Development of rural areas may depend upon broader development in the regional economy , with urban centers as a hub.
Economic Growth eventually stagnates as a result of diminishing returns .
The Provision of investment management services includes elements of financial statement analyses, asset selection, stock selection ,
Plan implementation & ongoing monitoring of investments.
The Business of Investment has several facets, the employment of professional fund managers, research,dealing, settlements,marketing, internal auditing & the preparation of reports for the clients.
A Seperately managed a/c is an individual managed investment a/c offered typically by a brokerage firm through one of their brokers
or financial consultants & managed by independent investment management firms &having varying fee structures.
- Open structure or flexible investment security choices.
- Multiple Money Managers
- A customised investment portfolio formulated for a client’s specific investment objectives or desired restrictions.
The stock market is indeed priced as the present value of expected dividends. Equity premium is mostly due to business cycle risk.
To understand the risk factors that cause the equity premium , we decompose the equity premium into three components, inflation risk business cycle risk & fear based risk premia.
People have different values & preferences that affect their perceptions of risk. Here comes the essential role of cash management.
Failure to achieve this strategic objective can directly impact the efficient commercial operation & ultimately the viability of the organisation.
What is a platform business?
The term “platform” is used in a variety of contexts. Early on , it was often a synonym for ” operating system”, but today its used to describe a variety of scenarios.
Platform businesses create an environment of promiscuous integration as a way to accelarate operations , get closer to customers & partners , unlock innovation & discover efficiencies.
Platform businesses have a number of attributes in common. These include
- Platforms are open. A Proprietory platform isn’t.
- Platforms can be built upon.
- Platforms attract communities. To thrive , these communities should be manged & nurtured.
- Building a community around your platform enables you to build your business more effectively with the enthusiastic help of customers , suppliers & partners.
- Platforms scale efficiently . Self- service access & low barriers to entry are cornerstones of this.
Science succeeds or fails in its efforts to provide or produce valuable technology & policy based upon the quality of its theories .
When theory is incorrectly formulated or hypothesis are incorrectly deduced from theory, then technology & social policy fail.
Mistakes in theory induction & deduction can be summarised as two types of false relationships between variables : spurious relationships & suppressor relationships.
Simply said correlation does not mean causation.
Greater academic performance equals greater job performance. For challenging jobs, there is a causal connection between academic performance & job performance. For routine jobs those involving much repitition, however, there is little correlation between academic performance & job performance. For routine or repititive jobs, persons who excel academically have poor job performance, because they tend to get bored.
A good trader learns & applies two simple principles in the market. First is the technical understanding, that there is always a reason for the price movement & every position has to be linked to the trader’s interpretation of this reason.
Second is the focus on managing capital. A trader understands that money is made when capital is deployed in the best trades & when it is churned several times.
The investors who look for surefire ways of making money through trading are clearly unrealistic in their expectations. They should be willing to put in the years that are needed to hone trading skills. This is tougher than most people would like to believe.
If you were to craft the perfect investment , you would probably want its attribute to include high returns coupled with low risk.
One of the most important & influential economic theories dealing with finance & investment, the MPT was developed by Harry Markowitz & published under the title ” Portfolio Selection” in the 1952 Journal of finance.
Markowitz described how to combine assets into efficiently diversified portfolios.
Technical indicators look to predict the future price levels or simply the general price direction of a security by looking at past patterns.
Technical indicators are fine for stock screening , but if possible base final decisions on the price chart.
Just a the food pyramid suggests a well- balanced diet, the portfolio pyramid covers the components of a healthy, balanced investment portfolio.
The foundation of the portfolio pyramid is asset allocation, which determines the broad risk level of your portfolio to match your risk profile.
Schawb’s model asset allocation plan:
- Moderately conservative
- Moderately Agressive
Once you’ve diversified across asset classes, you can start diversifying within asset classes.