Life of William Wordsworth Essay Example for Free

Life of William Wordsworth Essay William Wordsworth is considered one of the greatest poets during the English Romantic Period. He is also considered, only next to Shakespeare, one of the greatest sonneteers. There are some historians that even believe that William Wordsworth, along with Samuel Taylor Coleridge, helped launch the Romantic Period. This statement has been debated between historians, but one thing that they do agree on is, William Wordsworth shaped the literary era. The Romantic Period was a time that allowed artistic freedom. The early 60s is the closest period of time that can be related to this time in history. The creativity and experimentation of artists, poets, and ordinary people was beginning to bloom. That was a period of great change. The Classical Period was more controlling. There were strict laws of the Classical Period slowly began to change as Romanticism moved away from such control. The Romantic Period was also a movement of literary and intellectual thinking. Romanticism emphasized on imagination, freedom of feelings, and was mostly connected within the visual arts, music, and literature. Imagination was more important than logic. This period is mostly associated with the arts and poets like William Wordsworth. William Wordsworth, the most significant poet of the English Romantic Period, was greatly influenced as a writer by his childhood, love of nature, and his many relationships. According to Judith W. Page, William Wordsworth was the central poet of his age (Gale 1). William Wordsworths poetry was drawn from his amazing memory, and was mostly based on Nature, people he watched, and personal experiences. Leslie Brisman said of Wordsworth, To call William Wordsworth a Memory Poet is to note how he substitutes personal memories for other assurances of continuity, natural or divine. (276-277). Because each encounter partly transmits and partly reformulates a myth of origins, William Wordsworths work seems easy to read, when in fact, he may be the most difficult of the English Poets (278). Many of his poems were based on his own life and his interpretation of it. The memories and encounters that William Wordsworth drew from, started when he was just a small boy. William Wordsworth was born at Cockermouth, Cumberland on April 7, 1770. He was the second of five children. His father was an attorney which allowed them to live a generous life style. At home is where he learned to appreciate poetry. It was his father that gave him the gift of memory, by requiring Wordsworth to memorize poems or parts of poems, it help developed his powerful memory. Relying on his memory became the very basis of his art (Anderson 9). Growing up in the Lake District is where Wordsworth gained his early appreciation for the beauty of nature. The river that he would play in at the age of five, also had influenced his writing (Gale 2). He loved the countryside and the freedom he had to roam for long periods of time. During this time, his imagination began to bloom. Although he enjoyed periods of solitude, he was adventurous, imaginative, and strong-minded (Aubrey 2). To all accounts, he had the perfect childhood till his mother passed away in March of 1778. He and his brothers were sent to a school at Hawkshead and his sister, Dorothy, was sent to live at Halifax. During his time at school, he only returned home for the holidays. He was well educated and prospered. When his father passed away he and his brothers spent the holidays with family who would patronized them and made them feel dependent (Watson 1577-1578). It was back at school at Hawkshead where he was cared for and his direction for poetry is nurtured by William Taylor, the Headmaster at Hawkshead Grammar School. The classes at Hawkshead were well ahead of other school and were unusual for that time (Purkis 22). According to F. R. Watson, The Prelude early years is about his childhood at Hawkshead and not Penrith (1577). Geoffrey Hartman writes that nature for William Wordsworth was not an object but a presence and a power; a motion and a spirit; not something to be worshiped and consumed, but always a guide leading beyond itself. Till 1804 Wordsworth thought that nature was guiding him. It was in 1804, that he discovers it was his imagination guiding him through nature. His imagination was his guide. This realization shakes him, but does not change his point of view (85-90). William Wordsworth love for nature started at an early age. Thomas Gale writes about Russell Noyes, who in his book William Wordsworth, recounted how Wordsworth credited the river with having influenced his poetic writing: The sound of running water, he often felt, was almost part of his own being (Gale 2). During his college years, he disliked his classes and felt he did not fit in. He wrote in the The Prelude that he believed that he was not for that hour,/nor for that place. (Aubrey 2). Although he did write the poem several poems while at school, one of the more famous one is An Evening Walk, which was meant for his sister, Dorothy. The year before graduation he went for a yearlong walking tour of France, the Alps, and Italy. Several of Wordsworths poems were created from this year long walk. His love of nature was magnified as he viewed glorious mountains, valleys, and other various landscapes. The walk through the Alps inspired Descriptive Sketches. Wordsworth stated . Nothing that I ever saw in nature left a more delightful impression on my mind than that which I have attempted, alas! how feebly, to convey to others in these lines (George 10). The walking tour also gave way to the sixth book of The Prelude. The tour gave him some of his greater imaginative experiences of his life. Michelle Lee writes how Lines Composed a Few Miles Above Tintern Abbey, were composed on a walking tour of the Wye River. He advocates the power of Nature. (245) He returned to college and graduated in 1791, without honors. After graduation, he climbed Mount Snowdon, the highest peak in Great Britain. This was an important event that he later incorporates in the final book of The Prelude, giving it a great symbolic importance (Aubrey 2). After climbing Mt. Snowdon, William Wordsworth returned to France in November of 1792. During this time, the French Revolution was at its peak. This was also the time when he met and befriended Republican soldier, Michael Beaupuy. With the growing friendship between the two men, Wordsworth enthusiastically embraced the revolutionary cause. This was also the time when he had an affair with Annette Vallon, who later gave birth to his daughter. These were times that began to change and shape Wordsworth and his poetry. In 1795 he meets William Godwin and is influenced by his ideas. This is also the year that he is reunited with his sister Dorothy, with whom he is very close to. The relationship between brother and sister is also cause for several of his poems. Two years later the encounter that changes the Romantic Period, according to some historians, occurs when Wordsworth meets Coleridge for the first time. William and his sister, settled at Al Foxden in Somerset to be near Coleridge. Margaret Drabble writes that this was a period of intense creativity for both poets. This period produced the Lyrical Ballads, which was a landmark in the history of English Romanticism. The three friends, William, Dorothy, and Coleridge traveled and explored. They made new friendships notably with Sir W. Scott, Sir G Beaumont, and De Quincey (1085). These were happy times and times when he was taken mental notes that would soon turn into poetry. It was the death of his brother in 1805 that changed his joy to sadness. The death of his brother inspired several poems including Elegiac Stanzas Suggested by a Picture of Peele Castle. With the passing of his brother, William suddenly becomes opposed to Romance and Realism (Hartman 91). His brothers death was not the only death to inspire some of his greater works. The death of two of his children inspired his sonnet Surprised by Joy (Drabble 1085). William Wordsworth died in April 23, 1850. It was after his death, his sister published The Prelude, his greatest work. His life, from start to finish, is expressed in this great piece of literature. Throughout William Wordsworth life, he went through many changes. He married his long time family friend, Marry Hutchinson and had a family. His view on religion changed, along with his thoughts on the political society. William Wordsworths poems are all created from the memories of his life experiences and the visions of his travels. Through many friendships and emotional relationships, Wordsworth created some of the greatest poems of the Romantic Period. He was an influence on great poets such as; Samuel Coleridge, Lord Byron, Percy Shelley, and John Keats. There is still a question of whether or not William Wordsworth launched the Romantic Period, but there is no doubt that he shaped the literary work of that time. William Wordsworth, who was greatly influenced as a writer by his childhood, love of nature, and his many relationships, is by far the most significant poet of the English Romantic Period.

SAP Brief Information And Study Computer Science Essay

SAP Brief Information And Study Computer Science Essay Nestle SA, the world largest food and beverage company decided to implement SAP systems to all of their branches and subsidiaries company. This project call Nestle Globe project (Global Business Excellence) roll over 500 facilities in 70 countries around the world and using enormous amount of budget at $2.4 billion. Nestle Globe have three objective To Create standard best practices business process for Nestle organization To create standard set of Nestle data and use to whole Nestle organization. To implement standard information systems infrastructures and SAP was chosen. In 2006 Nestle globe project expected to pay back its implement cost at $ 2.4 billion and increase Globe operating company from 30% in 2005 to 80% by end of 2006. Moreover, Nestle decide to cap their spending of information technology at 1.9% of sales each year. Background of Organization: Nestle SA Corporation is the worlds largest nutrition and food company operates in 86 countries around the world, employ around 280,000 people and have factories or operations site in almost all countries around the world. Nestle primary sells wide variety of food and beverage categories in many well known brands such as magi, nescafà ©, nestea, coffeemate , Nestle sales were almost $ 2.4 billion in 2010 (David Barne,2010). bgNestleLogo.png SAP Brief Information: SAP (Systems, Applications, and Products in Data Processing) ERP systems is enterprise resource planning (ERP) software produced by SAP AG. Enterprise Resource Planning (ERP) is systems designed to integrate core activity with in organization together in order to increase company performances (Markus et al., 2000). SAP use concept of modules by providing separated functional modules for specific core activities within companies such as SAP-Financial and Accounting for accounting related transactions, SAP-Sales and Distribution focus on sales operations, each modules can be purchased, installed and operated separately but use same database (Monk, Ellen F. and Wagner, Brej J. ,2009). Problems: The main problems before ERP implementation was data integration among various of systems within Nestle organization structures. For example, Nestle USA had problems with 29 brands of vanilla that every plant order vanilla to the same vendor seperately and result in paying 29 different prices (Worthen,Ben 2002). Introduction From 1997 to 2000 ,Nestle company was going to re-engineer their over all business processes amd implement SAP systems as one standatize systems to Nestle and its subsidiaries comapny.The first Nestle ERP implementation began at Nestle USA, when Nestle USA decided to implement ERP systems and they selected SAP as their system solutions, this project also known as Best (Business Excellence thorough Systems Technology) (Worthen,Ben 2002). Best schedule for six years of implementation from first quater of 1997 to first quater of 2003, this project was budgeted over $200 million and would implement five SAP modules ( purchasing , financials, sales and distribution, account payable, acount receivable) (Worthen,Ben 2002 pg.1 3). This ERP project goal was to create centralize solution between Nestle comapny and their subordinate brand. The second Nestle ERP implementation happen in 1999 at Nestle UK, which decided to use SAP R/3 as Nestle USA to 18 UK manufacturing sites with 6,000 SAP users (Bryan Glick, 2001). The main objectives of this movement was to improve efficiency across the company from Nestle UK inventory management, supply chain and change business processes to be more competitive for tough competitions (Glick, Bryan, 2001). In 2000,the third and the largest ERP implementation projects up until now happen when Nestle SA(Nestle Headquater) determined to launch their Globe (Global Business Excellence) project in order to move whole company to one integrated company instead of set of individual operating units (Bendoly.E. and F.R. Jacobs ,2005). Before implementation, Nestle had around 140 different financial systems(Malcolm Whetley ,2001), but after Globe project Nestle would have only SAP for all its manufacturing, sales and distribution and financial operations( Barnes, D., 2008). Globe would cost $2.4 billion, the highest implementation cost in history (Barnes, D., 2008). Globe scopes were developing business processes best practices, creating data management and data standards and standardize Nestles information systems by using Mysap.com (Ray, R., 2010). Ray, R., 2010 claimed that in 2006, Globe covered half of Nestlà ©s food and beverage business with overall coverage of 90,000 users, 300 factories and 350 distribution centers Means Part: SAP Key technologies: SAP R/3 ERP applications operate though separate functional modules that control specific operation such as accounting, inventory management and integrated with SAP database together. All functional modules could perform separately according to client system environment and also can effectively integrate with non-SAP application. For example, Nestle USA did not implement SAP Advanced Planner and Optimizer (SAP APO) for their supply chain management systems but using Manugistics supply chain management systems instead ,Manugistics and SAP could perform smoothly together results in saving $325 million for Nestle USAs supply chain improvement (Worthen, Ben 2002). In addition, SAP contains industry solutions package that enhance SAP performance in specific industry such as leasing, industrials, banking, which have industry-specific functionality. Moreover, due to centralize database, all module could use data from database without redundancy problems. For example, account receivable modu les use same existing customer master data as sales and distribution use when doing account receivable related functions. Last but not least, even SAP is software package systems but SAP could customize the application modules for specific client requirement by using ABAP language, specify SAP programming language. SAP R/3 can divide into 4 function parts; logistics, accounting, human resources and cross applications (figure1.0 R/3 systems). sap R3 systems.png Figure 1.0: R/3 systems SAP R/3 Logistic parts consists of 3 main modules responsible for logistics with in companies Sales and distribution modules this module related to sales transaction such as making sales order, customer debate payback Material Management modules focus on material management within organization from posting material to company stock, posting payable data, stock information Production Planning modules focus on production planning within organization such as create bill of material and production setting. SAP R/3 accounting parts control and integration of financial information within It consists of 3 core modules to create flexible solution control over company accounting information Financial and accounting consists of modules related to manage accounting transaction within company such as account payable, account receivable, treasury. Controlling modules focus on costing method within organization. Asset Management is modules designed to manage and monitor asset information within organization. Human Resource division parts responsible for SAP resource management within organization including 3 main modules. Quality management manage control process over material quality of vendors and manufacturers Plant maintenance for maintenance task Human resource specialize module for manage human resource such as pay roll SAP cross functional application : modules that affect to many modules when it was implement Project management modules include tools for project management Work flow modules focus on process control within SAP systems Industries solution is specific modules to enhance performance in some industries such as leasing , manufacturing , media. SAP building methodology In order to implement SAP ERP systems, organization need to be revised their own business process first in order to create highest performance after SAP implementation. SAP called this method ASAP (Accelerate SAP implement solution) which contains 4 main components ASAP methodology consists of five consecutive phases Phase 1- Project preparation: initial planning and preparation. This phase emphasized on project planning before going to collect information for business blueprint. Phase 2 Business Blueprint: documentation of the business process requirements of the company. This phase is first phase that SAP consults have met with their client to collect business process information for creating new SAP business environment in phase 3. Phase 3 Realization: implement all business and process requirements based upon the business blueprint. After collect information and create new business blueprint, SAP consult need to implement all of business process requirement to SAP systems. To illustrate, SAP FI consults would set configuration of company code, general ledger requirement and preparing for key user training. Phase 4 Final Preparation: complete testing, user training, system management and cut-over activities. This is last phase before SAP is going to real operating client server. This phase emphasized on customer new process training to let key user know how to use SAP systems. Moreover, all customization need to be finish at this phase including customization modules or forms. Phase 5 Go-Live Support: transition from implementation Last phase when all master were transferred to main production servers, SAP consults need to support real environment within organizations. PC base tools is computer base application contains various tools and templates for supporting the ASAP approach such as QA Database , ASAP roadmap, knowledge sharing. Services: SAP company will provide support information for implementation for organization that would like to use ASAP such as OSS user to ask question to SAP development team directly when client has problems related to SAP that consults cannot fixed such as patch bug, etc. R/3 resident tools provide R/3 configuration guide for all business transactions in SAP systems. SAP consult can look at implement step within configuration pages Basis of Information Systems components on SAP R/3 Data and hardware SAP R/3 manage data environment though client and server basis, SAP users can process their transactions though GUI (graphic user interfaces) then data will transmit though application servers (can be use one or many application server depends on usage) to main database (Three-tier Client/Server Architecture) which application servers located the SAP software and the database servers handle documents and master data databases. (figure 2.1) or can be operate though Two-tier Client/Server Architecture by transfer data from GUI to main database directly (mostly use for training configuration) in 2 tier architecture database manage both transactions data and software together (figure 2.2). Figure 2.1 three tier client/server architecture Figure 2.2 second tier client/server architecture Software and telecommunication SAP R/3 can operate with wide range of hardware, operating systems, database(figure 3.0 SAP R/3 technology environment and their GUI can be manage though both window OS and mac OS. Moreover, for SAP telecommunication SAP systems can effectively interact to its server by using LAN, WLAN or internet access to SAP serer to maintain client and server communications. r3 technology environment.png Figure 3.0 SAP R/3 Technology environment Human/people SAP has 3 types of users Key users; person who use SAP according to their training and receive limited authorization within user responsible areas such as key user for accounting , account payable , sales. Functional consultants; consultants who specialized in separate modules such as Financial and Accounting, Sales and Distribution, Material Management. Technical consultants; technical specialist who can divide separately in 2 position for SAP systems and SAP infrastructure ABAP programmer is programmer who specializes on ABAP programming language which used for SAP modification or customization. Basis is technical specialist who emphasized on hardware and software related to SAP infrastructure such as Why SAP SAP has experience in large scale implementation to many multi-national companies some is Nestle competitors such as Kraft food. SAP company also have effective implementation methodology called Accelerate SAP method for implementation (ASAP) that Nestle used this method until Nestle Globe project in order to create standardize best practices business processes (Ray, R.,2010) SAP systems could answer all Nestle objectives within one system in term of data integration, business processes and also data management. For example, problems of redundant vendor master data can be fixed by SAP master data principles that manage vendor master from both accounting and purchasing sides (figure 4.0). This solution provide account payable modules to collect vendor information separate by company code but use same purchasing module with organization segment result of one standardize general ledger can be used for all Nestle and their subsidiaries company (sap financial,N.D.) . ap p76.jpg Figure 4.0 the complete vendor master data SAP is suit for Nestle Global project because SAP has multi-language packages that can use with many countries in the world to create standardize understanding over SAP usage. By using standard local language SAP can reduce training and let local understanding function more easily. Objective and benefits of systems by matching with organization in global context Completive context: Barnes, D. (2008). Stated that after Nestle globe project going as plan it will create competitive advantages over main competitors such as Uniliver and Kraft food by operating more efficient in both supply and demand side. For example, Nestle can cutting number of supplier from 600,000 to 167,000 accounts, Nestle can save about $750 million a year for this process. Customer context: Nestle globe implementation would create efficient use of information among Nestle brand categories and nestle major customers such as wall-mart and Tesco which could receiving stocking shelves from nestle information systems back to their branches and use this information for more space utilization for Nestle wide range of products. (Barnes, D. 2008). Moreover, nestle Company context: Brabeck, Nestle CEO, claimed that Globe project will transform Nestle into new age of success by using information technology and standardize new process designed. For example, Nestle management could press on single button and monitor nestle performance in real-time data including geography sales, sales channel and product categories and brand. By using new technology Nestle can create more innovative strategies by combining online data and tactical approach. To illustrate, Nestle could monitor their wall-mart account managers performance by investigating profit and loss within wall-mart branches in real time (Barnes, D. 2008). Ways Part Results after SAP Implementation: First, Nestle USA by integrating difference database together Nestle USA could save net worth $325 million by using same standardize database for general ledger, vendor and customer master data for all Nestle branches and their subsidiaries company. (Worthen, Ben,  2002) Second, Nestle UK ERP implementation met its success by reducing 50% of inventory stocks after implement SAP due to improvement business processes and efficient control over inventories (Glick, Bryan, 2001). Last, Nestle Globe project create new strategic movement to Nestle by shifting from individual business thinking (normal ERP systems) into joint business thinking (coordinate ERP systems) that relied on integrated information between Nestle core unit such as purchasing , sales and use information to create value to key vendors and key customers( Bendoly, E. and F. R. Jacobs, 2005). Bendoly, E. and F. R. Jacobs, 2005 claimed that in 2006 this globe project create estimated total profit for overall program CHF 3 billion per annual. However, Nestle ERP implementation also had many drawbacks most of it from business process re-engineering. First, Nestle USA got in trouble when they launch go-lived in big bang method but most of their key user still cannot operate new systems; do not understand new business process. Then, Best project SAP support met trouble with enormous problems. Next, Jeri Dun, Nestle USA CIO, stated that turnover rate among Nestle demand forecasting employee increase to 77 percent after SAP project go-lived. Next, technical problems due to non-integrated function during go-lived phase, due to project deadline before Y2K in year 2000 consulting and staffs of Best projects had very limit time before it will launch therefore, Nestle got in trouble with integrated function between key modules. For example, integrated function between sales and distribution (SD) modules and accounting receivable module were missing. When sales persons use SAP to post discount rate for customers, A/R module did not interact with discount from SD modules result in wrong billing information was send to customers (Worthen, Ben.  2002). Nestle business objective Nestle has objective to create standardize for its business processes architecture and Nestle data. By using same standard processes to whole Nestle organization could easily to manage its international branches around the world. Moreover, Nestle decided to reduce their information systems into one systems SAP to be more effective control over all Nestle organization. Combine three objectives for standardize business processes , systems and data together, Nestle would receive benefits of standardization and coordination of their operations which could eliminate redundant processes and coordinate marketing activities for global customers (Bendoly, E. and F. R. Jacobs ,2005). How systems help organization to achieve its business objective SAP systems would helped Nestle to re-engineer its business process and forced Nestlà ©s employees to change their previous business processes into new standardize best practices because Nestlà ©s employee need to work according to processes setting with SAP systems though standard master data and business processes. Identify IT in Strategic point of View: Bendoly, E. and F. R. Jacobs, 2005 defined Nestle Globe as evolution process from individual business unit thinking (unique ERP systems) to joint business unit thinking (coordinated ERP systems) under Sap technology. From Nestle new systems share information with their suppliers and customers to create jointly working with Nestle suppliers and customers. To illustrate, Nestle could share information with its customers like wall-mart and create joint promotion program for new products. Therefore, IT has important role in organization strategic planning in order to create competitive advantages over competitors. Identify IT in Operation Point of View Information Technology is core component to operation processes within organization, because all company need tools to collect operation records for future usage such as audit, management report supported. By comparing integrated systems like SAP and non integrated systems, integrated systems like SAP could provide more benefit to company operation efficient. For example, case of Nestle USA that can SAP to eliminate redundant data for vanilla vendor master in al factories result in large amount of saving for purchasing goods. Identify IT in Tactical Point of View In tactical after Nestle Globe project, nestle can performed decentralize process to transform their organization into lean and fast moving company. Globe project will provide more accurate information related to specific area to let local boss to remain close to their customers or take an action related to change within their territories without wait for top management decision (Barnes, D. 2008). Nestle manage can adapt faster and more effective by using information such as products profit and loss within their area and use these information to create product tactical decision within that area. How IT help the organization achieve the objectives and other benefits First, by using combination of standardize systems, master data and business processes, Nestle can maximize benefits of SAP systems in global term not just Nestle in some countries. Standardization create same understanding toward information based from SAP systems and can create synergy cooperation within global groups such as innovation sharing between different countries or successful product launch from one countries can be monitor by Nestle company located in other countries. This phenomenon create Nestle united into One global Nestle organization and cannot be made without using Information systems. Second, standardize process also cannot be made without control process done in SAP client that lead Nestle employee to work on standardize process to create standard data that all Nestle employee understand and use in practice in same manner. Third, Nestle Globe project is major improve Nestle competitive advantages by lean large organization business process and create consolidate solution from SAP systems such as lean supply chain management, consolidate purchasing. SAP is in role of integration all data together in its database systems and provide decision support systems base on integrated data. For example, SAP APO use data from SAP logistic part (sales, material management, production planning) and integrated data together to generate information report provide to responsible persons.

Modernism in The Metamorphosis

Modernism in The Metamorphosis The scientific and industrial revolution that affected Europe and the rest of the world in the nineteenth century was further developed with the arrival of the twentieth century. This century was marked with significant progress in sectors such as the sciences, philosophy, social theory, and the arts. However no other field has in my opinion seen such drastic changes as the literary field. Breaking away from literary movements of the other centuries such as romanticism or realism, authors of the modernism borrow from new ideas in anthropology, psychology, philosophy, political theory, psychoanalysis, and physics to create their works. In this essay we will study the impact of any of the above fields in creating a sense of disillusionment, fragmentation, or isolation in the particular work of Kafka called The Metamorphosis. The metamorphosis, as mentioned above, is a work of fiction written by Franz Kafka. After reading this story I can easily see why it has become so popular. Not only is it a great story, but it also stands out because of it use of philosophy and psychology as a way to explain certain human behaviors. The most of obvious concept that influenced Kafka in writing The Metamorphosis is Existentialism. Existentialism is a theory that became very popular during the nineteenth century and that asserts that any given choice will govern the later course of a persons life, and that the person has ultimate will over making choices. In the case of Kafka story, this translates first into solitude and alienation. The isolation and despair that Gregor experienced is obvious from the start. From the very first sentence of the story we notice this solitude. Gregor is lying on his bed in a shape of a gigantic insect and there is nobody around to help him. This theme of isolation is even more present in the rest of the story as we see that Gregor cant depend on anyone for support. He locks himself in his room when he is at home or on the road for business and doesnt go out to meet people. He doesnt have a girlfriend nor does he has friends to rely on in times of need. Instead he isolated himself from society. Another example of this alienation becomes apparent in his relationship with his family. Although he doesnt realize it, his relationship with them is not very good. By being the breadwinner of the family, Gregor leaves no room for his father to be the provider and the responsible one. At the same time he is trying to save money so he can send his sister to a conservatory where she can play violin but fails to discuss that idea with her. In his mind he think that the family is proud and happy with him, however the reality is different and the only thing he accomplishes is to alienate himself from them. Even though he takes care of them, they are still unhappy with him. Furthermore, the theme of isolation and alienation is present with the metaphor of the insect. I think that the reason why Kafka transform his main character into a this bug is to show us how helpless Gregor feels. His life as an insect is no different than his life as a human. Trying to communicate with his family as an insect is impossible and frustrating because all they hear are bug noises that scare them. They dont want him around because his appearance is shameful and they dont want to take care of him as he becomes more and more a liability to them. Throughout the whole story, Gregor is a stranger to everybody. His contact with society is minimal, and his alienation from his family becomes total with his transformation as an insect. The influence of existentialism on Kafkas metamorphosis doesnt only stop to the concept of alienation. The Metamorphosis is also about disillusionment. Besides being isolated, Gregor starts viewing the life as somehow absurd and futile. He cant seem to understand why things like this happen to a good human being like him. All he is trying to do is to make his family happy. He works at a job that he despises so that he can support his family that is having hard times. We can quote him saying: If I didnt have my parents to think about Id have given in my notice a long time ago, Id have gone up to the boss and told him just what I think, tell him everything I would, let him know just what I feel. Despite all this good he is doing, the tragedy of the metamorphosis befalls him and his family abandons him. As time passes by, Gregors disillusion grows bigger. His body falls into a state of despair due to abuse neglect and sickness. He carried threads, hairs, and remains of food about on his back and sides. He spent his days fantasizing about being normal and wondering why this was happening to him. One thing that really shows the influence of the Existentialist philosophy on Kafka is that he doesnt want us to feel bad for Gregor. Instead, the impression I get from reading this is that Kafka wants Gregor to find a meaning to his life even though he is in a bad situation. He should have stopped being depressed because of his family and his job and started living life for him first. If we follow Kafkas reasoning, we can assume that Gregors death is due more to the fact that he was disillusioned and depressed than to the fact that his physical health was deteriorating. To sum up, one can say that the Modernism movement brought forth new ideas to the world of literature and the Metamorphosis is a good example of that. As the world around them was evolving, author like Kafka and Camus looked for other sciences for inspiration and to explain some of the human behaviors. Existentialism provided them with a mean to convey their feelings, especially in regards to isolation, alienation, and the meaning of life in general. Nowadays, because of the quality of their works, they became household names not only in literature but also in other fields such as psychology.

New Institutional Economics and the Philippines Essay -- Economy Econo

New Institutional Economics and the Philippines New Institutional Economics offers a way to examine the dynamics of growth -particularly with an eye toward explaining the problems of slow growth in developing economies, where market systems may be presumed to be weak or incomplete. I will review these concepts within the framework of the Philippines, a sizable country with a rich and diverse set of resources, which however is not achieving significant growth. At present the Philippines is in a depressed albeit not grim state. It remains firmly enmeshed in the World Banks lower middle income category of nations with a GDP per capita of $1,050 (U.S. 1998 Atlas method). 38% of the Philippines population is below the national poverty line. And it has one of the higher population growth rates in the region at 2.7% which will double the population within 30 years if continued1. Growth rate of GDP per capita in the period 1988 to 1998 was only 1.3%. Its total debt in 1998 was 73% of Gross Domestic Product and this is a growing percentage through the last decade. The overall story on exports is not clear, but traditional export products and categories (sugar, coconut oil /related products, rice, and timber) are not growing. Perhaps the most notable element is the degree to which it has not shared in regional growth. As noted by Yoshihara Kunio, relative per capita GNP between the Philippines and Thailand has reversed in the last 40 to 50 years (Y oshihara, 2). One reason for this is the tremendously damaging twenty year government of Ferdinand Marcos which among many other things left the county in an extremely indebted state at the onset of a world wide recession in the late 1980’s. A period of relative political instability follo... ...ent of the New Institutional Economics.† Harriss 27-48. -Toye, John â€Å" the NIE and its Implications for Development Theory.† Harriss 49-70. -Harriss-White, Barbara. â€Å"Maps & Lndscps: Grain Markets in S. Asia.† Harriss 87-108. Kelly, Philip F. Landscapes of Globalization: Human Geographies of Economic Change in the Philippines. London/New York Routledge, 2000. U.S. State Department. Background notes: Philippines, August 1999. Washington DC . http://www.state.gov/www/background_notes/Philippines -1999 Country Reports on Economic Policy and Trade Practice U. S. Dept. of State March 2000 (Philippines PDF ,obtained from internal link previous cite). World Bank. Philippines at a glance (PDF). Washington D.C . http://worldbank.org/. Yoshihara, Kunio. the Nation and Economic Growth: the Philippines and Thailand. Kuala Lumpur/Oxford: Oxford Univ Press, 1994.

The The Wreck of the Medusa Essay -- essays research papers

â€Å"In the moonlight’s ghostly glow, I waken in a dream. Once more upon the raft I stand, Upon the raging sea. In my ears the moans and screams Of the dying ring, Somewhere in the darkness The siren softly sings†¦Ã¢â‚¬  â€Å"The architects of our doom Around their tables sit, And in their thrones of power, Condemn those they’ve cast adrift. Echoes down the city street, Their Harpies laughter rings. Waiting for the curtain call, Oblivious in the wings.† Excerpt from the lyrics, â€Å"The Wake of the Medusa†, By The Pogues â€Å"The Raft of the Medusa†, by Theodore Gericault, 1819, was inspired by the catastrophic wreck of the French frigate, The Medusa, on July 2, 1816, off the west coast of Africa, during a voyage to Senagal. The ship ran aground on the Arguin Reef, in calm seas. In an attempt to preserve the lives of 400 passengers aboard, the crew, soldiers, sailors and passengers built a raft, manned the lifeboats and the raft, and abandoned the Medusa. What followed was a most harrowing experience that would challenge the soul and condemn the government of a world power. In 1816 the newly formed French government sent a small fleet of ships to the British port of Saint-Louis, Senegal, carrying the appointed French Governor, Colonel Julien-Desire Schmaltz and his wife, for the formal return of the colony to France. The fleet consisted of four ships, The Argus, The Loire, The Medusa and The Echo. The Medusa was to transport the governor along with 400 passengers, to re-establish the colony. Soon after departing the Port de Rochefort on June 17, 1816, the Medusa, piloted by an inexperienced captain, Hugues Duroy De Chaumereys, sailed quickly away from the rest of the fleet, leaving The Medusa, her crew and passengers to the mercy of the Atlantic. De Chaumereys, an incompetent sea captain, achieved his high ranking position due to political influences, and affiliation to the French Ministry of the Marine. He had prior experience as a customs officer for more than 20 years, and served against Napoleon, gaining him favor of the new Bourbon government, and disfavor among the crew. He resisted the advice of subordinate officers and the personal experiences of more seasoned sailors and caused the wreck of the Medusa on the Arguin Bank. De Chaumereys attempted to save the Medusa by lightening her load and discarding precious cargo designated for the Senegalese colony, into t... ... in the control of a less than qualified captain, and thus jeopardized the entire fleet, the crew and the contents designed for the colony at Senegal. A cover-up was affected, and Captain De Chaumereys was the person deemed liable and summarily court martialed, ruining his naval career. According to Savigny and Correard, â€Å"†¦men decorated with ribbons of all colors, who counted very well the number of their ancestors, but of whom it would have been useless to ask an account of their studies, being called to superior commands, have not been able to show anything but their orders and their unskilfulness. They have done more, they have had the privilege of losing the vessels and people of the State, without its being possible for the laws to reach them; and after all, how could a tribunal have condemned them? They might have replied to their judges, that they had not passed their time in studying the regulations of the service, or the laws of the marine, and that, if they had failed, it was without knowledge or design. In fact, it would be difficult to suppose that they intended to their own destruction: they have but too well proved that they knew how to provide for their own safety.†

Introduction to K Means Analysis for Stock Portfolio Essay

1. Background[1] Investment decisions are about making choice. Investors need to decide what asset to be invested. This is an important decision because these assets are the means by which investors transfer today’s purchasing power to the future. In effect, investor must decide on a portfolio of asset to own. A portfolio is simply a combination of assets designed to serve as store of value. Poor management of these assets may destroy the portfolio’s value, and investor will then not achieve their financial goals. There are many assets like stocks, bonds, derivatives that investors may include in the portfolio. In Hong Kong, stock portfolio is the most common investment. But what stocks have higher return? What stocks are risky? What stocks in the portfolio that it has higher return? Many investors may use fundamental analysis to analysis financial data for answering above questions. In the last decade, some researches applied data mining techniques on financial market. Data mining is the process of automatically discovery useful information in large data repositories. It can be used to support a wide range of business intelligence applications such as customer profiling, targeted marketing, store layout. 2. Motivation In America, there are some research papers[2] about applying clustering technique on America financial market. For example, using Self-organizing map(SOM) to cluster stocks and financial ratio for fundamental analysis, using SOM to find the valuable stock. These all researches want to find the characteristic of the stocks. However, most these researches use SOM clustering technique, and focus on America financial market. It seems that few researches do similar thing in Hong Kong stock market. Moreover, these researches only want to find the characteristic of stocks. In real case, investors will not only purchase one stocks. They will construct a stock portfolio to eliminate the risk. So I want to apply similar approach on Hong Kong stock market and change the clustering technique to K-means, not SOM. And I not only want to cluster the stocks, but also the portfolio. I want to cluster many combinations of the portfolio as I can to find the characteristic of different combinations of the portfolio. I am interested in investment, and I study information technology in university. I want to combine two aspects for my final year project. And I believe this project is very useful for my future career. I have read relative books, papers for getting the basic idea and concept of portfolio and data mining. In this project, I use many technical skills, methods and knowledge learnt from City University of Hong Kong in the past three years. Java programming is used to do the data preprocessing like normalization, financial calculation. It is also used to generate the combination of the portfolio and the simulation of K-means. MYSQL database is used to store the data of stocks and portfolio. The simulation result is also stored in the database. 3. Objectives In this final year project, there are several objects: 1. To investigate the characteristic of stocks in Hong Kong stock market. 2. To investigate the characteristic of different stock portfolios in Hong Kong stock market. 3. To determine that different combination of stocks how to affect the performance of the portfolio. 4. To investigate the strength and weakness of applying K-means on financial data. 4. Report outline  There are total 6 chapters in this report. Following this Chapter 1 Introduction, Chapter 2 Literature Review refers to related theories applied on the simulation, result analysis and discussion. Chapter 3 Simulation presents the methodology, project flow chat of the simulation. Chapter 4 Result Analysis will do the data processing of the result from the simulation. Chapter 5 Further Development will discuss the further development and improvement of the project. At the end, Chapter 6 Conclusion will do the conclusion of the whole project. 5. Chapter Summary This chapter mentions the background of the project. It also presents the motivation of this project and give the objective, report outline to the readers for better understanding of the project.

Investment Avenues in India Essay

ABSTRACT:Each investment alternative has its own strengths and weaknesses. Some options seek to achieve superior returns (like equity), but with corresponding higher risk. Other provide safety (like PPF) but at the expense of liquidity and growth. Other options such as FDs offer safety and liquidity, but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of these alternatives while dispensing with the shortcomings.Indian stock market is semi-efficient by nature and, is considered as one of the most respected stock markets, where information is quickly and widely disseminated, thereby allowing each security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the nearest investment value. And mainly after the introduction of electronic trading system, the information flow has become much faster. But sometimes, in developing countries like India, sentiments play major role in price movements, or say, fluctua tions, where investors find it difficult to predict the future with certainty. Some of the events affect economy as a whole, while some events are sector specific. Even in one particular sector, some companies or major market player are more sensitive to the event. So, the new investors taking exposure in the market should be well aware about the maximum potential loss, i.e. Value at risk.It would be good to diversify one’s portfolio to include equity mutual funds and stocks. The benefit of diversification are that while risk exposure from a particular asset may not be very high, it would also give the opportunity of participating in the party in the equity markets- which may have just begun- in a relatively safe manner(than investing directly into stock markets). Mutual funds are one of the best options for investors to choose from. It must be realized that the performance of different funds varies time to time. Evaluation of a fund performance is meaningful when a fund has access to an array of investment products in market. An investor can choose from a variety of funds to suit his risk tolerance, investment horizon and objective. Direct investment in equity offers capital growth but at high risk and without the benefit of diversification by professional management offered by mutual funds.INTRODUCTION:Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings. Banks are considered as the safest of all options, banks have been the roots of the financial systems in India. Promoted as the means to social development, banks in India have indeed played an important role in the rural upliftment. For an ordinary person though, they have acted as the safest investment avenue wherein a person deposits money and earns interest on it. The two main modes of investment in banks, savings accounts and fixed deposits have been effectively used by one and all.However, today the interest rate structure in the country is headed southwards, keeping in line with global trends. With the banks offering little above 9 percent in their fixed deposits for one year, the yields have come down substantially in recent times. Add to this, the inflationary pressures in economy and one has a position where the savings are not earning. The inflation is creeping up, to almost 8 percent at times, and this means that the value of money saved goes down instead of going up. This effectively mars any chance of gaining from the investments in banks. Just like banks, post offices in India have a wide network. Spread across the nation, they offer financial assistance as well as serving the basic requirements of communication. Among all saving options, Post office schemes have been offering the highest rates. Added to it is the fact that the investments are safe with the department being a Government of India entity. So, the two basic and most sought after features, such as – return safety and quantum of returns was being handsomely taken care of. Though certainly not the most efficient systems in terms of service standards and liquidity, these have still managed to attract the attention of small, retail investors. However, with the government announcing its intention of reducing the interest rates in small savings options, this avenue is expected to lose some of the investors.Public Provident Funds act as options to save for the post retirement period for most people and have been considered good option largely due to the fact that returns were higher than most other options and also helped people gain from tax benefits under various sections. This option too is likely to lose some of its sheen on account of reduction in the rates offered. Another often-used route to invest has be en the fixed deposit schemes floated by companies. Companies have used fixed deposit schemes as a means of mobilizing funds for their operations and have paid interest on them. The safer a company is rated, the lesser the return offered has been the thumb rule. However, there are several potential roadblocks in these. First of all, the danger of financial position of the company not being understood by the investor lurks. The investors rely on intermediaries who more often than not, don’t reveal the entire truth. Secondly, liquidity is a major problem with the amount being received months after the due dates. Premature redemption is generally not entertained without cuts in the returns offered and though they present a reasonable option to counter interest rate risk (especially when the economy is headed for a low interest regime), the safety of principal amount has been found lacking. Many cases like the Kuber Group and DCM Group fiascoes have resulted in low confidence in this option. The options discussed above are essentially for the risk-averse, people who think of safety and then quantum of return, in that order. For the brave, it is dabbling in the stock market.Stock markets provide an option to invest in a high risk, high return game. While the potential return is much more than 10-11 percent any of the options discussed above can generally generate, the risk is undoubtedly of the highest order. But then, the general principle of encountering greater risks and uncertainty when one seeks higher returns holds true. However, as enticing as it might appear, people generally are clueless as to how the stock market functions and in the process can endanger the hard-earned money.For those who are not adept at understanding the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture.Mutual Funds are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. Each unit of any scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms.Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future.Investment alternatives in India * Non marketable financial assets: These are such financial assets which gives moderately high return but can not be traded in market.* Bank Deposits * Post Office Schemes * Company FDs * PPF * Equity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share and dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market:* Blue chip shares * Growth shares * Income shares * Cyclic shares * Speculative shares * Bonds: Bonds are the instruments that are considered as a relatively safer investment avenues.* G sec bonds * GOI relief funds * Govt. agency funds * PSU Bonds * RBI BOND * Debenture of private sector co. * Money market instrument: By convention, the term â€Å"money market† refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year.* T-Bills * Certificate of Deposit * Commercial Paper * Mutual Funds- A mutual fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities, ranging from shares, debentures to money market instruments or in a mixture of equity and debt, depending upon the objective of the scheme. The different types of schemes are* Balanced Funds * Index Funds * Sector Fund * Equity Oriented Funds * Life insurance: Now-a-days life insurance is also being considered as an investment avenue. Insurance premiums represent the sacrifice and the assured sum the benefit. Under it different schemes are:* Endowment assurance policy * Money back policy * Whole life policy * Term assurance policy * Real estate: One of the most important assets in portfolio of investors is a residential house. In addition to a residential house, the more affluent investors are likely to be interested in the following types of real estate:* Agricultural land * Semi urban land * Farm House * Precious objects: Investors can also invest in the objects which have value. These comprises of:* Gold * Silver * Precious stones * Art objects * Financial Derivatives: These are such instruments which derive their value from some other underlying assets. It may be viewed as a side bet on the asset. The most important financial derivatives from the point of view of investors are:* Options * FuturesDirect equity vs. mutual funds1) Equity share/Direct investment 2) Mutual funds, a brief introduction 3) Equity Fund 4) Difference between direct equity and mutual fundEquity share/Direct investmentEquity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share or dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market:* Blue chip shares- Shares of large, well established, financially strong companies with an impressive record of earnings and dividends.* Growth shares-Shares of companies that have fairly entrenched positions in a growing market and which enjoy an above average rate of growth as well as profitability. * Income shares-Share of companies that have fairly stable operations, relative limited growth opportunities, and high dividend payout ratios.* Cyclic shares – Share of companies that have a pronounced cyclicality in their operations.* Defensive shares- Shares of companies that are relatively unaffected by the ups and downs in general business conditions.* Speculative shares- Shares of companies that tend to fluctuate widely because there is a lot of speculative trading in them.Mutual Funds: A brief introductionA Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.INCEPTION OF MUTUAL FUNDS IN INDIAThe history of mutual funds in India can be divided into 5 important phases:1963-1987The Unit Trust of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI launched its first product, the Unit Scheme 1964, which is even today the single lar gest mutual fund scheme. UTI created a number of products such as monthly income plans, children plans, equity-oriented schemes and off shore funds during this period. UTI managed assets of Rs.6,700 crores at the end of this phase.1987-1993In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI mutual fund was the first non- UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth-oriented closed-ended funds. By the end of this period, assets under UTI’s management grew to Rs.38,247 crores and public sector funds managed Rs.8,750 crores.1993-1996In 1993, the mutual fund industry was open to private sector players, both Indian and foreign. SEBI’s first set of regulations for the industry were formulated in 1993, and substantially revised in 1996.Signifficant innovations in servicing, product design and information disclosure happened in this phase, mostly initiated by private players.1996-1999The implementation of the new SEBI regulations and the restructuring of the mutual fund industry led to rapid asset growth. Bank mutual funds were recast according to the SEBI recommended structure, and the UTI came under voluntary SEBI supervision.1999-2002This phase was marked by the rapid growth in the industry, and significant increase in market shares of private sector players. Assets crossed Rs.1,00,000 crore .The tax break offered to mutual fund in 1999 created arbitrage opportunities for a number of institutional players. Bond funds and Liquid funds registered the highest growth in this period, accounting for nearly 60% of the assets. UTI’s share of the industry dropped to nearly 50%.Types of mutual funds:Open ended schemesAn open-end fund is one that is available for subscription all through the year. This type of Mutual funds does not have a predefined maturity period. The key feature is liquidity. Direct dealing is another noticeable feature. One can easily buy and sell units at Net Asset Value related prices.Close ended schemesHere maturity period is predefined usually ranging from 2 to 15 years. Investment can be done directly in the scheme at the time of the initial issue and units can be brought and sold whenever units are listed in the stock exchanges.Types of Schemes1. Equity/growth oriented Funds: Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns.2. Balanced Funds: The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. 3. Index Funds: An Index Fund is a mutual fund that tries to mirror a market index, like Nifty or BSE Sensex , as closely as possible by investing in all the stocks that comprise that index in proportions equal to the weight age of those stocks in the index.4. Income/debt oriented Funds: These schemes invest mainly in income-bearing instruments like bonds, debentures, government securities, commercial paper, etc. These instruments are much less volatile than equity schemes. Their volatility depends essentially on the health of the economy e.g., rupee depreciation, fiscal deficit, inflationary pressure. Performance of such schemes also depends on bond ratings.1) Equity FundsAs explained earlier, such funds invest only in stocks, the riskiest of asset classes. With share prices fluctuating daily, such funds show volatile performance, even losses. However, these funds can yield great capital appreciation as, historically, equities have outperformed all asset classes. At present, there are four types of equity funds available in the market. In the increasing order of risk, these are:a) Index fundsThese funds track a key stock market index, like the BSE (Bombay Stock Exchange) Sensex or the NSE (National Stock Exchange) S&P CNX Nifty. Hence, their portfolio mirrors the index they track, both in terms of composition and the individual stock weightages. For instance, an index fund that tracks the Sensex will invest only in the Sensex stocks. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds don’t need fund managers, as there is no stock selection involved.Investing through index funds is a passive investment strategy, as a fund’s performance will invariably mimic the index concerned, barring a minor â€Å"tracking error†. Usually, there’s a difference between the total returns given by a stock index and those given by index funds benchmarked to it. Termed as tracking error, it arises because the index fund charges management fees, marketing expenses and transaction costs (impact cost and brokerage) to its unit holders. So, if the Sensex appreciates 10 per cent during a particular period while an index fund mirroring the Sensex rises 9 per cent, the fund is said to have a tracking error of 1 per cent.To illustrate with an example, assume you invested Rs 1,000 in an index fund based on the Sensex on 1 April 1978, when the index was launched (base: 100). In August, when the Sensex was at 3.457, your investment would be worth Rs 34,570, which works out to an annualised return of 17.2 per cent. A tracking error of 1 per cent would bring down your annualised return to 16.2 per cent. Obviously, lower the tracking error, the better are the index funds.b) Diversified fundsSuch funds have the mandate to invest in the entire universe of stocks. Although by definition, such funds are meant to have a diversified portfolio (spread across industries and companies), the stock selection is entirely the prerogative of the fund manager. This discretionary power in the hands of the fund manager can work both ways for an equity fund. On the one hand, astute stock-picking by a fund manager can enable the fund to deliver market-beating returns; on the other hand, if the fund manager’s picks languish, the returns will be far lower. Returns from a diversified fund depend a lot on the fund manager’s capabilities to make the right investment decisions. A portfolio concentrated in a few sectors or companies is a high risk, high return proposition.c) Tax-saving fundsAlso known as ELSS or equity-linked savings schemes, these funds offer benefits under Section 88 of the Income-Tax Act. So, on an investment of up to Rs 10,000 a year in an ELSS, one can claim a tax exemption of 20 per cent from his taxable income. One can invest more than Rs 10,000, but then he won’t get the Section 88 benefits for the amount in excess of Rs 10,000. The only drawback to ELSS is that one has to lock into the scheme for three years.In terms of investment profile, tax-saving funds are like diversified funds. The one difference is that because of the three year lock-in clause, tax-saving funds get more time to reap the benefits from their stock picks, unlike plain diversified funds, whose portfolios sometimes tend to get dictated by redemption compulsions.d) Sector fundsThe riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector fund’s NAV will zoom if the sector performs well; however, if the sector languishes, the scheme’s NAV too will stay depressed. Barring a few defensive, evergreen sectors like FMCG and pharma, most other industries alternate between periods of strong growth and bouts of slowdowns. The way to make money from sector funds is to catch these cycles–get in when the sector is poised for an upswing and exit before it slips back.2) Difference between direct equity and mutual fundsA mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario. Markets for eq uity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.Investing in Mutual Fund is convenient because of two basic reasons. All investment carry risks, especially equity investment that bears larger risks, their returns are more volatile and uneven. To cut down the risk one needs to put money in several instruments rather than in one or two products. A Mutual Fund can effectively spread its investments across various sectors of the economy and amongst several products. Risk diversification is the Key. Secondly ‘where to invest and where not to’, is a specialized business. One may not have the expertise, time and resources of a well-managed fund.ADVANTAG ES OF A MUTUAL FUND1. Professional ManagementQualified professionals manage money, but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme, so you see that it is a continuous process that takes time and expertise that will add value to investment. These fund managers are in a better position to manage investments and get higher returns.2. DiversificationThe clichà ©, â€Å"don’t put all eggs in one basket† really applies to the concept of intelligent investing. Diversification lowers risk of loss by spreading money across various industries. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds will spread investment across only one industry and it would not be wise for portfolio to be skewed towards these types of funds for obvious reasons.3. Choice of SchemesMutual funds offer a variety of schemes that will suit investors needs over a lifetime. When they enter a new stage in life, a ll needed to do is sit down with investment advisor who will help to rearrange portfolio to suit altered lifestyle. 4. AffordabilityA small investor may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes that allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. One can invest with a minimum of Rs. 500 in a Systematic Investment Plan on a regular basis.5. Tax BenefitsInvestments held by investors for a period of 12 months or more qualify for Capital gains and will be taxed accordingly (10% of the amount by which the investment appreciated, or 20% after factoring in the benefit of cost indexation, whichever is lower). These investments also get the benefit of indexation.6. LiquidityWith open-end funds, you can redeem all or part of investment any time you wish and receive the current value of the shares or the NAV related price. Funds are more liquid than most investments in shares, deposits and bonds and the process is standardized, making it quick and efficient so that you can get cash in hand as soon as possible. 7. Rupee Cost AveragingThrough using this concept of investing the same amount regularly, mutual funds give investor the advantage of getting the average unit price over the long-term. This reduces risk and also allows you to discipline self by actually investing every month or quarterly and not making sporadic investments.8. The Transparency of Mutual FundsThe performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare one to the other. Once you are part of a mutual fund scheme, you are provided with regular updates, for example daily NAVs, as well as information on the specific investments made and the fund manager’s strategy and outlook of the scheme.9. Easy To AdministerMutual funds units in modern times are not issued in the form of certificates, with a minimum denomination rather they are issued as account statement switch a facility to hold units in fraction upto 4 decimal points.10. Highly RegulatedThe g overning of mutual funds by SEBI ensures that the fund activities are carried out in the best interest of the investors. DISADVANTAGES OF MUTUAL FUNDSThe following are some of the reasons which are deterrent to mutual fund investment: * Costs despite Negative Returns — Investors must pay sales charges, annual fees, and other expenses regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains distribution they receive — even if the fund went on to perform poorly after they bought shares. * Lack of Control — Investors typically cannot ascertain the exact make-up of a fund’s portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades. * Price Uncertainty — with an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock’s price changes from hour to hour — o r even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund’s NAV, which the fund might not calculate until many hours after you’ve placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.Some mutual fund schemes with the point of attractiveness to investors -Comparison of best performing mutual funds with index Equity schemes:Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns. These can be further classified into three types:1. Diversified Equity schemes:The aim of diversified equity funds is to provide the investor with capital appreciation over a medium to long period (generally 2 – 5 years). The fund invests in equity shares of companies from a diverse array of industries and balances (or tries to) the portfolio so as to prevent any adverse impact on returns due to a downturn in one or two sectors.2. Equity Linked Saving Schemes (ELSS):These schemes generally offer tax rebates to the investor under section 88 of the Income Tax law. These schemes generally diversify the equity risk by investing in a wider array of stocks across sectors. ELSS is usually considered a variant of diversified equity scheme but with a tax friendly offer3. Sectoral Fund/ Industry Specific schemes:Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. These are ideal for investors who have already decided to invest in particular sector or segment. Sectoral Funds tend to have a very high risk-reward ratio and investors should be careful of putting all their eggs in one basket.CONCLUSION:In the current scenario, investing is very important and investing in stock markets is a major challenge ever for professionals. The young people should start investing earlier so that they can reap the benefits of investing in future. People should keep their eye open and keep updating themselves about various investment avenues so that they can get safe returns. BIBILIOGRAPHY: 1. Anjan Chakrabarti and Harsh Rungta, 2000, â€Å"Mutual Funds Industry in India :An in-depth look into the problems of credibility, Risk and Brand† ,The ICFAI Journal of Applied Finance, Vol.6, No.2, April, 27-45. 2. Bhalla V.K., Investment Management, S.Chand & Company Ltd., Eleventh Edition, 2004 3. Bodie, Kane, Marcus â€Å"Security Analysis and Portfolio Management†, 5th edition Tata Mc Graw hill publications. 4. Customer Orientation in Designing Mutual Fund Products, -An Analytical Approach to Indian Market Preferences, Dr Tapan K Panda, Faculty Member, Indian Institute of Management, Lucknow. 5. FISHER AND JORDEN (2000): Security analysis and portfolio management, Prentice hall. 6. L.M.BHOLE (2005) : Financial institutions and market, Tata Mcgraw – hill. 7. Preparatory Books For AMFI Exam ;NJ Investment India Pvt. Ltd. Edition June ’09 8. Review Of Marketing Research, Volume 5: K. Naresh Malhotra: 9. V.A.AVADHANI (2006): Security analysis and portfolio management, Himalaya publishing house. 6thEdition. |