Study On The Growth Of Alternative Investment Vehicles Finance Essay

Published: November 26, 2015 Words: 2825

Introduction:

The growth of alternative investment vehicles from over past 10 years with the equity and bond markets is growing continuously. There are so many positive and negative implications coming on the way of Equity and the Bond market. The investment vehicle is continuously growing on the way from last 10 years and because of that there is maximum Equity and Bond holders are taking part in the investment vehicle. The investment vehicle also includes the derivatives, money market funds, advanced FX techniques, etc.

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Growth of alternative investment vehicles:

The growth taking place in alternative investment vehicle in the equity and bond is growing drastically from the past ten year time. The people are keeping faith more on the investment vehicle market as the investment vehicle market increase its share every year in the market as the investment fund taking place in the market are very much growing day by day. The basic example which will explain the alternative investment vehicle is a basic press news found on the internet is given below.

CTANE, the alternative hedge fund investment solution provider of Sanlam, has more than doubled assets under management over the past 16 months. Total assets under management grew to US$750m, making Octane, with its head office in Switzerland, a significant presence in the international hedge fund arena. Hedge funds are actively managed investment strategies that seek consistent risk-adjusted investment returns with little correlation to the markets. Consequently, these strategies seek to achieve absolute returns rather than beating a relative benchmark, such as traditional equity and bond market funds. Octane CFO Robbie Alexander says that its success has been the result of pursuing a "client centric focus" over the past four years. Not only has Octane customized hedge fund solutions for its clients but these have also been top quartile performers over time. With more than 1300 hedge fund of funds in the alternative arena and approximately 7,000 single hedge fund managers, investors need dedicated professional assistance in constructing the most optimal portfolio. That's exactly what Octane has successfully done for its clients. Octane is, in effect, a turnkey hedge fund solution provider for its clients. Alexander says that they've managed their asset growth proactively by adding more resources to all aspects and regions of the business, given that Octane has offices in three countries: Switzerland the US and SA. The New York-based manager research and portfolio construction team has been strengthened by two new staff additions. Octane also now has three full-time, dedicated staff at its Luxembourg- based fund administrator. Two new appointments have also strengthened the Johannesburg team. A key appointment is Duncan Theron. Who is now head of Octane's Pan- African operation? Over the past eight years Theron has acted as consultant to the largest pension funds in SA. Theron says that the strong presence now gives Oetane a critical competitive advantage in SA. "An accessible resident office allows Octane to be at the centre of attending to the needs and requirements of our clients. Our objective is to be the right arm of a client, to represent his/her interests and to attain his/her investment aspirations.

The above paragraph shows us the live example of the investment vehicle taking place in the market. And even with the help of the equity and bond market that how is the market growing actually in today's day and from the last 10 year that it is growing continuously and having a great share in the market. The investment market has been proves very much precious to his / her shareholders who hold the equity and the bonds of the investment vehicle market and they are obviously earning best as the investment vehicle market is having tremendous growth every year. The equity and bond market is very much in the boom period from last 10 years.

In short the alternative investment market proved to be a best equity and bond market. There is always a high return on the alternative investment market as it is the best growing market where people don't have to think much for it. The alternative investments market plays a very big and important role in the derivatives, money market funds and advanced FX techniques, etc. The alternative investment market is the best market taking place on the earth and gets lots of blessing from the people as people gets more return on their investments and earns good out of it. The investment market is the market which mainly deals in the equity and the bond market. Thus it is been proved logically and non-logically after analyzing the data of past 10 years that the investment vehicle market is continuously growing from last 10 years and has so many supplementary things taking place in there. Thus the equity and the bond market is equally growing up with the growing of the investment vehicle market.

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Conclusion:

Thus it is finally been proved by the analysis of the last 10 to 30 years that the investment vehicle market is continuously growing up in the equity and bond market and people are more interested in investing in that markets. Thus in short by the above whole analysis and one press report it clearly says that the market is growing at a tremendous speed and thus finally I can say that it is growing continuously and thus it has created more demand in the economy.

B1

Introduction:

Gold is said to be the forgotten commodity. I am totally agree with this as in the past age gold was used as an currency but today's world has made that thing only a commodity. Gold is not actually the commodity but it's a type of currency which can be used in exchange of goods in the previous age as gold. The exchange was done basically but now a day there is no such system left. Basically it is still used to get the interest like 20% per annum but not as an exchange as it has a flat interest rate as it's one of the expensive metals on the earth. Thus I can say one thing that it can still be used as a metal.

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Gold as a currency in past:

Two decades ago, the world was quite different. The U.S. dollar was the uncontested standard of value. The euro did not exist. If small traders wanted exposure to currencies, they traded currency futures. Only big banks and million-dollar accounts did business in cash forex. Now, the cash currency markets, where as little as $25 can open an account, have the lowest barriers to entry. Among the changes that have followed are new relationships between different currencies and between currencies and gold. Currencies are quoted as cross rates, the value of one currency in terms of another. For example, JPY/USD tells us how many yen it takes to buy one dollar. Generally, currency traders make money by forecasting these cross rates and buying or selling accordingly. It wasn't always like this. World currency history is rich with change. One of the biggest of the modem era happened in 1971 when the gold standard, which valued currencies in terms of gold, was dropped. This history includes the U.S. dollar becoming the world currency of

Measure and its ripple effects continue to be felt today as we transition into a new financial world order. To understand this trading landscape, and the benefits it offers, it's necessary to understand what got us to where we are today, the golden age, and the years 1880-1914 are considered the classical gold standard period. High economic growth and fairly free trade marked this era. National currencies and other forms of money were converted to gold per a fixed price. In England, the unofficial tie to gold dated to 1717, after the overvaluation of the guinea in silver terms by Sir Isaac Newton, the master of the mint. Gold became the legal standard there in 1819. The United States went to a gold-only standard in 1834 and in 1900, Congress approved the Gold Standard Act, The system broke down during the Great Depression, Gurrencies were devalued to make exports more competitive amid mass unemployment, shrinking demand and declining national incomes. World trade became restricted to groups of nations handling similar currency (currency blocs). Despite short-term gains, over the long term this restricted foreign investment opportunities and the international flow of capital. To improve the international economy, the Bretton Woods planners decided upon a regulated system, an organized market with tight controls on currency values. From 1946-1971 the Bretton Woods system attempted to use the advantages of the gold standard but not its disadvantages. This meant compromise. There were permanently fixed and free floating rates with the right to revise currency values when necessary. This system set the stage for fixed exchange rates and established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), now known as the World Bank (WB), It also encouraged an open system for free trade and conversion of members' national currencies into other currencies. The IMF and IBRD are still the prominent world economic forces. Thus, the "pegged rate" currency system came to be. Members needed to create the equivalence (parity) for their currencies in terms of gold. This was known as a peg, but they also had to maintain the exchange rates within plus or minus 1% of the parity value, known as a band. 46 futures I April 2009, they did this by selling or buying foreign currency in the foreign exchange markets. If the IMF determined that the balance of payments of a country was disturbed, only then it approved the change of the country's par value.

The above whole discussion says that previously gold was in a great demand but now a day it is just a commodity and source of income like interest with like 20% per annum. Thus I can say that gold is a important commodity which can be used as a currency but now it is totally stopped and gold is not been used as an currency anymore and it is just a commodity which is expensive.

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Conclusion:

The above all discussion clearly specify that gold is a forgotten currency which was having great demand in the past and people use this currency in the exchange and thus it was like nothing less than currency. Now a day it is used as a currency but a bit. Before ages it was used like in day to day life as a currency. Gold is an expensive metal as we everyone knows. Today also gold plays a very important role in the market and people get at least 20% interest on the investment if the gold is invested because it can be converted into cash at any of the moment. Thus in short I can say that the gold should be used as a commodity and the currency as well because gold is a precious metal on the earth.

C2

Introduction:

The family retail business is a business which is going on but there is a new plan came to the mind for taking the business of family up than there should be a proper thinking, target customers, which are will have a maximum demand, where public will prefer more to come. So it depends on all such criteria. In short in this I am going to take one business as an example about one of the stationary shop that my dad has and I am going to take over that business and I have to build up that business properly so that I can include in that IPO (Initial Public Offering) onto the AIM (Alternative investment market) in the UK.

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Business plan and structure:

If for example I take my family business and that is a stationary business than there are some criteria that I have to go up with. Suppose if I want to start a stationary shop than obviously I will have to find out the best area where I can get the maximum customer and for that I will have to survey the whole market properly that where I should build up the business and how exactly I have to survey and how I have to check up the customers that people leave nearby or not and thus this is the way where I will take a survey for the new business building up which is a family business.

Suppose in stationary the criteria is to build up the business in the area where there should be school so that I can have maximum customers coming there because of school and that is the first priority and the second priority that I will survey is do the advertisement at the time of results by giving the empty time table sheet to the students by the way of leafleting or will have a contract with the school for the advertisement. Thus this is how I will take a action to start up my business to find a maximum potential customers and that will take place like it can be said an Initial Public Offering.

After the important procedure the next step will be different offers that I should give to the students coming to the shop for the purchase of any item which will help to student and will keep happy so that they will always get attracted to the particular stationary. Thus I can say that at the time of school starts people always buy the books for their children because the children are being moved to the next class and thus the new books are necessary to be purchased. Thus I can say that when the customers come than there should be always a offer like if they buy all the books of any of the class than they will get something free like cover roll, pack of pens, pack of pencils, etc.

Thus I can say that offers should be the most which attracts the consumers maximum and this is how the customers get attracted and this is the reason they come again and again and never swap the shop.

Now it is like there should always be an alternative investment market where like there should be some alternative option like if there is stationary that I can sell gift items with that so that people can get gift and stationeries at the same place and thus they will be like if they can everything at the same place and due to stationary the business will get more customers for the gifts as it is the indirect way of advertisement.

The alternative item in any of the business will always give profit and this is a positive point in the business and this is how the business goes up. The business is always busy than there should be always like different advertisement areas and the effective ways to get the maximum business and maximum customers so that the business goes good and the business gets maximum customers in the area which they are.

Small kids are always attracted with the toys so that there should be always a option of giving free toys to the students who are small so that they get attracted and thus they will force their parents to go again and again. Students are the best option to attract if it is a stationary shop. This is how the business works.

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Conclusion:

In short from the above all discussion we can clearly see that there is a business plan which attracts the customers with the advertisement, offers and the different ways which attracts the customers to come again and again. Thus we can say that the customers gets attracted if they are and the above whole business plan from the time it takes place till the final sales clearly explains that how the business should go up exactly in the market. Thus in short I can say that this is how I will advertise and keeps my business going in the market by the way of advertisement and offers at the initial stage and in competition to attract more and more customers.