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Related Content: MGT604 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Management of Financial Institutions

Mutual Funds

Balanced Funds

The basic objectives of balanced funds are to generate income as well as long-term growth of principal. These funds generally have portfolios consisting of bonds, preferred stocks, and common stocks. They have fairly limited price rise potential, but do have a high degree of safety, and moderate to high income potential.

Investors who desire a fund with a combination of securities in a single portfolio, and who seek some current income and moderate growth with low-level risk, would do well to invest in balanced mutual funds. Balanced funds, by and large, do not differ greatly from the growth and income funds described above.

Growth Funds

Growth funds are offered by every investment company. The primary objective of such funds is to seek long-term appreciation (growth of capital). The secondary objective is to make one's capital investment grow faster than the rate of inflation. Dividend income is considered an incidental objective of growth funds.

Growth funds are best suited for investors interested primarily in seeing their principal grow and are therefore to be considered as long-term investments - held for at least three to five years. Jumping in and out of growth funds tends to defeat their purpose. However, if the fund has not shown substantial growth over a three - to five-year period, sell it (redeem your shares) and seek a growth fund with another investment company. Candidates likely to participate in growth funds are those willing to accept moderate to high risk in order to attain growth of their capital and those investors who characterize their investment temperament as "fairly aggressive.

Read more: MGT604 - Management of Financial Institutions - Lecture Handout 24

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Related Content: MGT613 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Production & Operations Management

PROJECT MANAGEMENT

Learning Objectives

After completing our lectures 43 and 44, we should be able to understand the Behavioral aspects of projects in terms of project personnel and the project manager. We should be able to appreciate the nature and importance of work breakdown structure in Project Management. We should develop a working knowledge of PERT/CPM techniques.
Construct simple network diagrams and try to assimilate the kind of information that a PERT or CPM analysis can provide. And last but not the least we should be able to analyze networks with probabilistic times and describe activity “crashing” and solve some problems.

Projects

Projects are unique, one-time (temporary) operations designed to accomplish a specific set of objectives in a limited time frame.
This property of being a temporary and a one-time venture contrast with operations, which are permanent or semi-permanent ongoing functional work to create the same product or service over-and-over again.
The management of these two systems is often very different and requires varying technical skills and philosophy, hence requiring the development of project management

Read more: MGT613 - Production / Operations Management - Lecture Handout 43