The bestselling author of Pioneering Portfolio Management, the definitive template for institutional fund management, returns with a book that shows individual investors how to manage their financial assets. In Unconventional Success, investment legend David F. Swensen offers incontrovertible evidence that the for-profit mutual-fund industry consistently fails the average investor.
From excessive management fees to the frequent "churning" of portfolios, the relentless pursuit of profits by mutual-fund management companies harms individual clients. Perhaps most destructive of all are the hidden schemes that limit investor choice and reduce returns, including "pay-to-play" product-placement fees, stale-price trading scams, soft-dollar kickbacks, and 12b-1 distribution charges. Even if investors manage to emerge unscathed from an encounter with the profit-seeking mutual-fund industry, individuals face the likelihood of self-inflicted pain.
The common practice of selling losers and buying winners and doing both too often damages portfolio returns and increases tax liabilities, delivering a one-two punch to investor aspirations. In short: Nearly insurmountable hurdles confront ordinary investors. Swensen's solution?
A contrarian investment alternative that promotes well-diversified, equity-oriented, "market-mimicking" portfolios that reward investors who exhibit the courage to stay the course.
By avoiding actively managed funds and employing client-oriented mutual-fund managers, investors create the preconditions for investment success. Bottom line? Unconventional Success provides the guidance and financial know-how for improving the personal investor's financial future.
The founder of the Vanguard Group offers an analysis of mutual fund investment, discussing the significance of asset allocation, the benefits of simplicity, index funds, tax costs, information technologies, and other investment principles. In the wake of the dramatic series of corporate meltdowns: Enron; Tyco; Adelphia; WorldCom; the timely new edition of this successful text provides students and business professionals with a welcome update of the key issues facing managers, boards of directors, investors, and shareholders.
In addition to its authoritative overview of the history, the myth and the reality of corporate governance, this new edition has been updated to include: analysis of the latest cases of corporate disaster; An overview of corporate governance guidelines and codes of practice in developing and emerging markets new cases: Adelphia; Arthur Andersen; Tyco Laboratories; Worldcom; Gerstner's pay packet at IBM Once again in the new edition of their textbook, Robert A.
Monks and Nell Minow show clearly the role of corporate governance in making sure the right questions are asked and the necessary checks and balances in place to protect the long-term, sustainable value of the enterprise. A CD-ROM containing a comprehensive case study of the Enron collapse, complete with senate hearings and video footage, accompanies the text. Further lecturer resources and links are available at www. Mutual funds are very popular all over the world and they play an important role in the financial system of many countries.
Mutual funds are an ideal medium for investment by small investors in the stock market. Mutual funds pool together the investments of small investors for participation in the stock market. Being institutional investors, mutual funds can afford market analysis generally not available to individual investors. Furthermore, mutual funds can diversify the portfolio in a better way as compared to individual investors due to the expertise and availability of funds. Until , UTI was the only mutual fund in the country.
Between and other entities belonging to the public sector were permitted to offer mutual funds -- basically state-controlled banks and insurers. As part of financial sector reforms, mutual fund industry was opened to the private sector in and private sector organisations were permitted to enter the market and the first mutual fund regulations were promulgated, which were subsequently replaced by the SEBI Mutual Fund Regulations of These private sector organisations comprised both Indian and foreign joint ventures as well as purely Indian firms.
This book provides an in-depth account of the functioning of mutual fund industry in India. Stocks for the Long Run set a precedent as the most complete and irrefutable case for stock market investment ever written. Now, this bible for long-term investing continues its tradition with a fourth edition featuring updated, revised, and new material that will keep you competitive in the global market and up-to-date on the latest index instruments.
Wharton School professor Jeremy Siegel provides a potent mix of new evidence, research, and analysis supporting his key strategies for amassing a solid portfolio with enhanced returns and reduced risk. In a seamless narrative that incorporates the historical record of the markets with the realities of today's investing environment, the fourth edition features: A new chapter on globalization that documents how the emerging world will soon overtake the developed world and how it impacts the global economy An extended chapter on indexing that includes fundamentally weighted indexes, which have historically offered better returns and lower volatility than their capitalization-weighted counterparts Insightful analysis on what moves the market and how little we know about the sources of big market changes A sobering look at behavioral finance and the psychological factors that can lead investors to make irrational investment decisions A major highlight of this new edition of Stocks for the Long Run is the chapter on global investing.
With the U. Stocks for the Long Run is essential reading for every investor and advisor who wants to fully understand the market-including its behavior, past trends, and future influences-in order to develop a prosperous long-term portfolio that is both safe and secure. The financial crisis, the deepest bear market since the Great Depression, and the continued growth of the emerging markets are just some of the contingencies directly affecting every portfolio inthe world.
To help you navigate markets and make the best investment decisions, Jeremy Siegel has updated his bestselling guide to stock market investing. This new edition of Stocks for the Long Run answers all the important questions of today: How did the crisis alter the financial markets and the future of stock returns? What are the sources of long-term economic growth?
How does the Fed really impact investing decisions? Should you hedge against currency instability? This edition forecasts future stock returns and shows how to determine whether the market is overvalued or not. Essential reading for every investor and advisor who wants to fully understand the forces that move today's markets, Stocks for the Long Run provides the most complete summary available of historical trends that will help you develop a sound and profitable long-term portfolio.
Skip to content. Indian Mutual Funds Handbook 5th Edition. Mutual Fund YearBook Mutual Funds. Author : Vivek K. Mutual Funds Book Review:. Best wishes and happy investing! These should be specific goals, ranging from emergency fund all the way to retirement.
Reading the points above may not have taken even two minutes. And if you are familiar with the basics of mutual funds, this is gen- uinely all you need to know — no exaggeration! However, we do hope that the points will help whet your appetite for a slightly more detailed understanding of what you need to do in order to build, track and maintain a portfolio suited to your needs. The big financial needs of your life are mostly predictable. Once they grow up and start working, people get married, have children, buy a house, educate their children and retire.
There are individual variations, of course. Of course, there are unfore- seen emergencies, but those have to be tackled separately. The most important question you will need to answer is this: How much should I invest? We have created a simple way of finding this out. To help you see the difference between different kinds of investments, we have shown typical figures that you can expect from a post office recurring deposit, a typical balanced fund and a typical conser- vative equity fund.
Short-term goals are best fulfilled using fixed-income investments. These could be a bank or a post office deposit, or a fixed income fund. However, long-term financial goals are best fulfilled using a portfolio comprising of equity mutual funds. Equity is the only type of asset that can ensure that your money grows faster than inflation and does not actually lose value.
However, equity mutual funds can be volatile and thus are suit- able only for long-term investments. Over the short term, the ups and downs of the stock market could very well lead to temporary losses. Because of this, we do not recommend investing in equity mutual funds if your financial goal is nearer than about five to seven years. Normally, investors tend to choose funds based on their recent performance.
However, in this book, we have for you a different, far easier way of choosing funds. This is the way of selecting funds where our analysts have done almost the entire job, and we have put in the time and effort to prepare a ready list of funds for you to invest in and create a portfolio with. The most distinctive thing about this approach is the simple and self-evident mapping from your investment goals to the kind of fund that you should be investing in.
This is the pinnacle of simplicity. Hardly anything but the names are needed for an investor to figure out which class of funds best suits his needs. Within each of these classes, there are funds of two or three categories whose pur- pose becomes easy to understand, given the context.
All in all, you will rarely have to understand and evaluate more than three or four funds for a given purpose. These are hand-picked funds, which our analysts have selected. Unlike what is normally done, this book incorporates tax-saving ELSS funds in the same framework instead of giving them a separate category of their own.
The logic is simple: tax savers are invest- ments first and tax savers later. If your investment needs are better met by a more conservative tax saver, then you must select for that charac- teristic first. We look at returns, risk measures, portfolio construction and a number of sta- tistical measures.
This level of selec- tion is qualitative. An important source of inputs is the access that Value Research has to fund managers and chief investment officers CIOs. This directly benefits our readers by enhancing the quality of our analyses. How Many Funds? How many funds should your portfolio ide- ally have?
After all, it is entirely possible to invest in just one balanced fund and be done with your portfolio. While this ultra- simple approach has its good points, in practice you should diversify because any individual fund manager can make mis- takes.
Moreover, diversification helps you guard against such mistakes. In our view, two or three equity funds and one or two debt funds are enough for each type of fund that you need. So, if you want a portfolio that needs conservative equity funds and liquid funds, then two liquid funds and perhaps three equity funds are good enough. Beyond this, you are adding complexity to portfolio management without getting any additional stability.
Track and Maintain Your Portfolio Even a great portfolio must be monitored and must evolve to suit chang- ing conditions. One major reason for this is that formerly good funds could start consistently underperforming.
But if a fund is perform- ing considerably worse than others funds of the same type for more than a year, you should think of switching to a better per- forming fund.
The other reason for changing a portfolio is that you are approaching the time when you will need the money. A portfolio that started out as a five-year, medium-term investment will be a short-term portfolio four years later. The solution is clear; portfolios must be reworked as the time to liquidate them gets closer. Otherwise, your hard-earned equity returns could get wiped out in a bear market just when you need the money.
As the time approach- es closer, you must start moving the money into debt funds gradually, perhaps a year or two in advance, which is crucial to protect your returns. Peace of Mind In a nutshell, portfolio construction is not rocket science.
All it requires is a great deal of carefully thought-out systematic actions. Besides great returns with the right amount of risk, the most important payoff from building a portfolio methodically is the peace of mind it provides to investors.
You will know what you are doing and why you are doing so, and you will sleep peacefully at night without worrying about the fate of your investments. Plan Not Rated To make sure that you actually achieve those goals, you will need to make sure that the portfolio stays suitable for your goals over the long-term continuosly.
As time passes, many things change, which need to be monitored and adjusted. The biggest problem that investors face in monitoring their portfolios is lack of information. To be able to track various aspects of your investments that need to be monitored, you need an easy and automated way of analysing your investments in detail. Fortunately, Value Research provides a set of highly sophisticated, yet completely free web-based service tools that will do exactly that.
To use it, all you have to do is to visit the site and register. You can create up to five different portfolios to track separate financial goals. Total returns and gains are also available for the portfolio as a single entity.
It is based on the live prices in case of stocks. The rupee gains, split into realised and unrealised are available for each investment. The software automatically generates a graph to help you visualise the difference to ascertain how your fund has fared compared to the market index. Returns generated by individual investments. Use this to monitor whether investments are generating the rate of return that you expect and if any investment is underperforming any other Whether the target asset allocation is holding true.
As either of the two earn more than the other, this balance deviates from what it should be What your exposure to specific sectors and companies is News about the funds you have invested in How your funds have done in comparison to the stock market indices Investment performance of various funds Subscription copy of RAJESH BHUTRA [rajeshbhutra ymail. Value Research divides this entire universe into 27 categories. The reason for such an approach is to enable every possible type of investor to build a portfo- lio from a combination of funds.
The investor profile can vary from an aggressive risk-taker in equities, to a retired person looking for a monthly income, to a CFO looking to park a huge chunk of cash over a weekend. In short, anything that an investor needs, funds for that purpose can be sifted from this list.
Of the 27 categories, 12 are pure equity categories, 6 are hybrids equity and debt and 8 are pure debt categories with the last one being gold. For equity fund categories, the basic characteristic that is used to slot funds is the size market capitalisation of the companies that these funds invest in, except the tax planning category which consists of all funds that are compliant with the section 80C of the Income Tax Act.
For hybrid fund categories, the categorisation is based on the balance between debt and equity that a fund maintains. For debt fund categories, funds are slotted according to the residual maturity of the securities they invest in. Across all these three cate- gories, the underlying principle is to slice the universe along a risk- return continuum. This process serves two goals. First, readers can zero in on the exact balance of risk and return that they are looking for; and second, funds can be compared with others that are genuinely their peers without the comparison getting muddied by whatever marketing positioning a fund might take.
The entire categorisation is based on the actual portfolios that the fund managers are running, and not their self-stated inten- tions. The actual portfolios that have been considered are those spread over the last three years and the Value Research fund rating and both the fund Scorecard, rest on this fund classification.
Ltd mutualfund. True to its name, the fund invests per cent of its portfolio in large-cap stocks and the remain- ing per cent in midcaps. The fund does not invest in small caps. It has usually been overweight in large-caps compared to its peers.
The fund has enhanced large-cap exposure and cut mid-cap allocations as markets soared in It pegs sector weights to the BSE index, only some- times selecting stocks outside the index. A steady management team has led to continuity of style and market cap bias. The book takes stock of the current rather fragmented regulatory approaches and combines contributions from leading international academics, practitioners, and policy makers in their respective fields.
The book is addressed to participants from academia as well as to representatives from government, business, and civil society. It examines shifts in the levels of cooperation from multilateral to plurilateral, regional or bilateral—or vice versa , and shifts in the forms of cooperation new types of actors and instruments.
These trends are analysed both from a conceptual and a practical perspective, with contributions addressing drivers for change, historical perspectives, future developments, and evolutions in specific policy fields.
While a focus on international economic law may certainly not tell the whole story in relation to shifts in levels and forms of international cooperation, it does allow for a more detailed analysis of some of the important trends we currently witness. The Netherlands Yearbook of International Law was first published in It offers a forum for the publication of scholarly articles in a varying thematic area of public international law.
Author : N. A Publisher: N.
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