Money Management - Portfolio of funds or ETF - Essay Example

Comments (0) Cite this document
Executive Summary Most businesses rely on capital and investments to initiate and grow their businesses. These businesses rely on different sources of capital income in undertaking their business needs. Some of the common forms of investment include bonds, stocks, certificates and Exchange Traded Funds…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.5% of users find it useful
Money Management - Portfolio of funds or ETF
Read TextPreview

Extract of sample "Money Management - Portfolio of funds or ETF"

Download file to see previous pages Most of these investors turned to government bonds, certificates and private or corporate bonds from reputable firms (Madura, 2008, p.13). This trend led to the emergence of special funds which allowed small investors to pool funds and investment in a number of securities or stocks. These funds are managed by fund managers which became popular with huge companies like insurance firms and banks. However the costs of managing these funds were high and some investors looked for other options to invest. This led to the emergence of Exchange Traded Funds (ETFs), which allowed investors to put their money on investment funds to be traded on stock exchanges (Abner, 2010). ETF investment funds incorporate an array of assets such as stocks, commodities or bonds and trades at a price close to the net value of these combined investments. For the many years it has been in existence, EFT’s have been successful with current stock markets due to its flexibility and low risk. Table of Contents Executive Summary 1 Table of Contents 2 Introduction 3 Individual Analysis 3 EFT Analysis 5 Swiss Based ETFs 5 Other Managed Funds (ETFs) 6 Personal Asset Allocation 8 The art of investing requires careful planning in asset allocation since the way you allocate your assets reflects the return on your investment. For instance, if you have $ 100, 000, you should invest in a number of investment options. Time factor is one of the most crucial factors to watch out while investing. Looking at the Swiss market, we witness that the some mutual funds have been performing very well compared to some ETFs. Therefore, it not easy to conclude that mutual funds are better than ETFs or vice-versa, the most important factor is tracking these investments over a suggested period of time (Ferri, 2011). A look at ComStage Stoxx Europe 600 ETF Household goods based product we notice that this ETF tracks household goods stocks in the Swiss market. This ETF has performed well over the past two years returning 40.2% compared to the ComStage Stoxx Europe 600 Food & beverages ETF which returned only 24.1% as witnessed by table 4 in the appendix. In comparison to the United States of America where there is a mid cap fund that has returned over 41.87%. This performance is better than the ETF based investment option in Switzerland (Wagner, 2008). This mutual fund is known as the JB holdings fund and it has invested in different segments based on a selected benchmark. A list of investments in the JB holdings fund is shown by table 5 in the appendix. Based on the analysis of the different ETFs and funds listed above, it is difficult to choose the best investment option by solely choosing and ETF or fund based investment (Madura, 2008). The best investment decision to undertake when investing in an ETF or fund is to analyze the industry or benchmark used in implementing the fund or ETF product. Time factor is also very important since most ETFs or funds take a minimum of three years for the investment to make marginal gains. 8 Current Investing Trends 8 References 12 Appendix 14 Introduction The art of investing is very difficult and challenging and many a times, people find it difficult to invest. Several investment options are available to potential investors interested in making profits. Investing is a risky venture and many people prefer to invest in low risk investments. As a result, many investment banks and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Money Management - Portfolio of funds or ETF Essay”, n.d.)
Retrieved de
(Money Management - Portfolio of Funds or ETF Essay)
“Money Management - Portfolio of Funds or ETF Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Money Management - Portfolio of funds or ETF

Explaining The Process Of Portfolio Management For Stock Funds Performance

...?Introduction This research is aimed at explaining the process of portfolio management for stock funds performance. The portfolio management entails the process that is divided into four stages: they are mentioned by Bodie et al., (2005) that explains “specifying objectives, identifying constraints, formulating policies and later monitoring and updating the portfolio as needed” In specifying portfolio objectives, the main focus is on the trade-off between return requirements and risk tolerance of investors. Hence as an investor, the ability to accept risk in the pursuit of higher rates of return has to be analysed...
24 Pages(6000 words)Research Paper

Money management

...October 22, Money Management Total number of words 1497 Table of Contents Part Introduction Life insurance option Comparison of both options Part 2 Share analysis Appendix 1 Table 1 – Life insurance offer Table 2 – Personally managed funds Table 3 – Comparison of both options Appendix 2 Table 4 – Company analysis References Introduction Retirement years are filled with uncertainties especially if the retiree has a medical condition. It therefore makes planning for retirement much more difficult. If I receive $500,000 when I retire then I have to invest it in some way in order to withstand the effects of inflation. There are many options available but some are very risky...
6 Pages(1500 words)Essay

Money Market Mutual Funds

...guidelines that restrict the maturity, diversity, and quality of money market funds’ investments. A money fund buys the debt that is the highest rated with a maturity of less than thirteen months. A weighted average maturity of at most 60 days and a maximum of 5% investing for every issuer excluding repurchase agreements and securities of the government constitute the portfolio (U.S Congress 21). A FIDC insured account is an account in a bank involved in the FIDC program that has met the required standards needed for insurance by the Federal Deposit Insurance Corporation (FIDC). There are a number of account types that can qualify for this program,...
5 Pages(1250 words)Essay

Portfolio management

...form efficient then active portfolio management in terms of fundamental or technical analysis are waste of time as they will not provide a potential gains in discovering the undervalued stocks. Only if the market were weak form efficient than it would permit fundamental analysis to uncover potential gains. Therefore, active portfolio management is an unrewarding exercise and can lead to waste of both effort and money. The other advantages of being a passive portfolio manager are as follows (Cypress Asset Management, 2007): Passive portfolios cost much less to manage than...
7 Pages(1750 words)Essay

Management Portfolio

...Table of Contents Introduction 2 2. Focused Case study 3 3. Health Safety and Environmental Management 5 4. Quality Management System 9 5. Financial and commercial system 12 6. Human Resource Management 14 7. Documentation control process 15 8. Conclusion 15 9. Recommendations 16 10. References 18 MANAGEMENT PORTFOLIO Introduction A civil engineer must have a clear insight on the fundamentals of construction management especially knowledge of creating and building structures in the most efficient way. But it is mandatory to have knowledge on other domains like marketing, Health and Safety, business development, risk...
16 Pages(4000 words)Essay

Funds Management and Portfolio Selection

...Funds Management and Portfolio Selection Company Analysis There are ten companies (AMP, XAO, BHP, MTU, ORG, OSH, TLS, WES, WOW, and FMG), which select from Australian Stock Market. The company constituted all ordinary indexes within the stock market of Australia and had huge capitation in the market. The principle objective of the portfolio construction is to maximize utility and minimize systematic risk through diversification of market’s investment. Figure 1: Regression of the portfolios The Figure 1 illustrates ten companies’ regression relative to all ordinary indexes. FMG is the company that was heavily influenced by the prevailing market...
2 Pages(500 words)Assignment

Money management

...October 22, Money Management Introduction Retirement years are filled with uncertainties especially if the retiree has a medical condition that needs frequent doctor. It therefore makes planning for retirement much more difficult. If I receive KD 500,000 when I retire then I have to invest it in some way in order to withstand the effects of inflation. There are many options available but some are very risky and at this time of my life I have to think about the certainty of my income. I have therefore decided to consider one of two options – a life insurance investment and a personally managed fund. Option 1 – Life Insurance Fund If I invest the KD...
6 Pages(1500 words)Essay

Money Management

...My Investment Plan Introduction According to Bodie et al an investment is a commitment made at a point in timewith the hope or expectation of gaining a benefit later. The benefit may be having enough funds to take the first step towards a dream. My current commitment is to make a lump sum investment now and every month so that I will have sufficient funds to attain at least one goal involving a large outlay of funds. There are several investment opportunities available. Therefore, care needs to be taken to ensure that the benefits outweigh the costs and that the particular investment chosen will facilitate goal attainment. Investing with exchange traded funds...
12 Pages(3000 words)Essay

Investment Management: Matual Funds, Hedge Funds, and Other Funds

...Investment Management: Mutual Funds, Hedge Funds, and Other Funds Contents Time weighted returns (TWR) 3 Importance of Time Weighted Returns to the Investors 4 References 5 Time weighted returns (TWR) Time weighted returns measures the compound rate of growth in a portfolio. This method is useful since it eliminates the distorting effects which are created due to inflow of new money. The true TWR of an asset requires as asset to be revalue at the point of each cash flow. The returns are then compounded together to form the TWR for the whole period. In effect a weighted average of sub period internal rates of return between cash flows is...
2 Pages(500 words)Essay

Portfolio management

...Statistics Project, Finance and Accounting Portfolio Management Introduction This study is an analysis of the performance of a selected set of stocks for a period of 20 years between 1994 and 2014. The objective of the study is to measure the relationship between the risks in the investments and the expected return. Many models and methods are applied in this study to maximize the return and minimize the risks in the investments. The study assists in the selection of the most efficient method for optimizing the portfolio. The optional methods available include the Classical Mean-Variance, the robust optimization and the Treynor-Black, and the different input parameter for estimation of...
9 Pages(2250 words)Statistics Project
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Money Management - Portfolio of funds or ETF for FREE!

Contact Us