Mutual Fund Manager Salary

Wall Street has seen some turbulent times recently but the economy is showing signs of stabilization and recovery. In the current economic scenario mutual funds are emerging as good investment options, especially for those who aren't familiar with the inner workings of the stock markets. Mutual funds are professionally managed by people who have experience and expert understanding of the financial market. Surveys conducted by investment companies indicate that more than 90 million people in America prefer mutual funds as an investment option.

Mutual funds are collective investments of a group of people in short term market instruments, stocks, bonds, and securities. These are professionally managed and charge the investors a small fee for the services rendered. Brokerage firms and Investment Companies hire mutual fund managers to look after specific investments. Their job is to do extensive market research and pick the best investment options as mutual funds are subject to market risks. They play an integral role in making money for the organization and are well compensated for their services.

Average Mutual Fund Manager Salary

Mutual fund manager salaries have been a part of wall street folklore for a long time now, however, the recent economic downturn has put a major dent in their salary figures. The numbers aren't as good as they used to be, but mutual fund managers still make a good living. They are hired by asset management companies to make prudent investments for the companies clients. A mutual fund manager can expect to earn six figure salaries, but the exact number depends on several factors. The employer type plays a role in the mutual fund manager salary, here are a few statistics.

Mutual Fund Manager Job Description

The value of mutual funds are influenced by the prevailing economic and political situation, hence a mutual fund manager has to keep track of these things. The manager spends a lot of time researching the domestic and international stock markets for investment opportunities. They also keep a track of the investments they have made with the help of their team of stock brokers and financial analysts. A mutual fund manager also suggests when to buy certain stocks and when to sell them to maximize profits and limit any losses.

Sometimes they will meet the clients to apprise them of the current situation and discuss investment opportunities. Generating reports regarding the profit, loss, and investment opportunities is also a big part of their work profile. Interpreting large volumes of statistical data with the help of computers and finance related software also takes up most of their office time. Mutual fund manager job description also involves meeting with the upper management of the organization to give presentation and progress reports.

Mutual fund managers also get good bonuses for managing the funds and picking profitable investment options. According to analysts this is the right time for being a mutual fund manager as the US and world economies are showing signs of revival.

Best Mutual Funds in India for 2011

The concept of mutual funds in India is rather young and there are still several people, who are quite hesitant about this investment options. As the financial year 2011-12, has just set off several of you may be looking out for good investment option. In the following paragraphs, an explanation about mutual funds, their classification and a very well performing fund of each category have also been included.

What is a Mutual Fund?

Well let me put the concept before you in a quick rush…

    * People with free cash lying around can invest their money into any mutual fund which is operated by financial institutions, companies and banks, and are managed by very well qualified fund mangers, who tend to have a high caliber for investment. There are some excellent strategies based upon which the funds are invested in. The strategy and its execution is referred to as the portfolio.
    * The investors put in money into a pool and are allocated 'units' or 'shares' on the basis of how much they have put into the pool. A Net Asset Value (NAV) of the total fund can be computed and the proportionate NAV of each contributor (i.e. units allocated multiplied by the NAV) is used to pay off the returns. Thus more the NAV the better would be your returns.
    * The money thus pooled in are invested by the fund manager and company into the decided portfolio. The investments are in several cases, brought and sold to realize profits. This trading is carried out by the fund manger and his team. Common investment destinations include, shares, stock, bonds, debentures and in some cases, money market instruments and also securities in off shore high yield accounts.
    * The fund companies who provide this facility, charge some loads or commissions such as entry load, exit load, deferred load, sales charge, etc. This usually amounts to about 1-5% of the total invested about.

Well moving on to the best mutual funds for 2011 in India. Please note that there is almost no way to deem or arithmetically term any mutual fund as the 'best', there are several which are really good ones. In the following paragraphs, some of my personal favorites, the ones recommended by industry experts and also ones that have shown an excellent performance have been included.

Best Mutual Funds for 2011 in India

In the following paragraphs a very well performing fund of each of the 4 classes and categories have been described. Apart from that, a brief list of some of upcoming mutual funds has also been included.

1. Equity Funds
As the name indicates, equity funds have a maximum holdings in equities of the companies. Some of the common constituents of equity funds include mid-cap funds which go into mid-cap companies, diversified equity funds which go into diversified industries and sector specific funds which go into the funds of specific sectors. The HDFC Equity Fund (G) is an acclaimed fund led by HDFC. It is an open ended growth fund. This fund's portfolio invests into sectors that include, banking and finance, oil and gas, technology, metals and mining and pharmaceuticals, with some other funds being used in miscellaneous sectors. The fund invests into equity, money markets, debts, other mutual funds and cash and call. The gives a return of about 19.2% with a minimum investment of Rs.5,000. Some of the other common funds in this category include:

    * ICICI Pru Discovery Fund (G)
    * Birla SL Dividend Yield (G)
    * DSP BlackRock Micro Cap Fund (G)

2. ELSS Fund
An ELSS or rather an Equity Linked Saving Scheme fund is basically fund which has a lock in period of 3 years and an investment of less than Rs. 100,000, in this fund qualifies for a tax exemption. Fidelity Tax Advantage Fund is one of the best ELSS fund which aims at investing in growth destinations. With a minimum investment of Rs. 500 it provides an annual return of about 17.1%. This fund chiefly invests into sectors such as media, pharmaceuticals, oil and gas, technology, banking and finance. The usual investment channels are used, which include equity, mutual funds, money markets, cash and class, etc. Some of the other common funds in this class consist of:

    * Canara Robeco Equity Taxsaver (G)
    * ICICI Pru Tax Plan (G)
    * Franklin India TaxShield (G)

3. Balanced Funds
Balanced funds are the ones which used both, equity (stock) and debt funds (fixed income securities or I-owe-you instruments). Such funds chiefly profit from both the types of investments, namely, equity purchase and debt and lending oriented. HDFC Children's Gift (Inv) is a great high yielding fund with a Rs. 5,000 minimum investment, the fund provides a 23.3% returns annually. The common sectors in which this funds invests into include, automotive, engineering, consumer durables, pharmaceuticals and banking and finance. Some of the other funds in this category which have been performing really well consists of:

    * UTI-Children's Career Balanced Plan
    * HDFC Balanced Fund (G)
    * Birla Sun Life '95 Fund (G)

4. Monthly Income Plan (MIP)
As the name suggests the MIP provides a monthly specified income to the investors who have purchased units in the fund. HDFC MIP - LTP, is an open ended growth fund which at a minimum investment of Rs. 5,000 yields a great annual return of 8.7%. This fund invests into banking, technology, oil and gas, metals and mining. As usual the channels of investments include cash and call, debt instruments, equity, etc. Some of the other popular funds from this class of mutual funds include:

    * Birla Sun Life MIP II
    * Canara Robeco MIP (G)
    * Reliance Monthly Income Plan (G)

Three companies, namely, ING Optimix Financial Planning Fund (OFPF), ICICI and HDFC would be launching some really good funds which include ING OFPF - Aggressive Plan (D), ING OFPF - Cautious Plan (D), ING OFPF - Prudent Plan (D), ING OFPF - Conservative Plan (D), ICICI Pru MIP 5 (G) and HSBC Brazil Fund (G). In aforementioned paragraphs, please note that the actual rate of return, where ever it was mentioned, will be paid by the companies in accordance with their planned schedule. The annual rate of return has been included so as to give you a good idea. I hope that the elaboration on the best mutual funds for 2011 in India is resourceful.

How to Compare Mutual Fund Performance

Mutual funds have always been popular among all kinds of investors - small and wealthy, because of the relatively low risk associated with them as compared to direct stock investments. If you look at the mutual fund industry today, you will find that there are several companies in the market who are trying to attract customers. In this situation, a common investor might get totally confused with regards to where to invest his money. Investing money in the wrong mutual fund can be disastrous and can lead to heavy losses. So, it becomes extremely essential to distinguish between the best mutual fund performance and poor mutual fund performance. Given below are the parameters which you need to consider for knowing how to compare mutual fund performance.

Mutual Fund Performance Comparison

Historical Returns
All those who wish to know how to compare mutual fund performance, should understand that studying the historical returns of the mutual funds with the help of mutual fund performance charts, is very essential. Studying the historic returns of mutual funds is possible by checking the percentage return given by the fund, right from its inception to date. For making sure that the fund is a consistent performer, you can also take historical data of the past one year, two years, three years, or even the last five years. When you keep charts of two distinct mutual funds against each other, you will immediately realize which one has generated more wealth for its investors. Measuring absolute returns, which give you the gains of a fund in a particular period of time, is a good technique for selecting the best mutual funds for 2011, and beyond.

Benchmark Returns
Considering the benchmark returns is also a good way of studying mutual fund performance in 2011. Now, you may wish to know what is meant by benchmark. Benchmark is nothing but an index, which is considered as a standard by the mutual fund provider, and its aim is to give its investors returns at least equivalent to those of the benchmark. Ideally, a good mutual fund company having talented fund managers would look to surpass the benchmark returns. So, as an investor, you should look at a fund which has surpassed the benchmark returns consistently, as against that fund which is under performing its benchmark. You also need to consider the time in which funds have given returns to their investors. Comparison between mutual funds should be made for the same time period.

Risk Management
Investor wealth can be multiplied only if the fund managers are successful in managing risks. Since mutual funds invest investor money in stocks, returns will be negative in times of a market crash. So, the fund manager has to do the balancing act by earning more in the boom time and adding stocks that would be least affected by the downturn. So, invest only in funds which have a risk protection to get maximum returns.

Mutual Fund Cost
Investors can gain the most if there are no added expenses for signing up with mutual fund companies. You should look at what are the service / maintenance charges which funds are charging. Choose the fund offering its services without any hidden costs or exorbitant charges.

High Yield Mutual Funds

Here are some high yield mutual funds:

    * Principal High Yield A
    * Aegis High Yield
    * Rydex High Yield Strategy A
    * UBS PACE High Yield P
    * ING Pioneer High Yield I
    * Templeton Global Bond advantage
    * Vanguard Wellington
    * Fidelity Contrafund

This was all about how to compare mutual fund performance and top mutual funds in today's market. Hopefully, you will be able to choose the right fund for yourself after this explanation. All the best and think smartly!

Aviation Industry

The airline industry provides transportation services for passengers as well as cargo through scheduled air routes. The aviation industry derives its revenues from regular ticket fees and freight charges. Other major components of the aviation sector include:

    * Air traffic control
      
    * Helicopter and private charter services
      
    * Airport management
      
    * Express delivery service
      History of the Airline Industry

      The pioneers of the airline industry, the Wright Brothers invented the first airplane in 1903. The first modern airliner, Boeing 247, was launched in 1933. It traveled at 155 miles per hour and had a capacity of ten passengers. Boeing 747 was launched by Pan Am in 1969. This highly sophisticated aircraft had four engines and a seating capacity of 450. The airline industry initially fell under the category of a public utility service, with government agencies establishing the air routes and prices. However, with the Airline Deregulation Act of 1978, the industry became market driven.

Demand and Supply Drivers of the Airline Industry

The demand drivers of the airline industry include:

    * Ticket prices
      
    * Passenger income levels
      
    * Access to and suitability of other modes of transportation
      
    * Frequency of services
      
    * Safety
      
    * Random factors such as terror threat

The supply drivers of the aviation industry are:

    * Behavior of competition
      
    * Government regulation
      
    * Cost of resources (fuel, labor, maintenance, technology)

Airline Industry: Major Players

The European airline giants dominate the aviation industry. British Airways reported annual revenues of GBP8,593 million in 2008. Lufthansa reported annual revenues of Euro22.4 billion in 2007. Qantas, Australia’s largest airline, reported annual revenues of A$12.6 billion for 2007. The other major passenger airlines include Cathay Pacific, the Emirates, US Airways, Japan Airlines, Air France-KLM and Southwest Airlines. Cathay Pacific won the 2009 Airline of the Year title in the famous World Airline Awards, replacing Singapore Airlines as the 'world's best airline.' Among the freight carriers, FedEx is the world’s largest, with total revenues of US$ 37.953 billion in 2008.

Some of the major airports across the world include:

    * London’s Heathrow Airport
      
    * Los Angeles International Airport
      
    * Frankfurt International Airport
      
    * Tokyo International Airport

The global aviation sector generated revenues of $430 billion in 2007, with over 2,076 million passengers traveling by air. According to the US Bureau of Labor Statistics, the airline industry provided employment to around 487,000 people in 2006 in America alone.

Airline Industry

The Airline Industry encompasses a single aircraft conveying cargo articles and mail to different places to the numerous aircrafts carrying passengers to the different parts of the world. Services of the Airline industry can be segregated as domestic, regional, within the continent or travel between continents. A thorough analysis of the Airline industry will essentially comprise all of the above. Records show that the demand for airline travel has been increasing. 1950 through 1960 manifested a trend when the yearly growth was consistent at approximately 15%. Airline industry showed yearly growth ranging between 5% to 6% consistently in the 80s and the 90s. However, rate of growth cannot be expected to remain same throughout due to several factors. Deregulation being one of the reasons. Deregulation in the Airline industry led to flexibility in the prices of the airline tickets. Consequently, the airfares nosedived at times escalating the airway traffic.

In some countries the Airline industry is regulated by the Government. In countries, where the Airline industry is privatized, many norms and regulations as laid forward by the Government has to be complied with. These norms and regulations have been framed keeping in mind the safety, political as well as economic aspects. The Airline industry trend shows that during the period 2000 through 2002, 6% profit was enjoyed by the Airline industry, as much as 10% to 13% was gained by companies in the catering sector, manufacturers of aircraft gained by 16%, airports gained by 10% etc.,. The Airline ticket costs are inclusive of the taxes, different kinds of fees and surcharges wherever applicable.To know more about the Airline industry one may browse through the following links:


    * Airline Industry Analysis
    * Airline Industry Trends
    * Airline Industry Growth
    * Airline Industry Mergers
    * Air Cargo Industry
    * World Airline Industry
    * U.S Airline Industry
    * Airline Industry in India

Business

A business is an organization which is legally recognized to offer goods and services to the consumers and other entities like governments, social sector organizations, and other corporate entities.

Businesses are one of the building blocks of capitalist economies. Most businesses are privately owned, but they can be listed on stock markets or owned by governments and other organizations. The main purpose of a business is to earn profit and add to the wealth of their owners or shareholders. By providing useful goods or services and assuming some risks, businesses seek to develop a positive cash flow.

Types of Business at a Glance

Business types are normally defined by means of ownership, as outlined below:

Sole proprietorship: A business owned by one person. This is the simplest and most prevalent form of business worldwide, but also the least economically productive. Most ‘mom and pop’ shops and freelancers tend to fall into this category. The owner has total and unlimited liability for all debts incurred, but may pay less tax and be subject to less stringent regulations.

Partnership: A business owned by two or more partners. Each partner has total and unlimited liability for all debts of the business in a general partnership, but there are some levels of protection in limited partnerships and limited liability partnerships. Traditionally, professional services organizations like legal and consultancy practices have tended to form as partnerships.

Corporation: A limited liability business that has a separate legal entity than its owners. A corporation is designed to generate profit, has more than one owner, and has a board of directors who are responsible for hiring (and firing) its management team. Public corporations will list some or all of their shares on stock markets, and will then be required to make public their financial performance.

Cooperative: Like a corporate, a cooperative business or a ‘co-op’ is a limited liability entity that is for-profit. However it is owned by members, normally in large numbers, and not shareholders. Members have voting rights on all major business decisions. Co-ops are normally classified as either consumer cooperatives or worker cooperatives.

Categories of Business

Businesses can be categorized by the nature of services offered, as follows:

Service businesses: These businesses specialize in providing intangible products and services and earn a profit by charging a certain amount for the services that they offer. Business organizations including lawyers, accountants, consulting firms, designers, architects, entertainers and other professionals come under the purview of service businesses.

Financial businesses: These businesses include banks and other corporate entities that deal with capital management and investment.

Manufacturers: These businesses specialize in production of goods from raw materials. Manufacturers earn profits by selling final products in the domestic and/or international markets.

Retailers and distributors: These business organizations serve as mediators between manufacturers and consumers. The majority of consumer-oriented outlets, e-commerce sites and catalogue companies come under this category.

Real estate businesses: These businesses generate profits by trading buildings, land, and all other forms of residential and commercial property.

Agricultural and mining businesses: These businesses are involved in the production and distribution of raw materials for the manufacturing companies.

Transportation businesses: These businesses generate profits by transporting people, commodities, parts, and finished goods.

Utilities: These businesses are involved in providing public services like sewage treatment, communications, and power.

Information businesses: These businesses deal with production, distribution, and marketing of software and hardware products. Outsourcing businesses also fall under the domain of information business.

Biotechnology Industry

The biotechnology industry is fully research based and this intensively research based sector yielded revenues worth $50.7 billion in the year 2005. $19.8 billion was spent for research and development by the United States Biotechnology industry.
Biotechnology industry and the economy:

Various activities related to life sciences as well as the biotechnology industry recruited 1.2 million individuals in the year 2004 in the United States of America. In addition to the 1.2 million job opportunities, 5.8 million job openings associated with the biotechnology industry was also created. Average yearly salary of the individuals employed in the biotechnology industry was approximately $65,775 in the year 2004. The biotechnology industry brought finances worth in $20 billion in finances in the year 2005. Market Capitalization of the biotechnology companies which traded publicly stood at $410 billion as on 31st December, 2005.

Role of the biotechnology industry:

* 200 plus vaccinations, products, therapies have been created by the biotechnology industry to combat cancer, autoimmune syndromes, diabetes, HIV/AIDS etc.,.

* Biotechnology industry has developed several environment friendly products treating elements which pollute the environment.

* Biotechnology is also used in industrial houses for the optimum usage of the various forms of energy.

* Biotechnology industry also plays a significant role in taking forensic science ahead by using methods relating to DNA fingerprinting.