Savings plans help individuals’ secure financial protection and attain their financial goals. The suitability of savings plans vary from person to person, as it depends on factors like budget and needs.
Savings plans can be broadly categorized into the following:
An investment company is one that is in the business of investing in securities. Its core business is to hold securities of other companies only for investment purposes. The profits and losses are shared among those who invest in aninvestment firm as per their portfolio. The performance of the securities is the major factor determining the performance ofinvestment companies.
The following are the main types of investment companies:
Institutional investors are organizations, such as life insurance companies and mutual and pension funds, that invest in various firms by pooling a large sum of money from individual investors. These firms act on behalf of the people who have contributed the money.
Investor relations refers to communication between a company and the investing community regarding developments that couldhave a bearing on the company’s stock valuation. Investor relations is considered a management responsibility and severaldisclosures are required by law. Such disclosures may include quarterly or annual financial reports, change in the topmanagement of a company or strategic alliances. These days, most public traded financial entities and corporations havedepartments dedicated to investor relations.
Franklin Templeton Investments have become one of the best known and amongst the largest mutual fund managers in the industry.
It was formed in Oct 1992 when Franklin Investments, which was formed in 1947 and given the ticker symbol BEN on the NYSE because of the founders admiration for Benjamin Franklin, merged with (or acquired) Templeton, Galbraith & Hansberger Ltd.
A series of other mergers and acquisitions followed to grow the fund to its current size:
A strategic investment is a transaction that is closely related to joint ventures. In strategic investments, one company makes an investment in another. These two companies enter into agreements that are designed to serve shared business goals.
Offshore investing is making investments outside one’s home country, targeting benefits offered to investors by firms and governments across the globe. The challenge for an investor is to identify offshore investments that minimize risk exposure, realize high returns and reduce tax obligations in a legal manner.
In financial terms, ‘portfolio analysis’ is a study of the performance of specific portfolios under different circumstances. It includes the efforts made to achieve the best trade-off between risk tolerance and returns. The analysis of a portfolio can be conducted either by a professional or an individual investor who may utilizes specialized software.
Modern portfolio theory (MPT) suggests how a rational investor can optimize his portfolio and price his/her risky assets. According to this theory, it is incorrect to consider the potential returns and risks of just a single stock. An investor is advised to build a portfolio of diversified investments in multiple asset classes, which should reduce overall risk.
Here are some risks to returns as indicated by the modern portfolio theory:
