4 Mutual Funds - M ut ual Funds and t he I nst it ut ional...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Comm367 1 Mutual Funds and the Institutional Environment
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Comm367 2 Institutional Investors Type of Investor Risk Tolerance Individual and personal  trusts Life cycle  Mutual funds Variable Pension funds Depends on proximity of  payouts Endowment funds Generally conservative Insurance companies Conservative Banks Variable
Image of page 2
Comm367 3 Constraints in Portfolio Management u Liquidity u Investment horizon u Regulatory constraints (institutional investors) The prudent person law Limits on foreign holdings Limits on individual firm holdings
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Comm367 4 Services of Investment Companies u Administration & record keeping u Diversification & divisibility u Professional management u Reduced transaction costs u Increased investment opportunities
Image of page 4
Comm367 5 Net Asset Value u Used as a basis for valuation of investment company shares Selling new shares Redeeming existing shares u Calculation: ding tan Outs Shares s Liabilitie Assets of Value Market NAV - =
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Comm367 6 Types of Investment
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern