Definition of Portfolio Managers

Portfolio managers are defined as persons who, in pursuance of a contract with client, advise/ direct undertake on their behalf the management/ administration of portfolio of securities/ funds of clients. The term portfolio means the total holding of securities belonging to any person. The portfolio management can be: Discretionary: the first type of portfolio management permits the exercise of discretion in regard to investment/ management of the portfolio of the securities /funds. Non-discretionary: the non-discretionary portfolio manager should manage the funds in accordance with the direction of client. In order to carry on portfolio management services, a certificate of registration from SEBI is mandatory for all portfolio managers. But for category 1 and 2 merchant banker a separate registration is not required to act as a portfolio manager. They have, however, To carry on the portfolio management activity within the framework of SEBI regulations applicable to portfolio managers. The SEBI Continue reading

Why is Data Analytics Important in Healthcare?

Do you know about data analytics? These data analytics allow for an industry to obtain any insights from patters and connections that are found so they can make better decisions. Businesses are able to achieve multiple advantages by using these statistics. Analytics help find meaning in real-time or historical data so there can be prediction made about the future to improve the probability of success. Due to the healthcare industry using data analytics they will be able to benefit their business by improving patient care quality, improve operational efficiency, and prevent diseases.  Every business is curious on how they can make their operations better whether it’s for money savings or for the care of patients. Using analytics will allow for the improvement of operational efficiencies. The ERP systems allow for them to collect all the information that they want to include in their statistics. Analytics allow for businesses to find the gaps Continue reading

Concept of Investment Banking

Investment banks are essentially financial intermediaries, who primarily help businesses and governments with raising capital, corporate mergers and acquisitions, and securities trade. In USA such banks are the most important participants in the direct market by bringing financial claims for sale. They help interested parties in raising capital, whether debt or equity in the primary market to finance capital expenditure. Once the securities are sold, investment bankers make secondary markets for the securities as brokers and dealers. In 1990, there were 2500 investment banking firms in USA doing underwriting business. About 100 firms are so large that they dominate the industry. In recent years some investment banking firms have diversified or merged with other financial institutions to become full service financial firms. Difference between Investment Banks and Commercial Banks Investment banks have often been thought to be as Commercial banks, and rightly so. However, both the terms have different connotations Continue reading

Dumping Concept in Managerial Economics

The term Dumping means selling a firms product in foreign market at a price lower than in the home market.  Dumping is a form of price discrimination. Let us elaborate ‘dumping’ by considering the following illustrations : Suppose the producer is selling in two markets; viz, the home market and the world market.   In the home market he is saddled as a monopolist but in the world market there is perfect competition.   Let us therefore analyse the price-output policy of the producer under this peculiar situation.  Since there is perfect competition in the world market, the producer has to take the price which prevails in the world market.   This is represented by the horizontal average revenue curve ARw and the marginal revenue curve coincides with the average revenue curve.   Thus ARw = MRw.   However, in the home market he is a monopolist and therefore average Continue reading

What is a Bill of Exchange? Definition and Features

According to section 5 of the Negotiable Instruments Act, 1881, defines Bill Of Exchange as “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.” A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason of the time for payment of the amount or any installment thereof being expressed to be on the lapse of certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain. The sum payable may be “certain”, within the meaning of this section and section and section 4, although it includes Continue reading

Business Clusters

In a globalized economy, companies can access capital, goods, information and technology from all parts of the world. Thanks to faster methods of transportation and communication, physical location has become less important. Yet, there are geographic concentrations of industrial activities. For example, Silicon Valley in California is reputed for its cluster of computer hardware and software companies. Even though it is a very expensive location, many tech companies continue to perform their key value adding activities in this region. Michael Porter  uses the term “clusters” to describe geographical concentrations of interconnected companies and institutions in a particular business. Business clusters include suppliers of components, machinery, services and institutions which provide specialized infrastructure. Sophisticated, demanding customers who keep companies on their toes can also be considered a part of the cluster. So can the local government, universities, research centers and think-tanks who play a vital role in encouraging innovation and creating Continue reading