A Survey on the Investment Pattern of Mutual Fund Investments
CHAPTER – 1
INTRODUCTION
1.1 INVESTMENT - INTRODUCTION
MEANING:
Investment is the employment of funds with the aim of achieving additional income or growth in value. The essential quality of an investment is that it involves "waiting" for a reward. It involves the commitment of resources, which have been saved or put away from current consumption in the hope that some benefits accrue in future.
Broadly speaking, an investment decision is a trade off between risk and return. All investment choices are made at points of time in accordance with the personal investment ends and in contemplation of uncertain future.
Investment choices or decision are found to be the outcome of three different but related classes of factors. They are:
1. Informational premises:
The factual premises of investment decision are provided by many streams of data which taken together, represent to an investor the observable environment and general as well as particular features of the securities and firms in which he may invest.
2. Expectation premises:
Expectation relating to the outcomes of alternative investment is subjective and hypothetical in any case but their foundations are necessarily provided by the environmental and financial facts available to investors.
3. Valuation premises:
For investor generally these comprise the structure of subjective preferences for the size and regularity of the income to be received from and for the safety and negotiability of specific investments or combinations of investments, as these are appraised from time to time.
Features of investment:
➢ Safety of principal ➢ Liquidity ➢ Income stability ➢ Appreciation and purchasing power stability ➢ Legality and freedom from care ➢ Tangibility
Safety of principal
The investor to be certain of safety of principal should carefully review the
INTRODUCTION
1.1 INVESTMENT - INTRODUCTION
MEANING:
Investment is the employment of funds with the aim of achieving additional income or growth in value. The essential quality of an investment is that it involves "waiting" for a reward. It involves the commitment of resources, which have been saved or put away from current consumption in the hope that some benefits accrue in future.
Broadly speaking, an investment decision is a trade off between risk and return. All investment choices are made at points of time in accordance with the personal investment ends and in contemplation of uncertain future.
Investment choices or decision are found to be the outcome of three different but related classes of factors. They are:
1. Informational premises:
The factual premises of investment decision are provided by many streams of data which taken together, represent to an investor the observable environment and general as well as particular features of the securities and firms in which he may invest.
2. Expectation premises:
Expectation relating to the outcomes of alternative investment is subjective and hypothetical in any case but their foundations are necessarily provided by the environmental and financial facts available to investors.
3. Valuation premises:
For investor generally these comprise the structure of subjective preferences for the size and regularity of the income to be received from and for the safety and negotiability of specific investments or combinations of investments, as these are appraised from time to time.
Features of investment:
➢ Safety of principal ➢ Liquidity ➢ Income stability ➢ Appreciation and purchasing power stability ➢ Legality and freedom from care ➢ Tangibility
Safety of principal
The investor to be certain of safety of principal should carefully review the