Category Archives: Blog

A Good Note On Pension Fund Management

A pension is a collective term used to represent a type of transaction made between the present working populations to their own retired population sphere. Further, this includes both funded and unfunded categories.

  • The scheme of a funded category is like an accumulation phase, where initially working population makes constant contributions that get summed up in a great amount and accounts as your retirement pension value.

But once you retire the funds the opposite process say the de-cumulative phase and pays out as pension to the retired people for the rest of their lives. The effective and accurate management of funds in this type of pension operating scheme is very important.

Read the article about Bitcoin Trader

  • On the other hand, the unfunded nature is based on the pay-as-you-drive theme and involves an instant transaction between current working people and the similar retired ones.

The accumulation phase is really enriched with positive rewards as you can observe the increasing value of pension fund within this level due to external contributions made to the remaining fund and also from the interest generated from the already existing asset in the fund.

Take, for example, a pension scheme that involves annual contributions of $1500 over 35 years, the asset value will build up to a particular value at retirement and also receive a value due to the interest rate of 5 percent tied to the fund. The interest ratings tagged with the scheme changes periodically and hence, the pension amount also varies.

Types of pension schemes

  1. Private plan: This can be further classified into two dimensions. This includes whether it is based on any predefined basis or is considered on a person or group basis. The pension received by an individual is always on a funded basis that works on the principle of accumulation. There are options within this fund plan and face the threat of fund under-performance at times.

According to a recent survey, the share of such pensions has risen from 12 to over 25 percent.

  1. Group plan: These are those schemes that involve sharing of accumulation assets across its generations. Occupational pension schemes are an example of this type.

The retirement money received by a person depends on the investment strategy and asset allocation decision made by pension fund professionals. Moreover, each industry has a specific set of investment management schemes and measurements upon which the pension value depends. Even though these plans are well-regulated, they need to be constantly monitored and managed with adjusted performance measures to avoid any risky situations.

Future of Fund Management

The power of money to stabilize many economies is true to a great extent; however, there are other contributing factors today. With the share of bigger corporations emerging, smaller enterprises are being absorbed along with a huge client base. The fear of exiting the market due to high leaning on the find performances has made medium companies battle fierce competition or just move out of the industry.

Reason for stiff competition

Milking the cash cows is how the industry is thriving for survival, the more innovative the financial product is, and higher is the definitive growth pattern:

  • the dominance of alternative investments are taking away the larger portion of the pie making it harder for the passive investment trends
  • a bigger scope of resources gets a larger portion of investments from the fund managers, with good EBITA and effective cost management, investment portfolios are being trimmed to have a mix of nontraditional funds to get the profits sooner and sustain for a longer tenure
  • a lot of effort and amount is invested in new innovation, new product launches, as the life cycle of financial products, is short-lived it makes the most of it now
  • the demand from the clients for a high performing asset in their portfolio is driving the fund managers to an edge to sustain their growth along with compliance with many regulations
  • With the mergers of many companies, to strengthen their presence in the markets and be the winner, it is essential to spread the cost incurred in the acquisition and get a good margin, else will be left with diluted profits, uneven management of talent and money.

Overcoming the tide

The focus for many investment based companies is to stay and wade over the rough tide since the year 2006 when the financial crisis really hit the markets globally,

  • maintain a good liquidity ratio
  • combating the negative market forces
  • curb the rising cost of maintaining the financial products
  • the high amount of fees paid to fund managers to tap into new customers
  • new technology and regulation to be adhered to
  • rising administrative cost which often makes the investors withdraw their funds and invest elsewhere as their returns are eaten up
  • constant reassessment of the financial products so that they are giving a good performance

With all the challenges ahead, financial products are still going to be highly invested area as there is no anvil from the banks with a very low-interest percentage offered on deposits.

 

 

 

 

 

 

Advantages of business valuation

Whether you are running a small enterprise or a large business, periodic business valuation is a must. Many small firms are usually apprised only when there is a change in the ownership either within the family or due to sale to external sources. When certified appraisers evaluate your business they discover loads of information which can be used for the benefit of the firm.

To ensure you get the right value for your business

A business valuation will ensure that you get a fair deal when you sell your business. It is also beneficial for the buyers as they too will be able to ascertain the value of your business and ensure that they are paying the right cost for the size and the condition of the business that they are taking over.

A clear picture of your financial status

During the appraisal, the experts do not look at just sudden instances of high sales or unusual expenses but delve in-depth into the company’s financial health and assess all transactions. This will provide a clear and transparent picture of the potential of any business. This method of evaluating your company’s capacity will show what your financial standing is and what kind of debts you have and from whom. This information will help you to devise a plan of cracking down harder on the debtors and ensuring that they pay up in time.

Improve profitability

To be a leader in your field you must innovate and reinvent your business constantly. During valuation, the appraiser will look for areas that need improvement to optimize profits and reduce your overheads. An experienced appraiser is well versed in your industry and can spot out the areas that need attention and can be improved for increased productivity and better profitability.

Your standing in the market

The current market is very dynamic and constantly changing in accordance with the global socio-political conditions. In today’s world, no business is isolated or immune from the trends in the market. Therefore, it is important to gauge where you stand in the market; do you have any specific strengths that are unique and different from the rest in the industry or are you in the same boat as the rest. An appraiser will not only look at the present situation but will also consider the future growth and prospects of your business.

Thus, a business valuation will help in improving your company’s overall performance and profitability if you can use the information provided by your appraiser in a beneficial manner.

 

Beware Of Secret Mining Apps

Cryptocurrency mining can be addictive in two ways. One is the confidence and encouragement attained by the miner with each new coin and block rewards. Second is the fun of doing something innovative and out-of-the-box, where you will be accompanied by one or more miners competing with each other.

You can say a different form of online game or gambling. Miners are recently getting shockwaves with more countries putting legal restrictions on transactions using cryptocurrencies and imposing tight financial policies.

Indirect mining cases are being reported now, where the miners literally hack into another person’s mobile application and carry out secret mining. In most cases, the application users will not get any hint that they are being hacked and running a malware on their mobile.

Mobile applications have become targets

There are two reasons why these high-tech miners selectively use mobile applications to increase their coin bounty:

  • Most of the mobile applications are downloaded by the users to use them regularly. Software and hardware downloaded on the desktop are seldom used, mostly when the users are at home and check out their system as a part of their routine. On the other hand, mobile applications are always with them, just a touch away and most probably running whenever there is an internet connection.
  • Trust factor of mobile applications and their appeal make them suitable for the miners to get a good platform of unsuspected activity. The applications are even available on Play store and will be based on popular streams like soccer games, daily monitoring apps etc. Footballs will not think even in extreme cases that they are playing a game, but in the background, their app is actually mining cryptocurrencies.

Play store apps generally ask permission to access data on the mobile phone as a mandatory step to download the app and the users have to abide by that. When the app is opened, the malware simultaneously opens a Javascript along with the HTML file which makes the processor act as a tool for mining.

Some of the popular mobile apps frequently reported to be hacked by miners are:

  • Gaming apps like football, match broadcasting apps
  • Weather reporting apps like those giving information about surrounding temperature, the current climate in specific regions, humidity, forecasts etc.
  • Regular trading applications
  • Applications providing Virtual Private Networks (VPN)
  • Apps which monitor mobile parameters like battery charge, memory usage, temperature etc.

While downloading any mobile apps from sites, we should ensure that the app is verified to be malware free and featured on trusted stores. Keep your device as well as yourselves updated about the miner entry.

CSR & Small Business

It is very likely for us to correlate the term CSR only with the established organizations, as big organizations indulge in such socially and environmentally benefitting campaigns. But, isn’t it the other way? That is these organizations have grown big not only because of their innovative deliverables but also because of their socially responsible behavior and therefore, every growing business trying to make it big in the world of business should engage in socially responsible activities and improve their CSR!

What is CSR?

CSR is the set of initiatives undertaken by your company to stand against the current issues or the future issues concerning the safety and growth of the society and the environment. Therefore, improved CSR means, your growing organization also values the society in which it operates along with the money aka profits, therefore turns out be a favorable choice among its customers, naturally!

Why concentrate on improving CSR

  • Because it is customers’ expectation

As a growing company, you know the importance of satisfying the sensible needs of the customers to survive the competition and earn satisfying profits. If so, you need to start engaging your company in socially responsible activities, as nearly 55% of the modern customers are eager to associate themselves aka consider the products or services of the company acting socially responsible, according to an independent survey result.

  • Because it creates more talented employees

For the quick growth of your business, along with you, your employees should also be dedicated and skilled, which can happen with your business practicing socially responsible methods. According to the survey conducted by an independent source, nearly 64% of the millennials prefer to choose the company with strong CSR values, while 83% of them believes in staying committed to the organization that is loyal to the society and the environment by contributing suitably to the social and environmental issues.

Read the review about ”Bitcoin Trader” by our friends from Top10cryptorobots

This shows, a dedicated workforce for your growing business is only possible with better CSR performance and therefore, start concentrating on it right now to become a strong company in the future.

  • Because it fetches better financial rewards

For a small business, the importance of the solid financial support is understandable, which can be better achieved with the better CSR. The same has been substantiated by this study of small businesses in Malaysia. According to this, a small business’ responsible practices towards the society, environment, customer, and employees will have a positive impact on its financial performance, needed very much for the business’ further development and reputation!

  • Because it boosts the trust factor in your stakeholders

The primary stakeholders of your small business aka the customers and the employees, consider the socially responsible activities and goals of your organization as the parameter to decide your trustworthiness, according to this study. Therefore, make your organization socially and environmentally responsible and grow in strength, revenue, and popularity, manifolds.