Direct investments are those in which the investor owns the particular assets himself

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Team zaheen ul deen Javed iqbalAbdul hamid Jahan zeb Alam zeb afridi1/11/2016investment Analysis & portfolio Management2

Previous presentationFundamental analysis company analysisFinancial statement Gathering information

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INDIRECT INVESTINGAlternative to direct investment in or ownership of securitiesRefer to buying and selling the share of intermediaries that hold securities in portfolio. Portfolio ?Diversification?Risk?

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Through the process of investing in mutual funds1/11/2016investment Analysis & portfolio Management6

INVESTMENT COMPANIESProfessional management Financial firm that sells shares to the public and uses the proceeds to invest in portfolio securities.Money markets instruments Stocks & Bonds1/11/2016investment Analysis & portfolio Management7

1/11/2016investment Analysis & portfolio Management8Closed-End investment companiesOpen-End investment companies

Types of investment company

Closed-end investment funds1/11/2016investment Analysis & portfolio Management9Mutual funds with fixed paid up capital.Fixed authorized capital.Usually sells no additional shares of its own stock after IPOShares of closed end fund trade in exchanges. Buy & selling # broker - %commission

Open-end investment companies1/11/2016investment Analysis & portfolio Management10There is constant inflow and out flow of shares. & Buying and redemption of shareNo fixed paid of capital Keep changing is constantlyCompany size constantly changes.Purchased Directly from a funds company, mail, # Indirectly from a sales agent , securities funds, banks ,life insurance company and financial planner.You can buy share from the company and than you redeem to the company.

Be Different Commercial BreakPaid1/11/2016investment Analysis & portfolio Management11

1/11/2016investment Analysis & portfolio Management12 Money Market mutual funds Stock , bond and income fundsTypes of mutual funds

Money market funds concentrate on short term investing portfolios of money market assets.1974 to gain these high short term rates.MMFs divided into taxable fund and tax exempt funds.Taxable MMFs hold assets like T-bills , Cds and commercial paper.Average maturity limit : 90 days.

STOCK FUNDS AND BOND A INCOME FUNDSEquity, bond and income mutual funds invest in portfolio of securities consistent with the objectives of the funds.The objectives set by the companys board.Money market mutual funds1/11/2016investment Analysis & portfolio Management13

Cost considerations1/11/2016investment Analysis & portfolio Management14Charge and to be paid whenever you buy and sell shares or whenever you buy or sell units of mutual funds. Load funds charge a front end fee to cover the cost s of selling the fund to investor. when you redeem the units that would be a charge that you paying at back end. when you buy them from investment you would be charged in the term called front end charge.No load funds ( those that do not charge a sales fee) These all is mentions in the mutual funds prospectus.

performance1/11/2016investment Analysis & portfolio Management15Reported on a regular basis in the popular press. Measured over a given time period as a % of initial investment . -Total returns include reinvested dividends and capital gains. - Average annual return reflects the mean compound growth rate of investment over a given time period. INTERNATIONAL FUNDS

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