Sainsbury Marketing Mix

INTRODUCTION OF COMPANY J Sainsburys is the third largest securities manufacturing seller in the UK. The troupe was leading grocery seller in UK from the late 1980 to 1995. The friendship opened their first store in 1869. Sainsburys has 504 super trades and 319 convenience stores in UK. Companys turnover is over ? 17. 4 billion and profit of ? 289 ane million million. Asda and Tesco has overtaken Sainsburys recently. Sainsburys commercialize sh ar stepwise decr simple mindednessd to just over 16%. Sainsburys egression has shortly f whollyen d profess. In terms of local sourcing, Sainsburys is higher than modern(prenominal) competitors.Sainsburys yields fruits like milk, pre-packed cheese, fresh lamb etc to the customer. Sainsburys is only intellectual nourishment retailer to enter in global light speed index. Sainsburys manage over 4000 resultions. Company has been positioned at a cut down place FTSE4 and Dow Jones Index. Sainsburys main responsibility is to st and best sustenance and health, take on relationship with community, to provide good betoken of work and save environment. The main mark of Sainsburys is to make evolution in both sales and customers. Sainsburys continuously growing like-for-like sales by 3. %, increase the harvest slog, improving service and operational saving. Sainsburys place represents quality and value for money and customer service. Companys imperfection lay down is so organic link up to nutrition. The beau monde objective is to provide high crop in low fair impairment and provide good service to nation like give information to choose product. The subsidiaries of Sainsburys ar Sainsburys Bank Ltd Sainsburys Super grocery store place Ltd and Sainsburys Convenience Stores Ltd. (Source www. sainsburys. co. uk)The supermarket drawstring operates three main store formats regular Sainsburys stores ( principal(prenominal) Mission), Sainsburys Local and Sainsburys Central (convenience stores and smaller supermarkets in urban locations Mixed Mission) and Sainsburys primary(prenominal) Plus (hypermarket) stores. Unlike Tesco (Tesco Extra) and Asda (Asda Wal-Mart Supercentre), Sainsburys does not employ a separate home run for its hypermarkets, having phased verboten the Savacentre fascia several grades ago. At the end of its 2008/09 financial year Sainsburys store portfolio was as follows. Format Number Area (ft? Area (m? ) fortune of space Supermarkets 502 15,974,000 1,484,000 95. 6% Convenience stores 290 729,000 67,700 4. 4% Total 792 16,703,000 1,551,700 100. 0% integral MARKET SHARE The total market sh atomic number 18 of Sainsburys is 16. 5%. Their market sh ar has grown over last year and in current period they are serving over 18. 5 million customers each week.TRENDS AND ISSUES PREVALENT IN RETAIL INDUSTRY The recent trends that are prevalent in retail indus submit are as to a disgrace place i. Fashion of cr eat uping ones own brand These days it has begin a fashion to hold own brand predict by retail companies on packing of products. The companies are doing so beca utilization on enjoin to increase consumer loyalty. Major retail giants Tesco, Sainsburys use their brand name on the products in dictate to promote their brand name and crystalise consumer loyalty as considerably. Eg Sainsburys is sell organic food under the name of Sainsburys So Fresh. The trends of own brand name is increase. i. Availability of all continental and regional type of food at any period of date Earlier the foods of winter were not procur qualified in summer. hardly in a flash due to improved storage systems and young trends of eating off seasonal foods as wellspring, the consumers evict bring in grapes in winter as well. Now any body domiciliate eat off seasonal food at any point of time. iii. want for convenience food The increased competitive earthly concern has do both males and females to work in order to straighten out their livings. Nobody has any time to cook food. As both partners are busy in their jobs, so they dont get much time to cook food.But the recent retail trend is of eating cereals and cooked food. The consumers throw emerge eat the get to fuse food at any point of time without regular(a) cooking it. iv. to a greater extent attraction towards subtractioned items The consumers, these days prefer the discounted products. Discounted products are in trend like a shotadays. The recent trend is that more(prenominal)(prenominal)(prenominal) the discount, the more the customers. The sales in addition get increased by providing more discounts. v. Direct selling It is a type of retailing in which consumers are exposed to goods &038 services through with(predicate) a non-personal medium.They provide order &038 barter for the products by mail or telephone. vi. Online technology The technology has made it easier for retailers to sell products online. The consumers stinkpot order and pur chase the products online. The company can deliver products to consumers on a single click. Online sales are a great source of income to retailers as well. Issues in Retail industry Following are the main issues that are prevalent in retail industry i. Rising health awareness amongst public. The UK government is dissemination awareness conclusion to healthier and fresh food in UK.The customers are told to not to eat sweeteners. The government is making people aware about use of organic food and low fill in food. Thus the consumers comport started shifting towards fresh and healthier food. ii. Low available income Due to recession, the disposable income of people moderate fall. This has effected the spending capacity of people. Now people have decreased their demoraliseing ability. iii. Recession gave rise to unemployment and inflation which prompt the market directly or indirectly. iv. Consumers have perception that recession is gigantic term so they are spending less and saving more.The consumers deal that due to recession they are unable to save more and are having only expenses. COMPETITORS In the supermarket agate line Sainsburys main competitors are Tesco, Asda and Safe steering. In retail banking the main competition comes from Tesco Financial Services, M &038 S Financial Services, the conventional high street banks, Egg, Halifax and Abbey National mortgages. PRODUCTS The major products of Sainsburys are as follows Supermarket/ grocery store goods Retail banking services Retail property development services In Sainsburys, a large store typically stocks a bend 50,000 lines of which round 20% are own- mark off goods. These own-brand lines include Basics mainly food, toiletries and stationery. Taste the loss (TTD) around 1100 gift food lines i. e. processed foods much(prenominal)(prenominal) as reach made meals and premium bakery lines. Freefrom It was launched in February 2010, it has over 75 product lines. These products are suita ble for those allergic to dairy products. Sainsburys Organic (SO Organic) Around vitamin D lines of food / drink in which is not derived from food stuffs treated with fertilizer or pesticides. Different by Design a smaller range of premium non-food lines, including flowers. Kids these lines are for children. Be Good To Your egotism (BGTY) products with reduced calorific and/or fat content. All BGTY packaging was relaunched in January 2010. Fair Trade Over 100 fair trade products. All bananas sold at Sainsburys are now fair trade. Super Naturals A range of ready meals with estimable ingredients. TU own brand clothing range. TU Home a range of home products, such as lighting, rugs, and kitchen products. PORTERS FIVE FORCE ANALYSIS 1. Competitive rivalry The retail market is extremely competitive with a very crowded market.More companies are trying to get into non food vault of heavens which leads to increase in competition. 2. Barriers for adit in food category Firstly, organised retail is amongst the most sophisticated sectors within the UK and needs a lot of investment. Secondly, retail is excessively at an advanced stage within the UK and most of the western world. 3. Threats of Substitutes The threat of substitutes in the food category is a low one because consumers view it as a necessity, especially in the developed world and increasingly in the acclivitous markets. The only major threat of substitute is an internal industry threat whereby one supermarket can lap up the business of other(a) supermarkets. 4. Buyer business leader Buyer power is high due to the charge of so many an(prenominal) competitors selling the same products. As the thrift goes raise towards recession, consumers needs are likely to be given more weight, increasing their power considerably. 5. Supplier power Supplier power is usually more complicated as it is difficult to categorise it. Supplier power of smaller suppliers impart not be considerable because of their sales volumes on dependence on these supermarkets. PEST ANALYSIS Political factors Increasing globalization, presents a dispute as well as an opportunity to Sainsburys. Sainsburys can enter the markets of emerging companies through joint ventures or partnerships to explore these new markets, although it does not have any plans on the horizon to do so. The ongoing investigation of scathe fixing amongst the big four retailers within the UK can have most negative impact to the industry in general and Sainsburys in particular. In the UK, the Government is to decrease the rate of corporation tax from 30% to 28%, which will save big companies like Sainsburys real sums of money (HM exchequer 2008). Economic factors The rapidly increasing global food crisis has increased food worths all over the world, which will result in rising buying appeals for Sainsburys. The credit crunch might decrease the purchasing power of consumers and though they will still buy the essentials the y whitethorn be more cautious. Social factors Nowadays there seems to be more strain on fresh, easy style cooking. This serves an opportunity for Sainsburys to encourage new recipes and unfussy eating. There has been a huge emphasis by the government to promote healthy eating, in general due to the increasing level of obesity within the UK. This has lead to many consumers to shift towards healthier food. This presents an opportunity to Sainsburys to stock up with more healthy food or create healthier foods at a cheaper equipment casualty than other manufacturers so as to benefit from this new trend.Technological The lucre phenomenon seems to be ever growing within western countries. One of the downsides of supermarket obtain is the queuing system customers often find themselves in at the checkout. RFID (Radio Frequency credit Device) technology can be used for significant benefits to the supply chain of Sainsburys. If adopted, this technology will lead to less inventory f or the supermarket unshakables leading to a leaner, more profitable organisation. SWOT ANALYSIS StrengthsWeakness some implications as people are gravitating towards British companies and the prospect of Sainsburys being governed by a foreign truehearted can lead to consumers switching loyalties. Alternative business presents a great opportunity to Sainsbury for future growth. Online sales are a great opportunity as well, since online margins are higher and investments are not huge. Threats There needs to be continuous heavy investment in environmental and green issues without immediate benefits. Sainsburys operations are subject to a broad spectrum of regulatory requirements particularly in relation to planning, competition and environmental issues, employment, pensions and tax laws and in terms of regulations over the groups products and services WHERE DO WE command TO BE? Ansoff Matrix To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that f ocused on the firms present and potential products and markets (customers). By considering ways to grow via quick products and new products, and in existing markets and new markets, there are four possible product-market combinations.Ansoffs matrix is shown below Ansoff Matrix real Products in the altogether Products Existing commercialises Market Penetration Product ripening New Markets Market Development variegation Ansoffs matrix provides four different growth strategies Market Penetration the firm seeks to achieve growth with existing products in their current market segments, pop the questioning to increase its market share. Market Development the firm seeks growth by branding its existing products to new market segments. Product Development the firms develops new products targeted to its existing market segments. Diversification the firm grows by diversifying into new businesses by developing new products for new markets. Selecting a Product -Market Growth schema The market penetration system is the least risky since it leverages many of the firms existing resources and capabilities. In a growing market, simply maintaining market share will result in growth, and there whitethorn exist opportunities to increase market share if competitors reach capacity limits. However, market penetration has limits, and once the market show upes saturation another system must be pursued if the firm is to continue to grow.Market development The development of new markets for the product may be a good schema if the firms core competencies are related more to the specific product than to its experience with a specific market segment. Because the firm is expanding into a new market, a market development strategy typically has more risk than a market penetration strategy. A product development strategy may be fascinate if the firms strengths are related to its specific customers rather than to the specific product itself. New product development carries more risk than simply attempting to increase market share.Diversification is the most risky of the four growth strategies since it requires both product and market development and may be outside the core competencies of the firm. Diversification may be a reasonable choice if the high risk is compensated by the chance of a high rate of return. Sainsburys has withal diversified into banking, financial services, petrol pumps etc. HOW DO WE GET on that point? merchandising OBJECTIVES To be consumers first choice for food delivering products of spectacular quality and great service at a competitive comprise through working faster, simpler and together.Positioning This bureau process by which marketers try to create an image or personal identity in the minds of their target market for its product, brand, or organization. Sainsburys has increased its clubby brand product portfolio. under food category, company fractures organic food under name Sainsburys SO or ganic range and it comprises of 450 products. (www. sainsburys. co. uk) Competitive advantage consort to its oral sex executive Justin King Fairtrade gives Sainsburys the edge over its competitors, as well as being an ethical way to trade.MARKETING MIX It is referred to as the set of controllable tools that the firm get goings to produce the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product (Kotler and Armstrong, 2004). The major function of marketing unify strategy of any company is the strategic communication of the organization with its customers (Proctor, 2000). selling Mix is also referred to as 4 Ps of trade. The classification of four Ps of marketing was first introduced and suggested by McCarthy (1960), and includes marketing strategies of product, value, placement and promotion.According to Borden (1964), the elements of the marketing mix includes product planning impairment branding distribu tion channels promotions product packaging advertisements services packaging handling and re-order, etc. The purpose of utilise a marketing mix is to target the market in order to increase sales and profits. pic (Source www. marketingteacher. com) The 4 Ps of Marketing Mix can be explained as below 1. Product A product includes all features and combination of goods and related services that a company offers to its customers.The product or service offer needs to be able to meet a specific, existing market demand. The companies that are operating in service sector and provide intangible products are very much criticized by the customers. The companies can use the terminology of service products under marketing mix strategy making (Kotler &038 Armstrong, 2004). Sainsburys is applying this strategy according to consumer preferences and changes in the market. i. Positioning This center process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.Sainsburys has increased its private brand product portfolio. Under food category, company offers organic food under name Sainsburys SO organic range and it comprises of 450 products. (www. sainsburys. co. uk) ii. shade The products offered by Sainsburys are quality products. There is a round-eyed range of great quality products at fair prices. The main emphasis of quality is on fresh food, organic food and private label brands. The companys commitment of go quality products has increased the brand image of the company. iii.Product Packaging Sainsburys has improved its packaging. The company offers the products in self branded packages. The various discounts and slogans are mentioned on the packaging. The company is use eco-friendly bags for packaging and carrier bags called Bags for action. (Source www. sainsburys. co. uk). iv. Branding Sainsburys uses self tagged branded products. The company offers nearly 20% out of its 50,000 product r ange, which uses self label brands. v. Varieties. vi. Taste the different Also known as Ttd, it is the companys biggest sub brand which comprises of 1300 products.It was Sainsburys first own brand range to be free of artificial colors, flavors and hydrogenated fats. 2. Pricing It is setting up a price for a product or service offered. According to Kotler and Armstrong (2004) price is the amount of money that customers have to pay to obtain the product. It is not simple to set a price. The customers not only view the lower price of product, but they respond to value so a lower price does not necessarily mean expanded sales if the product is not fulfilling the expectation of the customers (Lazer, 1971).Pricing strategy is divided into two move price determination and price administration. The different types of price are Market led pricing (Competitive pricing), Cost ground pricing, penetration pricing, destruction pricing, price wards, EDLP (Every day low price). The pricing strate gy of Sainsburys is that it should be able to provide profits. The pricing strategy of Sainsburys is as follows a. Lower pricing strategy Sainsburys use lower price or economy pricing strategy at the time of launching or selling a new product. The marketing and manufacturing costs are kept at minimum.Sainsburys offer economy prices for its products like soups, beans, tomato puree, etc. which can be compared very easily with its competitor TESCO (Source http//www. sainsburys. co. uk &038 http//www. tesco. com). b. Discount price Sainsburys offer discounts to the consumers. This is done in order to increase the bucket size. The discount offered by Sainsburys has resulted in increase in sales volume. c. meal Deals Sainsburys offer meal deals for families. It offers a meal, a soft drink in just ? 5 to family of 3 members. This kind of meal deals are making it popular among the food sections in retail market. . Credit terms. 3. signal It involves all activities used by company in order to make the product available to the targeted customer (Kotler and Armstrong, 2004). It refers to different ways by which a customer can obtain a product or mystify a service. A product or a service can be received through a number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc. The products can be made available to customers depending upon different factors like sales, communications and contractual considerations (Lazer, 1971).The ease with which the products or services are made available to customers has a significant effect on sales volume. Sainsburys has been using the perfect blend of the time, quantity and place concept in order to serve its customers. a. Website Sainsburys has its corporate website i. e. www. sainsburys. co. uk. The company has made quite a good use of technology and the customers can purchase the products and services at just one go through internet or online. Sainsbur ys has its online section display groceries online at internet.The consumers can easily choose among various products available online. This saves a lot much time of the customer and also home oral communication by Sainsburys made it more convenient for the consumers to buy a product. b. Convenience Stores These are the stores which are opened upon locally in smaller area. The consumers can have fresh food and other quality products close to their home. Sainsburys has also introduced a series of operational changes to improve cost efficiency, such as night-shift improvements and introducing further shelf-ready packaging. . Supermarkets Sainsburys has increased its no. of stores to 792 out of which 164 stores are more than 4000 square ft. area. The supermarkets are large and big stores that are open for 24 hours a day and offer full range of products and services to the customers. d. Banks Sainsburys Bank provides insurance, credit cards, loans and travel money. The consumers can entryway it online as well on its corporate website www. sainsburysbank. co. uk. It can also be accessed in convenience stores. e.Home Delivery The Company is also having 169 stores that provide home delivery service to customers. f. Filling Stations. g. Cafe. 4. forwarding processional strategies means the different means through which a company communicates the benefits and values of its products and encourages customers to buy them (Kotler and Armstrong, 2004). It is the process by which the businesses informs the customers about their products and encourage them to buy their products. The best way to understand promotion is through the concept of the marketing communication process.Promotion is the company strategy to cater for the marketing communication process that requires fundamental interaction between two or more people or groups, comprehend senders, nitty-grittys, media and receivers (Lazer, 1971). For example, if Nokia wants to promote its product then, Nokia is sen der and an advertising agency as well the media used in the process can be salesmen, newspapers, magazines, radio, billboards, television etc and the message will be the advertisement or sales presentation and the final destination is the potential consumer or customer which will be quick phone users. . Nectar Card offers customers to gain points through shopping. They can earn money to exchange point. The company offer loyalty cards to its customers which has points based system. It can be collected on every purchase made in Sainsburys. (Source http//www. nectar. com) b. Active Kids promises to donate sporting equipment and coaching to primary and tributary schools in exchange for vouchers collected by customers. c. TV Ads Jamie Oliver is the representative of Sainsburys. d. publicize Sainsburys uses media as an effective tool for promoting the products.The company is making use of television and radio for promoting its brand. e. Sales promotion The company also offer schemes l ike buy 1 get 1 free. RECOMMENDATIONS FOR CHANGES IN THE MARKETING MIX STRATEGY In todays competitive world consumers shopping behaviour changes significantly with fluctuations in the macroeconomic environment. Retailers can maximize the returns by effectively altering the marketing mix strategies. Consumer goods manufacturers and retailers have to make regular critical decisions around the pricing, product, distribution, and promotion that best communicates their firms value to consumers.Thus Sainsburys in order to be at a top position in the food retailers market needs to apply some changes to its marketing mix strategy. Product Sainsburys should diversify its product line to even more variety of products like petrol. It should concentrate more on its own-brand products as now the customers are getting more attracted towards own-label products of the retailers as they offer quality products at cheap prices. Sainsburys should also try to products in smaller quantities or in smal l packets.That will bring an edge to Sainsburys. Price Sainsburys should try to increase production of their own brand products can benefactor them reduce cost and offer better prices. Sainsburys should keep its price in competition to its competitors like Tesco. It should use the penetrating pricing strategy for its new products along with the on going economy pricing strategy which will reduce the profit margin of the company a office but will give them opportunity to gain economies of scale. Place Sainsburys should concentrate more on internet sales by offering its customers schemes like vouchers when they spend online. Instead of opening up new stores, Sainsburys should concentrate on its existing stores. It should try to bring all its stores in profit. The Internet is a new marketing tool which means that the aim should be innovation, developing new programs and features that will attract the clientele so as to capitalize on this tool and stand out among the rest. Promot ion New schemes for collective buying and online buying, online vouchers should be introduced.As today is the price war but due to its brand image it can also advertising which not just concentrates on the price but on the main aim of the company like healthy food and life style to attract the customers or with the emotional connection of the particular brand with the consumers. Internet malls i. e. e-malls can be created to increase the sales and to reach more customers than by personal selling. CONCLUSION The retailer industry is very competitive. Although SAINSBURYS retailing position is still very strong, TESCO and ASDA are strong competitors.Sainsburys strategic marketing mix needs to be improved. It needs cautiously designed. Hence, more market researches are needed to develop an effective strategic marketing mix. To answer the research question, Sainsburys needs to implement an appropriate marketing mix to become a more successful company REFERENCES Blattberg R C and Hoch S J (1990). Database models and export intuition 50% model . 50% manager, Management Science, vol. 36, p. 887-889. DEsopo M and Almquist E (2007). An approach to mastering the marketing, mix, Business Strategy Series, vol. , no. 2, p. 122-131 Kotler, P (1988). Marketing Management Analysis, Planning, Implementation and Control, New Jersey Prentice Hall Inc. Marketing Analytics Inc. (2010). Marketing Modeling Mix, http//www. marketinganalytics. com/Solutions/MarketingMixModeling. aspx. Retrieved on 20th April 2010 Verdict (2007) UK Grocery Retailers, 2007, http//www. verdict. co. uk/ Marketing/dmvt0365m. pdf. Retrieved on 20th April 2010 http//www. j-sainsbury. co. uk/ar07/businessreview/corporateobjectives. shtmlpic

American Civil War Essay

Many sources claim that the the Statesn Civil state of war is one of the healthful-nigh frequently written about topic in American history, and in that, the individuals who led both sides of the epic conflict have been immortalized in sign as well. A pivotal constitute that meets both of these criteria is A yearn Shadow Jefferson Davis and the Final Days of the Confederacy, by Michael B. Ballard.In opus this book, Ballard sought not alone to provide a factual cast of the 1865 retreat of the government of the unite States of America from its capital city of Richmond, Virginia, plainly ahead of the conquering United States troops with particular emphasis on the leader of the CSA, Jefferson Davis. This book review will not only devote forth compelling reasons why students and casual readers alike should choose this book, only also a brief summary of the book and a handling of the themes found within the book.It almost goes without saying that any book expenditure reviewi ng should be worth reading, Ballards book being no exception. The work is worthwhile for the reader- be it a student or Civil War enthusiast- because it is as much an account of an often-neglected part of a massively researched and discussed contri merelyion of American history, but also because the book is a tale of kind experience, political differences, and the clashing of two ways of life which ultimately would only allow for one of the ways of life to move forward from that organise intact. First, the book goes into detail about the man behind the CSA, President Jefferson Davis.Ballard uses graphical imagery to describe the frail appearance of Davis by the spring of 1865, overdue in large part to the strain that was being placed on him to guide a new earth, and especially a massive army, in the face of a highly motivated and larger, better equipped US armed force , which in a very short sentence would crush Davis army and entire government, culminating in the formal surre nder of the CSA on April 9, 1865. The book then moves forward with accounts of the military maneuvers, commanders and defeats that made up the fall days of the Confederacy itself.By looking beneath the text of A Long Shadow, it is possible to gain a better understand of the underlying themes of the book, leading to a much better understanding and gustatory modality of the work itself. Perhaps the most prominent theme of this book is the struggle of valet de chambre spirit to overcome insurmountable odds to achieve a given end. For Jefferson Davis, his all consuming goal was to see his Confederate States of America gain recognition and independence not only from the United States, but also the other nations of the world, from whom Davis and his fellow officials sought diplomatic relations and nation status.The other theme that is a common thread in Ballards book is perseverance when one believes that their cause is just. It can definitely be argued that both the US and CSA felt i n their heart of hearts that what they were combat for was not only right, but the absolute correct course of human purgets. Indeed, both sides of the conflict claimed that God was on their side and felt that He would see them to victory no matter what. Perhaps this sort of providential protection is what kept Jefferson Davis constantly trying to keep his cause going, even to the point where Davis himself was at the point of collapse and his nation lay in shambles.In conclusion, it can fairly be said that this book is becoming of being considered one of the most relevant works on the topics of Jefferson Davis, the Confederate States of America, and the final days of the American Civil War as well as an epic tale of human endurance, struggle, triumph and defeat. Works Cited Ballard, Michael B. 1986. A Long Shadow Jefferson Davis and the Final Days of the Confederacy. Jackson, MS University Press of Mississippi.

Views on The Role of Public Opinion

The constitution in America has been changed with regards to the public opinion-related parts and stated, emit the founding fathers, that the public in the advanced(a) world, due to the complexity of the modern world, are non interested in political issues, and are curiously ignorant of matters they do not have experience with, speci in ally opposed affairs.According to Walter Lippmann, an American sociologist, ordinary people functional only, with what he named, stereotypes are not capable of apprehending politics. Which is quiet a discriminative theory. People understand their needs, their wants, and their needs for well-being those should be the only policy and are the fix fundamentals of political economy. Politicians should not care about investment and any(prenominal) else. They should only care about the well-being of the peoples. That is why governments should be pick out from the people, and by the people here I mean the on the job(p) anatomy.Because the working c lass is the core of the society, and the vast majority of the population. And without whom the rest of the population would not feed, dress, or even be able to work on the streets. Without the proletarians, all the capitalists farms, factories, businesses would stop and get bankrupt. And eventually people would starve if the proletarians stopped working. cerebrate the mass of capacity the proletarians have on any society. In conclusion, since the efficiency of the proletariat has been displayed, technocracy and popular governments is the answer opposing Lippmanns theory.Lippmann added that the primary fuss of popular governments is that the members are always violently prejudging matters, apathy, and preference curious niggling and dull important matters, and are hungry for side shows and three three-legged calves. And that even if they improved their characters they would not be of any aid to the governments because they do not spend enough time to study political issues they do not know about. And as if though Lippmann considers academic politicians live in another world or come from another planet, he continues to under-estimate the throng and the populace.And goes on even further and calls the masses shallow minded and presuppose of unimportant matters. And that actually is the problem Lippmann thinks that rational and educated peoples should be standing(a) amongst noble and aristocratic ruling class. Meanwhile, what we think is that they should be standing amongst the working class, supporting them with their knowledgeand rationalism, against the government in their decisions that increases the suffering of the working class or the poor class, supporting the government when they work on the fall of such pains and sufferings.It would be a lot easier this way. While as matter of fact, technocratic governments would only think of making the average citizens breeding easier, because they, themselves, have suffered the everyday, equally as the average citizen before, and while, being in office. It would be a lot easier. Collaboration between the government and the people would be at its upmost.

Law Enforcement Today Essay

Law enforcement is something that is needed in our country. As time has passed, right-breaking rates fetch gone up. mod images of plagues are created by just about anything. Lets evolve a look at an example of a new detestation starting up. People who are driving and texting is now becoming a crime. This may seem same(p) something minor, but it can lead to something horrible, like the cause to a fatal accident. The driver who was busy texting his buddy that he was on the modal value to the bar could of caused him to get to close to a nonher automobile and crash into it, causing vehicle damages and even death.With technology advancing, crime has gone up with it as well. Now people commit crime online by stealing credit card numbers and even a persons identity. Our law enforcement agencies now take to preventive on top of things in todays world, because if they dont, the bad guys testament win. Our law enforcement agencies are made up of local, articulate, and federal. Th ey interact with the U. S. Department of native land Security to ensure success with enforcing the law and keeping communities safe. They might not have the best relationship but there can be ways to improve that.Many people do not in reality understand the importance of law enforcement until they desperately need them to help in their time of need. Some of the things that we do not understand are that the law enforcement officers face some(prenominal) challenges in todays society. Our officers have to go through much training to be where they are at today. They have witnessed horrible crimes that could possibly leave them traumatized for life. Aside from that, they face issues of racial profiling, natural dangers during work hours, and learning how to deal with stress and facing a multicultural society.These officers have to suppress their emotions from what they face every day. They might even have to keep their business private from family members or they could face some type of judgment. People already act different toward any police officer. In some peoples eyes, the police are the bad guys. It is comprehendible because there have been many corrupt police officers that make it troublesome for the good guys. Some people feel that if the officer is a legitimate race, the officer forget be for their own race and against theirs.For instance, a benighted police officer may be judged on his skin wring and the citizens might feel that officer is nourishing the black criminals. We have many law enforcement agencies with good people who are doing their best to serve and protect the people. The local law enforcement consists of different agencies, like the city police department, county sheriffs office, transit authority police, school district police, and university police. Those are just a few. The state enforcement agencies consist of the attorney general, highway patrols, and department of criminal nicety and there are to a greater extent.The federa l law enforcement agencies consist of the U. S. Department of mother country Security, U. S. Immigration and Customers Enforcement, the FBI, and more. All of these agencies work together to keep our country equilibrize and in order. The Department of Homeland Security has the local, state, and federal agencies set to look at perspectives that involve natural disasters, acts of terrorism, and other types of disasters created by people. All agencies have a person who supports or recommends causes or policies that have to be enforced.These agencies are in like manner provided with a point of contact for DHS in case of any situation arising that might involve them. With the law enforcement agencies working together, crime can be controlled and even prevented. I think if the police departments could be trained more on what the DHS does, maybe the relationship between them could become better. A way to build a better relationship would be to empower state and local agencies to have m ore power over things so in case of some type of terrorism or natural disaster, they will know what to do. Communication is a big factor in mental synthesis the relationship between the agencies and DHS.If the right information is passed along the departments, this could allow for everyone to stay up-to-date with current crime and could possibly be prevented in the future, or help to better handle the situation once it happens. The relationship between law enforcement agencies and the people of our country needs to be improved as well. Many people do not realize what these officers go through. If a relationship bond could be formed with the people and the agencies, then that could to a fault help for crimes to be stopped and prevented. Ensuring the safety of our country is what we need to direction on.There are too many crimes going on where it is essentially our people against each other and that needs to stop. References http//www. golawenforcement. com/LawEnforcementAgencies. h tm http//www. spiritofthelaw. org/sol1art6. html http//www. golawenforcement. com/StateAgencies/TexasLawEnforcement. htm http//www. dhs. gov/xlibrary/assets/foia/plcy_directive_252-11_office_for_state_and_local_law_enforcement. pdf http//www. heritage. org/research/reports/2011/08/homeland-security-4-0-overcoming-centralization-complacency-and-politics Schmalleger, F. 2011 execrable Justice Today An Introductory Te4xt for the 21st Century

Creationism in the Classroom

Derek Dougherty English 1302 Turman 11/1/2010 Creationism in the Classroom many Christians believe that the earth and all things on it were created by God in six days. This is denied by the theory of phylogenesis. Since the origins and development of flavour ar an important part of the trail acquisition curriculum, the question of what schools should and should non be allowed to educate is an important one. There ar many problems that designate themselves when attempting to tackle the inconvenience of didactics introism in a public school setting.The first being, does creationism even qualify as a science? If it is non scientifically testable past it should non be taught onside evolution in a classroom setting. How constantly some creationist supporters claim that it is scientifically testable and that its theories are consistent with the scientific method. The next logical question to ask is should the enmity be taught in a science classroom setting? Many people are against the idea of teaching ii conflicting ideas in the same classroom setting because of the implications it would have on the children.Others say if creationism is to be taught, it shouldnt be taught in a science classroom. If you have two conflicting ideas that cannot come to terms and be taught in harmony then one essential be selected over the airer(a). Creationism is not science it is not scientifically testable, and does not belong in the science classroom. While both creationist and evolutionists have very convincing arguments, the question isnt what is dress hat morally or ethically for the children.The question is what will best prepare them for their move education, and seeing how evolution is the basis for biology and a wealth of other sciences, creationism holds no ground and was even found un inherent to be taught. concord to the Center for Science and Culture Intelligent design can best be described as Certain features of the universe and of living things are best explained by an intelligent cause, not an undirected process such as natural selection (CSC). This idea is the basis of creationism, and stems from apparitional article of faith such as the bible that state the world was created in a matter of days rather than illions of years. Bibles and other holy doctrines are not allowed to be used by a teacher for any purpose, so regardless of anything else, it is against the law for a teacher to teach out of these doctrines. In the 1987 Supreme Court case of Edwards v. Aguillard it was decided that, Educators may not teach, all as scientific fact or even as an alternating(a) or competing theory, the theory that man was created by a divine being. In science classes, educators must present only scientific explanations for life on earth and scientific critiques of evolution.The U. S. Supreme Court has held that it is unconstitutional to require educators who teach evolution also to teach creationism (Religion). Justice William Brenna n went on to write in the majority opinion that creationism could not be taught as an resource to evolution because of its religiosity, but that teaching a variety of scientific theories about the origins of humankind to schoolchildren might be validly done with the clear secular jailed of enhancing the effectiveness of science instruction (Moore 303). Creationists used this as an invitation and legal proper(a) for making scientific alternatives and teaching them in public school. The most general of these alternatives was Intelligent Design (Moore 303). Justice Brennans intent in stating that teaching alternative theories could be done was not to invite creationists to make up more alternative theories. Brennan was simply stating that teaching a multitude of theories to children could be beneficial to them if it was clear that they were all equal and that one was not quality to the other.In response to the question, Can creationism be scientific? Theodore M. Drange had this to say, Yes, creationism can be a scientific theory, because naturalistic creationism (in sharp contrast with theistic creationism) would be scientific if it were ever to be pursued by empirical method. That is not anything that has ever been done, but it is at least possible (Drange). Drange implies that naturalistic creationism, which is a form of creationism that makes no reference to God or any supernatural beings, is scientific and thus could be scientifically testable.But crock upn that no creationist wishes to teach creationism in this form, the fact remains that theistic creationism is not scientific. Drange explains that the reason theistic creationism is not scientific is due to the fact that it is theistic. It has nothing to do with the appeal to creation merely that theism is involved discredits it as scientifically provable theory (Drange). In 2000 the Kansas Board of Education removed all references to the origin of humans and the mature of the earth at the urging of conservative Christians (Moore 339). Not only was this a borderline illegal act, but it was irresponsible of the School district to give in to the public fantasy that creationism is okay to be taught in schools. In April of 2001 an article was put in the New York Times discussing the Boards decision to overturn their previous ruling, When Kansas School officials restored the theory of evolution to statewide education standards a few weeks ago, biologists might have been inclined to support victory over creationism.Instead, some evolutionists say, the latter stages of the battle in Kansas, along with new efforts in Michigan and Pennsylvania as well as in a number of universities and even in Washington, suggest that the fare is far from settled (Glanz). We are not here to argue the religious implications of discrediting creationism as a viable alternative to evolution. It has been proven and reinforced by the Supreme Court that creationism has no place alongside evolution in Scienc e. Teaching a theory that discredits the rest of the teaching in that science class is preposterous.The only part of evolution that is a theory is why it occurs, not how it occurs, whereas creationism in itself is a theory that has very little unshakable evidence to support its claims. The bottom line is that creationism has a place in the lives of our children, but that place is not in the science classroom or any classroom in a state funded school. We risk undermining our constitutional right to separation of church and state if we were to teach creationism as an alternative or even alongside evolution.The battle to keep creationism out of the classroom has already been won, but the war between the two sides still rages on. thus far today there are laws trying to be enacted to push Creationism into schools. We must remain vigilant and wary of these laws that are meant to undermine our rights, and remind ourselves that this issue isnt about what you should believe its about what we should teach.Works Cited CSC Top Questions. uncovering Institute. Web. 03 Nov. 2010.

Analyse the Political Implications of Concentrated Media Ownership and Control Essay

The media is primarily expenditured to disseminate tuition. It is a platform for colloquy between the people and those who hold authority. In straight offs world the media has an immense role in the functioning of club and has the superpower to reach a potentiometer audience through technologies much(prenominal) as print, Internet, television, film and radio. in that respect has been increasing concern over the ontogeny concentration of media ownership as well as how this increased media authorization influences and shapes democracy.Concentrated media ownership refers to the number of individuals or corporations who control an increasing dowery in the mass media market, which at present is very few. For representative, eleven place of twelve major Australian Newspapers ar owned by Rupert Murdochs News Corporation or trick Fairfax Holdings (Independent Australia, 2011). Society has seen media moguls, much(prenominal) as Rupert Murdoch, dominate cross-media ownership with companies in print, television, film etc.The media and politics be closely intertwined and with an increase in concentrated media ownership and control, issues such(prenominal) as semipolitical bias the trivialisation and lividness of political issues in the hunting of pay and the decreasing amout of column diversity and expression, gift endure issues of concern for the consumers of this mass media. Street describes bias as the idea that the practices of journalists and editors result in articles and programmes that opt iodin view of the world over another, providing sustenance for mavin lop of interests while undermining an alternative (Street, 2011).Bias is a large issue at bottom all media, and authorities enforce a myriad of regulations and restrictions on media corporations to hand over and eliminate it. With an increase in media concentration, and the personnel that the media yields, eliminating political bias at heart the media has become an important i ssue. Since most of the media institutions argon owned by corporations, such as Rupert Murdochs News Corporation, the most common assumption is that the media as a whole may be influenced by its owners.For instance, there be times when the owners decision may affect the kind of reading that media would publish to the public. Wagner makes the point that the intelligence activity media distribute much of the information we receive just rough the world close to us. Thousands of politicians, policy researchers and sound judgment makers wish to transmit information to the public at large. The stark nakeds media serve as intermediaries in this information market, selecting to transmit a fraction of the millions of potential messages to an audience (Wagner, 1997).For example, Rupert Murdochs have News channel was been criticised for its right-tilted news coverage. Murdoch has al focuss been seen to favour the conservative human face of politics and the torment News channel has been seen to try out preference toward the republican Government in America. fob Founder and president Rodger Ailes was a republican political operative in Washington. He helped with The Nixon and Reagan campaigns as well as the elder Bushs media strategy for his presidentiary campaign in 1988 (Ackerman, 2001).David Asman, The make News Channels daytime anchor was known for his stand with the right- travel Wall Street Journal. Another anchor for Fox News, Tony Snow, was a conservative columnist and also the chief speechwriter for the first bush judicatory (Ackerman, 2001). The Fox News Channel also hosted employees and presenters such as Eric Breindel, John Moody and Bill OReilly, all of whom were known for their conservative, right wing views (Ackerman, 2001). Rupert Murdock stated, I challenge anybody to show me an example of bias in Fox News Channel. (Ackerman, 2001)However, looking at the individuals that were in charge of disseminating the news at Fox, it is hard to beli eve that none of the political stories covered by Fox did not favour the more conservative side of American politics. Media conglomerates, such as News Corporation, have the ability to sway public opinion and with the increasing control they have access to, it is naive to think that they would not use this power to influence and sway public opinion to pop off with their own agendas and ideologies.The size of the enormous media firms of today exceeds the size of the largest firms fifteen historic period ago by a factor of ten. (McChesney, 1999). With this increase in the size of the major media corporations also comes the increased pursuit of take ins by these firms. Sometimes, this pursuit of profit can be to the detriment of information and in dig democracy. Corporations look for stories that will attract and entertain readers and viewers, sometimes neglecting stories that hold luxuriously information content and reflect political policies and agendas.McChesney refers to this need to aximise profits when he states With the tremendous pressure to attract audiences but to keep costs tidy sum and not take chances, the standard route of the media giant stars is to turn to the tried and rightful(a) formulas of sex and violence, always attention getters (McChesney, 1999, p34). With the increased emphasis on profit maximisation and the commercialisation of news media, there is a risk that consumers of news media will cease to have access to information regarding smaller issues in society such as local political policy/s and other more localised issues.Because these issues are small and arent seen as revenue earners, or important issues, they may be sacrificed to make way for big stories and scandals. In other words, profit and revenue may become more important, in the eyes of media conglomerates, than information. The pure size of the media and its influence over information has huge impacts on democracy and politics. Meier (2011) sites Giddens in his work . Giddens talks about the trivializing of political issues and personas and states The media have a double relation to democracy. On the one hand the emergence of a global information society is a powerful democratising force.Yet, television, and the other media, tend to destroy the very public pose of dialogue they open up, through relentless trivializing, and personalizing of political issues. Moreover, the growth of giant multinational media corporations means that unelected business tycoons can hold enormous power (p 298). In essence, Giddens is stating that while news media and media corporations may broadcast political issues and policies, these views are somewhat destroyed with the constant emphasis on the politicians themselves. Because of this a neat deal of emphasis is taken away from the real political issues.An example of this is the constant criticism of Julia Gillard and her lifestyle. For example, she is an unmarried woman her partner is a hairdresser. There is al so constant evaluation of her hairstyle, wardrobe, her figure and her voice. Gillard is constantly known for cutting Kevin Rudd in the back. She has also been portrayed as untrustworthy as well as a liar. Instead of the media evaluating and critiquing her policies and looking critically at her as a leader, we see the media sensationalising the above trivial issues instead of concentrating on what she is doing for the country politically.As Media concentration and control increases, diversity of expression decreases. In all healthy democracies, a wide range of assorted opinions are offered, and media offer a large variety of different positions, values and biases. No individual is obliged to accept any particular position or argument, but they are encouraged to have put their own views and criticisms forward. The snapper problem that comes with media concentration is that it diminishes ideological diversity deep down the media system.Studies have been conducted that show that alth ough there may be more media outlets, there is not inevitably more information or diversity in media. Rather than the new platforms leading to a diversity of voices, voices are in fact macrocosm snuffed out An analysis of independent media showed that 96 per cent of stories simply came from recycle stories found in the mainstream press. However, The study also showed that the mainstream press was producing 73 portion less information than 10 years ago (independent Australia, 2011).Curran states that they can use their financial power to drive new entrants out of the marketplace by launching expensive promotional campaigns, offering discounts to advertisers or buying up key creative personnel (Curran, 2005) Because of the increased power of media corporations, they have the ability to eliminate their competition and therefore decrease the amount of diversity purchasable to the consumer. Robert W. McChesney outlines in his book Corporate Media and the Threat to Democracy that ther e are three factors that allow democracy to work at its best.The first is it helps when there are not significant disparities in economic wealth and home ownership across the society (1997, p5). The second requires there to be a sense of community and a notion that an individuals well- macrocosm is determined to no small extent by the communitys well-being (1997, p5). last McChesney states democracy requires that there be an effective system of political communication (1997, p5). Media concentration and control works to the detriment of each of these factors.Firstly the multi trillion dollar media corporations, do not represent economic equality within the society, in fact they help to make the gap between the on the job(p) classes and authority increase. Media concentration disputes McChesneys second factor as media moguls and corporations have become increasingly focused on the pursuit of large profits and personal gain, and are not heavily influenced around societys wellbei ng. Finally, an effective system of political communication should be based around diversity of news coverage and diversity of political issues, both locally and nationally, large and small.However, with the increasing size of corporations the diversity of expression has steadily decreased. Australia has one of the highest media concentrations in the free world. With the increasing control held by mass media conglomerates assorted political issues arise such as political bias the trivialisation and sensationalism of political issues in the pursuit of profits and the decreasing amount of editorial diversity and expression. The above issues threaten democracy and the media must be set and controlled before it threatens how the political system in Australia functions.Governments need to manage media moguls, such as Rupert Murdock before they gain too much power, and control, over political issues and coverage. The key to a democratic society is freedom of information, positive polit ical debate and communication. These key functions of a democratic society are being threatened by concentrated mass media and the increasing control held by these corporations.

Writing Sentences and Paragraphs

The Journey to Medicine I want to be a Medical Administrative Assistant at Vanderbilt hospital to honor my recently sister and my parents. When I was 18 years old my sister Debbie died from cancer. The absolute majority of my childhood and teenage years were spent in hospitals and the majority of my parents bills went to paying the doctors. During this period of my life I thought medicine was doing more harm than good. Because I was older at the time of Debbies death my percept about medicine changed and I became motivated to experience out why medicine courts so much and why some procedures cost more than others?So I studied hard, became Valedictorian of my class, earning a profuse scholarship to Vanderbilt University and now Im ready to become a member of the Vanderbilt hospital community. It would be a great honor to secure one of the trinity Medical Administrative Assistants identifys. The Perfect Fit. Megan you are an excellent organizer, you can limber in your assign ments, you work well with other people and you always find creative ways to get the work done. Mr. Braxton, the boss of PhreeRide, is looking for an assistant and you would be perfect.The company employees several hundred writers of all types and it also distributes magazines kindred Kaptur, the one you like so much. The boss is a work lie gentleman but he will allow for creative solutions as long as the projects are completed on time. He would fuck to know about your multitasking abilities with Late Eats and how you always treated customers with compliance when you worked at Diamonds. Megan, I will mention you to my boss and when you apply for the position dont be afraid to tell the interviewer that I recommended you.

Investment Analysis and Portfolio Management

EXECUTIVE SUMMARY In an economy, people indulge in economic activity to support their purpose commandments. savings a intensify from deferred con correspondption, to be sended, in anticipation of future decreases. enthronization computer storagess could be made into fiscal pluss, reciprocationable stocks, flummoxs, and similar instruments or into real assets, kindred digests, lend, or commodities. The aim of Portfolio Manager is to show a brief e veryw presentview of troika aspects of enthr hotshotment * The various excerpts forthcoming to an investor in pecuniary instruments. The tools used in modern finance to optim all toldy manage the fiscal portfolio. * Lastly the pro asset focal point assiduity as it exists today. Returns more often than non differ crosswise their insecurity profiles, oecumenicly rising with the expected pretend, i. e. , high the bear ups, higher the essay. The down the stairslying bearing of portfolio management is in tha t respectfore to create a equipoise surrounded by the disdain-off of returns and stakeiness across s rasefold asset classes. Portfolio management is the art of managing the expected return requirement for the corresponding guess tolerance.Simply put, a sizeable portfolio managers intent is to maximize the return subject to the risk-tolerance train or to achieve a pre-specified level of return with stripped risk. 1. enthr matchlessment and Its objectives Mini Content 2. 1 Define enthronization 2. 2 Defining Investment Objectives 2. 3 Goals and Needs 2. 4 Types of investors 2. 5 Investment Process 2. 6 Investments available in India Define Investment Investment is putting property into something with the expectation of gain that upon thorough abbreviation has a high degree of security for the principal pith, as nearly as security of return, at bottom an expected period of era. . The action or process of put m integrityy for profit or material result. 2. twain main classes of investiture be (i) refractory income enthronizationsuch(prenominal) asbonds,fixed down requitals,preference sh ars, and (ii)Variableincome investiture funds such as byplayproprietorship(equities), or property ownership. Ineconomics, investmentmeans man of non bad(p)or favourablescapable ofproducing an some an new(prenominal)(prenominal)wise(prenominal) legals orser guilts. Expenditureoneducationandhealthis diverseiated as an investment in forgiving crownwork, andresearch and developmentinintellectual roof. Return on investment (ROI)is a keymeasureof anorganizations procedure.DEFINING YOUR INVESTMENT OBJECTIVES Investing wisely is a function of your speci? c packs and marks. Each investor has various objectives that need to be met depending on age, income, programned activities, and attitudes ab proscribed risk. How house you work with your investment advisor to best de preconditionine which investments be rightly for you? Among the big factors to press be someoneal status, plans, and constraints. Some of the issues that you and your advisor should consider in de? ning the objectives that ar right for you ar inclination of an orbited below. Goals and Needs You may bring forth speci? goals and requirements that you privation your investment portfolio to ful? ll. For example, you may be funding college for children, business expansion, travel plans, or retirement of necessity. You should secern these goals and needs clearly with your investment advisor so that his or her recommendations for your portfolio ignore assist you in conflux them. hop on Your age is an crucial amity when deciding how more risk to as articulatione. Portfolio assets that ar riskier and that result ? uctuate more over m may be appropriate for younger investors but non for others.An one-on-one who does non expect to tranquilate the assets in his or her portfolio for a mood come on of historic period has more snip to recover f rom a technical messageize downturn, magical spell an investor close to retirement may be more app atomic number 18nt to prefer stable assets and ceiling preservation. Age too affects the plectron between income- recogniseing securities and those oriented toward capital gains. An investor who is employed and near peak pull aheading power volition credibly want to denigrate overcompensateing appraisees, and entrust thitherfore prevail toward investments that do non provide current income. Income Both your absolute income level and your income requirements in? uence your investment objectives in several ways. First, income, like age, in? uences the choice between dividend-paying or avocation-paying investments, and those whose indigenous return is in the social class of capital gains. You may prefer income-producing investments if you need to supplement or re keister get income. Your income level excessively affects your investment choices be set out it determines your task rate. Low-tax-bracket investors in the main those whose income is lower will be more plausibly to prefer income-producing investments. richly-tax-rate investors ar more likely to choose tax-deferred or tax-sheltered assets. Income similarly may in? uence risk preferences. High income investors may be more willing to choose higher risk investments since they enkindle more easily contribute redundant investment capital should they sustain rednesses. Taxes Your after-tax return is the return that matters. You should fully inform your investment advisor about your tax rate and every special tax peck that might apply to you. This will determine whether you should seek tax unloosen or tax-sheltered securities as a part of your portfolio.The appropriateness of income or capital gains should be discussed in the context of your soulal situation, so you may want your investment advisor to consult with your storyant. Occupation Your occupation also git affect portfo lio objectives. Some professions produce more stable incomes than others, enabling the investor to run more investment ? uctuations. Your profession also may determine other assets. For example, does your job provide an adequate retirement plan, or essentialiness you fund your retirement from your investment portfolio?If your employer provides a stock-purchase plan, this may be a up radixing part of your personal wealth, and you should consider it as a diversi? cation issue when you lease other portfolio choices. If you receive tax-quali? ed or tax-deferred assets from your job, these also will in? uence your investment decisions. Wealth Investment objectives should take into consideration the assets you hold outback(a) the portfolio. For example, if you submit substantial lawfulness in your kinsfolk, you may want to minimize real estate holdings in your ? nancial assets, or you may need to consider a different type of real estate asset.If you hold illiquid assets, and so new investments may emphasize liquidity. The value of your existing assets will probably affect your tolerance for risk. In addition, your level of wealth has probably in? uenced your heartstyle. Maintaining a desired mannersstyle into retirement and throughout will need to be factored into your investment objectives. Time Horizon An important consideration in setting investment objectives is your m horizon. When do you expect to liquidate a portfolio? Should you choose assets of fiddling or languish maturity?Do you amaze time to recover from a declining mart, or is capital preservation important to meet an immediate ? nancial need? Liquidity Liquidity is the ease with which you fanny convert your assets to cash at fair securities industry value. It is essential that you recognize the need to convert your assets into cash at the appropriate times. Do you require a portfolio that bottom of the inning be liquidated easily, or crumb you afford to arrest? Since greater liqui dity publicly results in lower return, it is necessary to give serious consideration to the inhithernt tradeoffs. Tolerance for Risk Your tolerance for risk is a very personal decision, and a question that is dif? ult for some(prenominal) investors to answer. In general, marts tend to provide higher returns in exchange for way higher risks. Often you will ? nd that the investments with the highest long-term returns be very volatile in the short run. It is important to be honest with your ego in assessing whether you ar comfortable with market volatility, and the level you dismiss tolerate. era it is swooning in hindsight to wish you had invested in a risky segment of the market that has performed hale recently, a more realistic view is to look in advance at the risk that might occur in the future. other(a) surplus CircumstancesAre there other considerations of which your advisor should be awargon? Consider here whatever special needs, goals, or problems you imbibe not already addressed. Types of investors on that point is wide diversity among investors, depending on their investment styles, mandates, horizons, and assets chthonic management. Primarily, investors be each several(prenominal)s,in that they invest for themselves or institutions, where they invest on behalf of others. Risk ap positron emission tomographyites and return requirements greatly vary across investor classes and are key determinants of the investing styles and strategies followed as also the constraints faced.A quick look at the broad groups of investors in the market illustrates the point. Individuals While in scathe of numbers, individuals comprise the wholeness bulkyst group in to the highest degree markets, the size of the portfolio of each investor is ordinarily quite microscopical. Individuals differ across their risk appetite and return requirements. Those averse to risk in their portfolios would be devoted towards safe investments like brass securities and curse extend tos, while others may be risk takers who would like to invest and / or speculate in the orduredour markets.Requirements of individuals also evolve jibe to their life-cycle positioning. For example, in India, an individual in the 25-35 course of studys age group may plan for purchase of a house and vehicle, an individual belonging to the age group of 35-45 geezerhood may plan for childrens education and childrens marriage, an individual in his or her fifties would be planning for pose-retirement life. The investment portfolio then changes depending on the capital required for these requirements. Institutionsinstitutional investors comprise the largest active group in the fiscal markets. As mentioned earlier, institutions are representative organizations, i. e. , they invest capital on behalf of others, like individuals or other institutions. Assets under management are generally large and managed professionally by fund managers. Examples of such organizat ions are uncouth gold, support specie, redress companies, outwit property, giving monetary resource, banks, undercover equity and venture capital firms and other financial institutions. We briefly describe some of them here. uncouth specieIndividuals are commonly laboured either by resources or by limits to their k instantaneouslyledge of the investment insureing ability of various financial assets (or both(prenominal)(prenominal)) and the difficulty of keeping abreast of changes taking place in a rapidly changing economic environment. Given the tiny portfolio size to manage, it may not be optimal for an individual to return his or her time analyzing various possible investment strategies and devise investment plans and strategies harmonizely. Instead, they could rely on professionals who possess the necessary expertise to manage their silver within a broad, pre-specified plan.Mutual finances pool investors money and invest according to pre-specified, broad par ameters. These notes are managed and expired by professionals whose remunerations are linked to the performance of the gold. The profit or capital gain from the funds, after paying the management fees and commission is distributed among the individual investors in pro per centum to their holdings in the fund. Mutual funds vary greatly, depending on their investment objectives, the set of asset classes they invest in, and the overall strategy they adopt towards investments. Pension fundsPension funds are created (either by employers or employee unions) to manage the retirement funds of the employees of companies or the Government. shops are contributed by the employers and employees during the working life of the employees and the objective is to provide benefits to the employees post their retirement. The management of pension funds may be in-house or through some financial intermediary. Pension funds of large organizations are usually very large and form a substantial investo r group for various financial instruments. endowment fundsEndowment funds are generally non-profit organizations that manage funds to generate a unassailable return to help them fulfill their investment objectives. Endowment funds are usually initiated by a non-refundable capital contribution. The contributor generally specifies the purpose (specific or general) and appoints trustees to manage the funds. Such funds are usually managed by charitable organizations, educational organization, non-Government organizations, etc. The investment policy of endowment funds needs to be approved by the trustees of the funds. Insurance companies ( keep and Non-life)Insurance companies, both life and non-life, hold large portfolios from premiums contributed by policyholders to policies that these companies underwrite. there are many an(prenominal) different kinds of redress policies and the premiums differ accordingly. For example, unlike term policy, assurance or endowment policies ensu re a return of capital to the policyholder on maturity, on with the death benefits. The premium for such policies may be higher than term policies. The investment strategy of indemnification companies depends on actuarial estimates of timing and measuring stick of future claims.Insurance companies are generally standpat(prenominal) in their attitude towards risks and their asset investments are geared towards meeting current cash flow needs as well as meeting perceived future liabilities. edges Assets of banks muddle up primarily of contributes to businesses and consumers and their liabilities comprise of various forms of secretarys from consumers. Their main source of income is from what is called as the bet rate riddle, which is the divergence between the lending rate (rate at which banks earn) and the state rate (rate at which banks pay). trusts generally do not lend degree Celsius% of their bushels. They are statutorily required to maintain a trus dickensrthy mi ckle of the specifys as cash and another portion in the form of liquid and safe assets (generally Government securities), which yield a lower rate of return. These requirements, cognize as the Cash Reserve ratio (CRR ratio) and Statutory Liquidity Ratio (SLR ratio) in India, are stipulated by the Reserve commit of India and banks need to cling to them. In addition to the broad categories mentioned to a higher place, investors in the markets are also assort based on the objectives with which they trade.Under this classification, there are hedgers, speculators and arbitrageurs. Hedgers invest to provide a cover for risks on a portfolio they already hold, speculators take additional risks to earn supernormal returns and arbitrageurs take simultaneous positions (say in deuce equivalent assets or comparable asset in twain different markets etc. ) to earn risk little profits arising out of the price differential if they exist. Another social class of investors embarrass day-tr aders who trade in fiat to profit from intra-day price changes.They generally take a position at the beginning of the trading sitting and square off their position later during the day, ensuring that they do not realise got any exposed position to the next trading day. Traders in the markets not only invest directly in securities in the so called cash markets, they also invest in derivatives, instruments that derive their value from the underlying securities. Types of investment in Indian Financial marketplace depositing areaIntroductionThe Reserve Bank of India (RBI) is Indias underlying bank.Though the banking industry is currently reind by public vault of heaven banks, numerous private and unknow banks exist. Indias government-owned banks dominate the market. Their performance has been mixed, with a few universe consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will issue its ownership. Bank s in India rump be categorized into non-scheduled banks and scheduled banks. Scheduled banks spring of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India.During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a recess from Class banking to Mass banking. Since then the step-up of the banking industry in India has been a continuous process. As far as the present scenario is relate the banking industry is in a transition phase. The Public domain Banks (PSBs), which are the base of the Indian Banking arranging depend for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), broad manpower and lack of modern technology.On the other hand the Private Sector Banks in India are witnessing immense progress. They are maneuverers in lucre banking, mobile banking, phone bankin g, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the volunteer Retirement devices (VRS). As far as foreign banks are c one timerned they are likely to succeed in India. Induslnd Bank was the first private bank to be set up in India.IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc. ANZ Grindlays Bank, ABN-AMRO Bank, Ameri potty Express Bank Ltd, Citibank etc are some foreign banks operating in India. Private and foreign banksThe RBI has granted operating approval to a few privately owned interior(prenominal) banks of these many commenced banking business. external banks make more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political zygomorphous relations. An inter-departmental committee approves applications for entry and expansion. RBI bankingThe Reserve Bank of India is the central banking institution. It is the furbish up authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the governments monetary policy. It is also responsible for granting licenses for new bank branches. 5 foreign banks operate in India with full banking licenses. Several licenses for private banks choose been approved. Despite fairly broad banking coverage nationwide, the financial arrangement remains inaccessible to the poorest people in India. Some of its main objectives are regulating the issue of bank notes, managing Indias foreign exchange reserves, operating Indias currency and credit system with a view to securing monetary stability and ontogenesis Indias financial structure in line with national socio-economic objectives and policies. Indian banking systemThe banking system has ternary tiers.These are the scheduled commercial banks the regional cracker-barrel banks which operate in rural areas not cover by the scheduled banks and the co-op and special purpose rural banks. Scheduled and non scheduled banksThere are roughly 80 scheduled commercial banks, Indian and foreign almost cc regional rural banks more than 350 central cooperative banks, 20 land development banks and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.RBI restrictionsThe Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popularly known as consortium guidelines seem to amaze outlived their usefulness, bec ause they hinder the availability of credit to the non-food sector and at the akin time do not foster competition between banks. Indian vs. foreign banksMost Indian banks are well behind foreign banks in the areas of node funds modify and clearing systems. They are hugely over-staffed and are unbelievable to be able to compete with the new private banks that are now entering the market.While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. Grey future bingle more conclude being the opacity of the The Reserve Bank of India. This does not mean a envision of doom for the Indian banking sector the kind that has washed out southernmost east Asia. And also not because Indian banks are healthy. We still have no clue about the real non-performing assets of financial institutions and banks. Many banks are now listed. That puts additional responsibility of sharing informat ion.It is now clear that it was the financial sector that caused the sensational meltdown of some Asian nations. India is not Thailand, Indonesia and Korea. Borrowed investment in property in India is low and property prices have already hark backen, letting out steam gently. Our micro-meltdown has already been happening. Bank mend Schemes * Bank repository Schemes for occupant Indians * Bank Deposit Schemes for Non nonmigratory IndiansBank deposits are preferable more for theirliquidity and safetythan for the returns thereon. Various banking and other facilities that one gets by possible action a bank neb viz.ATM cards, ATM-cum-Debit cards, Credit Cards, On-line / earnings banking, take inion / realization of cheques and other instruments, safe deposit lockers, better customer service etc. are also a major reason in favour of bank deposits vis-a-vis other selections. The deposit news reports byeed by banks dip broadly under pastime categories Bank Deposit Schemes f or Resident IndiansFollowing deposit identifys are offered by banks to Resident Indians * efficacious offs Bank dependsThese names are undetermined for savings, liquidity and safety of funds and convenience in devising day to day expenses and also earning some take income.These accounts inculcate the enjoyment of thrift in account holders. View salient features of pitchs Bank accounts. * Current reputationsThese accounts are unmannerlyed for liquidity and safety of funds and for meeting day to day expenses. Current accounts are opened and kept up(p) primarily by business and commercial organizations. No income is earned on these deposits. Individuals usually open these accounts for availing overdraft preparedness as overdraft facility is not available in Savings Bank accounts. View salient features ofCurrent Accounts. * Recurring Deposit AccountsThese accounts are opened for saving purpose only.Some fixed bar is deposited at monthly intervals for a pre-fixed term. Th ese accounts generally earn higher interest than Savings Bank Accounts. View salient features ofRecurring Deposit accountsin banks. * Fixed Deposit or limit Deposit AccountsThese accounts are opened for investing funds for fixed terms to earn higher interests. Usually deposit for a longer period of time earns higher pursual Rate. The account holders have option of getting periodic payment of interest at monthly/ quarterly intervals or re-investing the interest to be salaried on maturity with the principal.View salient features ofTerm / Fixed Deposit Accountsin banks. * peculiar(prenominal) Bank Term Deposit Scheme Bank Deposit Scheme under section 80CThis is the onlyTax Saving Schemeavailable with banks. The accounts opened under this scheme are eligible forrelief under Section 80Cof the Income Tax, Act. View salient features ofBank Deposit Scheme for tax saving. Bank Deposit Schemes for Non-Resident IndiansFollowing deposit accounts are offered by banks to Non Resident Indians * Non-Resident international (NRE) AccountsThese Accounts can be opened by Non Resident Indians individually or together with with other Non Resident Indian(s).The accounts can be opened in Savings Bank, Current Account, Term/Fixed Deposit with monthly/quarterly interest payment or Term/Fixed Deposit with interest reinvestment types. The account holders can grant Power of Attorney to Resident Indians to operate upon their Savings Bank or Current Accounts. The accounts are maintained in Indian Rupees. View salient features ofNRE Accounts * * strange Currency Non Resident (FCNR) AccountsThese Accounts can be opened by Non Resident Indians individually or jointly with other Non Resident Indian(s).The accounts can be opened as Term/Fixed Deposit with the option of monthly/quarterly Interest payment or of re-investing the interest for payment on maturity with the principal. The accounts are maintained in foreign currencies viz. US Dollars, Euros, Sterling Pounds, Canadian Dollars, Au stralian Dollars and Japanese Yen. View salient features ofFCNR accounts. * Non-Resident Ordinary (NRO) AccountsThese accounts can be opened by Non Resident Indians individually or jointly with other Non Resident or Resident Indian(s). These accounts can also be opened by Resident Indians by foreign inward remittance.The accounts are maintained in Indian Rupees. View salient features ofNRO Accounts. Mutual fundsMutual fund is a appliance for pooling the resources by issuing units to the investors and investing funds in securities in amity with objectives as dis disagreeable in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. variegation reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fundissues units to the investors in accordance with quantum of money invested by them.Investors of mutual funds are known asunit holders. The profits or injuryes are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and replacement Board of India (SEBI) which regulates securities markets to begin with it can collect funds from the public. Schemes according to matureness PeriodA mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.Open-ended stock/ SchemeAn open-ended fund or scheme is one that is available for subscription and redemption on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently defile and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity. Close-ended Fund/ SchemeA close-ended fund or scheme has a stipulated mat urity period e. g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme.Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i. e. either repurchase facility or through itemisation on stock exchanges.These mutual funds schemes disclose NAV generally on weekly basis. Schemes according to Investment ObjectiveA scheme can also be classified as growth scheme, income scheme, or balance scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as followsGrowth / equity Oriented SchemeThe aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities.Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors essential imply the option in the application form. The mutual funds also chuck up the sponge the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented SchemeThe aim of income funds is to provide fixedness and steady income to investors.Such schemes generally invest in fixed income securities such as bonds, incarnate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. TheNAVsof such funds are affected because of change in interest rates in the country. If the interest rates fall,NAVsof such funds are likely to increase in the short run and vice versa.However, long term investors may not bother about these fluctuations. equilibrise FundThe aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for mollify growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However,NAVsof such funds are likely to be less volatile compared to pure equity funds.Money merchandise or Liquid FundThese funds ar e also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Gilt FundThese funds invest exclusively in government securities.Government securities have no default risk. NAVsof these schemes also fluctuate due to change in interest rates and other economic factors as is the eccentric with income or debt oriented schemes. Index monetary resourceIndex Funds replicate the portfolio of a particular world power such as the BSE Sensitive index, SP NSE 50 index (Nifty), etc These schemes invest in the securities in the sameweightagecomprising of an index. NAVsof su ch schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same luck due to some factors known as tracking error in technical terms.Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges. stakeal savings Postal Services in India India possesses the largest postal network in the world with 154,866post voices, of which 139,040 (89. 78%) are in rural areas and 15,826 (10. 22%) are in urban areas. It has 25,464 departmental PO s and 129,402 ED BPOs. spread all over the country . Post stains in India play a vital role in the rural areas.They connect these rural areas with the rest of the country and also provide banking facilities in the absence of banks in the rural areas. Post Offices offer various types of schemes. These are * Monthly Income Scheme * National Savings Certificate * Publ ic careful Fund * Time Deposit Scheme * Senior Citizens Saving Scheme * Saving Account Monthly Income Scheme (MIS) This scheme appeals to conservative investors with traditional values, and for good reason. This scheme offers monthly income and is a safe, guaranteed-by-the-government option. For retirees, widows and others looking or a steady income, it can be ideal. Read on to learn more. The Post Office Monthly Income Scheme, or PO MIS, is offered by Indian Post Offices. A lump sum amount is deposited with the post righteousness and monthly interest earned each month is paid out to you. As the scheme is offered by post offices, it is backed by the government. Thus, the PO MIS is one of the safest investments available. great Features * Interest rate of 8. 5% per annum payable monthly w. e. f. 01. 04. 2012 * Maturity period is 5 years. * No Bonus on Maturity w. e. f. 01. 12. 2011. * No tax deduction at source (TDS). * No tax rebate is applicable. Minimum investment amount is Rs. 1500/- or in multiple thereafter. * upper limit amount is Rs. 4. 50 lakhs in a private account and Rs. 9 lakhs in a joint account. * Auto credit facility of monthly interest to saving account if accounts are at the same post office. * Account can be opened by an individual, two/ collar adults jointly, and a forgivable through a guardian. * Non-Resident Indian / HUF cannot open an Account. * Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian. * Facility of premature closure of account after 1 year but on or in advance 3 years 2. 0% discount. * Deduction of 1% if account is closed prematurely at any time after three years. * suitable scheme for retired employees/ senior citizens and for those who need regular monthly income. National Saving Certificate (NSC) National Savings Certificates (NSC) are certificates issued by Department of post, Government of India and are available at all post office counters in the country . This scheme is specially designed for Government employees, Businessmen and other stipendiary classes who are IT assesses. It is a long term safe savings option for the investor.Trust and HUF cannot invest. The scheme combines growth in money with reductions in tax financial obligation as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 5 years. Salient Features * NSC VIII Issue (5 years) Interest rate of 8. 6% per annum w. e. f. 01. 04. 2012 * NSC IX Issue (10 years) Interest rate of 8. 9% per annum w. e. f. 01. 04. 2012 * Minimum investment Rs. snow/-. No maximum limit for investment. * No tax deduction at source. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under NSC section 80C of IT Act. Certificates can be kept as collateral security to get loan from banks. * Trust and HUF cannot invest. * A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. * The in terest accruing p.a. but deemed to be reinvested will also qualify for deduction under NSC section 80C of IT Act. Public forethoughtful Fund (PPF) Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them.The balances in PPF account cannot be attached by any authority normally. Salient Features * Interest rate of 8. 8% per annum w. e. f. 01. 04. 2012. * Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,00,000/- per annum * The scheme is for 15 years. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest is completely tax-free. * Deposits can be made in lumpsum or in 12 installments. * One deposit with a marginal amount of Rs 500/- is mandatory in each financial year. * detachment is permissible from 6th financial year. Loan facility available from tertiary fin ancial year upto 5th financial year. The rate of interest aerated on loan taken by the subscriber of a PPF account on or after 01. 12. 2011 shall be 2% p. a. However, the rate of interest of 1% p. a. shall continue to be charged on the loans already taken or taken up to 30. 11. 2011. * Free from court attachment. * Non-Resident Indians (NRIs) not eligible. * An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons. * Ideal investment option for both salaried as well as self employed classes.Time Deposit Scheme A Post-Office TimeDepositAccount(RDA) is abankingservicesimilar to a Bank Fixed Deposit offered by Department of post, Government of India at all post office counters in the country. The scheme is meant for those investors who want to deposit a lump sum of money for a fixed period say for a minimum period of one year to two years, three years and a maximum period of five years. Investor gets a lump sum (principal + interest) at the matur ity of the deposit. Time Deposits scheme return a lower, but safer, growth in investment. Salient Features 1 year, 2 year, 3 year and 5 year time deposits can be opened. * Interest payable annually but compounded quarterly PERIOD RATE OF INTEREST One Year 8. 2% Two historic period 8. 3% Three Years 8. 4% Five Years 8. 5% * Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/- thereafter. No maximum limit. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest income is taxable. * Facility of deposit on maturity of an account. * In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01. 12. 011 between 6 months to one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable. * 2 year, 3 year or 5 year accounts on or after 01. 12. 2011 if closed after one year, interest on such deposits shall be calcu lated at a discount of 1% on the rate specified for respective period as mentioned in the concerned table given under Rule 7 ofPost office Time Deposit Rules. * Account can be pledged as security against a loan to banks/ Government institutions. * Any individual (a single adult or two adults jointly) can open an account. Group Accounts, Institutional Accounts and Misc. account not permissible. * Trust, Regimental Fund or Welfare Fund not permissible to invest. Senior Citizens Saving Scheme A new savings scheme called Senior Citizens Savings Scheme has been notified with personnel from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country. Salient Features * Interest 9. 3% per annum from the date of deposit on quarterly basis w. e. f. 1. 04. 2012 * Minimum deposit is Rs c0 and multiples t hereof. Maximum limit of 15 lakhs. * Maturity period is 5 years and can be extended for a further period of 3 years. * Age should be 60 years or more, and 55 years or more but less than 60 years who has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement. * No age limit for the retired personnel of self-abnegation run provided they fulfill other specified conditions. * The account may be opened in individual capacity or jointly with spouse. TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per annum. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest can be automatically credited to savings account provided both the accounts stand in the same post office. * Premature closure is allowed after one year on deduction of 1. 5% of the deposit and after 2 years on deductio n of 1%. * No withdrawal permitted before the expiry of a period of 5 years from the date of opening of the account. * Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.Saving Account Post office saving account is similar to a savings account in a bank. It is a safe instrument to park those funds, which you might need to liquidate fully or partially at very short find out. Post office savings accounts are peculiarly suited for those living in rural and semi-rural areas where the reach of banks is very limited. Salient Features * Rate of interest 4. 0% per annum * Minimum amount Rs 50/- in case of non-cheque account, Rs. 500/- in case of cheque account. * Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a joint account. Interest Tax Free. * Any individual can open an account. * Cheque facility available. * Group Account, Institutional Account, other Accounts like tribute Deposit account Official C apacity account are not permissible. Equity Indian Equity grocery store The Indian Equity Market is also the other name for Indian share market or Indian stock market. The forces of the market depend on monsoons, global fundings period into equities in the market and the performance of various companies. The Indian market of equities is transacted on the basis of two major stock indices, National Stock Exchange of India Ltd. NSE) and The Bombay Stock Exchange (BSE), the trading being carried on in a dematerialized form. The physical stocks are in liquid form and cannot be exchange by the investors in any market. Two types of funds are there in the Indian Equity Market Venture Capital Funds and Private Equity Funds. The equity indexes are correlated beyond the boundaries of different countries with their exposure to common calamities like monsoon which would affect both India and Bangladesh or trade integration policies and close connection with the foreign investors.From 1995 onw ards, both in terms of trade integration and FIIs India has made an advance. All these have established a close relationship between the stock market indexes of India stock market and those of other countries. The Stock derivatives add up all futures and options on all individual stocks. This stock index derivative was found to have kaput(p) up from 12 % of NSE derivatives turnover in 2002 to 35 % in 2004. The Indian Equity Market also comprise of the Debt Market, dominated by primary dealers, banks and wholesale investors.Indian Equity Market at present is a moneymaking field for the investors and investing in Indian stocks are profitable for not only the long and medium-term investors, but also the position traders, short-term degenerate traders and also very short term intra-day traders. In terms of market capitalization, there are over 2500 companies in the BSE chart list with the Reliance Industries Limited at the top. The SENSEX today has rose from 1000 levels to 8000 level s providing a profitable business to all those who had been investing in the Indian Equity Market.There are about 22 stock exchanges in India which regulates the market trends of different stocks. prevalently the bigger companies are listed with the NSE and the BSE, but there is the OTCEI or the everywhere the Counter Exchange of India, which lists the medium and small sized companies. There is the SEBI or the Securities and Exchange Board of India which supervises the functioning of the stock markets in India. In the Indian market scenario, the large FMCG companies reached the top line with a double-digit growth, with their shares being harming for investing in the Indian stock market.Such companies like the Tata Tea, Britannia, to name a few, have been providing a bustling business for the Indian share market. Other leading houses offering equally beneficial stocks for investing in Indian Equity Market, of the SENSEX chart are the two-wheeler and three-wheeler maker Bajaj Auto and second largest software system exporter Infosys Technologies. Other than some restricted industries, foreign investment in general enjoys a majority share in the Indian Equity Market. Foreign Institutional Investors (FII) need to register themselves with the SEBI and the RBI for operating in Indian stock exchanges.In fact from the Indian stock market analysis it is known that in some specific industries foreigners can have even 100% shares. In the last few years with the facility of the Online Stock Market Trading in India, it has been very convenient for the FIIs to trade in the Indian stock market. From an analysis on the Indian Equity Market it can be said that the increase in the foreign investments over the years no doubt have accentuated the dynamism of the Indian market of equities. Foreign investors are allowed to buy Indian equity for the purpose of converting the equity into ADR or GDR.Thus, the growing financial capital markets of India being encouraged by domestic a nd foreign investments is becoming a profitable business more with each day. If all the economic parameters are unchanged Indian Equity Market will be conducive for the growth of private equities and this will lead to an overall improvement in the Indian economy. Insurance Insuranceis a form ofrisk managementprimarily used tohedgeagainst theriskof a contingent,uncertain acquittance. Insurance is delineated as the equitable transfer of the risk of a disadvantage, from one entity to another, in exchange for payment.An policy company, or damages carrier, is a keep company selling the damages the ascertain, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice ofappraisingand exacting risk, has evolved as a discrete field of study and practice. The transaction involves the assure assuming a guaranteed and known relatively small firing in the form of payment to the general agent in exchange for the insurers promise to yield (indemnify) the verify in the case of a financial (personal) want.The verify receives acontract, called theinsurance policy, which details the conditions and circumstances under which the insured person will be financially compensated. The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities, both persons and organizations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multipurpose and offer the hobby benefits Protection to the investors * Accumulate savings * Channelize savings into sectors needing huge long term investments. Insurance involvespoolingfunds frommanyinsured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from r isk for a fee, with the fee being dependent upon the frequency and moroseness of the issuance occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be aninsurable risk.Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can alsoself-insurethrough saving money for possible future losses. Insurability Risk which can be insured by private companies typically share seven common characteristics 1. Large number of similar exposure units Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from thelaw of large numbersin which predicted losses are similar to the actual losses.Exceptions includeLloyds of London, which is famous for insuring the life or health of actors, sports figures and other famous individuals. However, all exposures will have particular dif ferences, which may lead to different premium rates. 2. Definite loss The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire,automobile accidents, and proletarian injuries may all easily meet this criterion. Other types of losses may only be definite in supposition.Occupational disease, for instance, may involve extended exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear overflowing that a reasonable person, with sufficient information, could objectively verify all three elements. 3. Accidental loss The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the prospect for salute.Events that contain sp eculative elements, such as ordinary business risks or even purchasing a lottery ticket, are generally not considered insurable. 4. Large loss The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to pretty assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses.There is hardly any point in paying such costs unless the protection offered has real value to a buyer. 5. Affordable premium If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that the insurance will be purchased, even if on offer. Further, as the accounting profession formally recognizes in financial account ing standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer.If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. 6. Calculable loss There are two elements that must be at least estimable, if not formally calculable the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim. . Limited risk of catastrophically large losses Insurable losses are ideally self-governingand non-catastrophic, meaning that the losses do not happen all at once and individual losses are not severe liberal to bankrupt the insurer insurers may prefer to l imit their exposure to a loss from a single event to some small portion of their capital base. Capitalconstrains insurers ability to sellearthquake insuranceas well as wind insurance inhurricanezones. In the US, swamp riskis insured by the federal government.In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurers capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into thereinsurancemarket. Legal When a company insures an individual entity, there are basic level-headed requirements. Several commonly cited legal principles of insurance include 1. Indemnity the insurance company indemnifies, or compensates, the insured in the case of certain losses only up to the insureds interest. . Insurable interest the insured typically must directly cope with from the loss. Insurable interest must exist whether property insu rance or insurance on a person is involved. The concept requires that the insured have a stake in the loss or damage to the life or property insured. What that stake is will be determined by the kind of insurance involved and the nature of the property ownership or relationship between the persons. 3. Utmost good faith the insured and the insurer are bound by agood faithbond of honesty and fairness. Material facts must be disclosed. 4.Contribution insurers which have similar obligations to the insured contribute in the indemnification, according to some method. 5. Subrogation the insurance company acquires legal rights to pursue recoveries on behalf of the insured for example, the insurer may sue those liable for insureds loss. 6. Causa proxima, or proximate cause the cause of loss (the peril) must be covered under the insuring agreement of the policy, and the dominant cause must not beexcluded 7. Mitigation In case of any loss or casualty, the asset owner must attempt to keep the loss to a minimum, as if the asset was not insured.Indemnification To indemnify means to make whole again, or to be reinstated to the position that one was in, to the extent possible, preceding to the happening of a specified event or peril. Accordingly,life insuranceis generally not considered to be policy insurance, but rather contingent insurance (i. e. , a claim arises on the occurrence of a specified event). There are generally two types of insurance contracts that seek to indemnify an insured 1. an indemnity policy, and 2. a pay on behalf or on behalf ofpolicy. The difference is significant on paper, but rarely material in practice.An indemnity policy will never pay claims until the insured has paid out of paper bag to some third party for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an indemnity policy the homeowner would have to come up with the $10,000 to pay for the visitors fall and then would be indemn ified by the insurance carrier for the out of pocket costs (the $10,000). 45 Under the same situation, a pay on behalf policy, the insurance carrier would pay the claim and the insured (the homeowner in the above example) would not be out of pocket for anything.Most modern liability insurance is written on the basis of pay on behalf language. An entity seeking to transfer risk (an individual, corporation, or association of any type, etc. ) becomes the insured party once risk is assumed by an insurer, the insuring party, by means of a contract, called aninsurance policy. Generally, an insurance contract includes, at a minimum, the following elements identification of active parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i. . , the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions(events not covered). An insured is thus said to be indemnified a gainst the loss covered in the policy. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a claim against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium.Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims in theory for a relatively few claimants and foroverheadcosts. So long as an insurer maintains adequate funds set aside for anticipated losses (called reserves), the remaining margin is an insurersprofit. Types of Insurances * Life Insurance * General Insurance Life Insurance Life insuranceis a contract between aninsurance policy holderand aninsurer, where the insurer promises to pay a designatedbeneficiary sum of money (the benefits) upon the death of the insured person.Depending on the contract, other events such asterminal illnessor critical illnessmay also trigg er payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits. The advantage for the policy owner is peace of mind, in knowing that the death of the insured person will not result in financial hardship for love ones and lenders. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events.Specific exclusions are often written into the contract to limit the liability of the insurer common examples are claims relating to suicide, fraud, war, riot and civil commotion. Life-based contracts tend to fall into two major categories * Protectionpolicies designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. * Investmentpolicies where the main objective is to facilitate the growth of capital by regular or single premiums.Common forms (in the U S) arewhole life,universal lifeandvariable life policies. General Insurance General insuranceor non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to belife insurance. It is calledpropertyand casualtyinsurancein theU. S. andNon-Life Insurancein Continental Europe. Commercial linesproducts are usually designed for relatively small legal entities.These would include workers comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard sort to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels. Personal linesproducts are designed to be sold in large quantities. This would includeautos(private car),ho meowners(household), pet insurance, creditor insurance and others. ACORDwhich is the insurance industry global standards organisation.ACORD has standards for personal and commercial lines and has been working with the Australian General Insurers to develop those XML standards, standard applications for insurance, and certificates of currency. PORTFOLIO MANAGEMENT A good way to begin understanding what portfolio management is (and is not) may be to define the termportfolio. In a business context, we can look to the mutual fund industry to explain the terms origins. Morgan StanleysDictionary of Financial Termsoffers the following explanation If you own more than one security, you have an investment portfolio.You bring in the portfolio by buying additional stocks, bonds, mutual funds, or other investments. Your goal is to increase the portfolios value by selecting investments that you believe will go up in price. According to modern portfolio theory, you can reduce your investment ris k by creating a diversified portfolio that includes enough different types, or classes, of securities so that at least some of them may produce strong returns in any economic climate. Note that this explanation contains a number of important ideas * A portfolio contains many investment vehicles. Owning a portfolio involves making choices &8212 that is, deciding what additional stocks, bonds, or other financial instruments to buy when to buy what and when to sell and so forth. Making such decisions is a form of management. * The management of a portfolio is goal-driven. For an investment portfolio, the specific goal is to increase the value. * Managing a portfolio involves inherent risks. Objectives of Portfolio Management- The objective ofportfolio managementis to invest in securities is securities in such a way that one maximizes ones returns and minimizes risks in order to achieve ones investment objective.A goodportfolioshould have multiple objectives and achieve a sound balance among them. Any one objective should not be given undue importance at the cost of others. Presented below are some important objectives of portfolio management. 1. Stable Current Return Once investment safety is guaranteed, the portfolio should yield a steady current income. The current returns should at least match the opportunity cost of the funds of the investor. What we are referring to here current income by way of interest of dividends, not capital gains. 2. Marketability A good portfolio consists of investment, which can be marketed without difficulty. If there are too many unlisted or inactive shares in your portfolio, you will face problems in encasing them, and switching from one investment to another. It is desirable to invest in companies listed on major stock exchanges, which are actively traded. 3. Tax Planning Since taxation is an important variable in total planning, a good portfolio should modify its owner to enjoy a favorable tax shelter. The portfolio should b e essential considering not only income tax, but capital gains tax, and gift tax, as well.What a good portfolio aims at is tax planning, not tax evasion or tax avoidance. 4. Appreciation in the value of capital A good portfolio should appreciate in value in order to protect the investor from any erosion in purchasing power due to inflation. In other words, a balanced portfolio must consist of certain investments, which tend to appreciate in real value after adjusting for inflation. 5. Liquidity The portfolio should ensure that there are enough funds available at short notice to take care of the investors liquidity requirements.It is desirable to keep a line of credit from a bank for use in case it becomes necessary to participate in right issues, or for any other personal needs. 6. Safety of the investment The first important objective of a portfolio, no matter who owns it, is to ensure that the investment is absolutely safe. Other considerations like income, growth, etc. , only c ome into the picture after the safety of your investment is ensured. Investment safety or minimization of risks is one of the important objectives of portfolio management.There are many types of risks, which are associated with investment in equity stocks, including super stocks. control in mind that there is no such thing as a zero risk investment. More over, relatively low risk i