TAILIEUCHUNG - Lecture Investments (Special Indian Edition): Chapter 4 - Bodie, Kane, Marcus

We begin the chapter by describing and comparing the various types of investment companies available to investors. We then examine the functions of mutual funds, their investment styles and policies, and the costs of investing in these funds. Next we take a first look at the investment performance of these funds. | Chapter 4 Mutual Funds and Other Investment Companies Administration & record keeping Diversification & divisibility Professional management Reduced transaction costs Services of Investment Companies Used as a basis for valuation of investment company shares. Selling new shares Redeeming existing shares Calculation Market Value of Assets - Liabilities Shares Outstanding Net Asset Value Unit Trusts Managed Investment Companies Open-End Closed-End Other investment organizations Commingled funds REITs Hedge funds Types of Investment Organizations Shares Outstanding Closed-end: no change unless new stock is offered. Open-end: changes when new shares are sold or old shares are redeemed. Pricing Open-end: Net Asset Value(NAV) Closed-end: Premium or discount to NAV Open-End and Closed- End Funds: Key Differences Money Market Fixed Income Equity Balance & Income Asset Allocation Indexed Specialized Sector Investment Policies Fee Structure Front-end load Back-end load Operating expenses 12 b-1 charges distribution costs paid by the fund Alternative to a load Fees and performance Costs of Investing in Mutual Funds Exchange Traded Funds Allow investors to trade funds based on indexes like stock. Examples SPDRS WEBS HOLDERS Allow sector specialization A First Look at Fund Performance Benchmark: Wilshire 5000 Results Most funds underperform Not fair comparison because of costs Adjusted Benchmark: Wilshire 5000 with passive management costs considered. The majority of funds still under-perform. Consistency of Fund Performance Do some mutual funds consistently outperform? Evidence suggests that some funds show consistent stronger performance. Depends on measurement interval Depends on time period Evidence shows consistent poor performance. Wiesenberger’s Investment Companies Morningstar Investment Company Institute Popular press Investment services Sources of Information on Mutual Funds

• Quỹ đầu tư
• Lecture Investments
• Portfolio theory
• Equilibrium in capital markets
• Investment environment
• Financial instruments
• Investment companies
• Accounting principles
• Lecture Accounting principles
• Financial reporting
• Classifying investments
• Accounting for trading investments
• Strategic investments
• International operations
• Noninfluential investments
• Motivation for investments
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Financial accounting
• Lecture Financial accounting
• Accounting system
• Interpreting investments
• Passive investments
• Equity securities
• Investments in stock
• Survey of accounting
• Lecture Survey of accounting
• Capital investments
• Planning for capital investments
• Reinvestment assumption
• Internal rate of return
• Intermediate accounting
• Lecture Intermediate accounting
• Investments in debt securities
• Investments in equity securities
• Available for sale securities
• Debt investments
• Stock investments
• Financial statements
• Nguyên lý kế toán
• Managerial Accounting
• Lecture Managerial Accounting
• Kế toán quản trị
• Capital budgeting evaluation
• Accounting for cash
• Accounting cycle
• Business decision
• Kế toán tài chính
• Analyzing investments
• Financial information
• Financial statement analysis
• Intercorporate equity investments
• Minority passive investments
• Acquisition method
• Investment analysis
• Principles of portfolio
• Equity analysis
• Portfolio management
• Market organization
• Security market indices
• Market efficiency
• Investment management products
• Portfolio risk
• Portfolio planning
• Company analysis
• Equity valuation