Advancements in IS hardware and software Research Paper

Headways in IS equipment and programming - Research Paper Example on division has encountered various changes over the most recent five years and that frames the premise of conversation in the content with an attention on IS equipment and programming (Baltzan and Phillips, 2009). In the course of recent years, data framework equipment has immensely changed as far as adequacy and proficiency. In the first place, the PC processors have been improved to the degree that they have sped up and execution. PC processors have the abilities of preparing huge main part of data by reacting to the directions as suitable. Additionally, the equipment recollections can store huge information before they are handled (Baltzan and Phillips, 2009). Before, the memory was confined to a specific ability to the degree that once the restricted space was involved, no information or data could be put away. The IS equipment have been changed with improved abilities, making them good with different segments. It has gotten conceivable to coordinate equipment and programming parts for viable correspondence of the different components of a data framework (Baltzan and Phillips, 2009). Data framework programming has had a great disagreement the business world over the most recent five years because of various changes. The majority of the IS programming has been created to address explicit issues in the market. A valid example is that some of the segments are today produced for money related purposes, information assessment and examination. The particulars have streamlined the utilization of the programming projects. Thusly, IS programming is perfect with the vast majority of the equipment parts and this has made it conceivable to utilize any data framework material with no limitations (Cockburn, 2008). The correspondence between the different segments of a product have been rearranged because of improved execution and viability. Programming plans have changed, making them more easy to understand and simple to adjust (Cockburn, 2008). Additionally, the nature of the IS programming has changed

PHILOSOPHY of COUNSELING

Clinical brain research center SE around the learned person, enthusiastic, organic, mental, social, and conduct perspective s of human order over the life expectancy, in differing societies, and at all financial I bevel† (Todd and Aboard, 1999, peg. 5). In my way of thinking I do accept this to be valid in addition to other things. I accept the Bible to be my primary wellspring of truth. Perspective on Human Nature With any way of thinking we need to begin toward the start of the idea of individuals and their issue. Why are individuals the manner in which they are? Is it nature or nurture?I accept we don't s tart out as a â€Å"blank record. † We are totally brought into the world with explicit qualities and ascribes that are extraordinary to us. We are on the whole people exceptional in our own particular manners. Anyway our encounters develop and SSH primate us for good or for terrible. Consider life a poker game and in your grasp are the cards you have been managed. Y ou were given the cards and how you play the game or your â€Å"experiences† d decide the result. Profound quality and qualities are not emotional arrangements of thoughts that differ from p gum to individual, or even culture to culture.Rather, they are dictated by Someone who is above e the made domain and offers them to all whom are made. This â€Å"Someone† gives you the cards. Without being given these essential qualities and ethics articulate turmoil would reign on the planet. In t he Bible Jesus says â€Å"For out of the heart come insidious contemplations, murders, infidelities, fornication's, the wagers, bogus observer, attacks. † (Matthew 1 5:19, NASA) This clearly focuses to the way that our he expressions are the focal issue in tending to the practices and activities of our lives. In the Bi blew we additionally get an away from of the state of the human being.Romans 3:23 says â€Å"All have trespassed and miss the mark regarding the magnificence of G od† (NASA). The sensible ramifications is that one who has s mined (characterized as an idea, activity upon an idea, or conduct that is against the character ND flawlessness of God's character) is known as a â€Å"sinner†. Since we have all trespassed we can not ex lasciviousness the existence God proposed us to live. Our wrongdoing isolates us from God and in this manner is the r 80th issue in our lives. Only one out of every odd battle is an aftereffect of individual sin however. On the off chance that a customer were ABA seed, damaged, dismissed, ignored, and so forth. The wrongdoing isn't theirs yet the consequences of another person's transgression happens in their life. Numerous individuals need guiding due to the transgressions of others, depend their own. Our practices and activities stream straightforwardly from our wicked considerations, activities, and arrangement. If somebody somehow happened to carry on with their life on a remote location and never have an y human contact they would even now have the affinity and want to be avaricious, scurrilous, prideful, and o there things that go straightforwardly against the character of God. Society and our condition don't slim down ermine our activities as much as our own internal misshaped desires.The root issue is a heart issue m, not one of requiring only a â€Å"behavioral adjustment† to address the activities. At the point when customers co me to guiding on the grounds that they are battling with something that is a consequence of another person's transgression the heading and Ochs is still on their requirement for a Savior to give them the internal capacity to have the e quality, persistence, pardoning, and recuperating to push ahead in their life. Advisor/Client Relationship My job as a specialist, is to lift the fallen, reestablish the wrecked, and to mend the h rutting. Am not there to pass judgment or â€Å"pick sides. We were made for connections. All together for an advisor to have the sort of relationship with the customer that permits them to challenge the customer they should be seen as open, mindful, ready to be tested, an audience, reasonable, companion lye, firm, and trusting. An extraordinary customer/instructor relationship isn't absolutely basic to change happening in the life of a customer, however it is significant. I ought to have the option to empathic with the customer, train them ways of dealing with stress, and offer an alternate point of view or understanding concerning what the e issue may be.The customer ought not depend on me exclusively as the fix all to any issue. The there pips helps the customer in recognizing useless convictions. The instructor likewise finds interchange plunge rules for living for the customer. The specialist goes about as the instructor and shows new capacities and abilities to the customer. The customer comprehends their difficult better and work on changing pointless ways, for example, acting and thinking. Along these lines, it is imperative to keep up an honest, secure, certain connection between the customer and the assistant to be effective.The basic o objective is for change to happen; the change could be a natural change, explicit carry on viral change, change in intuition distinguishing and mindfulness. Qualities and Weaknesses as a Therapist like to believe I'm acceptable at seeing the â€Å"big picture. † If you can make a stride back and take a gander at life along these lines you don't stress over paltry things as much since you hen understand that they don't make a difference in the huge plan of things. As a specialist could then be a blew to help show my customers to do likewise. Would instruct them to concentrate on the 10,000 foot view rather t Han unimportant details.One thing that I should chip away at isn't offering guidance. My companions come to me for counsel at this moment and its extremely difficult to get out from under that propensity. I've begun to take myself gracious t of the circumstance and offer rules that could help them in the circumstance in light of the fact that don't wan t them to rely upon me and the equivalent goes for my future customers. I need to be a Marriage and Fame Ii Therapist and I'm not hitched, nor do I have my very own group. A few people could consider this to be an issue since I don't know explicitly realize the situation.However do empathic with individuals and can identify with them in different territories. I would likewise disclose to them then that regardless of whether I were hitched I despite everything wouldn't have the foggiest idea about the specific circumstance in light of the fact that each circumstance is extraordinary and exceptional to that person. End My way of thinking of guiding creatures with the way that all of humankind has introduction NCSC esteem. The perfect guiding circumstance would be one where a customer can see an affection Eng relationship dolled between the advocate and th e customer so that they being t o want to find out about God. Theory of COUNSELING Clinical brain research center SE around the scholarly person, enthusiastic, organic, mental, social, and conduct perspective s of human directive over the life expectancy, in shifting societies, and at all financial I bevel† (Todd and Aboard, 1999, peg. 5). In my way of thinking I do accept this to be valid in addition to other things. I accept the Bible to be my principle wellspring of truth. Perspective on Human Nature With any way of thinking we need to begin toward the start of the idea of individuals and their issue. Why are individuals the manner in which they are? Is it nature or nurture?I accept we don't s tart out as a â€Å"blank record. † We are totally brought into the world with explicit qualities and credits that are one of a kind to us. We are on the whole people remarkable in our own specific manners. Anyway our encounters develop and SSH primate us for good or for terrible. Consider life a poker game and in your grasp are the cards you have been managed . You were given the cards and how you play the game or your â€Å"experiences† d decide the result. Ethical quality and qualities are not emotional arrangements of thoughts that change from p tar to individual, or even culture to culture.Rather, they are dictated by Someone who is above e the made domain and offers them to all whom are made. This â€Å"Someone† gives you the cards. Without being given these essential qualities and ethics articulate tumult would reign on the planet. In t he Bible Jesus says â€Å"For out of the heart come abhorrent contemplations, murders, infidelities, fornication's, the wagers, bogus observer, attacks. † (Matthew 1 5:19, NASA) This clearly focuses to the way that our he expressions are the focal issue in tending to the practices and activities of our lives. In the Bi blew we likewise get an away from of the state of the human being.Romans 3:23 says â€Å"All have trespassed and miss the mark regarding the wonder of God† (NASA). The consistent ramifications is that one who has s mined (characterized as an idea, activity upon an idea, or conduct that is against the character ND flawlessness of God's character) is known as a â€Å"sinner†. Since we have all trespassed we can not ex lasciviousness the existence God planned us to live. Our wrongdoing isolates us from God and along these lines is the r 80th issue in our lives. Only one out of every odd battle is an aftereffect of individual sin however. On the off chance that a customer were ABA seed, damaged, dismissed, disregarded, and so forth. The transgression isn't theirs yet the aftereffects of another person's wrongdoing happens in their life. Numerous individuals need directing on account of the wrongdoings of others, depend their own. Our practices and activities stream legitimately from our evil contemplations, activities, and arrangement. If somebody somehow happened to carry on with their life on a remote location and never have any human contact they would in any case have the affinity and want to be insatiable, scurrilous, prideful, and o there things that go straightforwardly against the character of God. Society and our condition don't eat less ermine our activities as much as our own internal misshaped desires.The root issue is a heart issue m, not one of requiring only a â€Å"behavioral adjustment† to address the activities. At the point when customers co me to advising in light of the fact that they are battling with something that is an aftereffect of another person's wrongdoing the heading and Ochs is still on their requirement for a Savior to give them the internal capacity to have the e quality, tolerance, pardoning, and mending to push ahead in their life. Advisor/Client Relationship My job as a specialist, is to lift the fallen, reestablish the messed up, and to recuperate the h rutting. Am not there to pass judgment or â€Å"pick sides. We were made for connections. All together for an ad visor to have the kind of relationship with the customer that permits them to challenge the customer they should be perc

Life of a Sensuous Woman and A Vindication of the Rights of Woman Essay

Ihara Saikaku’s Life of a Sensuous Woman written in the seventeenth century and Mary Woolstonecraft’s A Vindication of the Rights of Woman written in the eighteenth century are ground-breaking artistic works that supported women's liberation during when ladies were abused individuals from our social orders. These two works have exceptionally old age contrast and the creators of the two works have made an unmistakable endeavor to reveal an insight towards the issues that no one thought about noteworthy during that time. In spite of these contrasts between the two writings, the two of them capably figure out how to introduce progressive ways ladies can free themselves from abuse loaded upon them by the general public since the start of mankind. In Saikaku’s story Life of a Sensuous Woman, he utilizes his principle character an Old Woman’s story to show how ladies can be as skilled as men in the event that they utilize their insight and involvement with a correct way. The two men who came to hear the old woman’s story and request that her assist them with seeing progressively about existence shows that ladies do have the capacity to be scholarly and utilize their insight to direct others (Saikaku 594). Obviously how significant the old woman’s assessment was to those two men that they came to look for her direction as opposed to heading off to a man. The entire thought of men looking for direction from a lady during the seventeenth century is progressive. One can grasp that ladies are fit for utilizing their insight and experience to lead the best approach to others including men in this way turning into an imperative citizen. Engaging ladies proceeds as the Old Women’s story advances where Saikaku articulately shows how ladies can satisfy their own longing and not surrender to what men expect of them. Old Woman’s youthful self picking the uncommon letter author samu... ...together as equivalent citizenry. Despite the fact that the advancement has been monstrous in evolved countries, there are still pieces of the world that are a very long time behind with regards to ladies freedom. Accordingly, presently it is in the hands of freed ones to pull the individuals who are as yet living under the cavern of mistreatment and show them the light of freedom. Works Cited Puchner, Martin. Mary Wollstonecraft. The Norton Anthology of World Literature. third Ed. Volume D. Ed. Martin Puchner. New York: Norton, 2013. 133. Print. Saikaku, Ihara. Life of a Sensuous Woman. The Norton Anthology of World Literature. third Ed. Volume D. Ed. Martin Puchner. New York: Norton, 2013. 591-611. Print. Woolstoncraft, Mary. A Vindication of The Rights of Woman. The Norton Anthology of World Literature. third Ed. Volume D. Ed. Martin Puchner. New York: Norton, 2013. 134-136. Print.

Theories on Stages of Sleep

Talk Radio Essays - English-language Films, Films, Talk Radio, Barry

Talk Radio In Talk Radio, Oliver Stone unites all scenes of filmmaking to catch the story he needs to tell. With colossal coordinated effort from the DP, the creation architect, the essayist, and the entertainers, Stone determined a tight, moving film in high style. Starting with the content, Stone and Bogosian shaped a relentless regard in the idea of the piece. They each comprehended the basic topic that Barry rehashes again and again. ?On the off chance that you don't care for it, why not turn it off (sic) They pursued the development of Barry's neurosis and requirement for voice/consideration, knowing from the start he would need to kick the bucket for the film to mean anything. We start the film off in the grasp of its finale; the crazed fan hanging tight for his prey in smoke. It is just until Barry can perceive the blunder in his manners that he can be taken from the world to talk stronger than any wireless transmission or radio sign. This is magnificently appeared in the voice montage o f callers.The thought of the radio broadcast being a protected world unto its own, where no light infiltrates and nobody from this present reality can get entrance, is a brilliant representation for Barry himself. A noisy talking, excessively glad stun muscle head, who can't stand to give anybody access. The universe of the station has no windows, no warm light, and no connections to the revolting city around it. Barry dresses in dark, similar to the studio, which is set in contempo-present day deco blacks and grays. He discusses subjects nobody needs to concede is valid. We are continually in shadow, continually hearing and watching two distinct stories, and pondering where it'll go. Stone keeps us continually mindful of how Barry influences people around him and at the focal point of consideration. Utilizing moving shots, reflection center pulls, darkening lights, and split diopters we never dismiss the decisions Barry is making and what it's doing to people around him. This is ba sic to keep the activity and force up in a one room monolog driven story. Stone never let us down in a spot that had the potential for dull activity. In Barry Champlain, I think Stone was truly pursuing that he was somebody who regardless of how diligently you attempt, you can't contact. ?This is my show.? Stone caught the core of ?Barry's show? in each side of the film. List of sources none Movies and Cinema

Googling and Ivy League Admission

Googling and Ivy League Admission September 28, 2013 Clean up your online presence now as more and more Ivy League admissions officers are Googling applicants. Theres an article out in Business Insider written by Alan Katzman entitled Why Ivy League Admissions Officers Have No Choice But To Google College Applicants that discusses how more and more Ivy League admissions officers are turning to social media and Google to distinguish one applicant from another. Its nothing we havent previously written about. Ivy League admissions officers are human beings. They have curiosities. When they get to know you by reading your personal statement and letters of recommendation, why wouldnt they run a simple Google search of your name? Katzman points out that with so many qualified applicants applying to the eight Ivy League institutions, Googling a candidate seems the natural next step. As he writes in the piece, Facebook, Twitter, LinkedIn, Tumblr, Google+, Instagram, Vine and other social media platforms and online blogs provide college admissions officers with a readily available window to assess the applicant’s transparency, credibility, maturity, genuineness and likeability. Access to this information is fast, easy and anonymous. Without doubt, this trend is unfair to the applicant who likely has viewed these platforms as a casual outlet for private interactions with friends. Nevertheless, what is shared online has no half-life and is accessible by anyone with an interest in finding you. And find you they will. So, if youre a high school student, what is your online presence like? What is on Page 1 of your Google search engine result page? Page 2? Is your Facebook profile visible to the public? What are you writing on that Twitter feed of yours? And how about those scandalous photos on Instagram? Its high time to clean your online presence up. Ready go. And, while youre here, read about Social Media in Ivy League Admission.

Investigation Into Mutual Funds In India Finance Essay - Free Essay Example

India is the fastest growing market for mutual funds since 2004 with a CAGR of 29% in the 5-year period from 2004 to 2008 as against the global average of 4 %. The increase in revenue and profitability however has not been proportionate with the AUM growth in the last 5 years. Low share of global assets under management, low penetration levels, limited share of mutual funds in the household financial savings the climbing growth rates in the last few years are amongst the highest in the world. FUTURE OUTLOOK IN A DYNAMIC ENVIRONMENT According to KPMG India the industry AUM is likely to grow at 15 to 25% from the period 2010 to 2015 based on the pace of the economic growth. In case of a quick economic recovery +ve reinforcement of growth drivers identified, KPMG has a view that the Indian mutual fund industry will grow at the rate of 22 to 25% in the period from 2010 to 2015, resulting in AUM of INR 16,000 to 18,000 billion in 2015. In case of a relatively slower economic revival, KPMG is of the view that the Indian mutual fund industry may grow in the range of 15 to 18 % in the period from 2010 to 2015, resulting in AUM of INR 15000 to 17000 billion in 2015. MUTUAL FUND INTRODUCTION A mutual fund is a form of collective investment that group money from many investors and invests the money in bonds, stocks, short-term money-market instruments other securities. This investment vehicle is pooling money from the common man is diversifying into other investment opportunities. The mutual funds are managed by Financial institutions or the companies. In India they are regulated by Institutions such as Asset Management Companies. Professionals are hired in these companies for evaluating the Balance Sheet and P L accounts of different companies .This is done to know the performance of companies to know which will succeed in the near future. This will bring high returns to the investment. Mutual Funds are invested in more subtle companies that have a steady growth rate are not much affected by the share market. Investments are not only made in equities, debentures which are directly interrelated to the bullish bearish trends of the market. This is the advantage of mutual funds over banks allows investors other options to invest in safe, low risk companies. The investors can invest in different schemes of one fund or in altogether different mutual funds can build their own investment portfolio. The flow chart describes broadly the working of a mutual fund: TYPES OF MUTUAL FUNDS EQUITY ORIENTED SCHEMES (Growth Schemes) These schemes invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential of delivering superior returns in long run. But in the short term, these schemes are exposed to fluctuations in value because they invest in equities. Equity schemes are hence not suitable for investors seeking regular income or want to use their investments in the short term. They are ideal for investors who have a long term investment prospect. These schemes include: General purpose Sector specific Index schemes Sector schemes Tax saving schemes Real estate funds DEBT BASED SCHEME (Income Schemes) According to it, investment is done in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared with the equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for retired or conservative investors who do not prefer to take higher equity risks. Income Schemes Money Market Schemes Gilt Fund HYBRID SCHEMES These schemes are commonly known as balanced schemes. These schemes invest in both Equity as well as Debt. By investing in such a scheme, balanced schemes are formed which fulfils the objective of income also moderate capital appreciation. These are ideal for investors with a conservative long term orientation. AS PER CONSTITUTION OPEN -ENDED MUTUAL FUNDS An open-ended fund does not have a fixed maturity period. On any business day, investors can buy or sell units from and to the mutual fund at NAV-related prices. These schemes have unlimited capitalization with no limit on the amount one can buy from the fund. And thus, the unit capital can keep growing. Generally these funds are not listed on any exchange. CLOSE-ENDED MUTUAL FUNDS Close-ended schemes have fixed maturity periods. Investors can buy these funds when these funds are open in the initial issue after that they cannot issue new units except in case of rights issues or bonus. But after the initial issue, one can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price of the units could vary from the NAV of the scheme due to demand and supply factors, investors expectations and other market factors. INTERVAL SCHEME These schemes combine the features of open-ended and close-ended schemes. They can be traded on the stock exchange or can be open for sale or redemption during pre-determined intervals at NAV based prices. AN OVERVIEW OF THE INDUSTRY INDIAN CONTEXT The Indian mutual fund industry has evolved from a single player monopoly in 1963 to a fast growing, competitive market on the back of a strong regulatory framework. The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and the Reserve Bank of India. The mutual funds history in India can be broadly classified into 4 distinct phases. First Phase 1964-87 Second Phase 1987-1993 (Entry of Public Sector Funds) Third Phase 1993-2003 (Entry of Private Sector Funds) Fourth Phase since February 2003 AUM Growth The Assets under Management (AUM) have grown at a rapid pace over the past few years, at a CAGR of 35 percent for the five-year period from 31 March 2005 to 31 March 2009. Over the 10-year period from 1999 to 2009 industry grew at 22 percent CAGR encompassing varied economic cycles. This growth was despite 2 falls in the AUM the first being after the year 2001 due to the dotcom bubble burst, and the second in 2008 consequent to the global economic crisis (the first fall in AUM in March 2003 arising from the UTI split). Growth in AUM in the Indian Mutual Fund Industry (Average AUM in INR) Billion) AUM Base and Growth Relative to the Global Industry India has been amongst the fastest growing markets for mutual funds. In the five-year period from 2004 to 2008 (as of December) the Indian mutual fund industry grew at 29 % CAGR as against the global average of 4 %. Over this period, the mutual fund industry in mature markets like the US and France grew at 4 percent.However, despite clocking growth rates that are amongst the highest in the world, the Indian mutual fund industry continues to be a very small market, comprising 0.32 percent share of the global AUM of USD 18.97 trillion as of December 2008. AUM to GDP Ratio The ratio of AUM to Indias GDP has increased from 6 percent in 2005 to 11 percent in 2009. However despite this, it continues to be significantly lower than the ratio in developed countries, where the AUM accounts for 20-70 percent of the GDP. AUM to GDP Ratio for India Profitability The increase in revenue and profitability in the Indian mutual fund industry has not been proportionate with the AUM growth in the last 5 years. The AUM grew at 35 percent CAGR in the period from March 2005 to 2009, while the profitability of AMCs which is defined as PBT as a percentage of the AUM declined from 24 bps in FY 2004 to 14 bps in FY 2008. During FY 2004 and FY 2008, the investment management fee as a percent of average AUM was in the range of 55 to 58 bps (small increase to 64 bps in FY 2006) due to the industry focus on the underlying asset mix comprising relatively low margin products being targeted at the institutional segment. The operating expenses, as a %age of AUM, rose from 41 bps in FY 2004 to 113 bps in FY 2008 largely due to the increased spend on marketing, distribution and administrative expenses impacting AMC margins. The increasing cost pressures and declining profitability had a great impact on the entry plans of global players eyeing an Indian presence. The growth in AUM accompanied by a decline in profitability necessitates an analysis of the underlying characteristics that have a bearing on the growth profitability of the Indian mutual fund industry. Industry Structure The Indian mutual fund industry currently consists of 38 players that have been given regulatory approval by SEBI. The industry has witnessed a shift drastically in favour of private sector players, as the number of public sector players reduced from 11 in 2001 to 5 in 2009. The public sector has gradually ceded market share to the private sector. Public sector mutual funds comprise 21 percent of the AUM in 2009 as against 72 percent in 2001. Regulatory Framework The Indian mutual fund industry in terms of regulatory framework is believed to match up to the most developed markets globally. The regulator, Securities and Exchange Board of India (SEBI), has consistently introduced several regulatory measures and amendments aimed at protecting the interests of the small investor that augurs well for the long term growth of the industry. The implementation of Prevention of Money Laundering (PMLA) Rules, the latest guidelines issued in December 2008, as part of the risk management practices and procedures is expected to gain further momentum. The current Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) measures cover two main aspects of Know Your Customer (KYC) and suspicious transaction monitoring and reporting. MUTUAL FUND INVESTING STRATEGIES: Systematic Investment Plans (SIPs) SIPs require an investor to invest a fixed sum of money at regular intervals in the Mutual fund scheme he has chosen. It is best suited for young people who have started their careers and need to build their wealth. Systematic Withdrawal Plans (SWPs) An investor invests in a mutual fund scheme is allowed to withdraw a fixed sum of money at regular intervals to take care of his expenses. These plans are best suited for people nearing retirement. Systematic Transfer Plans (STPs) This plan allows the investor to transfer on a periodic basis a specified amount from one scheme to another within the same fund family ie., 2 schemes belonging to the same mutual fund. This service allows the investor to manage his investments actively to achieve his objectives. Many funds do not even charge any transaction fees for this service an added advantage for the active investor. RATE OF RETURN ON MUTUAL FUNDS:- An investor in mutual fund earns return from two sources: Income from dividend paid by the mutual fund. Capital gains by selling the units at a price higher than the acquisition price. PERFORMANCE MEASURES OF MUTUAL FUNDS: The past performance alone cannot be indicative of future performance. The present is the only quantitative way to judge how good a fund. Therefore, there the past performance of different Mutual Funds should be correctly assessed. Worldwide, good Mutual Fund companies are known by their AMCs and this fame is directly linked to their superior stock selection skills. For Mutual Funds to grow, AMCs must be held accountable for their selection of stocks. In other words, there must be some performance indicator that will reveal the quality of stock selection of various AMCs. The most important measures of performance are: Standard Deviation Beta Value The Treynors Measure The Sharpe Measure Jenson Model Fama Model Standard Deviation:- It throws light on a funds volatility in terms of rise and fall in its returns. The maximum volatility in a security is the riskiest brings about unevenness in its performance. This risk is measured by Standard deviation of a fund by measuring the degree to which the fund fluctuates in relation to its mean return. Beta Value:- Beta determines the volatility or risk of a fund in comparison to that of its index or benchmark. A fund with a beta value close to 1 means that the funds performance matches closely to the index or benchmark. A beta 1 indicates greater volatility than the overall market, and a beta 1 indicates less volatility than the benchmark. If, for example, a fund has a beta of 1.10 in relation to the Sensex, then the fund has been moving 10% more than the index. Therefore, if the Sensex has increased 15%, the fund would be expected to increase 16.5%. Treynor Ratio:- This ratio evaluates funds on the basis of Treynors Index. This Index is a ratio of return generated by the fund over and above risk free rate of return (generally taken to be the return on securities backed by the government, as there is no credit risk associated), during a given period and systematic risk associated with it (beta). It isrepresented as: Treynors Index (Ti) = (Ri Rf)/Bi. where { Ri represents return on fund, Rf is risk free rate of return Bi is beta of the fund } All risk-averse investors would like this value to be maximum. While a high positive Treynors Index specifies a better risk-adjusted performance of a fund and a low negative Treynors Index is an indication of unfavorable performance. The Sharpe Measure :- The performance of a fund is evaluated on the basis of Sharpe Ratio which is a ratio of returns generated by the fund over above risk free rate of return the total risk associated with it. The investors are concerned about the total risk of the fund. So, it evaluates funds on the basis of reward per unit of total risk. It can be written as: Sharpe Index (Si) = (Ri Rf)/Si Where { Si is standard deviation of the fund, Ri represents return on fund Rf is the risk free rate of return } A high and +ve Sharpe Ratio specifies a superior risk-adjusted performance of a fund a low and -ve Sharpe Ratio indicates unfavourable performance. Comparison of Sharpe and Treynor The total risk (Sharpe measure) is appropriate for evaluating the risk return relationship for well-diversified portfolios. the systematic risk (Treynor measure) is the relevant measure of risk for evaluating less than fully diversified portfolios or individual stocks. The total risk is equal to systematic risk for a well-diversified portfolio. Rankings based on both the risks should be identical for a well-diversified portfolio since the total risk is reduced to systematic risk. So, a poorly diversified fund that ranks higher on Treynor measure when compared with another fund that is highly diversified, will rank lower on Sharpe Measure. Jenson Model:- This measure is also known as the differential Return Method. It involves evaluation of the returns generated by the fund vs. the returns actually expected out of the fund1 given the level of its systematic risk. The surplus between the 2 returns is known as Alpha, which measures the performance of a fund compare to the actual returns over the period. Required return of a fund at a given level of risk (Bi) can be calculated as: Ri = Rf + Bi (Rm Rf) Where { Ri represents return on fund, Rm is average market return during the given period, Rf is risk free rate of return Bi is Beta deviation of the fund } After calculating it, Alpha = the actual return of the fund -required return(Ri) The superior performance of the fund is represented by higher alpha and vice versa. Limitation of this model is that it considers only systematic risk not the entire risk associated with the fund and an ordinary investor cannot mitigate unsystematic risk, as his knowledge of market is primitive. Fama Model:- It is an extension of Jenson model. This model takes the difference between the performance measured in terms of returns of a fund the required return commensurate with the total risk associated with it as a measure of the performance of the fund and is called Net Selectivity. The Net Selectivity represents the stock selection skill of the fund manager, as it is the excess returns over and above the return required to compensate for the total risk taken by the fund manager. Higher value indicates that fund manager has earned returns well above the return corresponding to the level of risk taken by him. Required return can be calculated as: Ri = Rf + Si/Sm*(Rm Rf) Where { Ri represents return on fund, Sm is standard deviation of market returns, Rm is average market return during the given period Rf is risk free rate of return } The Net Selectivity is calculated as ,actual return of the fund-required return. Among the above performance measures, two models namely, Treynor measure and Jenson model use Systematic risk is based on the premise that the Unsystematic risk is diversifiable. These models are suitable for large investors like institutional investors with high risk taking capacities as they have large funds can invest in a number of options to dilute some risks. They can spread their portfolio across a number of stocks and sectors. However, Sharpe measure and Fama model which consider the entire risk associated with funds are suitable for small investors since the ordinary investor lacks the necessary skill and resources to diversify. Moreover, fund manager will help in safeguarding the money invested to a great extent by selecting the fund on the basis of their superior stock selection ability BENEFITS OF MUTUAL FUND There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer, which are unmatched by most other investment avenues. The key benefits are explained in this section. AFFORDABILITY An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to these portfolios with an investment as low as Rs.500/-. This amount would get you less than quarter of an RIL share! Therefore, an investor can build a portfolio easily through a mutual fund by investing directly in the stock market. DIVERSIFICATION It simply means that you can spread your investment across different securities (stocks, bonds, money market instruments, real estate, etc.) and different sectors (auto, textile, telecommunication, information technology etc.). This kind of a diversification may add stability to ones returns, for example equities might underperform during a period of time but bonds and money market instruments might perform well enough to offset the effect of a bend in the equity markets. Similarly the telecommunication sector might be faring poorly but the auto and information technology sectors might do well and may help you meet your return objectives. VARIETY Mutual funds offer a great variety of schemes. This variety is beneficial in two ways: It offers different types of schemes to investors with different needs and risk appetites. It allows an investor to invest sums across a variety of schemes, both debt and equity. PROFESSIONAL MANAGEMENT When we buy in to a mutual fund, we are handing our money to an investment professional that has experience in making investment decisions. Therefore, it is his job to (a) find the best securities for the fund meeting the funds stated investment objectives (b) keep track of investments and changes in market conditions adjust the mix of the portfolio as and when required. TAX BENEFITS In case of Individuals and Hindu Undivided Families, a deduction unto Rs. 9,000 from the Total Income will be acceptable in respect of income from investments specified in Section 80L, including income from Units of the Mutual Fund. REGULATIONS Securities Exchange Board of India (SEBI) is the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds also set disclosure and accounting requirements. Therefore, the interest of investors is protected by such a high level of regulation. LIQUIDITY In open-ended mutual funds, all or part of the units can be redeemed at any time. Some schemes do have a lock-in period where an investor cannot return the units until the termination of such a period. CONVENIENCE An investor can conveniently purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may select a Systematic Investment Plan (SIP) or a Systematic Withdrawal Advantage Plan (SWAP). In addition to this account statements and portfolios of the schemes are send to the investor. MUTUAL FUND PLAYER IN INDIA HDFC Mutual Fund A Case Study HDFC ASSET MANAGEMENT COMPANY LTD (AMC) HDFC AMC, incorporated under the Companies Act, 1956 was approved to act as an AMC for the Mutual Fund by SEBI on July 30, 2000. As per the terms of the Investment Management Agreement, the AMC will conduct the operations of the MF manage assets of the schemes, including the schemes launched from time to time. In terms of the investment Management Agreement, HDFC Asset Management Company Ltd. is appointed to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.161 crore. HDFC Mutual Fund booked a profit of Rs 1,388 crore in 2009-10 in 1st half is at no. 2 position. As on 30 October 2009 Avg. AUM is Rs. 93315.98 cr. No. of investors is 3290456 No. of ARN certified distributors is 33659 The present equity shareholding pattern of the AMC : Particulars % of the paid up equity capital Housing Development Finance Corp. Ltd 60 Standard Life Investments Ltd 40 EQUITY SCHEMES ( some of them includes) HDFC GROWTH FUND Investment Objective The primary investment objective of this scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity equity related instruments. Basic Scheme Information Then nature of scheme Open Ended Growth scheme Inception Date September 11, 2000 Plan Dividend Option, Growth Option Exit Load (%age of the Applicable NAV) Nil Min. Application Amt. Rs 5000 in multiples of Rs 100 thereof to open an account/portfolio. Additional purchases is Rs 1000 in multiples of Rs 100 thereof. Lock In Period Nil NAV Periodicity Every Business Day Redemption Proceeds Normally despatched within 3 business days Investment pattern The quantity of the Scheme will be invested primarily in equity and equity related instruments. According to it, investment might be a part of its quantity in debt and money market instruments in order to manage its liquidity requirements from time to time under certain circumstances to protect interests of the Unit holders. The asset allocation under the Scheme will is as follows SNO. TYPE OF INSTRUMENTS NORMAL ALLOCATION (% of net asset) RISK PROFILE 1 Equities Equities related instruments 80-100 Medium high 2 Debt securities, money market instruments cash 0-100 Low medium Investment Strategy Risk Control The investment approach will be based on a set of well established flexible principles that emphasise the concept of sustainable economic earnings cash return on investment as the means of valuation of companies. The objective will be to identify businesses with superior growth prospects good management at a reasonable price. HDFC TAX SAVER Investment objective To achieve a long term growth of capital. Basic Scheme Information Nature of scheme Open Ended Equity linked saving scheme Inception Date March 31, 1996 Plan Dividend Options, Growth Options Exit Load ( % age of the Applicable NAV) Nil Min Application Amt. Rs.5000 and in multiples of Rs.100 thereof to open an account / portfolio Lock In Period 3 years NAV Periodicity Every Business Day Redemption Proceeds Normally despatched within 3 Business days Investment Pattern The asset allocation under the Scheme will IS as follows: SNO. ASSET TYPE %AGE OF PORTFOLIO RISK PROFILE 1 Equities and Equities related instruments Min 80% Medium high 2 Debt securities, cash money market instruments Min 20% Low medium Investment in Securitized debt would not exceed 20% of the net assets of the scheme. The Scheme may also invest up to 25% of net assets of the scheme in derivatives such as Futures Options other such derivative instruments introduced from time to time for the purpose of hedging portfolio. RECOMMENDATIONS TO MUTUAL FUND COMPANIES Given that customer awareness is the pre-requisite for the achievement of the industry growth potential, there is a need for planning, financing and executing initiatives aimed at increasing financial literacy and enhancing investor education across the entire country through a sustained collaborative effort across all stakeholders. Financing a Sustainable Nationwide Customer Awareness Program Promoting Financial Planning Awareness in Educational Institutions Introduction of Customer Friendly Products and Product Features Pricing Flexibility Opening Up of the Public Sector Branch Network in Tier-3 Tier-4 cities Focus on Increasing Customer Engagement Pre and Post Completion of the Investment SUMMARY There is a perceived need to review risk and performance analysis capabilities and governance structures, to meet fiduciary responsibilities and the increasing demand for transparency. AMCs therefore need to re-orient their business towards fulfilling customer needs. As customers seek trusted advisors, the manufacturer-distributor-customer relationship is expected to be centred not on the sale of products, but for collectively promoting the financial success of customers across all facets of their professional and personal lives. This requires creating a collaborative network of experts in funds management and financial advice, innovative product offerings, efficient service delivery and supporting technology. The mutual fund industry today needs to develop products to fulfil customer needs and help customers understand how its products cater to their needs. Given that the industry needs to collectively work towards riding over the dynamic and relatively less favourable economic environment at present, the next phase for the industry is likely to be characterised by a stronger focus on customer centricity. Other areas of focus are likely to be cost management and enabling strong governance and regulatory framework all aimed at helping the industry achieve sustained, profitable growth, going forward. With regards to HDFC Mutual Fund, the growth story is quite promising and the AUM under its purview is improving at a good rate. The brand equity, extensive distribution channel and investor-friendly products make it one of the most sought after investment opportunity. And, with all its commitment in line with the industry growth story and future potential, HDFC Mutual Fund is expected to hold its position firmly in the business.