贵金属投资技术分析英文版(50).pptVIP

Chapter 22 Investors and the Investment Process * * * It is not that long term investments are less risky, they are not. Rather young people have time to recover from periods of poor performance and can choose to work more and save more if need be. * Mutual funds are very competitive and many have evolved to meet certain niches such as income funds, growth funds, sector funds, etc. Under the Investment Company Act of 1940 mutual funds must invest according to the goals in the prospectus. * * A couple of points may be worth noting here. First, life insurance claims are more predictable than non-Life insurance companies and this allows life insurers to take on more risk in their portfolio. Second, the insurance policies with the savings features generally have high fees and expense. Most individuals would be better served to buy term and invest the difference. Those without the discipline to invest enough may prefer the life insurance plans with the forced savings features. * Banks are prohibited from holding equity for their own account although they may do so through investment banking. * * * * Minimizing tax liability is a major part of the investment decision for planners that handle individual clients. Many institutional investors on the other hand do not pay taxes on their investment income. Financial needs and risk: Bernstein tells the story of a client of his who came to him who had become disabled and who would never be able to work again. The client only had a small amount of funds available that would soon run out leaving his client with no support. In this case Bernstein decided that a diversified portfolio was not appropriate. He placed his client’s funds in an up and coming tech stocks, IBM and the investment earned enough for his client to live comfortably. On the other hand, if a client has enough funds to meet their goals then don’t take on more risk than necessary. For a wealthy client, preservation of capital is paramount. * * *