it is better to give it to the poor or under-privilege people as for your help.
QUOTE OF THE DAY
Celebrate Diwali with a different meaning. You can celebrate the Diwali in an Eco-friendly way.
CONCLUSION
These are some tips for an eco-friendly for celebrating the Diwali. By thism your help is in the extension to everybody and also to the environment as well.
Friday, October 16, 2009
Unique tips to Celebrate Diwali
Diwali is known as the festival of lights and a significant celebration in religions like the Hinduism, Buddhism, Sikhism and Janism. In Christians, Diwali is equivalent to Christmas.
Before the Diwali day, all must be clean like the rooms, clothes and etc. During the day of Diwali, it is usually common to everyone to wear new clothes and to share sweets.
At the evening, lamps called the diyas are placed around homes.
Commonly people get to exchange gifts and sweets to their friends and families. There are also fireworks displays during this day and also, play cards with friends and families for fun.
Aside from that, here’s a unique way to celebrate the Diwali Day.
1. Buy flowers like roses, lilies, jasmines, marigolds and etc. and make it a garland or lei, or put it to glasses or to anything that it will look attractive. Aside from it will add design or beauty to your home, it is said that it will lend a spiritual attraction to the puja.
2. Shop with someone you really don’t know. Ask him/her to help you in shopping or in choosing things in which you are going to buy. This is to attract more new friends that you may count on.
3. During this festive occasion, you must wear something that is traditional. For women, layer the chikan kameez with zari-bordered silk dupatta. For girls, wear an Indian blouse and top, while for men, you should wear kurthas or add some details if you want to look more attractive.
4. If you’re going to send gifts to your friends and families you must add some details that would best remember you. Or add things that are a sign for good luck for example.
5. Celebrate the Diwali with the whole family. Prepare tea, snacks and other foods or drinks. And have it served for the entire family, this is like a picnic. This is a significant way to show closeness to the entire family.
6. Put some decorations on your home like bells, for instance. Bells will create harmonious tunes to your home that will make you feel the occasion.
7. If you found that it is quite boring to send nuts, dried fruits to your friends and families, why not to gift them spices that are put up in a tray? It’s so simple to make and pretty.
You just have to arrange the spices in a tray, and seal it with a glass or a transparent wrapper and add ribbons to make it pretty. Your friends and families will be proud of your gift that you personally made. It is also useful to them. That is not just for design to their homes, but, they can also use it if they want to.
QUOTE OF THE DAY
In the celebration of the Diwali, you can also celebrate with the rest who are celebrating the Diwali, even though that you are not with the same religion like them.
CONCLUSION
There are many names that is called in Diwali depending on the regions in India or any other countries that are celebrating Diwali.The Diwali is a symbol of a new life that is why more people are buying new things or starting a new project or opening a new bank account during these days. We wish you all a very happy diwali.
Before the Diwali day, all must be clean like the rooms, clothes and etc. During the day of Diwali, it is usually common to everyone to wear new clothes and to share sweets.
At the evening, lamps called the diyas are placed around homes.
Commonly people get to exchange gifts and sweets to their friends and families. There are also fireworks displays during this day and also, play cards with friends and families for fun.
Aside from that, here’s a unique way to celebrate the Diwali Day.
1. Buy flowers like roses, lilies, jasmines, marigolds and etc. and make it a garland or lei, or put it to glasses or to anything that it will look attractive. Aside from it will add design or beauty to your home, it is said that it will lend a spiritual attraction to the puja.
2. Shop with someone you really don’t know. Ask him/her to help you in shopping or in choosing things in which you are going to buy. This is to attract more new friends that you may count on.
3. During this festive occasion, you must wear something that is traditional. For women, layer the chikan kameez with zari-bordered silk dupatta. For girls, wear an Indian blouse and top, while for men, you should wear kurthas or add some details if you want to look more attractive.
4. If you’re going to send gifts to your friends and families you must add some details that would best remember you. Or add things that are a sign for good luck for example.
5. Celebrate the Diwali with the whole family. Prepare tea, snacks and other foods or drinks. And have it served for the entire family, this is like a picnic. This is a significant way to show closeness to the entire family.
6. Put some decorations on your home like bells, for instance. Bells will create harmonious tunes to your home that will make you feel the occasion.
7. If you found that it is quite boring to send nuts, dried fruits to your friends and families, why not to gift them spices that are put up in a tray? It’s so simple to make and pretty.
You just have to arrange the spices in a tray, and seal it with a glass or a transparent wrapper and add ribbons to make it pretty. Your friends and families will be proud of your gift that you personally made. It is also useful to them. That is not just for design to their homes, but, they can also use it if they want to.
QUOTE OF THE DAY
In the celebration of the Diwali, you can also celebrate with the rest who are celebrating the Diwali, even though that you are not with the same religion like them.
CONCLUSION
There are many names that is called in Diwali depending on the regions in India or any other countries that are celebrating Diwali.The Diwali is a symbol of a new life that is why more people are buying new things or starting a new project or opening a new bank account during these days. We wish you all a very happy diwali.
Safety Tips for Firecrackers
Diwali is a special occasion known as the festival of lights and many are celebrating the Diwali with some fun and as a festival of lights, many are using fireworks.
With many person are using the firecrackers or fireworks, here are some safety tips when using fireworks or firecrackers.
1. The very first of all is to buy the fireworks or firecrackers from a manufactured source.
2. Follow the label carefully, and if ever that you’re still not going to use it, keep it in a cool dry place and out of reach of children.
3. In using the firecrackers, select an area in the outdoors away from people, buildings, houses and vehicles or other inflammable materials.
4. Stay away as possible and light the firecracker using a long lighter or match and a paper that you can lit on with lighter or match.
5. As much as possible never give the firecracker to the children. They might not be familiar with the danger involved and cannot take action properly in case of emergency.
6. Keep unused firecrackers away from firing areas.
7. Always have a bucket of water near you.
8. Never carry a firecracker into your pocket. It will gather a lot of heat in your pocket and might explode.
9. Never throw the firecracker on other person or to something that is flammable.
10. Do not use a firecracker or fireworks when under the influence of alcohol.
QUOTE OF THE DAY
By following these safety tips carefully, you can enjoy a safe firecrackers celebration.
CONCLUSION
Fireworks and firecrackers will eventually cause to pollute. After the whole occasion everyone must also be careful of cleaning used firecrackers and fireworks as this is still can explode.
Happy Diwali to All!
With many person are using the firecrackers or fireworks, here are some safety tips when using fireworks or firecrackers.
1. The very first of all is to buy the fireworks or firecrackers from a manufactured source.
2. Follow the label carefully, and if ever that you’re still not going to use it, keep it in a cool dry place and out of reach of children.
3. In using the firecrackers, select an area in the outdoors away from people, buildings, houses and vehicles or other inflammable materials.
4. Stay away as possible and light the firecracker using a long lighter or match and a paper that you can lit on with lighter or match.
5. As much as possible never give the firecracker to the children. They might not be familiar with the danger involved and cannot take action properly in case of emergency.
6. Keep unused firecrackers away from firing areas.
7. Always have a bucket of water near you.
8. Never carry a firecracker into your pocket. It will gather a lot of heat in your pocket and might explode.
9. Never throw the firecracker on other person or to something that is flammable.
10. Do not use a firecracker or fireworks when under the influence of alcohol.
QUOTE OF THE DAY
By following these safety tips carefully, you can enjoy a safe firecrackers celebration.
CONCLUSION
Fireworks and firecrackers will eventually cause to pollute. After the whole occasion everyone must also be careful of cleaning used firecrackers and fireworks as this is still can explode.
Happy Diwali to All!
Thursday, October 15, 2009
Wish you a very very happy deepawali
The Diwal is a significant festival in Hinduism, Sikhism, and Jainism, and an official holiday in India.
Diwali is also known as the Festival of Lights. People who are celebrating this, light diyas or the cotton string wicks inserted in small clay pots filled with oil. This is to signify victory of good over the evil within a person.
As from the Hindu calendar, the five-day-festival of Diwali is centered on the new moon day that ends the month of Ashwin and begins the month of Kartika, beginning on the 13th day of the dark half of Ashwin (Ashwin 28th) and ending on the 2nd day of the bright half of Kartika (Kartika 2nd). The main day of celebration varies regionally.
In Hinduism, it is the homecoming of Rama after being exiled in the forest and won against Rayana. According to a legend, citizens of Ayodha welcomed Rama by lighting rows (avali) of lamps or dipa. And so the name was formed as dipawali, from the word dipa and avali. But times had past it became to be called as Diwali in Hindi. In Nepali, it is still called as Dipawali; In Dravidian languages it is called as Deepavali which is also used in Malaysia and Singapore. But the South Indians never called Diwali as Diwali, because it means Firebucket.
However, in Jainism, Diwali marks the attainment of nirvana by Mahavira on 15 October, 527 BC.
In India and Nepal, Diwali is now considered to be a national festival, and the aesthetic aspect of the festival is enjoyed by most Indians and Nepalese regardless of faith. Kerala is the only state in India where Diwali is not a big celeberation.
Diwali is considered to be a national festival and it is widely enjoyed by Indians and Nepalese in regards to faith. Kerala is the India’s only state not to have a big celebration of Diwali because of the fact of many Catholics. But for those who are not Catholics in Kerala are still celebrating Diwali.
During Diwali, many wear new clothes and share sweets and snacks. And as for more business communities, they start their financial year during Diwali or having new account books on this day.
Quote of the day
Fireworks, lights, flowers, giving or sharing of sweets and worship are ways to celebrate the Diwali. Stories of Diwali depends upon regions, but the essence is still the same which is to rejoice in the inner light, Atman, or the underlying reality of all things, Brahman.
Conclusion
The Diwali is known as the festival of lights. There is something beyond the body and the mind which is pure, infinite and eternal (Atman). With the realization of the Atman come universal compassion, lov and awareness of unity of all the things.
The gunas are the underlying forces or tendencies which one needs to have unaffected, direct relation with in order to find effectiveness and righteousness in life: they are lines of potential and illuminate thought and action, thus the inner meaning of Diwali being the festival of lights.
Diwali is also known as the Festival of Lights. People who are celebrating this, light diyas or the cotton string wicks inserted in small clay pots filled with oil. This is to signify victory of good over the evil within a person.
As from the Hindu calendar, the five-day-festival of Diwali is centered on the new moon day that ends the month of Ashwin and begins the month of Kartika, beginning on the 13th day of the dark half of Ashwin (Ashwin 28th) and ending on the 2nd day of the bright half of Kartika (Kartika 2nd). The main day of celebration varies regionally.
In Hinduism, it is the homecoming of Rama after being exiled in the forest and won against Rayana. According to a legend, citizens of Ayodha welcomed Rama by lighting rows (avali) of lamps or dipa. And so the name was formed as dipawali, from the word dipa and avali. But times had past it became to be called as Diwali in Hindi. In Nepali, it is still called as Dipawali; In Dravidian languages it is called as Deepavali which is also used in Malaysia and Singapore. But the South Indians never called Diwali as Diwali, because it means Firebucket.
However, in Jainism, Diwali marks the attainment of nirvana by Mahavira on 15 October, 527 BC.
In India and Nepal, Diwali is now considered to be a national festival, and the aesthetic aspect of the festival is enjoyed by most Indians and Nepalese regardless of faith. Kerala is the only state in India where Diwali is not a big celeberation.
Diwali is considered to be a national festival and it is widely enjoyed by Indians and Nepalese in regards to faith. Kerala is the India’s only state not to have a big celebration of Diwali because of the fact of many Catholics. But for those who are not Catholics in Kerala are still celebrating Diwali.
During Diwali, many wear new clothes and share sweets and snacks. And as for more business communities, they start their financial year during Diwali or having new account books on this day.
Quote of the day
Fireworks, lights, flowers, giving or sharing of sweets and worship are ways to celebrate the Diwali. Stories of Diwali depends upon regions, but the essence is still the same which is to rejoice in the inner light, Atman, or the underlying reality of all things, Brahman.
Conclusion
The Diwali is known as the festival of lights. There is something beyond the body and the mind which is pure, infinite and eternal (Atman). With the realization of the Atman come universal compassion, lov and awareness of unity of all the things.
The gunas are the underlying forces or tendencies which one needs to have unaffected, direct relation with in order to find effectiveness and righteousness in life: they are lines of potential and illuminate thought and action, thus the inner meaning of Diwali being the festival of lights.
Wednesday, October 14, 2009
Importance of Dhanteras
Dhanteras or also known as the Dhatrayodashi or Dhanwantari Triodasi is the first day of the Diwali Festival and falls on the thirteenth lunar day of Krishna Paksha in the Hindu month of Ashwin.Dhanteras Festical says if the 16-year –old son of King Hima was doomed to die by a snake-bite, on the 14th day of his marriage. On the fourth day of his marriage, his young didn’t want him to go to sleep. She put all the bits and pieces and silver coins in a big stack at the door of her husband’s boudoir and lighted innumerable lamps all over the place. So his wife told stories and sang songs.
Yama, god of Death, arrived in the appearance of a snake with his eyes got blinded by the lights and couldn’t enter the chamber. So he climbed up on the heap of ornaments and silver coins and sat the whole night listening to songs. In the daytime, he went away. The young wife saves her husband from death.
Since then, the day of Dhanteras came to be known as the Yamadeepdaan and the lamps are burning throughout the night in the deferential adoration to Yam.
According to another legend, when the gods and demons churned the ocean for Amrit(nectar), Dhanavantri, the doctor of the gods and an incarnation of Vishnu, emerged carrying a jar of elixir on the day of Dhanteras.
In celebrating this day, houses and business premises are renovated and decorated. Entrances or doors are made colorful with traditional motifs of Rangoli designs to welcome the Goddess of Wealth and Prosperity. To indicate her arrival, small footprints are drawn with rice flour and vermilion powder all over the houses. Lamps are burning all through the nights.
On Dhanteras, Hindus consider it promising to purchase gold or silver articles or at least one or two new tools. It is believed that new “Dhan” or some form of precious metal is a sign of good luck. "Laxmi-Puja" is performed in the evenings when tiny Diyas of clay are lit to drive away evil spirits. Bhajans, devotional songs in praise of Goddess Laxmi, are also sung and Naivedya, traditional sweets, is offered to the Goddess. Lightly pounding dry coriander seeds with jiggery is a custom in Maharashtra and offer as Naivedya.
In villages, cattle are adorned and worshiped by farmers as they form the main source of their income. In south India, cows are offered particularly special veneration because they are thought of as incarnations of the Goddess Lakshmi.
Dulawat family wish you all a very happy Dhanteras .May this Dhanteras shower you with wealth and prosperity as you journey towards greater success. Happy Dhanteras!
Tuesday, October 13, 2009
Open End Mutual Fund
In this session we want to describe all mutual fund one by one.
DEFINITION
Open-end mutual fund or open-ended mutual fund is a set of investment schemes that can issue and redeem shares at any time. Investor can purchase generally the shares in the fund directly from the fund itself rather than from the existing shareholders. It is opposite to the closed-end fund, which typically issues all the shares it will issue at the outset, with such shares usually being tradable between investors thereafter.
In the open-end fund, the price at which shares are issued or redeemed varies to the net asset value of the fund and soon will directly reflect on the fund’s performance.
Open-end fund doesn’t have restrictions with regards to the amount of shares it will issue. If the demand is high, the tendency is, it will continue to issue shares in exception on how many the investors there in.
ADVANTAGE OF INVESTING INTO OPEN-END FUND
Open-end or open-ended fund is equitably distributed or divided into shares where in the price varies through a direct proportion to the NAV (net asset value). When the money is invested, there are new shares created to match the share price; each time, the shares are redeemed and the assets sold match the share price. Through this, there would be no way for supply or demand created for shares and it will reflect directly to the underlying assets.
OPEN-END MUTUAL FUND FUTURE PERFORMANCE
The open-end fund offers investors a convenient way to gain equity investments. This will continue as more investors seek to divert their portfolios into the markets. Most of the open-end funds are actively managed. A portfolio manager picks the securities to buy.
As funds sell shares daily, the open-end funds are getting more flexible and provide instant liquidity.
EXAMPLE OF FUND WHERE YOU CAN INVEST
Religare PSU, Sahara Star Value Fund, Kotak Select Focus Fund, Canara Robeco F.O.R.C.E Fund - Retail Plan, Franklin Build India Fund, Mirae Asset Short Term Bond Fund - Regular Plan, Quantum Equity Fund of Funds, Shinsei Liquid Fund - Retail Plan, Reliance Infrastructure Fund - Retail Plan, Edelweiss Nifty Enhancer Fund, Morgan Stanley Short Term Bond Fund - Regular Plan, Morgan Stanley Active Bond Fund - Regular Plan , Edelweiss Diversified Growth Equity Fund, ICICI Pru Target Returns Fund, SBI Gold Exchange, Taurus Ethical, IDFC India GDP Growth Fund, and Fidelity Wealth Builder.
QUOTE OF THE DAY
Open-end funds can be risky depending on the strategies and objectives, but it could still provide flexibility and the benefit of diversified investments, allowing your assets to be allocated among many different types of holdings. Diversifying your investment is a must because your assets are not impacted by the fluctuation price of only one stock. If a stock in the fund drops in value, it may not impact your total investment as another holding in the fund may be up. But, if you have all of your assets in that one stock, and it takes a dive, you’re likely to feel a more considerable loss.
CONCLUSION
An open fund issues and redeems shares on demand, whenever investors put money into the fund or take it out. Since this happens routinely every day, total assets of the fund grow and shrink as money flows in and out daily. The more investors buy a fund, the more shares there will be. There's no limit to the number of shares the fund can issue. Nor is the value of each individual share affected by the number outstanding, because net asset value is determined solely by the change in prices of the stocks or bonds the fund owns, not the size of the fund itself. Some open-ended funds charge an entry load usually a percentage of the net asset value, which is deducted from the amount invested.
DEFINITION
Open-end mutual fund or open-ended mutual fund is a set of investment schemes that can issue and redeem shares at any time. Investor can purchase generally the shares in the fund directly from the fund itself rather than from the existing shareholders. It is opposite to the closed-end fund, which typically issues all the shares it will issue at the outset, with such shares usually being tradable between investors thereafter.
In the open-end fund, the price at which shares are issued or redeemed varies to the net asset value of the fund and soon will directly reflect on the fund’s performance.
Open-end fund doesn’t have restrictions with regards to the amount of shares it will issue. If the demand is high, the tendency is, it will continue to issue shares in exception on how many the investors there in.
ADVANTAGE OF INVESTING INTO OPEN-END FUND
Open-end or open-ended fund is equitably distributed or divided into shares where in the price varies through a direct proportion to the NAV (net asset value). When the money is invested, there are new shares created to match the share price; each time, the shares are redeemed and the assets sold match the share price. Through this, there would be no way for supply or demand created for shares and it will reflect directly to the underlying assets.
OPEN-END MUTUAL FUND FUTURE PERFORMANCE
The open-end fund offers investors a convenient way to gain equity investments. This will continue as more investors seek to divert their portfolios into the markets. Most of the open-end funds are actively managed. A portfolio manager picks the securities to buy.
As funds sell shares daily, the open-end funds are getting more flexible and provide instant liquidity.
EXAMPLE OF FUND WHERE YOU CAN INVEST
Religare PSU, Sahara Star Value Fund, Kotak Select Focus Fund, Canara Robeco F.O.R.C.E Fund - Retail Plan, Franklin Build India Fund, Mirae Asset Short Term Bond Fund - Regular Plan, Quantum Equity Fund of Funds, Shinsei Liquid Fund - Retail Plan, Reliance Infrastructure Fund - Retail Plan, Edelweiss Nifty Enhancer Fund, Morgan Stanley Short Term Bond Fund - Regular Plan, Morgan Stanley Active Bond Fund - Regular Plan , Edelweiss Diversified Growth Equity Fund, ICICI Pru Target Returns Fund, SBI Gold Exchange, Taurus Ethical, IDFC India GDP Growth Fund, and Fidelity Wealth Builder.
QUOTE OF THE DAY
Open-end funds can be risky depending on the strategies and objectives, but it could still provide flexibility and the benefit of diversified investments, allowing your assets to be allocated among many different types of holdings. Diversifying your investment is a must because your assets are not impacted by the fluctuation price of only one stock. If a stock in the fund drops in value, it may not impact your total investment as another holding in the fund may be up. But, if you have all of your assets in that one stock, and it takes a dive, you’re likely to feel a more considerable loss.
CONCLUSION
An open fund issues and redeems shares on demand, whenever investors put money into the fund or take it out. Since this happens routinely every day, total assets of the fund grow and shrink as money flows in and out daily. The more investors buy a fund, the more shares there will be. There's no limit to the number of shares the fund can issue. Nor is the value of each individual share affected by the number outstanding, because net asset value is determined solely by the change in prices of the stocks or bonds the fund owns, not the size of the fund itself. Some open-ended funds charge an entry load usually a percentage of the net asset value, which is deducted from the amount invested.
Tuesday, October 6, 2009
Close End Mutual Fund
In this session we want to describe all mutual fund one by one.
DEFINITION
Closed-end mutual fund or closed-ended fund has a set of number of shares issued to the public by the IPO (initial public offering).
When the fund has been opened, there are new shares issued; shares are usually not to exchange for cash or securities until the fund liquidates. An investor can get shares in closed-end fund by buying shares from a broker or other investor. This is definitely the opposite of an open-end fund wherein the transactions eventually involve the company’s fund to create new shares on the fly or redeeming shares.
ADVANTAGES OF INVESTING IN CLOSED-END FUND
1. It is closed to new capital after it begins operating.
2. Its shares are typically traded on stock exchange rather by directly redeemed.
3. It can be traded at market day at any time.
4. It usually has a premium or discount.
5. It is the common use of leverage or gearing to enhance returns. Closed-end fund could raise additional investment capitals by issuing auction rate, preferred shares, long-term debt and reverse-purchase agreement. By this, the fund can earn higher returns by the excess invested capital.
CLOSED-END MUTUAL FUND FUTURE PERFORMANCE
The closed-end mutual funds future performance has a direct influence on its current premium. It’s future performance is not anticipated at future expenses as measured by NAV (net asset value) per share.
EXAMPLE OF FUND WHERE YOU CAN INVEST
India Fund Inc (IFN) is considered a closed-end fund that invests in the stocks of Indian companies across a wide range of industries.
Morgan Stanley India Investment Fund (IIF) invests in the stocks of Indian companies.
QUOTE OF THE DAY:
There are two types of shareholders that are created when a fund leverages through the issuance of preferred stock: the preferred stock shareholders and common stock shareholders.
The preferred stock shareholders benefit from expenses that is based on the total managed assets of the fund while the common stock shareholders has the expenses changed that are based on common assets of the fund rather than the total managed assets of the fund.
CONCLUSION:
In the closed-end fund, the price of a share is determined by the value of the investments in the fund and by the premium placed on it by the market.
DEFINITION
Closed-end mutual fund or closed-ended fund has a set of number of shares issued to the public by the IPO (initial public offering).
When the fund has been opened, there are new shares issued; shares are usually not to exchange for cash or securities until the fund liquidates. An investor can get shares in closed-end fund by buying shares from a broker or other investor. This is definitely the opposite of an open-end fund wherein the transactions eventually involve the company’s fund to create new shares on the fly or redeeming shares.
ADVANTAGES OF INVESTING IN CLOSED-END FUND
1. It is closed to new capital after it begins operating.
2. Its shares are typically traded on stock exchange rather by directly redeemed.
3. It can be traded at market day at any time.
4. It usually has a premium or discount.
5. It is the common use of leverage or gearing to enhance returns. Closed-end fund could raise additional investment capitals by issuing auction rate, preferred shares, long-term debt and reverse-purchase agreement. By this, the fund can earn higher returns by the excess invested capital.
CLOSED-END MUTUAL FUND FUTURE PERFORMANCE
The closed-end mutual funds future performance has a direct influence on its current premium. It’s future performance is not anticipated at future expenses as measured by NAV (net asset value) per share.
EXAMPLE OF FUND WHERE YOU CAN INVEST
India Fund Inc (IFN) is considered a closed-end fund that invests in the stocks of Indian companies across a wide range of industries.
Morgan Stanley India Investment Fund (IIF) invests in the stocks of Indian companies.
QUOTE OF THE DAY:
There are two types of shareholders that are created when a fund leverages through the issuance of preferred stock: the preferred stock shareholders and common stock shareholders.
The preferred stock shareholders benefit from expenses that is based on the total managed assets of the fund while the common stock shareholders has the expenses changed that are based on common assets of the fund rather than the total managed assets of the fund.
CONCLUSION:
In the closed-end fund, the price of a share is determined by the value of the investments in the fund and by the premium placed on it by the market.
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