Mutual Fund Notes Made by St.Saadii for fawad ali khan

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Managing Savings With Money Market Mutual Funds

ContentsContents ............................................................................................................................... 1

“Introduction” ...................................................................................................................... 2

Date: ..................................................................................................................................... 2

OVER VIEW: ...................................................................................................................... 3 Analysis: ............................................................................................................................. 3

Conclusion: .......................................................................................................................... 4

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Submitted By Fawad Ali Khan January 25, 2011

MBA (Banking & Finance)Semester 1st




“Introduction”

Author’s Name:M. Faisal Potrik

Source:Dawn News Paper

Date:

Nov 29th 2010

Article Name:

“Managing Savings with Money Market

Funds”

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OVER VIEW:I have chosen this topic because it highlights a very good impact over the economy. As

we know that finance is the life blood of every business and every economy is based onit, and in order to build up a healthy economy investment plays the most essential parts.

There are lots of way to invest but the main theme of this article is that it is a

motivational article that motivates that ordinary man having limited resources to investand make his extra money more useful by investing and participating in mutual funds.

Analysis:In this article the author “Mrs. M. Faisal Potrik” Has very efficiently describe the various

features of mutual funding. A huge sector of general public considers mutual funds a very

risky way of investment; this is the reason that in over economy a big sector. Our economy is considering it. Fishy way of investment. The mutual fund is basically a trust

that pools the saving of number of investors who share common financial goals. There

are a lots of features of mutual funds in that can be very beneficial for an ordinary person,who earn his income by work hard and wants to invest his money in such a way so that

he could earn maximum profit from his investment. As mutual funds is also very

beneficial for short term savers

Mutual funds is more secure way of investment, In bank and other financial institutionthe people who there money on fixed saving Accounts, can only enjoy a very limited and

fixed rate of interest i-e mainly 5% to 8%. Whereas if the same person who have some

spare (money) finance can be earn more through investment that money in some mutual

funds scheme. As the mutual fund is totally depends upon the market condition, In caseby mutual funds the organization earns 15%of profit then every person who invested in it

will get same rate the amount he/she invested, either he invested 5000 or 5 billions hewill get the same percentage of return i-e 15% there are lots of other features of mutual

funds from which we are unaware, the writer in the article diverts attention of general

public that mutual funds have money feature that makes it good choice of investment,such as on the basis of liquidity the mutual funds is flexible as the person who invest his

money can get his money with in a period on one day. In six months investment the

mutual funds return provides some tax advantage as well, where as if an investor invest

his money for the time period of one year, than its return become tax free, under prevailing law. Further of mutual funds are it gives investor a very competitive return i-e

11% per anum. It is safe as it deals investment in the form of T-Bills which are usuallyshort term debt obligations backed by Government and shot term deposit.Last but not the least in the third world countries most of the people having idle money

use to invest there money through mutual funds which provides them better rate of return

also very growthful for economy of that country.

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Conclusion:From this article it is quite easily concluded that “Mutual Funds” is overall mostly plays

very vital and effective role in the economy.

More over it is said that “No Risk, No Reward” which means that if investor take a risk he may earn more reward of his investment.

On the other hand it is the highest demerit of “Mutual fund” that mutual funds is depend

on market condition a slight down ward trend in market may be harmful for investmentsdone by mutual funds.

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Mutual Fund Notes Made by St.Saadii for fawad ali khan

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