Open-end or Closed-end Balanced Funds cannot find financial sponsors these days.
60-40 portfolio or 50-50 proportional mix is dying a slow death in Asset Management and other forms of Client Investment Portfolio Management.
Unit Trust Schemes have suffered much due to neg rates
60-40 portfolio or 50-50 proportional mix is dying a slow death in Asset Management and other forms of Client Investment Portfolio Management.
Unit Trust Schemes have suffered much due to neg rates
Mutual funds usually around the world are not allowed to sell short or engage in derivative transactions and structured products.
Most of the regulators want collective investments schemes to remain prudent.
I guess they want to protect the unit holders from gamblers ruin risk?
Most of the regulators want collective investments schemes to remain prudent.
I guess they want to protect the unit holders from gamblers ruin risk?
But if you dislike volatility you would opt for a closed-end fund, whereas if you have a larger risk appetite you would have opted for open-end structures?
Close-end funds usually trade at a discount to the NAV and might have capital locks.
That is a challenge for the #EMH Theory
Close-end funds usually trade at a discount to the NAV and might have capital locks.
That is a challenge for the #EMH Theory
Open-end funds don't have Capital Lock Periods.
Never seen one!
Have you?
The AMC Asset Management Company has to honour financial obligations within a defined settlement period by redeeming the units at a price quoted after computing the NAV.
Never seen one!
Have you?
The AMC Asset Management Company has to honour financial obligations within a defined settlement period by redeeming the units at a price quoted after computing the NAV.
Capital Protected and Capital Guaranteed Products available in the financial services industry are completely different.
Most of the Mutual Fund Investment Companies, aka AMC's, protect funds using CPPI or Zero-coupon Accruals Methodology.
Most of the Mutual Fund Investment Companies, aka AMC's, protect funds using CPPI or Zero-coupon Accruals Methodology.
Islamic Funds are also offering Capital protected funds these days.
That is a controversial issue.
Most of the Shariah Compliant Amcs in Malaysia, Indonesia, and across the SAME(South Asia and the Middle East) argue whether capital protection is permissible?
Bank TDs are used.
That is a controversial issue.
Most of the Shariah Compliant Amcs in Malaysia, Indonesia, and across the SAME(South Asia and the Middle East) argue whether capital protection is permissible?
Bank TDs are used.
So a typical capital protected fund will have somewhere between 40-30 invested in equities and the rest placed in zero-coupon bonds (in HTM) or Bank TDs, which provide periodic accruals to keep your $100 invested at par value even if you lose all of your stock market exposure.
Designing capital protected or guaranteed products can be done even without using derivatives and exotic rates and structured notes.
Its vanilla financial engineering uses accounting conventions and basic sense.
However, some choose to protect capital using IRS and Equity Swaps.
Its vanilla financial engineering uses accounting conventions and basic sense.
However, some choose to protect capital using IRS and Equity Swaps.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
