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Investment Management Training

In the early period of development of finance as a profession, i.e., until the early 1950s, investment management was primarily concerned with the procurement of funds. The subject matter was mainly confined to financial problems arising during episodic events like incorporation, merger, consolidation and reorganization. Thus, the traditional role of the investment manager was to raise externally the funds required by joint stock companies. The internal administration of finance was either ignored or dealt with by the promoter entrepreneur himself.

With the passage of time, the role of investment manager has undergone drastic changes. Presently, the investment manager is in charge of determining the total amount of capital required for both the short-term (working capital) and long-term (fixed capital). This is done by proper forecasting and planning of finance. Secondly, their job profile includes investing the funds in assets and projects, with the aim of making profits. This is to be done in such a way that the earnings are more than the cost so that there is a positive net return to the concern.

Now the investment manager is concerned with the management of assets, raising and allocation of capital, and valuation of the firm. Besides, he has to ensure the supply of funds to all parts of the organization, evaluate the financial performance, negotiate with bankers, financial institutions and other suppliers of credit, and keep track of stock exchange quotations and the behavior of stock price.

To play his role well the investment manager has different tools, such as cost of capital, leverage, capital budgeting, working capital management techniques and fund flow analysis/cash flow analysis. Cost of capital helps in deciding the appropriate source of finance. Normally the sources with minimum costs are selected, so that the weighted average cost of capital can be kept to a minimum. Capital budgeting helps in deciding the proper investment mix; the available resources should be used in the most profitable way. For this purpose, suitable projects should be selected from alternative courses by using capital budgeting techniques.

American Banking Company Investment Process

With the world markets, and especially the American ones, becoming more global than ever, the options for investing your capital have increased significantly. Anybody can choose to invest wherever they want no matter if they own an American company or a Swedish one – you can choose to invest your money in investment options from another continent due to modern communication opportunities. This article will let you know more aspects on the subject of American banking company investment because you see, understanding the general process of company investment banking will make you understand exactly how things are in the United States on this matter. For example, for anyone that is interested in company investment banking, commercial banks will play a very important role as investment solutions as they offer their clients not only saving accounts but also solutions of investment banking. While you may think that investment banking would mean investing in any commercial bank saving scheme, it represents the opportunity commercial banks offer their clients to invest in the banks resources. If you have a company which desires to use its capital for investment banking, the commercial bank can also offer financial and business opportunities advice.

There are two main ways in which an institution can gather funds to develop its businesses: sell parts of its stock on the stock market to increase its capital or it can search for capital in other places, such as interested investors who want to be become stakeholders in the company. In either of these ways, the banking institution can offer the company financial advice. A company that deals with financial banking can analyze the risks that could affect the company searching for new capital and offer advice on when the company should make the public offering together with the best method of investing these funds and assets. An investment banking company can give advice in the case of mergers and splits and in any other financial detail the company may require. You can assimilate an investment banking business with a private broker based on their role. Banks have been offering credits and have gathered funds in saving accounts for many years but they have been looking for new services and business opportunities. Commercial banks have begun to offer investment banking services to companies and they have diversified their financial services portfolio.

Banks have widened their operations with offices on several continents and in hundreds of countries all over the world. They have faced competition from other financial services companies with the advantage that they can also offer financial services alongside their traditional banking services. Brokers have the purpose of being the direct link between the client and the investor and the investment banking institution. They keep all the investor’s financial records and they are able to offer their customers the best possible financial advice. They deal with the buying and the selling of stock and other similar transactions and follow the stock markets closely to ensure they informed decisions at the right time. Investment banking institutions offer their partners several financial services. They offer corporate finance advice as they help companies gather funds for future development. It can help a company raise its stock value significantly and it can act on behalf of its client on the major stock markets. An investment banking institution can be an advisor when two companies decide to merge or a larger company decides to split in order to reorganize its operations and they offer their services in all countries where the bank has opened offices. The whole idea with this American banking company investment is nothing more than general investment banking for your company, but when it just means that, somewhere within that equation you have to understand American facts regarding this subject.

Strathclyde Associates Investment Guide Investment Strategy

A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment.
As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance.
In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return.
Strathclyde Associates Investment Guide: Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an investor to choose his investment portfolio. For example, investing in mutual funds has recently emerged as a very favorable investment strategy.
An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low risk investment opportunities. Return on investment can be calculated on past or current investment or on the estimated return on future investment.
Symbolically, it can be expressed as: Vf/Vi -1 where Vf denotes final investment value and Vi is the initial investment value. (“f” and “i” should be noted as subscripts)
Strathclyde Associates Investment Guide: Return on investment (ROI) is profitable when Vf/Vi-1>0 and the investment is deemed to be unprofitable when the value of final investment is less than that of the initial investment. ROI is calculated to be 1 or 100% when the value of the final investment is twice the value of the initial investment.
Types of investment strategies can be defined as follows: A passive investment strategy attempted to minimize transaction costs.
An active investment strategy guide used to maximize returns based on moves such as proper market timing. This usually mean, “buying in the lows and selling in the highs” or buying investment instruments when they are cheap and selling them off when their price appreciates. This strategy, however, is not very beneficial for small time investors.

Small time investors can adopt the buy and hold investment strategy to invest in equities, which although volatile in nature, give favorable long run returns. Investing in equity markets for small time investors is associated with the investors holding on for very long periods. In the case of real estate, the holding period extends the lifespan of the mortgage. Notably, in case of this strategy, indexing or buying a small proportion of all the shares in market index or a mutual fund is a purely passive variant of the above strategy.
The strategy of value investing, a classic investment strategy propagated by Benjamin Graham simply concentrates on the strategy that an investor buys shares of a company as if he was buying off the whole company without paying any attention to the stock market scenario or any exterior conditions such as the political climate. At the end of the day, if he can buy the stock at less than that its actual future worth to the buyer, the person is said to have discovered a “value investment.”
Investment strategies can also denote the investment strategies a national or federal government should follow to bring about economic growth in a country. This can only be achieved by domestic investment as well as significant FDI (Foreign Direct Investment) flows to particular sectors of countries, especially the less developed ones of Asia and Africa.
In case of India, infrastructural problems, excessive government intervention, rigid labor laws and corruption are stifling the flow of FDI in the critical sectors. Less developed countries such as those in the Asia- Pacific region and Africa can bring about much needed development in these economies.
An investment strategy in mutual funds is probably the best bet for a profitable investment. Mutual funds is defined as a pool of money supplied by different investors and in turn used by the mutual fund company to invest in various assets such as stocks and bonds. However, a detailed research has to be conducted for choosing the mutual fund companies and only those should be considered which have a professional investment manger. This will ensure that the funds get channeled towards the right investments. This also applies for investing in stock markets where a decision to invest should follow a through research about the past and current trends of the stock prices and their Net Asset Values (NAV). Analyses from market researchers about the predicted future trends should also be considered otherwise gains from capital appreciation; capital gain distribution (in case of mutual funds) and dividends might not be realized.
Lastly, investment strategies leading to green investments or investments in renewable sources of energy will be the next big thing in the investment spectrum. From Economy Watch. Economy, Investment & Finance Reports.

Strathclyde Associates is a full service brokerage firm with many years experience in providing a wide array of services globally to a vast group of clients that include private individuals, financial institutions, governments and corporations.

Investment Diversification With Commodity Mutual Funds

As the old saying goes, dont put all your eggs in one basket. The same is true with your money. Dont put all your investment money in one stock, or even the same sector of stocks. Investment diversification is an easy concept to understand. Whats not easy is deciding where to spread your money. And for various reasons most people dont consider commodity mutual funds.

Most people tend to put all their investment or retirement money in the stock market. They either invest in the company they work for, or buy stocks of companies that they like, such as Ford, GM, Wal-Mart, or any company that is popular. Or they are using a brokerage house for advice and pick and choose from the brokers suggestions. If they have a large sum of money in investments, they probably have a financial counselor. This adviser should have some of their money in the bond market, which is a good, sound investment diversification strategy.

The stock market is easy to understand and most people are comfortable with checking their stocks performance online. The bond market is a little tougher to follow day to day, and most people just buy the bond and wait for their broker or adviser to recommend a change.

The commodity and commodity mutual fund market is a little tougher to follow and to understand. The prices of gold and oil are easy to follow because they are a couple of the most popular commodities. The prices of corn, cotton or pig bellies are not so popular. Unless you are a producer or buyer of these commodities you probably dont have a clue what their price is.

But commodity mutual funds are a great tool to add investment diversification to any portfolio. They offer investment protection from inflation, a weak dollar and swings in the stock market.

Over the last few years, there has been a large increase of investing in commodity mutual funds do to the bad performance of the stock market. With the large amount of choices in the stock and mutual fund market, stock brokers usually do not research or recommend commodity mutual funds. They probably have hard enough time pushing their stock pick of the day, let alone trying to sell commodity products.

For that reason, you need to do your own research into commodities and commodity mutual funds. They can add value to your retirement fund.

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Retirement Investing Expert Tips Consider Many Retirement Investment Options and Diversify Portfolio

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

There are so many options for retirement investment planning that even the most ambitious person can feel daunted. But learning about retirement investment strategies as a young or middle-aged adult can save all kinds of financial worries later. The soundest approach to investing for retirement is to save slowly but persistently, and invest widely with as much information as possible.
The Best Approach to Retirement Investing

Every expert has a different recommendation for the best retirement investment decisions, but some advice is universal:
1.Figure out how much retirement income will be needed. Retirement investment calculators are available online that can predict how much a given investment will be worth or how much retirement income will be needed to maintain quality of life by retirement.
2.Start now by opening an investment retirement savings account. Even a small amount, deposited every week or every paycheck, eventually adds up to substantial savings that can be used to fund a comfortable retirement.
3.Knowledge is power. Take every opportunity to learn about retirement investments, as well as the best investment planning in general, and invest money from the aforementioned retirement account wisely as opportunities appear.
4.Create a diverse portfolio. Some stocks will go up while others go down. The real estate market might be booming while sales in other areas fall. The best retirement investment planning takes this into account and invests in several different options at once to ensure a solid investment portfolio that will do well, no matter what.
Retirement Investment Options
There are many retirement investment strategies available. While the best investment plan is always to diversify, with several investments, the following options are a key part of most investment strategies aimed at yielding retirement income:
Annuities An annuity works like the opposite of a mortgage. Money is invested in advance, and in retirement years the annuity pays out principle and interest on the investment.
GICs GICs guarantee a fixed rate of interest if money is left in an investment for a pre-arranged period. Once the term of the GIC is up, retirement funds can be reinvested again until needed.
Stocks, Bonds, and Mutual Funds While there are differences, each of these investment vehicles is a way to speculate by investing money where it may grow or may, possibly, shrink. The riskier the investment, the greater the potential earning. It’s wise to invest a portion of retirement savings in riskier investments like stocks and mutual funds, if thorough research suggests that they have a good chance of succeeding in delivering a healthy return on investment.
Home Equity Real estate is always a smart investment, and paying off the family home before retirement is one of the smartest investments. House values will only rise over time, and home equity can also be used in a reverse mortgage or withdrawn in a lump sum home equity loan if money is needed to supplement retirement income.
The best move, for anyone thinking about investing for retirement, is to learn as much as possible about retirement investment strategies and consider all the options in selecting investments. Speaking with a qualified financial advisor is a first step on the way to a solid investment strategy, and the first step to a profitable retirement portfolio.
About the Author:
Stephen Holmes is a Senior Vice President at World Assets Advisory, with experience in the Financial Services industry spanning over 25ys and 3 Continents. Stephen currently directs the Portfolio Risk Management Group after moving from the Equity Derivatives Research Group 3yrs ago. He has a PhD in Experimental Particle Physics and has been working in the alternative investment industry since 1992. His interests include classical music, reading and he often is a guest speaker at corporate functions with a focus on Technology in Society.

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Hypo Venture Capital is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to www.hypovc.com

Junk Silver Coins A Good Investment

When you’re thinking of building a perfect and profitable business then junk silver coins should be your number one choice. For beginners, the 2008 economic crisis had helped made the reputation of silver more reputable. Today we’re awaiting an elevation in people who are thinking on going to buy junk silver coins; thus being a seller in a buyer’s market can be a really good place for numerous investor.

In any manner, prior to joining the craze, remember that you are acquainted with all the pros and cons of this type of business.

1. Becoming a coin dealer tenders you a way to reap earnings on each investment needed each time you buy junk silver coins. The truth is, coin dealership is believed to be one of the most rewarding ways of doing business that is associated to silvers. You can try becoming a coin dealer, and I’m sure you’ll be blown away that after 1-2 hours, you were able to sell and buy junk silver coins. This kind of business doesn’t need too much of work because you can immediately generate an earnings from it.

2. The silver market similar to the stock market is also very volatile. Making a transaction all relies on the value of silver which differs from day to day. That is the reason why it is really crucial that you are persistently on the look out and concise before the price of silver declines your intended price. Especially for junk silver coins where the spot price is the only one that directs the buying and selling price for junk silver coins. Keep in mind to be on guard always that way when the price of silver escalates, you can invest on it rapidly.

3. Even if there are no vital differences basing at all kinds of junk silver coins, there are still some distinction that an investor must be wary of. Like for example, Franklin half dollars somewhat a bit more expensive than Kennedy half dollars. You should remember all these things each time you sell and buy junk silver coins so you can generate a lot of money.

A few people might presume that selling and buying silver junk coins is not the best investment, this still remains to be one of the most easy businesses in the market. You can try selling and buying smaller junk silver in smaller denomination if you are planning of investing in smaller portfolios. As your capital increases from the ensuing profits, you can invest it back into the business, enabling you later on to purchase bigger silver bags that can help you make increased profits per transaction. This means that you take control of all your investments which means you are also in control of all you assets and use them once the situation becomes in favor for you.

Wise investors give thought intensely on their investments like selling and buying junk silver coins. In spite of the financial problems, the price of silver still surged up to 150%. This investment venture is though of as a very nice investment since you, as an investor, have many choices to choose from each time you cash out. The next time you consider of investing your money, remember to think of this investment option of selling and buying junk silver coins since who knows this can assist you to earn many profits.

Important Investment Lessons for Young People

If you are an investor under the age of 40, you have one big advantage over everyone else: you have an incredibly long investment time horizon during which to grow your investment dollars. Here is how to take advantage of it.

If you are an investor under the age of 40, you have one big advantage over everyone else: you have an incredibly long investment time horizon during which to grow your investment dollars.

The power of compounding is one of the great wonders of investing. The benefit of an extra decade or two can make a huge difference to your ending wealth. To capture this benefit, you have to start investing early and intelligently, and with consistency and discipline. After all, it is only with regular, long-term success that financial goals are realized.

For most investors, staying focused over the long run is challenging. The temptation to speculate can be high, and there is plenty of noise and distraction vying for your attention, making it easy to get sidetracked. Some of the confusion is caused by Wall Street hoping to get your business by playing to your hopes or fears. Some of it is the financial press trying to get catch your attention to sell advertising. Other noise is generated by the very nature of financial markets themselves, and the vast amount of information all around us. Now, more than ever, it is difficult to keep disciplined and stay the course.

The bottom line: it is not the day-to-day fluctuations of markets that should concern you. The primary risk you face as a young investor is the constant threat of inflation eating away at the purchasing power of your assets. For example, at just 3% per year, inflation will reduce the purchasing power of a portfolio by one-third after 14 years, and one-half after only 23 years. Your most important task is to invest your assets to protect yourself from this erosion.

A successful, long-term investor knows the difference between comfortable portfolio and a safe one. A comfortable portfolio does not fluctuate much in value. It might be invested in stable things like bank CDs with an expected return not much more than the rate of inflation. Alternatively, a safe portfolio has expected returns well above inflation. It is invested predominately in stocks and highly diversified. This equity oriented portfolio fluctuates with market movements and can be uncomfortable especially during stock market declines but it provides for long-run inflation protection.

As a young investor, you may not have made a lot of investment mistakes. That can be good and bad good because you havent lost money; bad because you havent learned any lessons the hard way. As one of my colleagues likes to say: the market is a great teacher, but it charges a steep tuition. You can skip the tuition payment by learning how to invest prudently early on.

Remember that the stock market is not a zero-sum game. There are not winners and losers in these markets, with the winners taking all the spoils and the losers going broke. Capitalism generates positive returns overall, and, although some win more than others, everyone can succeed. The elegant truth of economics is that the return on capital is exactly equal to the cost of capital. In other words, in the aggregate, the return to investors is equal to the payment required of those entities such as governments and corporations seeking to attract investment capital.

Wealth is created when natural resources, labor, intellectual capital, and financial capital combine to produce economic growth. As an investor, you are entitled to a share of that economic growth when your financial assets are invested in and used by the global economy. This is not a free lunch. It is your fair share of profits as compensation for putting your money to work.

One of your main goals should be to capture as much of the global return on capital as you can. Cut your investment costs, make sure you have a widely diversified portfolio, and stay disciplined. Investing this way, you can have a successful investment experience!

Free Stock Tips To Help You In Your Investment Plans

Money is a wonderful thing, and making money is the essence of life itself. When makes ceases in his quest for newer horizons, he has ceased to live. The trade market sets the limits and redefines the parameters for the decisions which rule the daily life of the common man. Get your directions with the free stock tips. Are you going to be there, or wait on the sidelines, while other players get in and make their moves? It is not as puzzling as it sounds.

The experience of the trader is reflected in the success of his predictions in the market and the free stock tips which have made many people wealthy. You should also have the advice of the experienced person to get your free trial stock tips. This is influenced only by the limit of resources at ones disposal, the volumes involved in trading and the kind of market which hone is facing.

CAPITAL AIM Financial Solution is a group brimming with solutions to trading queries, with experts who are adept at accurate estimations of the market situation and have investor friendly solutions, be it small or big. You will get the best free trial stock tips if you are inexperienced and free stock tips if you have some footing already. This is why many people trust them, and rely on them for their investment plans.

Putting money where it is safe, keeping it safe and making sure the money produces more money is the primary concept of banking and trading. The intra-day movements are fairly predictable except when there is a sudden change due to a political decision or a fall in the share prices of one of the commodities due to a change in the policy of the company. To get the best free trial stock tips: www.capitalaim.com/FreeTrial.aspx is a very useful site. If you already have got some experience you should get your tips from free stock tips: www.capitalaim.com/Stock_Tips.aspx. The experienced trader will be expecting such kind of changes, though these are totally unexpected.

The finances follow a predictable and linear course almost everyone who has a sense of the market will become rich. Get your free stock tips from the team at CAPITAL AIM Financial Solution. The share trade market is one which is full of promise, but one should step in with the help of an expert, one who knows how and when to react. The correct steps to take and the right decisions to arrive at are all in a days work for him. CAPITAL AIM Financial Solution aim to take away the suspense out of the trading and make sure of the success of your investment.

Since the day to day trade will not be the same, one should have an idea of how and when to sell. It is also important to know what shares are going to appreciate, and how much you should invest in them. Just follow the free trial stock tips till you get it right. Many of the people who have made it big have followed some simple logical steps on the path to victory. Join with the leaders and start winning.

Optimism for Canadian Commercial Real Estate Investment Market

It might sound like the equivalent of a gold rush when any industry sector can show a 93% increase in one year but that’s exactly what happened with the Toronto commercial real estate market from 2009 to 2010. The increase for Canada averaged 48% overall with a total investment volume of 18.9 billion dollars, indicating healthy investor confidence and a strong economy. This article discusses the most up-to-date statistics in the commercial property investment market.

According to the 2010 National Investment Report issued by CB Richard Ellis Limited (CBRE) the commercial property investment volume has climbed back to pre-2005 recession levels and totaled 18.9 billion dollars. Commercial property is proving to be an attractive investment which stimulates the rest of the economy. Office, industrial, and retail property in Canada have all attracted investor interest, with many companies deciding to upgrade to better properties before prices rise any further.

This is fortunate for Canada in a time when most countries are still sinking in a worldwide depression. There is a banking crisis caused by the credit default swap swindle evidenced by the problems of European Union economies such as Greece, Ireland, Spain, and Portugal. Bailing banks out of their black hole of debt and sticking it on the taxpayer has been allowing banks to exert undue control over those countries’ infrastructures, resources, economies and governments.

Whether you use the term recession or depression for the state of an economy depends largely on where you’re sitting. The lower classes have less money so inflation means the same amount of money buys less, so the economic pain is far greater than those who still have something left over and are not as devastated by things like unemployment and high interest rates.

Every region in Canada showed a 2010 growth except for London Ontario. Other cities like Halifax could have showed bigger volumes if there was more investment product available, a factor that limits any real growth figures. The economy in such a region could be healthier than investment sales would indicate. In any case, these provide relatively strong yields compared to other investment types so Canadian commercial real estate is attracting foreign investors as well as domestic ones.

In Vancouver there were 1,263 transactions totaling $2.9 billion dollars compared to Toronto, where 1,156 transactions represented $7.4 billion, so each of the commercial properties trades in Toronto were of higher value in terms of dollar amounts. Montreal also showed significantly greater sized amounts per transaction. The volume of $2.9 billion was a one-year increase of 52% yet the transaction increase was just 32%, showing the effect of large institutional deals like the Place Innovation and McGill College properties.

Companies with both property management and asset management skills should thrive in the 2011 year if this trend continues. Such firms suffer or smile in relation to the state of the economy; investors are turning to Canada as a refuge from the collapsing economies of other countries. At a time when currency systems are under attack caution must be used. It remains to be seen which countries, if any, become insulated from the turmoil that is being fomented elsewhere to usher in a one world government and one world currency system. This is the goal of those who control world leaders, but to give control of the money supply to a private clique will lead to disaster since absolute power corrupts absolutely. A post-industrial feudal system will be the end result if such a thing were to occur.

Is Whole Life Insurance Investment a Worthy Investment

A whole life insurance investment is a relatively simple concept. You will be presented with a product that has a set premium and you will be paid the agreed upon amount of the death benefit at the end of the policy holders life. You will also have an investment component included in the policy. All money you contribute over and above the premium will be placed into a cash value account which is then invested on your behalf by the insurer.

Apart from providing you with cash value account and a guaranteed death benefit to leave to your heirs a whole life investment has some other features as well. You have the option to borrow against the cash value your policy or fully withdraw an amount if you have an emergency need for the funds available during the life of the policy.

The theory behind a whole life policy is that it will pay out set death benefit and a cash value to your beneficiaries all while you are guaranteed a set, unchanging premium for the life of the policy. It does more than this, though, when you consider the fact that all the money is tax free and/or tax deferred.

Because of this tax free feature you will have the ability to make a portfolio that can achieve a number of goals that you otherwise may not be able to. You can actually use the whole life policy to secure a smooth succession in the case of a family owned business or to protect your other assets.

You may be met with derision about your interest in a whole life insurance investment by detractors who say that it isnt a real investment because it isnt run like ones stocks, bonds, and mutual funds. While it may not grow that fast, it has the potential to a much safer long term investment since it is done in a safer manner that is designed to ensure your money keeps growing despite market ups and downs.

A whole life insurance investment policy is generally seen as a “savings asset” as opposed to an “investment asset” because your money is saved and grown in a much less aggressive fashion than regular stocks and bonds. With a whole life insurance policy your additional money will be placed into a savings account where it will accrue interest. You dont have to invest the money within this savings account, but you can do so if you wish to. The savings account on its own, though, will become a huge asset over time.