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Swot Analysis of Asset Classes

The document provides a SWOT analysis for three asset classes: mutual funds, real estate, and gold. For mutual funds, strengths include high potential returns and capital appreciation, while weaknesses are costs and lack of guarantees. Real estate strengths are tax benefits and professional management, while weaknesses include illiquidity and fees. Gold strengths are universal value and portfolio diversification, while weaknesses include price fluctuations and storage costs.

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Amal Joy
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927 views

Swot Analysis of Asset Classes

The document provides a SWOT analysis for three asset classes: mutual funds, real estate, and gold. For mutual funds, strengths include high potential returns and capital appreciation, while weaknesses are costs and lack of guarantees. Real estate strengths are tax benefits and professional management, while weaknesses include illiquidity and fees. Gold strengths are universal value and portfolio diversification, while weaknesses include price fluctuations and storage costs.

Uploaded by

Amal Joy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Submitted by:

Amal Joy

SWOT ANALYSIS OF ASSET CLASSES

MUTUAL FUNDS

Strength
 High rate of return possible
 You can pledge shares for loan
 Suitable for people with high risk taking ability
 Provides capital appreciation

Weakness
 Cost like brokerage and transactional related taxes will be included
 No security or guarantee of return
 High risk investment option

Opportunity
 Best investment option for higher returns in long run
 You have voting power in making certain decisions in company
 Dividends are tax free and long term capital gains

Threat
 Local and global factors affect share prices and if they are negative, the impact will be bigger
 Initial capital may get wiped out
 Volatility can impact returns
REAL ESTATE

Strength
 They are managed by professionals in the field
 Long term capital gains and dividends are tax free for the investor
 You don’t need a big amount to invest

Weakness
 Some types of funds are illiquid
 Entry load, exit load expenses and management fees to be incurred by investor

Opportunity

 different types of funds for different types of investors and their needs
 You can invest in the market with a small amount and match market performance

Threat
 Rate of return is not fixed
 MF’s don’t match the high returns of the stock market and do not offer as much security as bonds
GOLD

Strength
 Gold is a valuable asset across the world
 It is a good hedge against the equity markets
 You can invest in gold in both physical and paper format
 Investment in gold provides balance in investment portfolio

Weakness
 People in India are emotional about the gold. They don’t easily sell it thus making it illiquid.
 There is cost and security threat involved in storing physical gold

Opportunity
 As population increases the demand for gold also increases, as result value of gold also increases
 It can be used as collateral for loans
 Gold is associated with weddings and occasions. So will be demand for gold all across the world

Threat
 Price of gold fluctuates quite a bit
 Should be careful in purchasing gold because of spurious vendors who sell low quality gold.

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