The Impact of Cultural Capital on Advertisement

The impact of Cultural Capital on advertisement Class Professor *** Name Date Overview The French sociologist Pierre Bourdieu first proposed the concept of cultural capital. Since the 1980s, social capital has become a popular concept in many disciplines concerned and analysis of important starting point. Hofstede (1980) published a study in the field of cultural significance of the research results. In 1980s, scholars did a large number of cross-cultural consumer behavior based Hofstede’s cultural construct.After the 1990s, globalization and technological revolution in the joint action, cultural issues in all areas of marketing, reflected in all directions, the impact of cultural capital on advertisement journals were seen everywhere. â€Å"Advertising. † The word of foreign origin, derived from the Latin word â€Å"Adteurture†; its basic meaning is the meaning of attention and induce the latter evolved into the English language â€Å"Advertise†. In recen t years, advertising fills of people’s lives. From the television’s ads, newspaper’s ads, outdoor walls’ ads, to the network, advertising are seen every where.But in different cultural background, consumer values, consumption patterns and consumer behavior are different. Cultural capital has a deep impact on advertising, which cannot be ignored. Today's society is in economic globalization; all the advertising companies cannot separate from cultural capital. We need to know when planning to advertise the nation's culture, and culture types, this is the ads, predictable. â€Å"Cultural capital has three subtypes: embodied, objectified and institutionalized. † (Bourdieu, 1986). According to three different types of cultural capital.Below, I will talk about my type of advertising of these three different effects. Embodied cultural capital Embodied cultural capital is embedded in the individual's cultural capital. One of the most important parts is the language of the capital. â€Å"Linguistic capital, defined as the mastery of and relation to language, can be understood as a form of embodied cultural capital in that it represents a means of communication and self-presentation acquired from one's surrounding culture. † (Bourdieu, 1990) A hundred years ago, an American visited a Chinese government officer and his wife.First meeting, the American praised the officer’s wife was very beautiful. The officer replied: â€Å"Where, where. † The American did not understand, thought and answered â€Å"from the top to the bottom. † The officer still said â€Å"Where, where. † The American got confused. From this story is easy to see cultural shuck; when Chinese people are praised, they often reply â€Å"where† as a humble answer; meanwhile, Americans say â€Å"thank you†. In advertising design should also consider this factor. For example, â€Å"white elephant† is a battery brand; they first translated their company name into English â€Å"White Elephant† directly, but found poor sales.Later, they realized that white elephant in some countries is considered to be useless things. Who will buy useless things? With the lion was sent to the company described as a powerful force. They renamed their company â€Å"Brown Lion†, meaning the battery is strong, powerful. Sales really improved. In the study of language and culture, The Chinese company â€Å"Haier† was a successful story when it founded in China. The first time the company was called â€Å"qindao-libohaier†, then before entering the international market, it changed its name to â€Å"haier†, a catchy name is not only simple to speak, but also share the same pronunciation with â€Å"higher†.Language is the main tool of culture and communication. Languages of different ethnic groups also showed different ways of thinking. It is this difference that has cultural differen ces, but it also constitutes an obstacle to advertising. However, in various languages, the same concept can be used to explain things or title meaning. Furthermore, it is this commonness for different cultures that provides a basis for communication. In the design of advertisement, the use of this commonness can make the advertising language have less effective results. Objectified cultural capital Objectified cultural capital consists of physical objects that are owned, such as scientific instruments or works of art. † (Wikipedia) These cultural products can be transferred to economic capital such as Physical nature, in advertising design, mainly in aesthetic taste, business negotiations, consumption patterns, new product development and packaging, the color range on the part of Objectified cultural capital. Today,color is called a universal language; it shapes the character and not only has the function to open up markets, but also has great promotional role.For example, re d has been accepted in many countries, especially Asian countries such as China, Japan, Korea, India, in the festive activities. In these countries, streets and people’s houses are decorated with red as the main colors; red ornaments are also very popular. But in Germany, people do not like red. A Chinese red package for fireworks that was exported to Germany was once slow moving. After a survey, the fireworks company found that consumers in German feel insecurity from red, then they changed the package color to gray.Sales increased sharply as a result. In the United Kingdom and the United States, gold and yellow are symbols of honor and loyalty, so they are the favorite colors of men. In the United States, a yellow taxi is the most popular; meanwhile, Kodak's film is also known for its yellow packaging, but in Japan, yellow sometimes has the meaning of morbid or unhealthy. Thus, yellow for Japanese men is a taboo color. The color of culture may have different advertising eff ectiveness. Institutionalized cultural capitalInstitutionalized cultural capital consists of institutional recognition, most often in the form of academic credentials or qualifications, of the cultural capital held by an individual. (Wikipedia) Social structure affects the way people interact and their consumption patterns. Advertising design should be based on the country or region depending on the application of different social structure, market segmentation, product positioning. Family size and background, education, income, occupation, social class belongs to the division.In Middle Eastern countries, the average family unit is the family, including parents and children, family size lot, so advertising the focus should be on family. Otherwise, a country's general education level of the factors that determine a lot of advertising. In some countries more than 70% of the population is illiterate; text ads apparently will not have very good market, its design means it should make mo re use of image-based. Supplements Beside Pierre Bourdieu's three subtypes of Cultural Capital, cultural capital of the advertising I think there is another important effect: the timeliness.Different countries and nationalities have their own forms of traditional festivals and celebrations. China's traditional festivals are the Spring Festival, and Mid-Autumn Festival. Europe and many countries have Easter, Thanksgiving, and Christmas. There are many different areas of the world with various cultural festivals. Festival time and content are different, but shopping during the holiday season often peaks. This is also advertising the best time, so designers should know in advance the situation festival, to seize the opportunity. Another example,product placement is very popular in recent years.The film industries, and the market, continue to develop; product placement is bound to become more common. The film itself is a cultural product, in addition to its own original entertainment fe atures; advertising has become a special carrier. Each film has its own schedule, so people tend to focus on the film that will be fixed in time or the first round of the premiere broadcast. Indeed, in the first release, the audience is full of curiosity with novelty, we look forward to most, when most concerned about; it should be the best advertising time. SummaryCultural ties and capital have been associated for more than 20 years. Numerous cases demonstrate the importance of cultural capital. Advertising should follow the laws of the market. The advertising industry is a cultural industry; culture is the basis for the development of the advertising industry. A national culture based on advertising will be a healthy campaign. Design should understand the culture of the international market, and according to their cultural analysis of advertising, production, adjust to better meet the target country markets, to meet the needs of the international market of consumers.

Gathering Blue Essay

Kira was born into a world ruled by the Council of Guardians, which spared her life when she was but an infant and her mother and her mother’s father—who was the chief guardian—pleaded with them to spare her life instead. Now that her mother has died, her father eaten by beasts before she was born, and her possessions taken to an aggressive woman named Vandara, Kira wonders about her future and her life now, being alone. However, because of her special, magical talent in artwork and needlecraft, Jamison of the Council of Guardians looks at her with favor, offering her a special place and task of keeping and designing the Singer’s robe. On the other hand, her young friend, Thomas, whose parents have also departed, and who has a special talent in woodwork, would take care of keeping the Singer’s staff. An old woman, Annabella, helps and teaches Kira in the art of dyeing. However, Annabella dies right after Kira hears beasts in the forest, and Kira and Matt suspect that maybe their parents died under the direction of the Council of Guardians, especially after Matt hears a frightened girl named Jo crying from the Edifice of the Guardians. By the time of the Gathering, Thomas follows Kira to her room where the former has prepared a special gift to her—her father whom she thought was already deceased; yet her father narrates that he was blinded right after Jamison, his political rival, struck him from behind and then left him for dead. Kira leaves the village to start a new life with her father. Theme: At first it appears that people who are born with a defect or an illness can never help the society, but the opposite appears to be true: children of imperfection can also possess special talents that make them unique and valuable to the society. Personal Response: Writer Lois Lowry is a magnificent writer I understood perfectly how it is to be despised in a community where defects and imperfection are enough reasons to be neglected and left to die. I enjoyed reading the vivid scenes, but the part I enjoyed most is when Kira meets her father, who appeared to be a blind man struck by Jamison, whom I did not suspect would be anything but good. Lois Lowry has a talent in bringing suspense to the fullest, making the reader jump in anticipation to another scene that would be anything except boring. It made me think that culture and traditions have a way of ruling people especially children. Instead of helping people out, certain old traditions are taking their life out. Extension Ideas: What do you think are the talents that you possess? Express it with the use of art. Do you have certain talents that, you believe, should be honored and harnessed? Make a list of them and then classify them if they are under the weak, medium, or strong categories. Kira tried her best to fight for her life and her rights. What do you think would you have done if you were put on Kira’s shoes? At the end of the story, Jamison is left in his world, while Kira and her father leaves and searches for a new and better world. What would you do to Jamison if you were one of the members of the Council of Guardians? Explain in the form of a narrati

Canons of Taxation

A good tax system is one which is designed on the basis of an appropriate set of principles (rules). The tax system should strike a balance between the interest of the taxpayer and that of tax authorities. Adam Smith was the first economist to develop a list of Canons of Taxation. These canons are still regarded as characteristics or features of a good tax system. Adam Smith gave following four important canons of taxation. 1. Canon of Equity The principle aims at providing economic and social justice to the people. According to this principle, every person should pay to the government depending upon his ability to pay. The rich class people should pay higher taxes to the government, because without the protection of the government authorities (Police, Defence, etc. ) they could not have earned and enjoyed their income. Adam Smith argued that the taxes should be proportional to income, i. e. , citizens should pay the taxes in proportion to the revenue which they respectively enjoy under the protection of the state. 2. Canon of Certainty According to Adam Smith, the tax which an individual has to pay should be certain, not arbitrary. The tax payer should know in advance how much tax he has to pay, at what time he has to pay the tax, and in what form the tax is to be paid to the government. In other words, every tax should satisfy the canon of certainty. At the same time a good tax system also ensures that the government is also certain about the amount that will be collected by way of tax. 3. Canon of Convenience The mode and timing of tax payment should be as far as possible, convenient to the tax payers. For example, land revenue is collected at time of harvest income tax is deducted at source. Convenient tax system will encourage people to pay tax and will increase tax revenue. 4. Canon of Economy This principle states that there should be economy in tax administration. The cost of tax collection should be lower than the amount of tax collected. It may not serve any purpose, if the taxes imposed are widespread but are difficult to administer. Therefore, it would make no sense to impose certain taxes, if it is difficult to administer. Additional Canons of Taxation v Activities and functions of the government have increased significantly since Adam Smiths time. Government are expected to maintain economic stability, full employment, reduce income inequality amp; promote growth and development. Tax system should be such that it meets the requirements of growing state activities. Accordingly, modern economists gave following additional canons of taxation. 5. Canon of Productivity It is also known as the canon of fiscal adequacy. According to this principle, the tax system should be able to yield enough revenue for the treasury and the government should have no need to resort to deficit financing. This is a good principle to follow in a developing economy. 6. Canon of Elasticity According to this canon, every tax imposed by the government should be elastic in nature. In other words, the income from tax should be capable of increasing or decreasing according to the requirement of the country. For example, if the government needs more income at time of crisis, the tax should be capable of yielding more income through increase in its rate. . Canon of Flexibility It should be easily possible for the authorities to revise the tax structure both with respect to its coverage and rates, to suit the changing requirements of the economy. With changing time and conditions the tax system needs to be changed without much difficulty. The tax system must be flexible and not rigid. 8. Canon of Simplicity The tax system shoul d not be complicated. That makes it difficult to understand and administer and results in problems of interpretation and disputes. In India, the efforts of the government in recent years have been to make the system simple. 9. Canon of Diversity This principle states that the government should collect taxes from different sources rather than concentrating on a single source of tax. It is not advisable for the government to depend upon a single source of tax, it may result in inequity to the certain section of the society; uncertainty for the government to raise funds. If the tax revenue comes from diversified source, then any reduction in tax revenue on account of any one cause is bound to be small.

Fiber optics technology Essay Example | Topics and Well Written Essays - 500 words

Fiber optics technology - Essay Example ITU-T G.651 and ITU-T G.652 (standard SMF) are the two compositional standards (Alwayn, 2004). Standards that relate to performance govern transmitters and receivers and include; Optical Transport Network the, Synchronous Digital Hierarchy, etc. Other standards are developed for specific niches. For instance, fiber optics in satellite communication begs other standards to adhere to. The deposition of dopants can be done in three standard ways: inside, outside and axial vapor deposition (Held, 1999). Moreover, advances in the use fiber optic systems has created a demand for standards that enable interoperability between telephone companies and interexchange carriers. Synchronous Digital Hierarchy (SDH) in Europe and Synchronous Optical Network (SONET) in North America (Held, 1999) are data transportation vehicle capable of supporting data rates in gigabyte range. There is not just one way of implementing fiber optic technology. For instance, the most common way for this implementation is a high-speed fiber optic local area network (LAN). Before implementing this technology, a feasibility study is made. If a company needs to go into an area where there are no pre-existing cable networks then implementation is much easier. Fiber optic technology is very different from DSL services, therefore, implementing a new technology in a blank area is much easier. However, if there are copper wires installed for transmitting data then cost justifications, minimizing disruptions for the use of SML and the cost for connecting to NPS backbone LAN, need to be made (Ee, 2004). The demand for high-speed internet usually drives the service providers to move to a better technology. The greatest hurdle preventing the widespread implementation of fiber optics is its cost. Implementing new fiber optic network is a troublesome task especially when old infrastructures like DSL and cable are already serving the customers

Db5 diversity in the workplace Research Paper Example | Topics and Well Written Essays - 250 words

Db5 diversity in the workplace - Research Paper Example It is also mean to increase the number of women in the employment sector. In my opinion, I believe affirmative action had fair intensions. This is because the programs were designed so as to provide individuals who are qualified with a fair and equal access to recruitment and opportunities. This is because the polices states that the people responsible in hiring and recruiting people should give fair and equal chances of evaluation regardless of the candidates gender, race or ethnic background. This makes sure that all people get opportunities equally (Tucker, 2000). It also increases social and economic diversity in the American educational system and workplace. Currently, the affirmative action has created a stronger educational and workplace diversity. This is because students of all races have been equally admitted into academic institutions. It has also made sure that women have increased in number in jobs that predominantly were occupied by males (Sadler, 1996). The program has ensured a rich diversity in colleges. There have been greater gains in the enrollment and graduations for women and people of colored skin at higher education institutions. Generally, I believe the affirmative action has had positive effects to the

Case study furniture bank Term Paper Example | Topics and Well Written Essays - 2000 words

Case study furniture bank - Term Paper Example Though the company is going to incur expenses which have to be given from the cash in hand or go for bank loans. But furniture bank being a charitable organization will also get some rebate in the interest levied on the loan. Once the furniture banking starts building up on the cash, they will also be in a position to spread an awareness regarding their cause for which they are working in the country. Moreover, a further cash of $127000 can be earned from which the expenses of the truck drivers can be borne. Thus, the truck which gets utilized for five days for 90 hours can give more output. Capital Campaign The problem faced by the charitable institution like furniture banking may be that of many other organizations which non profit making institutions are. Being a charitable institution the land acquired by furniture bank was given for free; which is now being taken away forcefully with the intention of building houses at affordable rates. The institution also wants to move to a pl ace which is easily accessible to their entire volunteers who live in Greater Toronto Area. But getting a property there even at a subsidised rate accounts to $1.5million to 3.5million which is almost beyond the limit of furniture bank. Though the institution is having a favourable cash balance yet the rate proposed is beyond their limits because if they go for a property at exorbitant price then the cash required for rendering services will get reduced hampering the cause which is their main motive behind starting of the organization. So in order to get rid of the relocation problem some steps need to be taken like the create more volunteers for the organization, improving fund raising skills and confidence and train the existing staff for making a strong team towards the achievement of the goals. But until a suitable place to set up the institution is found it would not be advisable to shift from the present location under any circumstances (Kihlstedt, 2010, p. 2). Information Tec hnology The information technology is an essential element to run any business effectively, be it profit making or non profit making organization. To track the caller of the furniture bank a proper information system should be built up so that the company can expand more. The cause of the company though a good one is not yet marketed properly so the number of volunteers is a mere 30 members. For a non profit making organization to grow it is very important to spread the cause near and far. This will require more volunteers than presently existing, so marketing through the information technology will not only spread the cause of furniture bank but also do the needful at an affordable cost. Even the records of the institution related to its policies and procedures will be well maintained unlike now. Answering calls will be much prompt than that of now. Customer relationship will also get enhanced. Though the initial cost will come to around $90000 approximately with a monthly payment of $1500 for system maintenance and direct technical support, yet it is advisable to bear with the

Strategic and Financial Decision Making Essay Example | Topics and Well Written Essays - 2000 words

Strategic and Financial Decision Making - Essay Example The cost of financing through equity is more than that of debt. The bond holders are paid fixed rate of interest every year, hence they bear no risk. The equity shareholders do not receive any fixed income every year; it is dependent on the profits of the company. Hence, there is a risk involved in holding equity shares as compared to debt capital. Therefore the equity shareholders require more return as compensation to the extra risk borne by them. On the factors discussed above, debt financing would seem more attractive as compared to equity financing. But decision cannot be made solely on the cost factor. One also has to look into the risk involved in different sources of financing. Since there is a fixed obligation every year towards interest payment, it is considered to be more risky than financing through equity on which no risk is involved. Thus, a company has to decide upon the level of debt on the basis of the risk it can undertake. Eugene, Houston (2007:1).The following ste ps involved in decision making process are: Existing capital structure: One has to evaluate the existing capital structure. In case the company has too much debt already it is not advisable to issue more debt. It can also maintain the existing debt equity ratio or change the ratio. Dividend payout policy: The dividend payout ratio should be decided be the firm, so as to maintain the same every year. This is because fluctuating dividend payout ratio would reduce the confidence of the shareholders towards the company. Effect of return: The company has to analyze the effect on return because of the cost of capital. It has to ensure that it is able to earn the desire level of return of the investors. Effect of return: In order to reduce the cost of the capital a firm might take debt equity mix. However, it should first analyze the risk involved in using debt as a source of capital. Effect on cost of capital: The effect of desired level of debt and equity on the cost of capital of the company should be evaluated. Excess debt can lead to increase in cost of capital after a certain point of time because of the high risk involved. These decisions should be based after careful study of the market. The risk appetite, the required rate of return of the shareholders, the effect on market value of the shares due to change in the capital structure of the company should be studied. Hence, these factors have to be taken into consideration in order to arrive at a sound decision. b) The investment proposal involves an initial investment of 3,000,000 along with cost of forecasting of 100,000. The proposal is expected to be financed at the existing debt-equity ratio of 2:3. It is assumed that the return required by equity investors is 10.5% (real). Therefore nominal return (inflation adjusted) expected would be 10.5% + 5% (inflation) that is 15.5%. The rate of interest payable on corporate bonds (debt) is 6% p.a. We have to now compute the weighted average cost of capital

Diversity in our law agencies Essay Example | Topics and Well Written Essays - 1250 words

Diversity in our law agencies - Essay Example However, the gender bias that exists in police department begins right at the hiring stage where applicants are required to perform a Physical Abilities test where they have to scale a 6 foot wall and other physical acts that call for strength in the upper body, where women are weeded out. Moreover, the smaller number of women police officers creates an environment that predisposes towards sexual harassment and discrimination at the workplace. Women are subjected to sexual innuendos and unwanted advances from their superiors and find it difficult to help female victims of domestic violence in the environment of male bias that exists in the police force. Since most police officers work in teams with one â€Å"rookie† officer assigned to work with an older, more experienced officer, the mentor-student approach sometimes tends to create personal conflicts and instances of sexual harassment. The tough nature of the job itself is exacerbated by personal tensions that creep up betwe en a female rookie and a tough, male officer-mentor. In an occupation that has been a traditionally male dominated bastion, there also exists an unspoken â€Å"brotherhood† that tends to promote and favor male officers over females, based upon the false perception that women are inherently weaker and incapable of the harsh realities of police work.(Shusta et al, 1995). The existence of the stereotypes about the physical or psychological characteristics makes it even harder for women to break into the tough world of policing. The common perception is that women are less effective on the field and are better relegated to purely administrative positions within the department. While one standard is applied to assess the ability and skill of men for higher positions within the department, a different standard is applied for women, often requiring them to

The Role of Information Systems to Support an Organization Essay

The Role of Information Systems to Support an Organization - Essay Example These management systems are also termed as collaboration systems. In the days of the past, collaboration among peers or colleagues was not as easy as it has been made by the aid of collaboration systems. The well-known quote â€Å"Two heads are better than one† can be used to define the concept of collaboration systems. It is a common practice in organizations for people to work together and this collaboration usually achieves better results than working in isolation. Pinnadyne (2009) stated that collaboration might involve the activity of generation of an idea, creation of a new concept or implementation of a common goal. Therefore it can be defined as the joint venture to achieve a common goal with a shared direction. Collaboration Systems have the following tools: Content management involves the process of storing information for retrieval by users whenever the need arises. Hartland (2009) explained that it facilitates the workflow of a group of peers or colleagues that would be involved in accessing or adding content in the repository. It can be considered as a collection of processes that provide management of the workflows involved in the system. There might be many users involved in the process of adding data to the repositories therefore there needs to be a mechanism to handle such activities. The data in the content management systems might be of different types for example, documents, video clips, images, personal information etc. Content management system in an enterprise is considered to be their vital asset nowadays as it gives a structured look to their unstructured data, while catering to all the diversity of formats that might exist in the data. Another critical aspect of content management is the ability to keep versions of data as it evolves. The version number is a well-known mechanism to keep track of old and new data. Some organizations do not value older versions of data but it also has a

Foreign Exchange Rates and Exchange Rate Risk Essay

Foreign Exchange Rates and Exchange Rate Risk - Essay Example The rates therefore are either determined through the market forces or by the central bank of the country to maintain and manage them at a reasonable level. It is also important to understand that when global firms deal in foreign exchange they also expose themselves to various risks. Every firm which deals in foreign currency therefore have to fact these risks and use different hedging methods. These methods vary depending upon the needs of the organization as well as the nature of the transaction. It is however, critical that each firm has to face these risks and must also manage them in order to avoid losses or reduce the risks and manage it at acceptable level. An exchange rate is the rate at which one currency is actually converted into another currency. It is also the value of currency of one country in terms of the value of the currency of another country. The value of two currencies is mostly determined in the open market in which many buyers and sellers actually determine the value based upon overall demand and supply of each currency. It is important to note that there are usually 2 types of exchange rates i.e. spot rates and forward exchange rates. Spot exchange rates are the rates which are offered on the spot for the buying and selling of any particular currency. However, forward exchange rates are determined for the currencies to be purchased or sold in given future date. When international organizations actually receive their payments in foreign currency, they contact foreign currency dealers to offer them either spot or forward rates. Foreign currency dealers however, always quote two different rates i.e. the rate at which the dealer will buy the currency and the rate at which he will sell the currency to the organization. The difference between the bid and ask price (buying and selling price) is considered as the

Native American Feminism Essay Example for Free

Native American Feminism Essay â€Å"You cannot solve a problem from the same consciousness that created it. You must learn to see the world anew.† –Albert Einstein When approaching poverty as a global initiative rather than a feminine concern, most feminist lenses often lack the focus and compulsiveness that finding efficient solutions require. This paper will discuss the views of various groups of women; American Indian, Third-World, Indigenous, Muslim, Native Feminist, African American, and Western, through the perspective of various lens but more specifically; western and indigenous. By looking through two generally opposing lenses and examining the multidimensional aspects of poverty through feminism, we can generate a more precise and focused ideal of resolving the issue rather than taking it as a global initiative and generalizing it. Poverty is subjective and cannot be defined in terms of binaries or simple standards. Feminism as a catalyst to reducing poverty is vital to its success. Poverty is a very dynamic and multi-dimensional phenomenon that cannot be studied in way of vagueness and objectivity. Men’s poverty is different than women’s poverty as is children’s poverty different from both. To approach all aspects of poverty in one nebulous way would lead to a likewise superficial solution lacking depth and the focus needed to make truly beneficial changes. Poverty cannot be faced as a global initiative because not nearly enough attention and importance will be placed on the women in these societies. This is the problem with essentialism. Essentialism is the view that for any specific entity there is a set of attributes of which are necessary to vital to its identity and function. Strategic essentialism is using one characteristic to categorize as a whole in order to â€Å"essentialize† themselves and reach a certain defined goal. Feminism cannot be essentialized because it is too complex of an idea. There is not just one problem that feminism has to fix, but instead a multitude of different levels and types of issued that must be considered. Since f eminism is so multi-faceted, it cannot be considered with a multiculturalist approach either. Multiculturalism, which is usually efficient on smaller scales, attempts to imagine a world that can â€Å"encompass different identities and ways of being in a manner that respects and values all† (Bhattacharyya, 2008). However, on a larger scale, multiculturalism does not produce reliable claims since the factors being included are often  too complex and diverse. Women are often separately discriminated in their societies. It should not be trusted that proposed initiatives of lowering poverty actually give proper and equal attention to both men and women. According to economist, Stiglitz, â€Å"power gets power.† In history, it is popularly noted that the groups with control in societies were the ones who had all big decisions made in favor of themselves because they were the ones making the decisions. They were the only ones who were even given the option to have a voice. Throughout essentially all of history, men have been the one in power, and therefore the decision makers in which societies base them off of. With men in power, men become prosperous. The people in power have the responsibility of developing a society to become what they want it to be. What is given great importance is c arried out through most decisions. Not only are feminist movements often considered global movements, but these global feminist movements are more subject to western ideas. â€Å"With the increasing privatization and corporation of public life, it has become much harder to discern such a women’s movement from the United States (although women’s movements are thriving around the world), and my site of access and struggle has increasingly come to be the U.S. academy (Mohanty, 2008).† The separation between feminist and western is increasingly being blurred, with many western ideas seeping through the cracks of femininity. Many feminist movements attempt to form solutions to poverty and female discrimination in third-world nations through the ideas of western, developed and powerful theorists. When solutions are formed across borders, the true reality and needs of the â€Å"victims† are not usually considered. Feminist scholar, Chandra Mohanty, discusses the â€Å"assumption of women as an already constituted, coherent group with identical interests and desires, regardless of class, ethnic, or racial location, or contradictions , implies a notion of gender or sexual difference or even patriarchy that can be applied universally and cross-culturally.† Although in this context Mohanty is referring to the separation of analyzing men and women, this same idea should be applied to the separation of analyzing women of different backgrounds and cultures as well. Women are often lumped together into large and vague categories which presents a lack of division and consideration for the diversity apparent in the women species. This ongoing insensitivity to differences causes a dividing wall in womanhood;  often applied to class and culture. Third-world women encounter even less consideration than â€Å"western women usually do† (Mohanty, 2008). In most of western women’s writings, the numerous divisions of women are not addressed. At the end of Mohanty’s writing, she concludes that the only advantage that western women have over â€Å"third-world† women is that they live in more developed societies with stronger economies. However, socially, they suffer the same gender issues and disadvantages that correlate w ith being female. There are binary stereotypes that are common in feminist studies today. The â€Å"third world woman† and the â€Å"western woman† are approached in very different ways. The third world woman being â€Å"ignorant, poor, uneducated, tradition-bound, domestic, family-oriented, victimized (Mohanty, 2008),† versus the â€Å"self-representation of Western women as educated, as modern, as having control over their own bodies and sexualities and the freedom to make their own decisions.† These stereotypes are extremely dangerous when approaching poverty. Many third-world women feel a strong innate loyalty to the culture in which they are native to. Their culture and traditions is so deeply transcribed within them that when approached with the ideas of feminism, they often reject them. For example, a popular assumption made by many Native communities is that indigenous women should defend their own â€Å"tribal nationalism† which has been known to ignore the sexism and mistreatment that women in these tribes often encounter and deal with to achieve â€Å"liberation from colonization,† (Ramirez, 2007). It is seemingly more important to these women that they prevent colonization rather than achieve social prosperity. This correlation between â€Å"feminism† and betraying one’s tribal â€Å"sovereignty† is a very dangerous connection. The possible guilt that a tribe may provoke when a woman supports feminism is very unfortunate. However, disregarding feminism just because it is not commonly practiced is even more damaging. â€Å"Indigenous women in the United States die from domestic violence at twice the rate of other women† (Ramirez, 2007). These high rates of female domestic violence are popular within many Native American tribes. What women in these tribes are afraid of is that feminist reforms are based off of western principles. The key to finding a solution is placing a clear separation between western and feminist. Feminism should be a revolution amongst women, where each separate culture and sector of womanhood’s problems should be consider ed  individually. There are too many issues to believe that one solution will be sufficient for all problems. Women in western societies must consciously accept the idea that feminism is not a movement where western women are helping or â€Å"saving† third-world women, but instead a movement where women of all backgrounds face their own cultural obstacles where they exist. Native American feminist consciousness should be illuminated as an important goal to be reached in the indigenous communities to combat sexism instead of treating it as a â€Å"white construct,† (Ramirez, 2007). A woman being categorized as the â€Å"other† is a common reoccurrence throughout many feminist writings. The constant separation of men and women throughout history leads to the necessity of separate solutions for poverty as well. Women have been inferior in many contexts and on many levels. Chandra Mohanty gives specific order to the inferiority applied to much feminist research by challenging the ways in which women have been previously and commonly put down which includes; Women as victims of male violence, Women as universal dependents, Married women as victims of the colonial process, Women and familial systems, Women and religious ideologies, and Women and the Development Process. According to Mohanty, these six structures of inferiority have justified fe male discrimination throughout many sectors of history. Violence against women is a popular epidemic that has created huge problems within cultures and has even led to death. It is one of many ways in which men reiterate their superiority over women. Women’s reliance on men has created an â€Å"identifiable group† in which they have all can relate. This characteristic of womanhood is dangerous because no successful and powerful categorization of people should be separated because of their dependency. To move past this inferior dependency, women must work to make it an idea of the past and demand their own independent feats. Another way in which women are treated as subordinate, is in cultures where colonization has negatively influenced the process of marriage. For example, in the Bemba culture, men work for years for a family in exchange for food and eventual rights over the daughter of the family he has been working for. To trade the â€Å"rights† of a woman for household duties and chores is so beyond any traditional concept that may be practices. Not only are women often traded in cultures, but regardless of the way in which they become part of a family, they often assume the role of the â€Å"caregiver. † Women are often  sexual objects inherently used for reproduction and within a system of patriarchy. These are just some ways in which women have been continually put down and inferior to men through societal norms. The â€Å"Third World woman† is an idea that Chandra Mohanty introduces in her article; Under Western Eyes; Feminist Scholarship and Colonial Discourses; which analyzes â€Å"sexual difference† in the form of a global, singular, uniform notion of male superiority leading to the production of an equally undermining and homogeneous â€Å"Third World woman† categorization. The problems that are associated with poverty cannot be assigned and divided in terms of geographical existence. This assumption would lead to a categorization of all people from a certain area to then face the same obstacles. For example, it cannot be assumed that the men and women of Canada share the same struggles. The social constructs that are present in Canada can and should be approached from multiple viewpoints in order to appropriately capture their true depth. In Nothing’s Shocking: Black Canada, Katherine McKittrick goes into depth on the reality of living in â€Å"Black Canada.† While reading about such a specific yet complicated and complex unit of society (the distinction of African American individuals living in Canada versus Caucasian individuals living in Canada), there is a vast amount of dimension that must be considered. In her article, McKittrick refers to African American people in Canada as â€Å"surprises,† as if it is unimaginable and unexpected for them to be there. In general, African American people in Canada were treated as subordinate and geographically excluded. Furthermore, when considering more specifically the ideas associated with an African American woman in Canada, even more norms are introduced. For example, consider the story of Marie-Joseph Angelique, a Portuguese-born slave who was accused of burning down the city of Montreal. The story goes that following years of suppression in Canada, Marie-Joseph Angelique rebelled against her â€Å"mistress† and in an attempt to escape from slavery, set a fire to distract her while Angelique ran away. However, instead of simply burning down the house of her mistress, the fire unexpectedly spread throughout the city, burning down a hospital and many homes. Through torture and brute force, Angelique was pushed into confessing to the being the perpetrator of the fire, although the truthfulness in this story is tentative. Angelique’s story, truthful or not, does however bring  truthfulness to core source that was in question, which was the presence of slavery in Canada. By looking at the past struggles of one woman, Angelique, we can encounter conclusions for other aspects of history, such as slavery in Canada. Women are often oppressed in third world nations; facing everyday threats of rape, discrimination, and constant struggles for equality. Theyâ€℠¢re treated as the minority; in which they’re special interests go unacknowledged and ignored. Referred to as the margin, they are the â€Å"edge or border of a surface, the ignored or unimportant sections of a group, the blank border on each side of a page, adjacent to or in opposition to the center† (McKittrick, 2006). In this application, women will always be the â€Å"other† (Mohanty, 2008). To approach any issue that affects femininity with a global solution is a clearly ineffective and lazy tactic. Although women’s issues are indeed everyone’s issues, this does not lead to the idea that they must be tackled as a global problem. These mistreatments are not only apparent in social structures, as mentioned previously through the categorizations of Chandra Mohanty, but also physically in their cultures. There are more than 1 billion people in the world today living in poverty, a big majority of those people being women. Unimaginable working conditions and societal inequities often lead to lower standards of living in many developing countries. Rooting from many causes, poverty is usually linked to poor structural foundations within countries including laws, regulations and standards that ensure liberty and equality. Poverty is a multidimensional problem that usually grows from both national and international spheres. â€Å"Women and girls are still 70 percent of the world’s poor and the majority of the world’s refugees. Girls and women compromise almost 80 percent of displaced persons of the Third World/South Africa, Asia and Latin America. Women own less than one-hundredth of the world’s property, while they are the hardest hit by the effects of war, domestic violence, and religious persecution† (Mohanty, 2008). The inequality that is so evidently clear through statistics and informative findings points strongly to the inferiority of women. Owning one hundredth of the world’s property, it is apparent that women are not receiving the same opportunities as men. Agriculture as a form of production has gone from 97% to 3% in the past century. However, land use in the form of agriculture and profit are very important in areas of the world that are not yet  develo ped. Women may work on these fields, but receiving the benefits from them often go to the men that own them. Mohanty reflects the views of western feminists on the third world woman as consistently being a â€Å"homogeneous powerless group often located as implicit victims of particular economic systems. Third world women are always the â€Å"victims† who need â€Å"western saving,† Women living in poverty are already restricted by this stereotype of helplessness. In Mohanty’s article Under Western Eyes; Feminist Scholarshop and Colonial Discorses, she closely examines the lives of women in â€Å"developing† countries. Mohanty introduces scholars such as Irene Tinker, Michelle Bo Bramsen, Ester Boserup, and Perdita Huston who all write about the effects of developmental policies on women in the Third World, assuming that â€Å"development is synonymous with economic development or economic progress.† Economic development involves the concern and actions of policy makers and communities in order to improve the standard of living and economic prosperity of a population. Usually involving higher wages, literacy and health, economic development in many cases does not focus in on the sexism that is usually evident in these developing nations. When Mohanty goes on to present the case of â€Å"Mince’s patriarchal family, Hosken’s male sexual control, and Cutrufelli’s Western colonization,† development seems to become the all-time equalizer. Women can either be affected positively or negatively by economic development policy which becomes the basis for cross-cultural comparison. Economic development often focus on the growth of men in these political and economic sectors which leads to even more inequality in these developing countries. If economic growth were to focus more on raising equality in these countries, then women would likewise benefit as well. However, this is seldom done naturally and must be given a particular amount of importance and attention. â€Å"Practices that characterize women’s status and roles vary according to class.† The state of women in these developing countries cannot be approached in a singular way and absolutely must be separated from the developmental issues of men. The â€Å"feminization of poverty† is an idea introduced by Mohanty that shows a positive correlation between the level of poverty between women of color and white working-class women in the United States. Men and women have always been segregated; society’s value of their labor being one of the most evident forms of discrimination, current in even our society today. The  existence of a sexual division of labor is often taken as â€Å"proof of the oppression† in various societies (Mohanty, 1988). Women who encounter similar situations cannot be treated as identical. For example, the rise of female-headed households has held various different meanings in cultures, specifically middle-class American and Latin American. In middle-class America, the rise of female-headed households often represents feminine progression, a symbol for greater independence and a woman’s â€Å"choice† to be a single parent (Mohanty, 1988). However on the other side, the same increase in female-headed households lending women more say in decision-making is concentrated in poorer areas, where there choices are constrained economically regardless. Discrimination between genders norms in the workforce leads to their division of labor. The sexual division of expectations in labor indicates a depreciation of women’s work and must be considered separately through each society and cultures own local contexts. When nations experience a big gap between genders, other nations are often led to the belief that they need â€Å"saving.† This assumption often leads to individuals from developing nations claiming themselves as self-righteous, then intruding on other â€Å"less† fortunate nations and validating it as a form of â€Å"saving.† When these nations intervene on others, they often lack an understanding of societal differences. Accepting and acknowledging differences, is the key to progressing. However, it is important to specify that acceptance does not necessarily lead to everyone being â€Å"cultural relativists,†(Abu-Lughod, 2002), but to take this idea and apply it in moderation. Intricacy and meticulousness is necessary in a world as interconnected as ours when recognizing and respecting differences. There should be no dividing line between nations, religions, or cultures in our world. The existence of western and third-world differences should not be the greatest factor that leads to separating people, and it is also important to acknowledge the fact that these are not just two bin aries that all people must fit into. A separation of differences should only be approached when studying the visions of â€Å"justice and the value of life,† (Bhattacharyya, 2008). These differences are usually in response to different histories and different circumstances that lead to the different social cultural norms in communities. While progressing towards justice for all women, we must first accept that that is not a universal idea but  instead may vary from woman to woman. There is a range of optimal envisions that different women might want or choose. Third world feminists are often criticized as â€Å"social critics† (Bhattacharyya, 2008). Entrenched in their own culture, third world feminists do not only identify themselves strongly with their culture, but also make a clear separation between their idea of feminism versus feminism for other activists and cultures. Third world resentment toward feminism in the context of western thinkers makes it very difficult to progress. The prime solution to approaching feminism would be to develop a mutually respectful appreciation of differences between different the different apparent ideas. However, our world is so diverse and complex that it is very difficult to find a solution that fits within all of the parameters that would satisfy all concerns. Women of all cultures should be aware of the need for global feminist movements while remaining within the strictures set by their own culture (Bhattacharyya, 2008). Resentment and difference leads to a complication of using a transnational language when approaching feminism, because it will always lack proper consideration of certain local struggles. One popular way to approach feminism is through an Indigenous methodical lens. As mentioned previously, Native American women have faced notable higher levels of mistreatment, inequality and discrimination throughout all of their recorded history. Even in current Native American communities, notions of sexism are still popularly practiced. There are many writings on feminism by Native women however these pieces often are claimed to be in conflict with the specific politics of sovereignty and self-determination that many Native Americans practice. Native writings often present critiques of feminism, relating it heavily to white and middle-class concepts. Other than those who are â€Å"assimilated,† Native American activists do not consider themselves feminist (Smith, 2008). Feminism is categorized as an â€Å"imperial project† that assumes a western colonial command over indigenous nations. This categorization results in a see-saw effect between supporting sovereignty an d rejecting feminism. When supporting sovereignty, Native activists find they must reject feminist politics. On the other side, scholars and activists who attempt to theorize feminism for native women activists often oversimplify the apparent issues with feminism, sexism  in societies (both native communities and other non-native communities), and the importance of teaming up all together to solve these problems. Due to the previously mentioned opposing concepts, it is extremely difficult to articulate a movement that instantaneously decreases sexism while promoting indigenous sovereignty. The progression of women’s rights has increasingly become a central goal of developmental movements, economically and socially. With a rise in feminist perspective and consideration, places that do not follow these changes in approach are often criticized. Women’s participation in societal life has become a measure of societal development. The problem of binaries in our societies is an extremely important factor in understanding political movements, discrimination and extreme activism. For example, in many Islamic cultures, there have been uneven attempts in examining developments. Solutions often represent those of which come from radical or inconsiderate theorists. Recently, however, these visions have been amended and changed to more thoroughly examine the contemporary Islamic problems regarding the superiority of masculinity (Bhattacharyya, 2008). The sexist issues apparent in many third-world nations are often criticized by western activists, although these accusations are very hypocritical. Many feminist writings and studies are the products of western writers. Since the majority of feminist writings are from the western perspective, feminism has had a likewise western connotation. Western thinkers are commonly obsessed with the concept of â€Å"sex,† (Bhattacharyya, 2008). The presence of â€Å"sexual conflict† within nations often leads to a western defense of sexuality. Sexuality is enacted as a symbol of western ideas that must be defended, as every woman should have the right to her own practiced sexuality. Western thinkers popularly be lieve that â€Å"their† problems regarding sexism are not nearly as horrible as other nation’s problems, so they believe it is their own responsibility to help or â€Å"save† others. However, western solutions are not global solutions and cannot be transcribed onto other cultures. Western separation and self-proclaimed superiority leads to a separation of â€Å"us† versus â€Å"them.† In terms of sexuality, western thinkers are often portrayed as more provocative. Westerners often accuse â€Å"others† of hating their freedoms- of which â€Å"to love and touch and leave and experiment† with their freedom to â€Å"move and love freely,† (Bhattacharyya, 2008). These self-proclamations are inaccurate  being that women in the western world still face many issues routing from their sex. This false representation of equal opportunity combined with democracy as a purification of western concepts is tried at being defended at all costs. Westerners often claim their ideas as completely fair and righteous, in comparison with other â€Å"less fortunate† countries. Although western ideas are the most common in feminist writings, they cannot be the only ones involved in discussions about foreign policy because that would lead to a misrepresentation of feminism (Bhattacharyya, 2008). Poverty is a global problem that affects individuals from all geographies and cultures. Representing different ideas to different people, poverty does not have a multiculturalist definition. As a factor to measuring poverty, feminine equality varies from culture to culture. Western feminist ideas are popular within feminist studies because they are the source of many current and historical feminist writings. However when approaching global problems such as poverty, multiple culture’s views must be considered when trying to find efficient solutions. By evaluating the views of women from numerous backgrounds, we can further develop resolutions that will bring a greater amount of happiness to a greater amount of people. Bibliography Under Western Eyes: Feminist Scholarship and Colonial Discourses Chandra Talpade Mohanty. Feminist Review , No. 30 (Autumn, 1988), pp.61-88 †Under Western Eyes† Revisited: Feminist Solidarity through Anticapitalist Struggles Chandra Talpade Mohanty Signs , Vol. 28, No. 2 (Winter 2003), pp. 499-535 McKittrick, Katherine. â€Å"Introduction, The Last They Thought of: Black Women’s Geographies, Nothing;s Shocking: Black Canada† . Ramriz, Renya K. Race, Tribal Nation, and Gender: A Native Feminist Approach to Belonging. Meridians: feminism, race, transnationalism, Vol. 7. No. 2. 2007. Pp. 22-40. Abu-Lughod. †Do Muslim Women Really Need Saving? Anthropological Reflections on Cultural Relativism and Its Others.† American Anthropologistv. 104 no. 3 (2002): 783-790. Smith, Andrea, and J. Khaulani Kauanui. â€Å"Native Feminisms Engage American Studies.† American Quarterly, 2008: 241-249. Bhattacharyya, Gargi. â€Å"Introduction Chapter 1.† Dangerous Brown Men: Exploiting Sex, Violence and Feminism in the War on Terror. London: Zed, 2008. N. pp 1-45.

Current Environmental Laws In The Philippines

Current Environmental Laws In The Philippines Our environmental laws are very important to us. It is very important beacause we all know that some are still depending to our natural environment for a living like those who are belong to a community located to mountaneous areas and also for us living in a rural areas or urban areas. By the implementation of these environmental laws, we are all gaining informations and knowledges about the proper protection of our environment. For me, the summarization of all the current environmental laws and policies are mainly composed of the proper ulitization and management of all the aspects of our natural environment. Below are some of the most important environmental laws of our country. The Philippine Environmental Policy Governs the general policies on the pursuits of a better quality of life for the present and future generations and mandates undertaking the environmental impact assessments for all projects, which may significantly affect the environment. (P.D 1151) Defines the objectives and the strategies for the various aspects of environmental management, such as air and water quality management, natural source development, land management, and waste management. It launches a comprehensive national program of environmental protection and management, with reference to policies and standards of noise, air quality, classification of water and waste management. (P.D 1152) The Philippine environmental policy is really very important because it promotes the protection of our natural resources and our natural environments. We all know that our country is very famous around the world by having the most wonderful and aesthetic natural resources thats why we really need to preserve this resources in order to sustain that title and also for us to be still benifited with these natural and environmental resources. The Forestry Reform Code P. D. 389 (P.D. 705) Codifies, updates and raises forestry laws in the country. It emphasizes the sustainable utilization of forest resources. The law which concerns about our forest are very important to sustain our flora and fauna which are living in our forest and also to help sustain those endangered species. The banning of illegal cutting of trees is very important because when trees are all gone, it can cause soil erosion and can harm us by causing great flood just like what happened this past few years. Illegal logging can also contributes in the loss of our ecosystem which can cause distress not only for those flora and fauna but also to us.It also governs the preseravation and otimimum productivity of fishery resources through conservation and protection. Water Code of the Philippines (P.D. 1067) Adopts adequate measures to conserve and regulate the use of water in commercial, industrial and residentail areas. It also provides other policy guidelines in water quality and management of water resources. This protects our water system especially for those who depends their business in the water. They imposed this law to govern those who are being unaware to the posibilities of damaging our water resources through improper disposal of garbages and ineffecient use of waters. Other laws under the environmental laws are Pollution Control Law, Sanitation Code, Control of Pesticides, Local Government Code of 1991, Toxic Substances and Hazardous and Nuclear Wastes Control Act, The Fisheries Code of the Philippines and The Solid Waste Management Act of 2001. These environmental laws are really needed in order for us to protect our natural environment through good management of these resources and these laws is a eye opener for us to see the posible effects of the improper usage of our natural resources. Through good governance, we will be able to help each others to protect and sustain our natural environment for the next generation to come. We need to comply to these laws in order for us to have the limits in which we can use these resources and be able to preserve and protect such very imporatnat element of our life, the natural resources and our natural environment. Source of the three environmental laws that I discussed: http://bio427.blogspot.com/2010/10/environmental-laws-of-philippines.html How Hospitality and Tourism Management is affected by the current environmental laws? The Hospitality and Tourism Management is affected by the current environmental laws in a very positive ways. It is very beneficial for them because they will be able to know the guidelines in protecting our environment which this Hospitality and Tourism Management is very dependent. We all know that under Hospitality and Tourism Management is the tourism industry which really relying on our environment with their businesses. For they are the most dependent to our natural environment, they must be the one who needs to protect it and also to sustain it. Another positive effect of these environmental laws to Hospitality and Tourism Management is that tourism industry will be boost knowing that they have the ability to protect, sustain and improve our natural environment which can help to promote our country. The tourism industry is really obliged to protect our environment to sustain the tourists that they have and they will have. When the tourist see that they are helping our governme nt in managing our environment, they will be glad to still go back to our country not only for a good service nor good employees but merely by the fact that our environment is still in good conditions and still improving which this guests and tourists are visiting for and which they can also enjoy. When we look to the other side which this tourism industry is not complying and not implementing these environmental laws, it will greatly contributes in damaging our environment and might causes negative impacts not only to our natural environment but also to the species of animals, plants, fishes and also to us humans. All other industry must be in accordance to our environmental laws because they are interrelated to each other. For example, a mining industry which disposes their toxic wastes directy to the sea or ocean can affect the businesses which are relying on the sea or located beside the shoreline because this toxic wastes can cause deseases and can cause damages on the corals, fishes and other living organism in the sea. They are co-related to each other thats why they need to act as one for them to show also that they respect each others. The Hospitality and Tourism Management which is the mother of all indutries specifically the tourism industry must know the proper usage of our environment and the proper management of our natural resources because we all know that this industry is the most income generating to our country and it produces works for our local employees and we all know that a lot of employees are all depending to this industry. If we will not be able to protect and sustain this natural environment, a lot also of negetaive effects will come out and one of the most dangerous effect is that when our environment is greatly damaged, a lot of workers will be dismiss to their work and what will now happen to them? Unemployment rate level will increase and a lot of local people will experienced poverty. As a tourism student, we are very much thankful because we are able to know the positive and negative impacts of the misgovernance of our environment. We are also able to know the environmental laws which our g overnment has imposed and it is very important for us because at young age, we are in the capacity of opening our minds in protecting and in helping in sustaining our environment which in the near future, we will be also be dependent on it. We should act as one and we need to focus in protecting the natural environments that we have. 3.) How Hospitality and Tourism Management (HTM) businesses can help improve the current environmental laws? Hospitalty and Tourism Management businesses can really help to improve and sustain the current environmental laws of our country by basically complying to these laws. By showing that they are implementing and they are abiding to these environmental laws, they are greatly contributing in promoting the need to act in the way that is legally pursuits. These businesses are the ones who much need to follow these laws because they are more benefited. We all know that the tourism industry is depending to our natural environment. And if we are not able to protect our environment, the tourism industry will really fluctuate. And as you can see, some whos under the tourism industry are not complying to our environmental laws and greatly causing damages to our environment. For example, some resort owners are not following the rules and regulations of our environmental laws just like the proper measurement of the establishment, the proper disposal of their garbages and many more. These careless actions are greatly causing damages, and if these actions are continuosly happening, for sure our environment will be highly damage. Our environmental laws are really important for us to help preserve the natural resources and the natural environment that we have. As you can obeserved, laws makes us more be practically be knowldegeable about the dos and donts regarding to the implementation and usage of our natural environment. The businesses which are under the tourism industy must know the proper environmental management, waste management, land management, and natural source development in order for them to help in improving our environmental laws as well as our natural environments. They are really can promote in preserving and sustaining our environment which is the environmental laws is protecting. Another example of improving the environmental laws by the hostipitality and tourism manangement businesses is that if a specific establishment which are under this industry are very competitive to others, they are much more well appreciated and much more advantageous knowing that they have all the necessary papers like permits and other legal documents that they need to accomplish which our goverment are imposing and their guests will be more knowledgeable about helping in protecting our environment by simply knowing the proper disposal of their own garbages. Environmental laws are providing the necessary information that a single business must know and the ordinances that they need to comply with. Basically, if all the businesses are do have a great information and they are all aware to these environmental laws, we are greatly a means of instrument in helping in preserving our natural environments. As we all know, the tourism industry which is under the Hostpitality and Tourism Management is the fastest income generating out of all the industries that we have and our tourism industry are really helping in uplifting our economy. These tourism businesses are also generating jobs and employment to a lot of workers. By means of protecting our environment, they are also helping in sustaining these businesses which is really important to our country. The proper utilization of these natural environment and natural resources,will not only benefits ourselvelves but also we are also ganing respects from others. As a tourism student and in the near future my future work will be also depending on the natural environment that we have, I need also to contributes my effort in helping to promote the good usage of our environment by merely knowing the implemented laws regarding in protecting our natural resources and our environments just like the very simple way, throwing my garbages on proper and also by merely helping and joining to tree planting activities of our school, our barangay and also of our municipality. At young age, we need to be knowledgeable to what we need to do and what we need to act in order for us to know the implications of being aware to the current situation of our environment.

Advantages Of Standard Costing Accounting Essay

Advantages Of Standard Costing Accounting Essay Despite the advantages just noted for some applications of standard costing, there are substantially more situations where it is not a viable costing system. Here are some problem areas: Cost-plus contracts. If you have a contract with a customer under which the customer pays you for your costs incurred, plus a profit (known as a cost-plus contract), then you must use actual costs, as per the terms of the contract. Standard costing is not allowed. Drives inappropriate activities. A number of the variances reported under a standard costing system will drive management to take incorrect actions to create favorable variances. For example, they may buy raw materials in larger quantities in order to improve the purchase price variance, even though this increases the investment in inventory. Similarly, management may schedule longer production runs in order to improve the labor efficiency variance, even though it is better to produce in smaller quantities and accept less labor efficiency in exchange. Fast-paced environment. A standard costing system assumes that costs do not change much in the near term, so that you can rely on standards for a number of months or even a year, before updating the costs. However, in an environment where product lives are short or continuous improvement is driving down costs, a standard cost may become out-of-date within a month or two. Slow feedback. A complex system of variance calculations are an integral part of a standard costing system, which the accounting staff completes at the end of each reporting period. If the production department is focused on immediate feedback of problems for instant correction, the reporting of these variances is much too late to be useful. Unit-level information. The variance calculations that typically accompany a standard costing report are accumulated in aggregate for a companys entire production department, and so are unable to provide information about discrepancies at a lower level, such as the individual work cell, batch, or unit. The foregoing list shows that there are a multitude of situations occur where standard costing is not useful, and may even result in incorrect management actions. Nonetheless, as long as you are aware of these issues, it is usually possible to profitably adapt standard costing into some aspects of a companys operations. Advantages of Standard Costing Though most companies do not use standard costing in its original application of calculating the cost of ending inventory, it is still useful for a number of other applications. In most cases, users are probably not even aware that they are using standard costing, only that they are using an guesstimate of actual costs. Here are some potential uses: Inventory costing. It is extremely easy to print a report showing the period-end inventory balances (if you are using a  perpetual inventory  system), multiply it by the standard cost of each item, and instantly generate an culmination inventory valuation. The result does not exactly match the actual cost of inventory, but it is close. However, it may be necessary to update standard costs frequently, if actual costs are continually changing. It is easiest to update costs for the highest-dollar mechanisms of inventory on a frequent basis, and leave lower-value items for intermittent cost reviews. Overhead application. If it takes too long to aggregate actual costs into cost pools for allocation to inventory, then you may use a standard overhead application rate instead, and adjust this rate every few months to keep it close to actual costs. production costs at different volume levels, since this may call for the use of longer production runs that are less expensive. Budgeting. A budget is always composed of standard costs, since it would be impossible to include in it the exact actual cost of an item on the day the budget is finalized. Also, since a key application of the budget is to compare it to actual results in subsequent periods, the standards used within it continue to appear in financial reports through the budget period. Price formulation. If a company deals with custom products, then it uses standard costs to compile the projected cost of a customers requirements, after which it adds on a margin. This may be quite a complex system, where the sales department uses a database of component costs that change depending upon the unit quantity that the customer wants to order. This system may also account for changes in the companys Nearly all companies have budgets and many use standard cost calculations to derive product prices, so it is apparent that standard costing will find some uses for the foreseeable future. In particular, standard costing provides a benchmark against which management can compare actual performance. Following through all the arithmetics of variances I have pin pointed reasons for the Material Price Variance, Material Usage Variance, Labour Efficiency Variance, and Labour Rate Variance. Material Price Variance occurs a failure to purchase the standard quality, thereby resulting in a difference price paid. This will lead into bad purchasing, in which is very discomforting the companys interest such as a rush purchase for an uneconomical markets, and also pushes a purchase of a substitute material on account of non-availability of the material specified by the company. This all are related to the interdependence at variances when it ensues an event has a favorable impact on one variance but an adverse impact on another variance. For example, the purchase of inferior quality materials may account for a favorable price variance but it may also have a negative impact on the material usage labor efficiency variance due to the quality causing an increase in usage. The adverse may also be affected by inflation and general increase in the market price. In such circumstances the selling price should be altered to refract the current market. Material Usage Variances may be affected by a whole lot of reasons such as carelessness in the use of material also affect the reason of material usage in resulting excessive consumption. Which brings us to the use of defective or sub-standard material that will cause spoilage to the material. Other reasons such as a change in t plant and machinery who also results to excessive consumption of material. The adverse on the variances is due to excess issues. Managers should check the stock are securely locked away that only the standard quantity is issued each day. And its not just that, There are a few more such as : Faulty workmanship Faulty material processing Pilferage of materials Use of material mixture, rather than standard mixture Labour Efficiency Variance is affected because of the actual hours used is greater than the standard hours, and it adverse is due to the use of an inappropriate standard that should be changed. Alternatively, there may have been idletime, ten working time should be synchronized. Bridget, C. (2012).  Standard Costing.  Available: http://www.accountingtools.com/standard-costing. Last accessed 28th Oct 2012.

Essay --

Depression :1) a state of feeling sad : 2) a serious medical condition in which a person feels very sad, hopeless, and unimportant and often is unable to live in a normal way. Depression is a disturbance in a person’s feelings that will lead one to be unusually low, sad, or empty. Depressed mood is not classified as a psychiatric disorder although it could most certainly be a feature of clinical depression. The state of low mood a person feels can lead to suicidal thoughts, feelings of hopelessness and worthlessness, loss of interest in activities that were once pleasurable, and several other symptoms (3). The introduction of psychoactive drugs in the 1950’s started the era of using drugs to treat anxiety, psychosis, and the ever so popular, depression. The new answer for depression was quickly replaced from therapy, to drugs. After the creation of these drugs the world of psychiatry would forever be changed (1). The years following the surplus distribution of psychoactive drugs led to more research about these â€Å"miracle drugs.† Studies concluded that billions of neural networks in our brain are used to send and receive signals from other firing neurons (2). Several chemicals also called neurotransmitters are distributed throughout the brain. Neurotransmitters such as dopamine and serotonin have been theorized to affect an individual’s mood levels. Depression patients are claimed to have less serotonin than those who are not depressed (3). The problem with this assumed theory is that instead of developing a drug to treat an irregularity, an irregularity was developed to suit a drug. An example of this used elsewhere is by perhaps appealing that all pain conditions are a problem due to lack of opiates (9). Antidepressants are used... ...r it (5). Many people do not realize that antidepressants are prescribed for other anxiety, neurological pain, fibromyalgia, and sleep problems. This should be taken in account when surveys are conducted as to how many antidepressants are prescribed (4). Antidepressants are serious drugs that should be prescribed when necessary and monitored carefully. In depression especially doctors should be sure that antidepressants will help their patients rather than harm them. Medicine should be used to help those who truly need it and not just be prescribed endlessly. Confronting psychological and sometimes physical pain from depression is necessary. Managing some of this pain through psychotherapy might help alleviate the need for so many antidepressants. Overall antidepressants will probably remain controversial and people should be educated about their pros and cons.

Free Essays - Achieving Understanding in Amy Tans Joy Luck Club :: Joy Luck Club Essays

Achieving Understanding in Amy Tan's Joy Luck Club In Amy Tan's The Joy Luck Club the daughters are too young and naive to understand their mothers and the hardship they faced. But by the end on the novel the daughters are able to understand where their mothers came from through stories and experiences the mothers tell the daughters their background. This shows that the daughters overall understood the mothers better because through time they were able to experience some of the same conflicts giving them a better understanding. While Jing-Mei Woo is only one of four young women whose stories integrate the novel, her story makes her seem to be the initial character, especially since her tale not only begins and ends the novel, but also strongly develops the theme and plot of the entire book. Her mother, Suyuan Woo was very concerned with people and things they lacked, "Something was always missing...always needed improvements...not in balance" (19). This reveals that Suyuan is lacking something herself and feels not good enough for her family. We later discover her past and the twin girls she left behind in China. This past life draws readers and makes the story more interesting but a little confusing at the same time. This past comes back to Jing-Mei when her mother dies and Jing-Mei begins to understand how hard it is to let go of the people you love, which makes her become more open, understanding and mature. She lost a mother she got to share her life with, but like her half sisters, they did n't understand their mother until she was gone to share the experience of being reunited. In a sense, her spirit was there to capture their happiness of finally meeting one another. Although Waverly Jong is perceived in being an intelligent, ambitious, proud, and arrogant, she is constantly struggling with everything that happens in her life. Her unwillingness to adapt to change becomes a major conflict. "Bite back your tongue"(89) her mother's harshness on her while growing up may have caused her lack of self-confidence foiled but assurance. Not only that caused her to resent her mother but the way she introduced her to perfect strangers, "This is my daughter Waver-ly Jong"(101) just to tell people or make reference to the TIME article on Waverly cause her to become upset.

Criminal Activity in the Turkish/Greek/Italian Economy and Government E

Criminal Activity in the Turkish/Greek/Italian Economy and Government Efforts to Combat It Terrorism once was a threat associated primarily with the Middle East, and was not an issue for Americans and citizens of other well developed, seemingly safe nations. This faà »ze was shattered on September 11, 2001 when New York City, USA was viciously attacked. Terrorism skyrocketed to the forefront of every newspaper and magazine throughout the world; suddenly, terrorism was a reality for those who had thought they were untouchable. Interestingly, terrorists are associated with more crimes than just their bombings, bio-weapons, and intimidation. For example, Afghanistan, while under Taliban control, produced 70 % of the world's illicit opium. The revenues from this illegal drug sale allowed the Taliban to support and protect Osama bin Laden and the al Qaeda organization[i]. The same is true for many other terrorist organizations throughout the world: Pablo Escobar was one of the most feared men in the world as the leader of the Medellin cocaine cartel in Colombia. He actual ly used the drug money to run for congress in Colombia and promote his political agenda[ii]. According to the Drug Enforcement Administration's (DEA) Drug Intelligence Brief in September of 2002, drug trafficking is the most profitable sources of funding for terrorist groups. Many countries participate in the drug trade, not by direct production of the substances, but as gateway routes from production site, to place of sale. Greece is an example of this. Although cannabis is the only illicit drug produced in Greece, and even then in small amounts, Greek authorities report that the use of drugs such as heroin is increasing.? Because of its European Uni... ...web.lexis-nexis.com/universe/document?_m=de0e4e616baa3edeb0ff76f3c3c09e83... [xx] Turkish parliament set to debate high-profile corruption report, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/universe/document?_m=de0e4e616baa3edeb0ff76f3c3c09e83... [xxi] Bin Laden?s right hand man ?instructed? Istanbul bombers, retrieved from the World Wide Web 14 December 2003 from http://pda.ananova.net/news/story/sm_843556.html?menu=news [xxii] HR violations and globalization: human trafficking, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/uiniverse/document?_m=1db322a792b6aee2e9c24afdd475ef5a... [xxiii] HR violations and globalization: human trafficking, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/uiniverse/document?_m=1db322a792b6aee2e9c24afdd475ef5a... Criminal Activity in the Turkish/Greek/Italian Economy and Government E Criminal Activity in the Turkish/Greek/Italian Economy and Government Efforts to Combat It Terrorism once was a threat associated primarily with the Middle East, and was not an issue for Americans and citizens of other well developed, seemingly safe nations. This faà »ze was shattered on September 11, 2001 when New York City, USA was viciously attacked. Terrorism skyrocketed to the forefront of every newspaper and magazine throughout the world; suddenly, terrorism was a reality for those who had thought they were untouchable. Interestingly, terrorists are associated with more crimes than just their bombings, bio-weapons, and intimidation. For example, Afghanistan, while under Taliban control, produced 70 % of the world's illicit opium. The revenues from this illegal drug sale allowed the Taliban to support and protect Osama bin Laden and the al Qaeda organization[i]. The same is true for many other terrorist organizations throughout the world: Pablo Escobar was one of the most feared men in the world as the leader of the Medellin cocaine cartel in Colombia. He actual ly used the drug money to run for congress in Colombia and promote his political agenda[ii]. According to the Drug Enforcement Administration's (DEA) Drug Intelligence Brief in September of 2002, drug trafficking is the most profitable sources of funding for terrorist groups. Many countries participate in the drug trade, not by direct production of the substances, but as gateway routes from production site, to place of sale. Greece is an example of this. Although cannabis is the only illicit drug produced in Greece, and even then in small amounts, Greek authorities report that the use of drugs such as heroin is increasing.? Because of its European Uni... ...web.lexis-nexis.com/universe/document?_m=de0e4e616baa3edeb0ff76f3c3c09e83... [xx] Turkish parliament set to debate high-profile corruption report, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/universe/document?_m=de0e4e616baa3edeb0ff76f3c3c09e83... [xxi] Bin Laden?s right hand man ?instructed? Istanbul bombers, retrieved from the World Wide Web 14 December 2003 from http://pda.ananova.net/news/story/sm_843556.html?menu=news [xxii] HR violations and globalization: human trafficking, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/uiniverse/document?_m=1db322a792b6aee2e9c24afdd475ef5a... [xxiii] HR violations and globalization: human trafficking, retrieved from the World Wide Web 14 December 2003 from http://web.lexis-nexis.com/uiniverse/document?_m=1db322a792b6aee2e9c24afdd475ef5a...

Study on Mutual Funds

OBJECTIVE OF THE STUDY The main objective of the present study to understand how mutual funds function in India. Specifically the study seeks to answer the following question: 1. What is the present status of mutual funds industry in India? How does it compare with mutual funds in foreign countries? 2. How mutual funds operate to create value for their investors? 3. What consideration an investors should keep in mind while making investment in mutual funds? 4. What is the regulatory frame work for mutual funds in India? 5. What are the problems faced by mutual funds industry in India & what are its future prospects? RESEARCH DESIGN & METHADOLOGY The Present study has been completed on the basis of secondary data colleted from internet and from various books, publicity materials and brochures issued by various mutual funds co. Reference has also been made to the regulations issued by securities and exchange board of India in regard to mutual funds. The data and the resource material so collected have been analysed within the frame work of 5 sections each focusing on a particular questions the study seeks to answer. PLAN OF THE STUDY The Study has been completed within the frame work of five sections. The Section wise plan is as follows:- I. PRESENT STATUS OF MUTUAL FUND INDUSTRY II. OPERATION OF MUTUAL FUNDS III. INVESTMENT CRITERIA IV. REGULATORY FRAME WORK OF MUTUAL FUNDS V. PROBLEMS AND PROSPECTUS I PRESENT STATUS OF MUTUAL FUNDS IN INDIAN CAPITAL MARKET Retail investors usually want to participate in the capital market, but due to paucity of funds, lack of expertise knowledge and limited risk-bearing capital, they have limited access to capital market. Mutual funds provide a mechanism that helps the retail investors enter the capital market. the mutual funds manage their funds for maximum gain with minimum risk and in the most professional way and work as agent for growth and stability of capital market. Till 1964, there were no mutual funds in India. In 1963, UTI Act, 1963 was enacted for the establishment of first mutual fund. The UTI launched its first scheme, US-64; in1964 which later became the most popular unit scheme in India. In1987, the RBI issued guidelines for bank-sponsored mutual funds. The evolution of mutual funds in India is consisting of different phases as follows: PHASE I: History of mutual funds started in India in 1964 when the first mutual fund in the name of Unit Trust of India was established in July 1964. UTI launched its first scheme US-64 which eventually became the most popular scheme and could accumulate the largest corpus. After 1964, it started several other schemes also. Till 1987, UTI remained the synonym for mutual fund in India. It was a sole player and gathered shape of monolithic mutual fund with millions of investors in several schemes. PHASE II: In 1987, the Government allowed the public sector banks to establish mutual funds. SBI Mutual Fund in 1987. Other mutual funds to follow suit were Canbank Mutual Fund (1987), PNB Mutual Fund (1989), IndBank Mutual Fund (1989), LIC Mutual Fund (1989), GIC Mutual Fund (1990), etc. The position continued till 1992 and other mutual funds were also established. PHASE III: There was a historical change in 1993 when the government allowed private sector mutual funds also. The first mutual fund in the private sector was Kothari Pioneer. Thereafter, in 1994, the foreign mutual funds were also allowed to operate schemes in India, and Morgan Stanley was the first foreign mutual fund in India whose initial issue of units was overwhelmingly subscribed by the investors. In 1992, SEBI was established and it issued guidelines for the working and supervision of mutual funds. PHASE IV: In 1966 a need was felt for the modification of SEBI (Mutual Funds) Regulations. On the basis of ‘Mutual Funds-2000’ Report, SEBI framed new Regulations in 1996. There have been several amalgamations of mutual funds. After 1996, a number of foreign mutual funds as well as Indian mutual funds have been established. At the end of march 2004, there were 33 mutual funds and Assets Under Management of Rs 1,39,616 crores. After 1996, mutual funds have become very popular among retail investors. The increase in number of mutual funds and their schemes speak of the underlying strength of the investors’ confidence in them. As in April, 2005, there were 28 mutual funds operating in India. Some of the mutual funds operating in India at present are as follows (in alphabetical order): ABN AmroDSP Merril LynchJM Sahara Bank of Beroda Escorts Kotak Mahindra SBI Benchmark Fidelity LIC Standard Chartered Birls Sunlife Franklin Tempelton Morgan Sundarum Canbank HDFC Principal Tata Cholamandalam HSBC Prudential Tauras Deutsche ING Vysya Reliance UTI A large number of mutual funds have intensified competition and led go to product innovation. Each of these mutual funds has a number of schemes operating with different features and characteristics. There are more than 500 schemes in operation at present. II OPERATION OF MUTUAL FUNDS A mutual fund is a financial intermediary which acts as an instrument of investment. It collects funds from different investors to a common pool of investible funds and then invests these funds in a wide variety of investment opportunities. Small investors who are unable to participate in capital market, can access the stock market through the medium of mutual funds which can manage their funds for maximizing return. The investment may be diversified to spread risk and to ensure a good return (dividend or capital gain or both) to the investors. The mutual funds employ professional experts and investment consultants to conduct investment analysis and then select the portfolio of securities where the funds are to be invested. Thus, a mutual fund is a pool of funds contributed by individual investors having common investment preferences. FEATURES AND CHRACTERISTICS OF MUTUAL FUNDS A mutual fund is a financial intermediary and works as an investment company. It has distinct features and characteristics which differentiate it from other financial intermediaries. Some of the features of mutual funds are: (i) Mutual fund is a pool of financial resources. Investors bring their individual funds together. Sometimes, the funds which otherwise may not come for investment in the capital market, are invested through mutual funds. (ii)Mutual funds are professionally managed. The resources collected by mutual funds are managed by professionals and experts in investment. These professionals can undertake specialized investment analysis such as fundamental analysis, technical analysis, etc. , which are not otherwise expected on the part of individual investors. (iii)Mutual fund is an indirect investing. The individual investors invest in the mutual funds which in turn invest in the shares, debentures and other securities in the capital market. The proportionate funds given by an investor are represented by the units of mutual fund. Investors own these units. The shares, debentures are owned by the mutual fund. Investors have no direct claim on these securities. In case of closure or liquidation of the proceeds of these securities are proportionally distributed among the unitholders. (iv)Investment in mutual fund in not borrowing-lending relationship. Investors do not lend money to the mutual fund. Consequently, the investors have to share the gains or losses of operations of the mutual fund. (v)Mutual fund is a representative of investors. The mutual funds collect the funds from investors under a particular investment scheme. as a representative, the mutual fund has to invest these funds as per the designated scheme only. MECHANISM OF MUTUAL FUND OPERATIONS A mutual fund represents pooled savings/funds of individual investors. Professional managers of the mutual fund invest these funds in different types of securities. They have to take different decisions from time to time. The revenue returns may be distributed by the mutual funds to the unitholders. Capital appreciation in the mutual funds also belong to the investors. MUTUAL FUND SCHEMES One of the main objectives of mutual funds is to provide better returns to investors at minimum risk. Mutual funds issue units to the investors in proportion to the funds contributed by the investors. The income of the funds are shared by the investors in the proportion to the number of units held. These mutual funds offer different types of schemes from time to time to attract investors and to take care of their needs, on the basis of nature of investment, type of operations and type of income distribution. Mutual funds may launch different schemes to offer one or more of the following: (a)Regular and steady flow of income, (b)High capital appreciation, c)Capital appreciation and regular return,and (d)Return with tax benefits. There are different ways in which various mutual fund schemes can be classified. Following shows the classification of mutual fund schemes with reference to schemes being offered in India: 1. On the basis of Life Span. (a) Close-ended Schemes (b) Open-ended Schemes 2. On the basis of Income Mode (a) Income schemes (b) Growth schemes 3. On the basis of Portfoli o (a) Equity schemes (b) Debt schemes (c) Balanced schemes 4. On the basis of Maturity of Securities (a)Capital Market Schemes (b)Money market Schemes 5. On the basis of Sectors Different Sectoral Schemes 6. On the basis of Load (a) Load Schemes (b)No Load Schemes 7. Special Schemes: (a) Index Schemes (b)Offshore Schemes (c) Gilt Securities Schemes (d) Exchange Traded Funds (ETF) (e) Fund of Funds. Some of these schemes have been explained below: OPEN-ENDED AND CLOSE-ENDED MUTUAL FUNDS SCHEMES As per SEBI Regulations, 1996, open-ended scheme means a scheme of mutual fund which offers units for sale without specifying any duration for redemption. On the other hand, close-ended scheme is one in which the period of redemption is specified. The open-ended mutual fund scheme sells and repurchases the units of mutual fund on a continuous basis. Any investor can become a member (by purchasing units) or can exit (by selling these units back to the mutual fund). These sales and repurchases of units take place at a price called Net Assets Value (NAV) which is calculated periodically on the basis of the market value of the portfolio of the mutual fund. The sale and repurchase prices are announced by the mutual fund on a periodic basis. The Unit Scheme-1964 (US-64) was an open-ended mutual fund scheme. The essential feature of open-ended scheme is the liquidity. On the other hand, close-ended mutual fund scheme is only one in which the limited number of units are sold to investors during a specified period only. Thereafter, any transaction in these units can take place only in secondary market, ie, the stock exchanges. So, after the initial public offering, the mutual fund goes out of the picture and subsequent sale and purchase take place among the investors. The market price of the units of a closed-ended mutual fund scheme is determined by the market forces of demand and supply. The liquidity to investors provided by the market. However, all the closed-ended mutual fund schemes are redeemable at the end of a specified period when all the investment of the scheme are sold and the proceeds are distributed among the unit holders on a proportionate basis. There are several close-ended schemes such as Master Share Scheme of the UTI. INCOME FUND AND GROWTH FUND The mutual funds are called income funds when they promise a regular and/or guaranteed return in the form of dividends to the investors. For example, UTI launched several Monthly Income Schemes. The portfolio of these schemes is usually consisting of fixed income investments such as bonds, debentures, etc. The income schemes are also known as dividend schemes. These schemes are ideal for investors who need or seek intermediate cash flows in the form of dividend payment. A growth fund scheme is one which offers capital appreciation as well as a variable dividend opportunity to the investors. The investors may get dividend income from the mutual fund on a regular basis and the capital appreciation is available in the form of increase in market price. Growth schemes are good and suitable for investors having long-term investment perspective. In addition, there may also be income-cum-growth (hybrid funds) where the investor may be offered fixed incomes as well as growth opportunities. An example of a growth fund is UTI Growth and Value Fund which is an open-ended equity oriented scheme. The objective is to seek capital appreciation by making investments primarily in listed securities of Indian companies. A variant of income fund is known as Dividend Yield Fund. These invest funds in shares of those companies that pay high dividends. In addition, any appreciation of share price adds or subtracts investors return. DOMESTIC FUNDS AND OFF-SHORE FUNDS The domestic funds schemes are those which are open for subscription by the investors of the country of origin only. Most of the mutual funds launched in India are domestic mutual funds. The off-shore mutual funds bring funds (in the form of foreign exchange) to the capital market. At present, several off-shore mutual fund schemes have been floated in India. Ind Bank Off-Shore Mutual Fund, 1993 and Common Wealth Equity Mutual Fund, 1993 are examples of off-shore mutual fund schemes. TAX-SAVING SCHEMES These mutual fund schemes are designed to avail tax exemptions and concessions to the investors. These schemes help individual investors in their tax planning. CANPEP MEP 1994, PNB-ELSS were some of the tax-savings schemes. These schemes are also known as Equity-linked savings schemes were entitled to tax benefit under Section 88 of the Income Tax Act. Recently, private sector mutual funds have also launched these schemes such as HDFC Tax Plan, KP Tax Shields, etc. MONEY MARKET MUTUAL FUNDS (MMMF) SEBI Regulations, 1996 define an MMMF, as one which has been set up with the objective of investing in money market investments which include commercial papers, commercial bills, ‘T-Bills, etc. The funds collected by these mutual funds are invested exclusively in money market instruments. Money market mutual funds are a part of short-term pooling arrangement of funds. These are open-end funds. These funds are very liquid and risk free because of nature of their investments. MMMF provide better returns than short-term bank deposits and are often considered to be good alternative to bank deposits. The Reserve Bank of India has announced Guidelines for money market mutual fund in April 1992. However, at present, the MMMF are also regulated under SEBI Regulations, 1996. SPECIALISED SECTOR FUNDS Sector funds schemes are those under which the funds are planned to be invested in a particular region, industry or sector. For example, Pharma (D) Scheme of Franklin Templeton Mutual Fund, Technology Company Scheme of DSP Merill Lynch Mutual Fund, Banking (D) of Reliance Mutual Fund are some specialised sector schemes of mutual funds. INDEX SCHEMES In this case, the funds collected by the mutual funds are invested in the shares forming the Stock Exchange Index. These funds are also known as growth funds. The funds are allocated o the basis of proportionate weight of different shares in the underlying Index. For example, Nifty Index Scheme of UTI Mutual Fund, Index Fund (Sensex) of Tata Mutual Fund, Index Fund (D) of Principal Mutual Fund are Index Schemes. There are 13 Index Funds which use S & P CNX NIFTY as the underlying index. EQUITY FUNDS SCHEMES Under these schemes, the funds are invested primarily in equity shares only. The equity fund schemes are high on the risk scale as the share prices are volatile. These funds try to reduce the risk by diversifying the investments in different types of shares. If invested rationally and properly, these schemes may give high returns commensurate with risk taken. The choice of investee companies is made by the mutual fund. These schemes may be income schemes or growth schemes. Fidelity Equity Fund is an open ended equity growth scheme with the objective of generating long term capital growth from a diversified portfolio of equity and equity-related securities (95%) and Money Market Instrument (5%). DEBT FUNDS SCHEMES In case of debt funds, the collected funds are invested in debt securities. A variant of debt funds schemes may be in the form of government securities funds scheme wherein the funds are invested in government securities only. Debt schemes are generally income scheme. A debt fund scheme is an ideal option for investors who are averse to risk which is associated wit equity schemes. BALANCED FUNDS A balanced fund provides both growth and regular incomes as these schemes invest both in debts and equity instruments in the proportion as disclosed in the offer document. These schemes are appropriate for investors who look for moderate growth. The NAV of these schemes are likely to be less volatile than the pure equity funds. GILT FUNDS The funds of these schemes are invested exclusively in government securities. These funds are low return and low risk and popular among the risk averse investors. Some of the gilt funds operating in India are Gilt Plus (Birla Sunlife Mutual Fund), Gilt Investment (Cholamandalum Mutual Fund), FT Gilt (Franklin Templeton Mutual Fund), Gilt long-term (HDFC Mutual Fund), Gilt Treasury (Prudential ICICI Mutual Fund), etc. SCHEMES BASED ON MARKET CAPITALIZATION In recent past, mutual funds in India have launched several schemes with a focus on market capitalization of companies. For example, UTI Large Cap Fund, UTI Small-Cap Fund, Chola Multi-Cap Fund, HDFC Premier Multi-Cap Fund, etc. are schemes based on market capitalization. It may be noted that the classification between large, small and mid-cap is arbitrary and can vary from market to market. In India, the National Stock Exchange defines mid-cap companies as those having average 6-months market capitalization between Rs. 75 crores to Rs. 750 crores. In Case of multi-cap or flexi-cap schemes, the investments ar e made across companies with different market capitalization-large, small or mid. LOAN AND NO-LOAN FUNDS A load fund is one that charges a % of NAV (Net Assets Value) as entry or exit fees. Whenever an investor buys or sells the units, a fee is charged by the fund to meet the administrative expenses. On the other hand, a no-loan fund is one which does not charge any fees for entry or exit. In case of no-loan fund, all transactions of sale and repurchase of units are done at NAV while in case of load funds, the repurchase is made at a price less than NAV and sale is made at a price more than NAV. FUND OF FUNDS A fund of funds scheme means a scheme that invests primarily in other schemes of same mutual fund or other mutual funds. Benchmark Mutual Fund has started a FOF under the name of FOF Junior BeES. EXCHANGE TRADED FUNDS Exchange Traded Funds (ETFs) refers to basket of securities that are tradeable at a stock exchange. They are somewhat similar to Index Fund Schemes. The ETFs are so called because they are listed on a stock exchange and are traded as any other listed security. So, ETFs have characteristics of open-ended mutual funds as well as that of listed shares. ETFs do not sell their units directly to the investors. Rather, a security firm creates an ETF by depositing a portfolio of shares in line with an Index selected. The security firm creates units against this portfolio of shares. These units are sold to the retail investors. So, the ETF has portfolio of shares as well as a liability towards the holders of ETF units. ETFs are different from Mutual Funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (fund) takes the shares of companies comprising the index from various categories of investors like authorized participants, large investors and institutions. In turn, it issue them a large block of ETF units. Since dividend may have accumulated for the stocks at any point in time, a cash component to that extent is also taken from such investors. In other words, a large block of ETF units called a â€Å"Creation Unit† is exchanged for a â€Å"Portfolio Deposit† of stocks and â€Å"Cash Component†. The number of outstanding ETF units is not limited, as with traditional mutual funds. It may increase if investors deposit shares to create ETF units; or it may reduce on a day if some ETF holders remeed their ETF units for the underlying shares. These transactions are conducted by sending creation/ redemption instructions to the Fund. In case of mutual funds, the portfolio of the investments made under the scheme may change, but in case of ETF, this is not so, because the ETF portfolio created once does not change. The market value of the units of ETF changes in line with the Index automatically. The funds managers are not required to actively manage the portfolio resulting in lower expense level of the fund. Consequently, the NAV of the ETF would be higher than the NAV of the Index Fund with the same portfolio. As the ETFs are listed on a stock exchange, they provide a lot of liquidity and price is determined by the demand and supply forces and the market value of the shares held. As opposed to ETF, the sale/ purchase prices of the units of a mutual fund are based on the NAV. A comparison of ETF, Open-ended funds and close-ended funds has been presented in table below: 1. Parameter Open-ended Fund (OEF) Closed-ended Fund (CEF) Exchange Traded Fund (ETF) Find Size Flexible Fixed Flexible 2. NAV Daily Daily Real Time 3. Liquidity Provider Fund itself Stock Market Stock Market/Fund itself 4. Sale price At NAV plus load, if any Significant Premium/Discount to NAV Very close to actual NAV of Scheme 5. Availability Fund itself Through Exchange where listed Through Exchange where listed/ fund itself. 6. Portfolio Disclosure Monthly Monthly Daily/Real-time ETFs have edge over the ordinary mutual funds. In case of latter, an investor cannot take the benefit of intra-day movement of price of shares because the mutual fund units can be traded at the closing NAV based rate. However, the performance of ETF is based on the underlying index and ETF can be traded through out the day taking benefit of intra-day movement in price. In India, several ETFs, have been created so for. Bench Mark Mutual Fund has created 5 ETFs. 1. Liquid BeES 2. Nifty BeES 3. Nifty Junior BeES 4. Bank BeES, and 5. FOF Junior BeES All these 5 ETFs are listed and traded at the capital market segment of the NSE. Prudential ICICI Mutual Fund has launched SPICE which tracks the Sensex. It combines features of both open-ended scheme and exchange traded share. It is listed at Mumbai Stock Exchange and can be traded in a lot of one unit. Value of one SPICE is 1/100 of the Sensex value. UTI Mutual Funds has launched SUNDERS, which is also listed at Mumbai Stock Exchange. Certain ETFs traded at American Stock Exchange are QUBES (Representing NASDAQ-100), SPIDERS (representing S&P 500), DIAMONDS (Representing Dow Jones Industrial Average), etc. NET ASSETS VALUE (NAV) OF A MUTUAL FUND Investors are the owners of the mutual fund. Funds collected under a particular scheme are invested in different securities. So the ownership interest of the unit holders is represented by these securities. Net Assets Value (NAV) refers to the ownership interest per unit of the mutual fund, i. . , NAV refers to the amount which a unit holder would receive per unit if the scheme is closed. NAV is represented as follows: An amount of Rs. 50,00,000 has been collected by a mutual fund by the issue of 5,00,000 units of Rs. 10 each. The amount has been invested in different securities. The market value of these securities at present is Rs. 56,00,000 and the mutual fund has a liability of Rs. 4, 50,000 in respect of expenses, etc. The NAV of the fund is: The units of an open-ended mutual fund scheme are sold and purchased by the mutual fund at a price based on NAV. The NAV of a mutual fund scheme is calculated by dividing the net assets of the scheme by the number of outstanding units under that scheme on the date of valuation. SEBI Regulations, 1996 provide that while determining the price of the units, the mutual fund has to ensure that the repurchase price is not lower than 93% of the NAV and the selling price is not higher than 107% of the NAV. Further that the difference between the selling price and the repurchase price shall not exceed 7%, calculated on the selling price of the units. The NAV varies from time to time and is published in newspapers so as to enable the nvestors to know the value of their investments. SEBI Regulations, 1996 require that the NAV of a mutual fund scheme shall be calculated and published at least in two daily newspapers at an interval of not exceeding one week. III INVESTMENT CRITERIA MAKING THE INVESTMENT DECISION Ones main considerations as an investor, besides choosing which vehicles are right, lie in the a reas of risk management, taxes and inflation, and asset allocation. In order to reach your financial objectives, you must choose from diverse investment alternative – all of which vary greatly in the degree and type of risk and potential return. The key to developing a sound portfolio is to strike the right balance between potential reward and risk, based on your financial objectives, financial situation and investment style. We’ve all heard the expression, â€Å"Nothing ventured, nothing gained. † Perhaps nowhere does this maxim hold truer than in the financial markets, where pursuing potentially higher returns means accepting higher levels of risk. Before you venture anything, you should determine your personal level of risk tolerance, given your needs and goals. To do this, you should familiarize yourself with the various kinds of risk and how they affect different types of investments. THE MANY OF FACES OF RISK Risk is the possibility that one may lose some or all of his investment in real terms, or that his investment may not increase in value. Several factors may influence the amount of risk one can comfortably accept, including ones age, family situation, income, time horizon and financial goals. When investing, one faces the following key risks: †¢Market Risk: This is the possibility that an investment (e. g. , a stock) will decline in value. As a result, if you sold the investment, you would receive less than what you initially paid for it. †¢Credit Risk: This is the possibility that the issuer of an investment (e. g. , a corporate bond) may not live up to its financial obligations. A default by the issuer could mean that you lose your invested capital and the expected interest payments. †¢Inflation Risk: This is the possibility that the value of a long-term asset (e. g. , a government bond) may not grow enough to keep up with inflation, reducing your purchasing power as a result. †¢Reinvestment Risk: This is the possibility that interest rates will fall as an investment (e. . , a bond) matures. If this occurs, you may be unable to reinvest matured assets at the rate of return you were accustomed to receiving. This type of risk also applies to reinvesting the coupon payments received from bonds and other fixed-income payments. †¢Liquidity Risk: This is the possibility that you will be unable to liquid ate an asset (e. g. , real estate) when you want and at the price you want. As a result, you may be forced to retain the asset or accept less than you wanted for the sake of liquidity. †¢National, International, and Political Risk: The possibility that a country’s government will suddenly change its policies. Events such as wars, embargos, coups, and the appointments of individuals with unfavorable economic policies can impact the financial markets, especially concerning investments related to that country. Possible results changes in tax structures and changes in bond or stock ratings. †¢Economic Risk: The risk that the economy will suffer a downturn as a whole. Such an event generally affects all the financial markets across the board, from product prices to the job market. †¢Industry Risk: The risk that a specific industry will suffer a downturn. Often, industries related to the one that experiences problems will suffer as well. Tax Risk: The risk that high taxes will make investments less profitable for both businesses and investors. Businesses that have no pay expand or improve. Investments that carry heavy tax baggage generally lead to lower dividends for an investor. How Much Risk Is Right? The amount of risk that is right depends upon person to person. To determine the r isk comfort level, one may ask this himself: Am I willing to tolerate greater volatility for potentially higher returns from my investments, or do I place more emphasis on quality, with less risk? Several factors may influence the amount of risk one can comfortably accept in ones portfolio, including: †¢Age †¢Family situation †¢Income †¢Financial goals In addition, the markets evolve and ones personal goals will inevitably change with time. One of the best ways to keep ones investments on target is to meet with financial professional regularly. In these meetings, the investor and his financial professional can discuss the investment objectives, determine the individual risk tolerance level and help to understand the various risks associated with an investment. The financial professional can also help an investor build a portfolio that has the potential to provide the highest returns consistent with the amount of risk one wish to assume. HOW TO CHOOSE WHICH RISKS TO TAKE? Whenever one considers a new investment, he may wish to ask his financial professional the following questions: †¢What types of risk are involved? Once the financial professional has explained the risks, one must ask how he or she can help to manage or minimize the different kinds or risk for the investment one is considering. Not all kinds of risk will apply to every investment. †¢What could happen to the principal in a â€Å"worst-case† scenario? The financial professional can explain how diversifying ones portfolio can help mitigate the effect of a downturn in any one market or industry. For example, assume you invested in the stock of a highly speculative biotechnology company. The stock’s trading price could fall substantially if the company’s only product fails to get FDA approval or is shown to be inferior to a competitor’s product. Spreading ones money across different asset classes – stocks, fixed – income investments, and cash equivalents – could help one manage the risk better than investing all his funds in this one stock. †¢How will adding this investment to the holdings help to manage the portfolio’s overall risk? Managing market risk through a balance of financial assets in ones portfolio is a significant component of long-ter m investment success. Ideally, ones portfolio should offer a measure of protection during inevitable market downturns and be positioned for opportunity when markets heat up. In addition to risk there are other factors also which need to be considered before investing, as stated below: INFLATION: Inflation taxes are two factors always on the minds of investors. Inflation is the persistent increase in the cost of goods and services, and the reason why the same loaf of bread that costs you $1. 00 today will probably cost you $1. 05 next year. For your purchasing power to grow in â€Å"real† terms, your returns must outpace the inflation rate. TAXES: Additionally, taxes must be a consideration. There are investments available that are both taxable and tax-free; others are tax-deferred or tax-deductible. The differences are significant, but not as dizzying as they seem. ASSET ALLOCATION: Asset allocation refers to the diversification of your portfolio across all the different classes of assets. The goal of effective asset allocation is to develop an appropriate mix of investments based on your specific investment objectives that maximizes performance potential with an acceptable level of investment risk. The goal is more consistent returns, lower volatility and a greater chance of achieving financial objectives. SELECTION OF A MUTUAL FUNDS There are thousands of funds to choose from, but there are some general guidelines that can help you choose a fund. †¢Define your investment time horizon and financial goals. Meeting a long-term goal (e. g. , starting a college fund for a newborn) will require different investments than in meeting a short-term goal (e. g. , accumulating money to purchase a car). †¢Understand your risk tolerance and the risk of different mutual funds. Risk tolerance is based on your comfort level in the fluctuation of price, which will affect your investment principal. Once this is determined, you can match fund types that have historically shown commensurate price movement. Keep in mind, however, that past performance is no guarantee of future results. †¢Combine your goals, time horizon and risk tolerance and find a fund category that matches these objectives. This will help in deciding what types of funds you may want to consider. You will find that there are still many funds to choose from within a specific category. Your prudential financial professional will be able to perform a comparative analysis of the individual funds to find the most appropriate choice. Check with your tax advisor prior to investing in a tax-exempt or tax-managed fund. Match the term of the investment to the time you expect to keep it invested. Money you may need right away (for example, if your car breaks down) should be in a money market account. Money you will not need until your retire in decades (or for a newborn’s college education) should be in longer- term investments, such as stock or bond funds. Putting money you will need soon in stocks risks having to sell them when the market is low and missing out on the rebound. Expenses matter over the long term, and of course, cheaper is usually better. You can find the expense ratio in the prospectus. Expense ratios are critical in index funds, which seek to match the market. Actively managed funds need to pay the manager, so they usually have a higher expense ratio. Sector funds often make the â€Å"best fund† lists you see every year. The problem is that it is usually a different sector each year. Also, some sectors are vulnerable to industry-wide events (airlines do come to mind). Avoid making these a large part of your portfolio. Closed-end funds often sell at a discount to the value of their holdings. You can sometimes get extra return by buying these in the market. Hedge fund managers love this trick. This also implies that buying them at the original issue is usually a bad idea, since the price will often drop immediately. Mutual funds often make taxable distributions near the end of the year. If you plan to invest money in the fund in a taxable account, check the fund company’s website to see when they plan to pay the dividend; you may prefer to wait until afterwards if it is coming up soon. Research. Read the prospectus, or as much of it as you can stand. It should tell you what these strangers can do with your money, among other vital topics. Check the return and risk of a fund against its peers with similar investment objectives, and against the index most closely associated with it. Be sure to pay attention to performance over both the long-term and the short-term. A fund that gained 53% over a 1-yr. period (which is impressive), but only 11% over a 5-yr. period should raise some suspicion, as that would imply that the returns on four out of those five years were actually very low (if not straight losses) as 11% compounded over 5 years is only 68%. Diversification can reduce risk. Most people should own some stocks, some bonds, and some cash. Some of the stocks, at least, should be foreign. You might not get as much diversification as you think if all your funds are with the same management company, since there is often a common source of research and recommendations. The same is true if you have multiple funds with the same profile or investing strategy; these will rise and fall together. Too many funds, on the other hand, will give you about the same effect as an index fund, except your expenses will be higher. Buying individual stocks exposes you to company-specific risks, and if you buy a large number of stocks the commissions may cost more than a fund will. The compounding effect is your best friend. A little money invested for a long time equals a lot of money later. The decision to invest in a mutual fund is one you have to make on your own. However, when you try to choose an investment, it’s usually best to seek the guidance of an investment representative. Why? Consider that there are more mutual funds than there are stocks listed on the New York Stock Exchange. While many of these funds share the same objectives, no two are exactly alike. Similarly, as an investor, your goals are unique. An investment representative can help you determine the fund that’s right for you. A mutual fund investor has more options than ever before – stock, bond, and money market funds to satisfy all outlooks, from the most conservative to the most venturesome. Generally speaking, in investment management, intelligently assumed risk creates the opportunity for greater returns. †¢A money market mutual fund aims for current income at minimal risk. †¢A municipal bond mutual fund aims for current tax-free income. †¢Government income funds aim for current income with principal security. †¢Corporate bond funds aim for a high rate of current income. †¢An income fund aims for a higher rate of current income. A balanced fund aims for current income with some capital appreciation. †¢Growth and income funds offer the possibility of more growth than a balanced fund, but probably less income. †¢A growth fund aims for the accumulation of capital, with little or no current income. †¢Aggressive growth funds offer the prospect of maximum capi tal appreciation, with more than average risk. In addition, specialized funds are available – for instance, those that invest only in certain geographic regions or in certain sectors or industries (like health care, technology, or energy). There are even funds that have adopted certain social objectives or that follow specific investment philosophies. For more complete information, including charges and expenses, obtain the mutual fund’s prospectus. Read it carefully before you invest or send money. The Securities and Exchange Commission (SEC) requires every open-mutual fund (where the fund’s managers issue new shares on demand) to provide you with a copy of its prospectus before – or coinciding with – a purchase of shares. A prospectus is a key source of information regarding a mutual fund and often is the best place to start when you are considering investing in one. It will describe the fund’s objectives, risks, and operations. TURNOVER Turnover is a measure of the amount of securities that are bought and sold, usually in a year, and usually expressed as a percentage of net asset value. It shows how actively managed the fund is. A caveat is that this value is sometimes calculated as the value of all transactions (buying, selling) divided by 2; i. e. , the fund counts one security sold and another one bought as one â€Å"transaction†. This makes the turnover look half as high as would be according to the standard measure. Turnover generally has tax consequences for a fund, which are passed through to investors. In particular, when selling an investment from its portfolio, a fund may realize a capital gain, which will ultimately be distributed to investors as taxable income. The very process of buying and selling securities also has its own costs, such as brokerage commissions, which are borne by the fund’s shareholders. The Dalbar Inc. consultancy studied stock mutual fund returns over the period from 1984 to 2000. Dalbar found that the average stock fund returned 14 percent; during that same period, the typical mutual fund investor had a 5. percent return. This finding has made both â€Å"personal turnover† (buying and selling mutual funds) and â€Å"professional turnover† (buying mutual funds with a turnover above perhaps 5%) unattractive to some people. IV REGULATORY FRAME-WORK OF MUTUAL FUNDS Immediately after its constitution, SEBI issued the Mutual Fund Regulations in 1993. However, with the growth of mutual funds, it was imperative that they should follow prepared a ‘Mutual Fund 2000 Report’ and on the basis of this report, it prepared more stringent and comprehensive regulations in 1996, known as SEBI (Mutual Fund) Regulations, 1996. ince then, there have been number of amendments in Regulations, 1996. Besides, SEBI has also issued several guidelines in respect of working of mutual funds. Some of the provisions of the SEBI (Mutual Fund) Regulations, 1996 (as amended from time to time) have been summarized hereunder: 1. The sponsor, who wants to establish a mutual fund, should have a sound track record and a general reputation of fairness and integrity, i. e. , must be in business of financial services for 5 years, and must have contributed at least 40% of the net worth of the Asset Management Company. 2. A mutual fund is constituted in form of trust. The trust shall incorporate an Asset Management Company (AMC). The trustees shall ensure that the AMC has been managing the schemes independently of other activities. 3. Two-thirds of the trustees shall be independent persons and not be associated with the sponsor. 4. The trustees shall ensure that activities of the AMC are in accordance with the Regulations, 1996. 5. The trust shall periodically review the investors’ complaints received and shall be redressed by the AMC. 6. The mutual fund shall appoint a custodian to carry out the custodial services for the schemes. The sponsor or its associates shall no have 50% or more of the share capital of the custodian. 7. No scheme shall be launched by the AMC unless the offer document contains disclosures which are adequate in order to enable the investors to make informed investment decisions. 8. Advertisement in respect of every scheme shall be in conformity with the Advertisement Code. 9. Every close-ended scheme shall be listed at a recognized stock exchange, or there will be a repurchase facility. 10. The close-ended schemes may be converted into open-ended schemes under certain conditions. A close-ended scheme may be allowed to be rolled over if necessary disclosures about NAV, etc. , are made to the unit holders. 11. In case of over-subscription for a new scheme, the applicants applying for upto 5,000 units shall be allotted full. The refund to applicants, if any, shall be made within 6 weeks from the data of closure of the list. 12. No guaranteed return shall be provided in a scheme, unless such return is fully guaranteed by the sponsor or the AMC. 13. An open-ended scheme shall be would up after the expiration of the mixed period, or in case, 75% of the nit holders decide so, after repaying the amount due to the unit holders. 14. The money collected under any scheme shall be invested only in transferable securities in money market or capital market or private placed debts or securitized debts. 15. The mutual fund shall not borrow any money except to meet temporary liquidity needs and borrowing, if any, need not be more than 20% of NAV of the scheme, and for period o f less than 6 months. 16. The funds of a scheme shall not be used in option trading or a carry forward transaction. However, derivatives can be traded by a mutual fund at a recognized stock exchange for portfolio balancing. 7. A mutual fund can enter into underwriting agreement. 18. NAV for each scheme shall be calculated by dividing the total assets of the scheme by the number of outstanding units. The NAV of the scheme shall be published in two daily newspapers at interval of not exceeding one week. 19. In case of open-ended schemes, the repurchase and sale price shall be published at least once a week. 20. The mutual fund shall ensure that the repurchase price of a unit is not less than 93% of NAV and the sale price is not more than 107% of NAV. In case of close-ended schemes, the repurchase price shall not be less than 95% of the NAV. 1. The AMC may charge the mutual fund with investment and advisory fees as per rates prescribed in the Regulations. The issue expenses and redempt ion expenses of a scheme shall not exceed the limits given in the Regulations. 22. The mutual funds are required to raise at least Rs. 20 crores or Rs. 50 crores (for close-ended and open-ended schemes respectively) or 60% of the target amount, otherwise the entire subscription be refunded. Each scheme should have a minimum of 20 investors and not single investor should account for more than 25% of the corpus of the scheme. 23. The unquoted debt instruments shall not exceed 10% in case of growth funds and 40% in case of income funds. 24. Investment in one company under any scheme should be restricted to 5% of the corpus of the scheme. Under all schemes, the investment in one company should be restricted to 5% of the paid-up capital of the company. Total investment in all securities (debts and shares) in one company shall be restricted to 10% of the corpus of the mutual fund. 25. Funds under the same AMC mutual not be lent or invest from one scheme to another, unless the funds are transferred at the prevailing market price. 26. All mutual fund must distribute a minimum of 905 of their profits in any given year. The e3arnings must be segregated as current income, short-term capital gain and long-term capital gain. 27. Trading by mutual funds shall be restricted to hedging and portfolio balancing purposes only. The securities held shall be marked to market by the AMC to ensure full coverage of the investments made in derivative products. 28. Mutual funds are permitted to participate in the Securities Lending Scheme of SEBI under certain guidelines. 29. Mutual funds are allowed to invest in ADRs/GDRs issued by Indian companies. They can also invest in foreign securities under certain conditions and within limits. 30. Mutual funds can also invest up to 10% their funds in equity of listed overseas companies which have a shareholding of at least 10% in an Indian company listed on a recognized stock exchange. 31. The AMC and the trustees are required to review and disclose the performance of their schemes. They are also required to disclose the performance of the benchmark indices. Any of the following indices may be selected for this purpose: BSE Sensex, S&P CNX Nifty, BSE 100, BSE 200 or S&P CNX Nifty 500. 32. Several Guidelines have been prescribed in respect of Advertisement to be issued by mutual funds. Any advertisement, communication, sales literature, or presentation, etc. , should not be misleading. 33. Detailed guidelines are prescribed for valuation of investments. For this purpose, the investments are classified into traded, thinly traded and non-traded investments. 34. Guidelines for identification and provisioning for NPA are also provided. For this purpose, an asset is NPA if the principal/ interest is not received for one quarter. On NPA, no interest shall be accrued. If any interest is already accrued, it shall be provided. A provision @ 10%, 20% or 25% of the book value of NPA is required depending upon the period for which it is NPA. 35. A mutual fund and the AMC shall, before the expiry of 1 month from the close of half year, shall publish its financial results in respect of that half year. MUTUAL FUND INVESTMENT AND INVESTORS’ PROTECTION IN INDIA In case of mutual funds, small investors park their funds in expectation of a suitable return and safety of their funds. Mutual funds take decisions on behalf of the investors. There is a relationship of trust between the mutual fund and the investors. Market regulators should take a cognizance of this fact. The interest of the investors should be protected by framing a comprehensive set of regulatory provision. As the first mutual fund in India, the UTI was created as a statutory body under the UTI Act, the relevant provision regarding investment policies, etc. were all given in the UTI Act itself. However, the position changed after 1992 with the constitution of SEBI. The basic objective of SEBI is to â€Å"protect the interest of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental therewith. So, the regulation of mutual funds activities was make a matter under purview of SEBI. SEBI issued the Mutual Fund Guidelines, 1993 as a first attempt to provide for a regulatory framework to give directions to the functioning of mutual funds and to protect the interest of the mutual funds investors. Keeping in view the changing scenario, SEBI issued a new set of Mutual Funds Guidelines in 1996. A detailed list of the provisions of Guidelines, 1996 is already given in this chapter. Some other provision specifically dealing with investors protection are: (i)Each mutual fund must be registered with SEBI. The sponsor must have a sound track record and experience in financial services of at least 5 years. (ii)Number of terms and conditions have been provided in respect of Asset Management Company (AMC). The Directors of the AMC should here adequate professional experience in finance and financial services. (iii)The custodian of the mutual fund should also be approved and registered with SEBI. (iv)No mutual fund scheme can be launched unless approved with the trustees. (v)Minimum and Maximum amount to be raised under the scheme should be notified. (vi)Lot of disclosures are required in respect of the scheme in the prospectus. vii)No scheme with a guaranteed return can be issued unless such return is guaranteed by the AMC or the sponsor. (viii)Periodic report in respect of each of the scheme is to be published. Any information that has an adverse bearing on the investment should also be disclosed. (ix)There are investment norms provided for mutual fund investment with a view to contain t he investment risk. Investors’ interest is protected by prohibiting mutual funds from excessive risk exposure. (x)SEBI can impose several types of monetary penalties for violations of SEBI Regulations and Guidelines.