Posts Tagged: ‘United States’

How to do Mutual Fund Analysis

January 11, 2015 Posted by admin

More than 80 million people in the United States of America have invested their hard earned money in equity markets and mutual funds. They invest their money with the assistance of professional analyst whose daily job is to analyze the mutual funds market and help the investors for investing in best funds.

The funds market is so huge based on the number of people who participate and the number of people who gain out of it and the exchange of money that it is imperative that one analyses it before entering it.

The right kind of fund analysis will allow you to gain a far better interest rate then you would have ever got if your money were to just idle away in a savings account. The fund analysis will allow you to be able to analysis the right scheme for you based on your personal goals and the amount that you want to gain and how long you want to remain invested.

Although one does need to be careful about the fund market as it looks good enough on paper but might not be so in reality. If the analysis is not done professionally and diligently with good attention given to the details, then one might also stand to lose their hard earned money.

There in comes the case of fund analysis so that you are able to get the very best by sifting through the pile of “>latest mutual funds and selecting the right ones. Do not get taken in by the words of a salesperson and invest in the very first mutual fund shown to you.

The key to the “>mutual fund analysis is to realize this base concept that not all mutual funds have been created equal and therefore the yield that they will ultimately provide you with will also be different.

Home Equity Financing —Home Equity Spree Turns Into Billions in Debt

November 5, 2014 Posted by admin

Thirty years ago, home equity was just a quiet wealth accumulation device, humming in the background and adding a little something to the nest egg every year. But about twelve years ago, the California home appreciation phenomenon started to appear in other areas of the country and Home Equity [] became a mainstream option. In 2001, it really took off.

There have been three home equity financing waves since 1993, according to real estate analysts. The first two pale in comparison to what has occurred since 2001. According to the Federal mortgage agency Fannie Mae, American homeowners cashed out an estimated $480 billion in home equity during the refinancing craze that began in 2001 and tapered off in 2005. That’s more than 250% of the equity taken out from 1003 to 2000.

Part of the temptation has been record low mortgage and home equity loan rates. The result has been that almost three quarters of these homeowners – 74% to be exact – ended up with an average of six more years on their mortgages. Just seventeen percent of those taking advantage of the home equity financing opportunity chose to shorten the mortgage term, usually opting to convert to a fifteen year mortgage.

The home equity loan rates drew millions of converts and as a result, the homeowners in the United States owed more than twice as much on home equity financing and lines of credit by mid-2004 than they did in 1998; this according to the Fed.

Just as the 100 percent home buying spree occurred with millions of buyers looking only at near term results, home equity financing seems to be a process that also has “no tomorrow.” Commented on real estate analyst, “Someone in their 40s who has refinanced into a new, 30-year term has realistically signed themselves on for a mortgage until they are actuarially (likely to be) dead. It’s the mortgage in perpetuity.”

The impact on national statistics is interesting. Today, a little over 69% of American households own their own homes. That’s an impressive number, one that has climbed steadily for one hundred years. However due to home equity financing these same home owners own significantly less of their homes today than in recent decades. According to the Federal Reserve Board the average household debt is about 45 percent of the value of the home, up from 32 percent in 1973.

Average mortgage debt is expected to continue rising, in part because many first-time buyers are opting for interest-only loans. With these loans, they don’t start paying on the loan principal for three to 10 years. People who engage in 100 percent financing or who use the dual mortgage, piggyback loan approach to home financing are facing not only a primary mortgage payment, but also a secondary loan priced at home equity loan rates.

The degree to which new home sales and home equity financing is based on interest only loans has alarmed the mortgage reinsurance industry, which has called for a curb on some of the more onerous loan terms available today as adjustable rate financing. Nevertheless, ratio of debt to home value is going to increase for the foreseeable future.

Accounts Receivable Financing- The India Connection

October 17, 2014 Posted by admin

Accounts Receivable Financing- The India Connection explores the vast growing marketplace in India and how you can benefit from this trend by importing goods or exporting goods to this ginormous economy with accounts receivable financing.

India is one of the oldest civilizations in the world. Their history goes back over 10,000 years. India is the largest democracy in the world. As of July, 2007, the Central Intelligence Agency for the United States Government estimated that the population of India is over one billion, one hundred twenty nine million people. In contrast, the population of the United States is estimated to be a little over three hundred two million people. That’s 129,000,000 versus 302,000,000 people; India has over four times the population of the U.S. in a geographic area lightly more than one-third the size of the U.S.

India has the third largest economy and the second fastest growing economy in Asia. It has a vast pool of professional talent and an enormous reservoir of intellectual capital with a growing middle class.

India’s dense population creates economic opportunities and pressing internal social problems such as overcrowding, environmental degradation, poverty and social unrest. The economy and society are in a state of rapid transition. There are pressing environmental issues because of overpopulation such as air pollution from industrial effluents and vehicle emissions, water pollution from poor sanitary conditions and soil erosion.

According to the World Bank, about 380 million people in India live in poverty on less than $1 a day; this is about one-third of the population. Nevertheless, middle and upper class Indians have created immense wealth in an economy bursting with opportunities. India’s business climate is changing rapidly.

This social paradox is in some ways similar to the controversy in the U.S. over big box stores and their effect on smaller retailers. The same issue is debated in India regarding Western style supermarkets versus mom and pop stores. India has a child labor problem; the U.S. has a problem with illegal immigrants who tend to take the lowest paid jobs in the U.S., performing jobs that most legal Americans do not want to do. We live in a world of conflict, change and opportunities.

There are 14 official languages in India. Hindi is the national language. English is a secondary language used for national, political and commercial communication. India is the largest English speaking nation in the world. India’s legal system is based on English common law.

India’s economy is growing over 10% per year with a labor force of more than 500 million people. The Indian retail sector is growing at a rate of 47% per year. Manufacturing is expanding. There are large numbers of well educated people skilled in the English language. Today India is a major exporter of software services and software workers. Other major industries include textiles, chemicals, food processing, steel, transportation equipment, cement, mining and machinery.

In 2006 India exported over $123 billion dollars of textile goods, gems and jewelry, engineering goods, chemicals, leather items; only 17% were exported to U.S. partners. Imports the same year were $184 billion dollars; less than 6% of this import business originated with U.S. partners.

What does this all have to do with accounts receivable financing? The expertise of a commercial finance company can be invaluable with regard to helping you succeed in India’s enormous marketplace. If you want to export goods to India, a commercial finance company will check the credit of the business in India that you are selling to; this can facilitate capital for exponential growth to creditworthy customers. If you want to import goods from India, purchase order financing combined with accounts receivable financing can help you to achieve the same goal of increasing cash flow to grow your business.

Albert Einstein said: “We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made”. Mark Twain said: “India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. Our most valuable and most instructive materials in the history of man are treasured up in India only”.

The bottom line: India is a land of great problems and great opportunities. Accounts receivable financing combined with purchase order financing can help you succeed in this vast democratic, English speaking marketplace.