Swot Analysis: SWOT Analysis Of Capital Market Management

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2.3 SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as Strengths (S) or Weaknesses (W), and that external to the firm can be classified as Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. The following diagram shows how a SWOT analysis fits into an environmental scan:

The internal and external factors that are favourable and unfavourable to achieve the Objectives of
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The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is 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 basket of securities at a relatively low.

STATEMENT OF THE PROBLEM:
Investment in debt and fixed income schemes of mutual funds can be puzzling if adequate knowledge is not available to the investors. Therefore a comparative study of funds performance and the risks involved along with other debt funds by taking certain parameters into consideration for the investors to make investment decisions in the debt schemes.

OBJECTIVES OF STUDY:
 To draw a comparative analysis of the debt schemes of kotak mutual funds with other companies debt
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This is a major advantage that we get from investing in mutual funds rather than directly in a bank deposit.
This capital appreciation is possible because debt instruments that mutual fund invest in market tradable. Thus, when the market interest rates come down as in the current scenario, the debt mutual funds get much higher bond yield.
The average return from the top 15 debt mutual funds in the last one year has been 25.96 per cent.
Risk
When the interest rates go up in the general market, the bond yield comes down, leading to capital erosion when debt instruments are traded. This can lead to very low or even negative returns from debt instruments.
So no financial tool can be said to be risk free. However in the short term, debt instruments are a good place to preserve capital.
Liquidity
Debt funds have high liquidity. They can be converted to cash between 2 to 4 days. The high liquidity and conservation of capital are key benefits for temporary parking of funds. Many companies make use of these features for the cash management of their corporate

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