Mutual funds. Mutual fund is an investment pool, where the investors can demand the return of the fund based on their proportionate contribution. This type of funds can in-clude the following sub-types based on the asset in which the investments will be made. o Money Market Funds. o Bond Mutual Funds o Stock Mutual Funds o Hybrid/Balanced Funds
Exchange-traded funds. It is pooled investment which is compared to mutual funds do not charge high management fees, because tracks a certain index, commodity or bonds or a basket of assets. The difference between the mutual funds is that an ETF’s share prices are calculated within the day like stocks in the stock exchange and one can only buy these shares in the stock exchange, whereas the mutual
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Divisibility – Mutual funds allow investing in the green funds for different investors in different wealth categories. For example, if the green mutual fund has 100 companies adher-ing to investment strategies of the fund, the shares of these companies can be divided into any amount, usually starting from 50 EUR.
Economies of Scale – Given that investor had enough money to buy shares of those 100 companies, he had to pay for each transaction separately. While in the mutual fund, these transaction fees will be spread out to all the investors enabling them benefit from the econo-mies of scale.
Liquidity – Unlike with stocks, positions in mutual funds can be redeemed quite easi-ly and most of the time, the transaction price will not differ from the market
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These moral values can be related to religion (Islamic Funds), environmental concerns (Green Funds) and others. For instance, a certain individual might have disapproval towards tobacco products. This results that she prefers her money to be in-vested in a fund, which limits its scope from such manufacturing companies and increase the capital of ethical
Student Answer: Professional management and diversification are the major reasons investors purchase mutual funds, as well as they are easy to invest in for beginning investors or those who lack large amount of money as required by other types of investments. Investment companies are employed with experienced and profession fund managers who research and devote a lot of time to finding the perfect securities for their investment portfolios. The diversification allows for gains, even in a loss, because one investment in a mutual fund can offset the loss of another by it’s gains. Basically, your investments are scattered around and offer somewhat of a safety net for your
Custody Services: Prime brokers take custody of the hedge fund's securities and cash, providing fund managers with the ability to engage in securities trading with multiple brokerage firms while keeping the fund's assets in one centralized account.
Personal, cultural, and professional values and ethics drive the decision making process for most individuals and businesses in our society. Ethics reflect our conscience, morality and how we apply these concepts in deciding right from wrong (Covey 66). Ethical awareness is critical for how we conduct our lives and make choices in the workplace; by defining personal and ethical values, individual and business alike can become more productive members of society. a
When running a business ethics plays an important role in the success of the business. “Ethics is the study of those values that relate to our moral conduct, including questions of good and evil, right and wrong, and moral responsibility” (pg. 2). Every individual will have a different set of moral codes. Moral codes are shaped by your personality, environment and religion. In this scenario and throughout this paper you will come to understand how our moral code of ethics plays a role in our daily decisions.
Values are a core set of beliefs and principles by one or many. A number of factors contribute to the development of values. These include membership in a community or culture, attitudes, beliefs, and behaviors. Values determine what is important in decision-making. Ethics involve conduct, the ability to determine right and wrong. All organizations face ethical dilemmas. Organizations develop corporate social responsibility in reaction to the values and expectations of society. Corporate social responsibility initiatives aim to protect public health, safety...
The active investment management is the investing style which the portfolio managers believe that the market is not efficient and the mispricing is existing. Therefore, they could outperform the market and gain the excess return through a series of investing strategy, such as stock selection and market timing. On the opposite, passive investment management is the one which the portfolio managers believe that the market is efficient and no one can beat the market so that there is no excess return. As a result, the passive portfolio managers always seek to replicate the performance of the market index to make
Ethics are influence from many demographics which include family influences, peer influences, past experiences, religion, and situations. People decide whether something is ethical and whether or not it is right or wrong based on these influences. Individuals decide whether something is ethical or unethical based on family influences because people absorb about the ethical status or something family members based on how our families act. Also individuals also conduct their decisions based on peer influences because classmates and friends that surround us, usually impact a person’s believes on what is right or wrong overtime. Furthermore, people also resolve to their decisions on whether something is right or wrong established on past experiences because they predict their benefits on demographics that had happened to them in the past. Additionally, people select some decisions based on religion because a person’s religious beliefs will usually inspire he or she on what is right or wrong. Finally, another way people base their ethical decisions is based on the situations they are in because people sometimes change their beliefs depending on the circumstances they are in.
As an investor with several types of securities, I am looking for long-term stability towards a retirement fund. The combination of several different stocks and mutual funds allows for the safety of the investments. By investing long-term in different accounts, I have the ability to gain more in the long-run with less risk of not lose all my savings on one investment.
According to the article, “Thinking Ethically: A Framework for Moral Decision Making”, developed by Manuel Velasquez, Claire Andre, Thomas Shanks, S.J., and Michael J. Meyer, there are five different approaches to values to deal with moral issues, which are:
According to Investopedia (Asset Allocation Definition, 2013), asset allocation is an investment strategy that aims to balance risk and reward by distributing a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. There are three main asset classes: equities, fixed-income, cash and cash equivalents; but they all have different levels of risk and return. A prudent investor should be careful in allocating each asset class to his portfolio. Proper asset allocation is a highly debatable subject and is not designed equally for everybody, but is rather based on the desires and needs of the individual investor. This paper discusses the importance of asset allocation, the differences and the proper diversification within the portfolio.
Nonis, Sarath. (2001). Personal Value profiles and Ethical Business Decisions. Journal of Education for Business, vol.76, Issue5,p251, 6p.
Ethics is the application of one’s personal beliefs and the impact on how a person makes decisions regarding the relationships involving a company. The most common agents that involve a person’s decisions are owners, employees, customers, clients, suppliers and communities, according to Robert Audi (Audi, 2009). A person’s beliefs are often the determining factor in whether an action is considered right or wrong. Although ethics are often not explicitly displayed, a person with any sort of moral belief tends to have a grasp about what is considered ethically right or wrong. These obligations attempt to create a mirror image of how one would expect to be treated themselves. Audi states that there are ten moral obligations that serve as a model for how to assess ethical dilemmas. The following obligations are moral obligations that help to assess ethical dilemmas: justice, non-injury, fidelity, veracity, reparation, beneficence, self-improvement, gratitude, liberty, and respectfulness (Audi, 2009). Once these moral obligations are engraved into someone’s mind, it is much easier for a person to make a decision based on ethical grounds.
In this paper I am going to be discussing my values and morals in life that helps me be successful with knowing what is right and wrong in personally and professionally everyday life. There are many things that go on in the world today and it is extremely important to have values and morals set in place. Also going to be discussing how cultural heritage has shaped my values and what ethical behaviors I see in myself.
The importance of ethics and values in the social aspect is that it forms the perceptions of the business to the community. This is important as when people speak about the business they will have a positive view of the business and will want to support the business. This also applies to recruitment of employees, as people will want to work in a business will good ethics and values. The business helps community to show its ethics and values through social responsibility. Social responsibility refers to the business using...
The Modern portfolio theory {MPT}, "proposes how rational investors will use diversification to optimize their portfolios, and how an asset should be priced given its risk relative to the market as a whole. The basic concepts of the theory are the efficient frontier, Capital Asset Pricing Model and beta coefficient, the Capital Market Line and the Securities Market Line. MPT models the return of an asset as a random variable and a portfolio as a weighted combination of assets; the return of a portfolio is thus also a random variable and consequently has an expected value and a variance.