Higher dividend. Voting Right. Capital Appreciation. Right shares. Good liquidity position.
Weakness • • • • • •
Uncertain return. Residual claim on income as well as assets. Low market value. Risky investment. Higher speculation. ilution o! control. Cost o! equity. equ ity.
Opportunity • • • •
Higher return. Capital appreciation. Right to vote. Right in liquidation.
Threat • •
Chance o! loss. "luctuations in market price.
SWOT ANALYSIS OF MUTUAL FUNS
STREN!THS #. Large Large num$ num$er er o! o! pote potenti ntial al cust customer omerss are are $ase. $ase. %. Governm Government ent supp support ort $y way o! o! ta& conce concessi ssion on !or !or '" invest investors ors (. Volatili latility ty o! $ank interes interestt rate rate.. ). *etter *etter scope scope !or !or acce accessi ssing ng mark market et in!o in!orma rmatio tion n +. ,!!er ,!!er liqui liquidit dity y to the invest investors ors at any any time time.. -. ,!!ers ,!!ers variety variety o! prod product uctss to the invest investors ors.. . /h /hee si0 si0ee o! o! the the mar market ket is larg large. e.
W EA "NESS
#. %. (. ). +.
1oor participation o! retail investors Lack o! !ocus Under per!ormance 1oor service conditions istri$ution network is con!ines only to metro cities
O##ORTUNITIES
#. %. (. ). +. -. .
Huge untapped market in semi2ur$an and rural areas. High level o! savings ha$it among the people Li$erali0ed $usiness environment. Growth opportunities in developing markets Using on2line mode o! trading systems. 3nvestment opportunities a$ound in the international market. "ailures o! non $ank !inancial company operations.
THREATS
#. %. (. ). +. -.
3ncreasing competition among the players. High level o! volatility in the stock market. Low yields with in!lationary risks. 1ossi$ility o! more stringent regulations $y 45*3 6 R*3 6 A'"3 6 etc .6 in !uture. 4tagnant growth in developed world. "luctuations o! domestic currencies against ollar.
!OL ASSET $LASS % SWOT ANALYSIS STREN!THS
#.
Gold is an asset class which was used as an investment vehicle 7 a store o! value8
since ancient times. Gold continues to $e an important asset class even in modern times. %.
Gold has ready marketa$ility and Liquidity
(.
Gold is one o! the !ew asset classes which have per!ormed well in the recent times.
9/ return on Gold investment has $een more than %:; in %:#:. ).
3nvestors generally $uy gold as a hedge or sa!e haven against any economic6
political6 social6 or !iat currency crises 7including investment market declines6 $urgeoning national de$t6 currency !ailure6 in!lation6 war and social unrest8. WEA"NESSES
#.
Gold is an idle Asset with no regular return pro!ile.
%.
Gold storage has costs6 including cost o! insurance.
(.
Gold prices have $een volatile in recent times. A correction cannot $e ruled2out
which may involve signi!icant reversal. ).
Gold ended %:#) slightly down6 declining #.% percent. /his is the second2straight
year that gold has declined. +.
/he drop in gold prices this year is a!!ecting coin sales. /he U.4. 'int is heading !or
its $iggest annual decline in sales since %::-. -.
Gold2$acked 5/"s are seeing the negative e!!ects o! lower gold prices as well.
Holdings in gold2$acked 5/"s dropped to the lowest level since %::<6 as roughly =-. $illion was removed this year. O##ORTUNITIES
/he !actors which support $ullish sentiments in Gold> #.
3n!lationary monetary and !iscal policies !ollowed $y U4 and other ma?or economies
which have supported price rallies in Gold and other commodities. %.
5urope@s simmering sovereign de$t crisis6 which has not only undermined the euro@s
appeal as an o!!icial reserve asset . . . $ut has also pushed the 5uropean Central *ank to pursue in!lationary monetary policies . . . and has pushed more investors in 5urope and around the world to seek the sa!ety o! gold. (.
Continuing i! not growing interest $y the o!!icial sector. 3n particular6 the
central $anks o! a num$er o! newly industriali0ed emerging nations are seeking to diversi!y o!!icial reserve assets into dollar alternatives. 'any $elieve the o!!icial sector continues to $e an important net $uyer o! gold and could easily add another #+: to (:: tons or possi$ly more this year with si0ea$le net purchases continuing !or years to come. etails o! recent Central *ank gold purchases is given in su$sequent paragraphs. ).
and other gold2!riendly nations en?oying healthy growth in $usiness activity and household incomes growth that is likely to continue at least several years. +.
/he continuing maturation o! what can $e called as the Bgold2investment
in!rastructure in other words6 the development o! new gold2investment products and channels o! distri$ution in many important geographic markets. -.
/he relatively small si0e o! the world gold market compared to other capital markets
such as equities or currencies so that even small shi!ts in port!olio pre!erences away !rom currencies6 or equities6 or real estate6 !or e&le6 may have little price e!!ect on these $ig markets $ut will have a relatively large6 indeed pro!ound6 e!!ect on gold. .
/he recent onset o! glo$al !ood and agricultural in!lation.
D.
4tagnant world gold2mine production !or the ne&t !ive years or longer.
<.
Recent Central *ank 1urchases o! Gold> A!ter two decades o! selling6 at an average annual rate o ! some ):: tons per year6
Central *anks $ecame a net $uyers o! gold in %::<6 adding more than ):: tons to total o!!icial2sector holdings.
Last year6 3ndia $ought %:: tons Bo!! the market directly !rom the 3nternational
'onetary "und. /his was nearly hal! the total quantity the 3'" was o$liged to sell over several years to raise cash !or its operating $udget as well as to aid some o! its poorest mem$er countries. #:. *ank !or 3nternational 4ettlements > Another sign o! gold@s rising importance and reha$ilitation as an o!!icial reserve asset has $een the use o! gold swaps early this year $y the *ank !or 3nternational 4ettlements as a vehicle to !acilitate the mo$ili0ation o! central $an k gold without having to sell metal in the open market. *etween6 last ecem$er and April6 the *34 took some (D tons onto its $alance sheet !rom one or more anonymous central $ank possi$ly Greece6 3reland6 1ortugal6 4pain o! another heavily inde$ted 5uropean country. /he *34 serves as a sort o! central $ank !or central $anks and as counterparty to national central $ank !inancial transactions. 3n a gold swap6 the *34 e&changes currencies the dollar6 the euro6 the yen6 perhaps even the yuan or other national currencies !or physical gold usually !or a !i&ed maturity. THREATS
#.
/he gold market is also su$?ect to speculation as other commodities are6 especially
through the use o! !utures contracts and derivatives. %.
/oday6 like most commodities6 the price o! gold is driven $y supply and demand as
well as speculation. However unlike most other commodities6 hoarding 7saving8 and disposal plays a larger role in a!!ecting its price than its consumption. (.
Gold prices have $een volatile in recent times. A correction cannot $e ruled2out
