Monthly Archives: March 2010

Fund

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Recently, started an increase on the awareness among the young in public to save and think about the financial future. To help you better understand the concept we have collected the main information about “fund”.

So what is the fund?
Unlike the fund, fund savings plan is six years during which the employee employer deposit money in accordance with the employee’s salary level. At the end of the period the employee can exercise the amount according to his will.

Is the employer obligated to fund an employee?
Public sector employee’s right to fund determined in accordance with collective agreements. Workplaces where there is no collective agreement the decision whether to give the employee fund be negotiated between the employee’s employers.

How to set Cuba savings fund?
The savings is based on a height of three things: the employee’s salary level is the basis for savings fund, the employee deduction rate of the employer deduction rate. Common deductible rate is 2.5% of employee wages and 7.5% secretion of the employer. Collective agreements may also set lower goals, but this percentage is most commonly that it brings maximum extraction of tax breaks provided by the fund.

Can I withdraw the funds before the end of training period?
By law it is possible to withdraw the money after three years to a maximum opening of the fund. If so, it must be considered not worth very much money will be deducted from the tax. But the decision is the employee’s discretion.

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What are hedge funds?

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What really makes a hedge fund?

Few people know a hedge fund is essentially a partnership between the manager and the number of hedge fund investors. Fund manager manages his money with other investors’ money, and height of the Management Fee 1.5% per annum plus “success fee” of about 20% or more of the profits.

Who should hedge funds?

Hedge funds and large investors’ access only, and guidance to investors with deep pockets, are characterized, both in Israel and the world under the supervision of very basic, compared tight control exerted on the portfolio managers, mutual funds, provident funds and other investment instruments.

Hedge fund may take investment risks. She can make a big profit but also a great loss. Hedging strategies, contribute to reducing the investment risk to disperse.

Benefits of Investing in hedge funds

  1. The main advantage is the lack of dependence on market behavior. The most common investments are stocks and bonds.
  2. Yield a profit when the stock market rises, loses when the market falls.
  3. Decline in yields will rise in bond rates to increase profits; the rise in yields on the other hand will decrease the price of losses for those holding a letter.

Hedging strategies Groups

  1. Directional Strategies: These strategies profit from trade due to price fluctuations in the direction chosen fund manager. Fund manager does not have to make elevators property in which he invests, but decline.
  2. Space strategies: the fund manager is trying to make any gap at apartments. If a particular stock in this market cheap or expensive relative to stock market, you expect the gap will decrease and make it. Buying and selling at the same time eliminate the dependence on market fluctuations strategy.
  3. Arbitrage Strategies: The idea is to make profit without risk gap in prices, for example in the property being traded in two different places. Sometimes Arbitrage is not full, that is dependent on profit is not guaranteed in any probability, arbitrage statistics.
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Options – a dream or a nightmare?

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Stock’s players, this is the name given to those major investors active in different options. It is customary to think they can influence the activity through the Derivatives index options, but this writer holds that the players have low impact on the options market direction.

The options market offers options for high profits relative to investment of small amounts of money. It became a trading them is so widespread – many homes weekly salon conversation. Options provide the ultimate dream, a space that can be high and fast with little investment and without much effort.

There are two types of options, a sound option (CALL) Foot type option (PUT). Voice option is a right to buy property at a fixed price at a given time

Future. Pot is the right option to sell a particular asset at a fixed price at a given time in the future. Price to have the right to buy or sell is called the exercise price.

We can, for example, Spot the option to buy Wall Street 500 Index, gives us the right to sell the index in a month at 1,000 points. The settlement option is to offset – so if in three months fell below 1,000 index points, we will be entitled to difference in return for buying the right to sell the index, we will pay any premium which is worth the price of the option is traded.

Writing an option is the opposite action to purchase an option. Unlike a regular sale, selling option writes an option that is not in possession of (short selling) and an obligation to buy or sell option to buy the property under the terms of the option.

If for example we write the index option Pot Derivatives gate 1000 points, you can Spot the right buyer to sell the index at the gate flying 1,000 points. If the index date of the expiration date be less than 1000 points, will advance the buyer the right, while we writers have to pay the difference.

The original mission of the options was to give investors the possibility to insure themselves against him or against declining prices of assets. For insurance, she has to pay a premium price of the option actually, if the option expires without compensation, you’ve lost the premium.

Although this designation on these days many investors of options use it for speculations, and even private individuals referred to the options market as a casino capital. Statistics show that the vast majority of these people losers. The reason for loss is also because of the way of reference, but also because many have not learned the depth of field and therefore find it difficult to control risks.

The following articles we will explain them the benefits of options and how to exploit them and their properties to increase the chance of profit. I’ll explain some of the investment strategies which we use in investments.

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Forecast – Real estate market in the world economy

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If we want to understand why the expected decrease we first need to understand where we started the “increase”

In light of market knowledge and foresight are due to housing prices as a result of an artificial increase in the seller’s market – in the Internet era where anyone can publish his assets and offer them for sale then naturally also appreciate any of the assets in his possession a rather unusual does not reflect the asset realistic prices.

Remind you who determines the market price is not the seller or broker of the transaction price determined by market rally buyer willing to pay a certain value of money for the same property that the price offered by the buyer – is the price of the market reflects the true value of the property.

Stock exchanges around the world has been viewed declines goals – the collapse of major banks in the U.S. stands before our eyes shows us how much trust we give to the economic stability of the “running of the leading” baseless U.S. examples.

Again we need to understand where this artificial increase was due to:

It is important to emphasize that any state will determine the rate of its currency – it should support the situation of the Euro currency by resources such as gold;

For example, the World Bank in any country where there sq. Hosted Gold – Gold is the fact that security for the currency of that country – in return for this resource – a country can print “Notes” I promise that we have the possibility to pay the bill – this particular case to convert it into gold.

Amount of U.S. dollars printed on the last year, until the value of the paper is not worth the value of the note. It is said without proportion but you can show readers how the U.S. currency is worthless because the amount of gold value and possession is not parallel to the quantitative value of the coins minted or printed.

That way one of the reasons that the U.S. seeks to renew the “form of currency” in order to create demand for U.S. currency again.

U.S. economic stability is supported by its strength in the world – and strategy of warfare – as soon as she saw the impotence treatment failed to implement a “peace” in the Middle East then it will lose its power – and it will lead to its economic collapse and the countries that support it.

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Mutual Fund – basic terms

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Mutual fund is a joint agreement allowing securities investment, and production of a joint holding gains and deal them. Top mutual fund is a fund manager. Each mutual fund is managed by a prospectus it is determined in advance, which can change from time to time after the notice to all members of the fund. Unlike the fund, the fund consists of participating units, each of which gives equal rights to assets in the fund.

There are funds that invest in shares, when real estate industries or indices. Joins the advance elements of the Fund are exposed Fund investment objectives of its primary. So that a customer who wants to invest in shares of any domain and does not recognize the world of investment shares, may do so through an investment fund managers face makes for the investment to achieve maximum return on his money.

Branches of investment funds are also the ones that determine the risk the fund takes. For example, the trust fund that 80% of its assets will be considered the owner shares close higher risk fund the majority linked to, for example. But if that fund a greater risk to be more volatile and has a chance to get higher yield.

For services to mutual funds charge management fees typically cover ranges from 2.00% to -4.00% of the total investment. The percentage of management fees can be included in the prospectus along with data about the mutual fund. Age of the Internet can receive all the latest information related to sites that contain the complete list of mutual funds and full information about them.

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