Hooks law Lab Report Example | Topics and Well Written Essays - 500 words

Hooks law - Lab Report Example The magnitude of this restoring force is directly proportional to the stretch in the relation below. From the relation it is evident that if a plot of F as a function of ∆ l has a linear proportion. This provides confirmation that the spring conforms to Hookes Law and enables us to find k mathematically. (Sears, 1981) The objective of this experiment is to study the behavior of ordinary springs in static and dynamic situations. We will determine the spring constant,  k , (K which is the stiffness of the spring), for an individual spring using both Hookes Law and the properties of an oscillating spring system. Figure 2 indicates that for forces greater than about 4.5N (notice intercept of best fit), there is a linear relation between force and extension. For small loads such a relationship fails, since the fit curve does not intercept the y axis at zero. It is assumed that this is caused by an initial "set" in the spring which requires some initial load to overcome. This is apparent if one stretches the spring manually and then releases it. It seems to snap shut at the last moment. These were used to plot the line on the graph. The slope of the line, ignoring loads of less than 4.5N, was found to be 147.36 N/m. From Equation 1, we see that we need to multiply this quantity by g to calculate a value for the spring constant of k = 217.4  ± 1.8 N/m. A graph of force versus the magnitude of displacement resulted in the expected straight line in the range of forces examined and is consistent with Hooke’s law. The slope of this line, 147.36 N/m, is the spring constant, which agrees with value found by taking the average of the calculated spring constant. The intercept for the best fit straight line intersects close to the origin, which is also consistent with Hooke’s law. The potential sources of error in this experiment are due to the precision of the location measurement using the meter rule and the accuracy of the slotted masses used. The meter

Reflective Account of Child GSA

Reflective Account of Child GSA Recently in our house in the month of May this year a young boy has joined as a day student. I will refer to him as Jake in this reflective account (this is not his real name and all relevant information/personal data regarding exact time of the movement has been changed in order to comply with the CSA Confidentiality Policy). When Jake first came to the house he of course came as a trial period and he has been accompanied by two other care workers from his former placement/school who knew him very well. This was a transition for him and also for us. His placement with our house was a two day a week. These two days were spread apart into Mondays and Fridays. In order to assess his needs I believe it is required intensive observation. The information provided from his previous school, parents and care workers/social worker it is very important but I believe that working hands on with him will allow a better understanding and I could make a proper evaluation of his needs according to the new environment and settings that he is currently surrounded by. When a new student enters our house, everyones vigilance/attention and my own it is much higher in order to understand his needs, to assess him and fully understand him as an individual. I believe that everyone it is unique in their own way and to fully assess someone it takes a lot of care, understanding and information in order to take the right decisions for that person and provide the best care /therapeutic program so that they can grow and develop furthermore. Jake is a very outspoken young man, knows what he wants and has grown a lot in the last months in independence and is more able to deal with changes than when he has first arrived to our house. As an initial assessment it has been taking into consideration all the information gathered from his previous care plans, statements from care workers, discussion with his parents and most importantly by talking to Jake and finding out what he thinks and wants to do. CSA uses a series of therapies and therapeutic activities and they are as follows: therapeutic art, music, speech, movement, riding, play, massage, foot bath and counselling. Every child and young adult that is attending school or it is part of a placement with CSA has the available support to benefit from all these activities. These therapeutic activities happen as a one to one situation unless stated otherwise in the child or young persons care plan. CSA has also a range of workshops available to every student that is in the community. They are as follows: metal, pottery, candle, weaver, felting, green woodwork and garden workshop. These workshops help with the increase of creativity, independence and self esteem which gives the students an incredible sense of achieving once they hold their creations into their own hands and not only also during the creative process. Discussing with Jake, I quickly found out that he likes video games and that he is very technological. Jake is also a very good communicator which helped me understand quicker what and how I should approach a development care plan and properly assess his needs. Also by reading and asking about him from multiple sources provided but not only, especially through daily observation and working with Jake has been equally important. At the beginning like I said his trial period consisted in showing him around the house, estate, programmes and workshops. He got to know everyone else from the house residents, day students and co-workers. He has been accompanied for the first month by other two staff members from his previous school and by me. The input from his parents, the information from his school, reading his previous care plan and the information from previous staff who has worked with Jake has helped me assess and better understand Jakes needs. Jake though has been the one who helped the most in order for us to provide the best care plan and fulfil his needs. After each day that Jake spends with us it has been recorded in a diary which has helped me make his care plan and his individual risk assessment. They are all kept in the office in his personal file. After his arrival to the house there are 28 days in which I have to provide his care plan and the intended approach. Working with my colleagues, the craft masters, parents, former care workers from his previous school and with Jakes input I was able to make his care plan. Speaking with everyone involved gives me a better understanding of the whole situation and gives me the opportunity to take the best decisions. After doing so I made sure that everyone from the house who was involved in his care was aware, read, understood and that we all stand together on a common ground and take the same approach. These have been done through multiple meetings regarding Jake with all the personal that was involved in his care. All observations, assessments and reviews are recorded in his personal file and it is kept in the office of the house and the main office of CSA. Each time he was with us has been documented and recorded his progress in his personal diary which is up to date. His personal file also includes a few incident reports. The first few times that Jake was with us, actually the first two he was outgoing and very communicative. In order to asses a childs needs according to the Children (Scotland) Act 1995 under section 24 it is primordial that it is looked upon at the child needs and it is equally important that it is looked at also at the ability of the carer in order to provide the care. Both parties are actually being assessed by the Council in order to provide the best care and the most relevant support that it is needed. Meeting this need for Jake, gives us great responsibility in order to bring his development further. When his transition started with the CSA and the house for Jake it has been done through the proper channels. For example: Permission from his family in order to gather information that will allow us to understand and create a plan in order to meet up his needs, the discussions in the meetings regarding the assessment and most importantly a one to one get to know the child in a safe environment and space are the basic approach that gave us an insight. After all this a copy of the assessment it is handed over to the family once all this is finalized. As a general background Jake is a 7*(not his real age) year old young man and he has been struggling with accessing his education since nursery. He has been diagnosis with ASD and ADHD. When he feels that he is under pressure he has a tendency to present aggressive and violent behaviour. He is also a very chatty young man. After a period of trial which consisted of Jake being in our house on Mondays and Fridays there has been a review concerning Jakes updates which was all about his adaptability to the new settings and if we were going on the right track regarding his development and needs. Clearly something needed to be changed if I wanted that this process to work out. Asking my colleagues and the craft masters about what and how I should best support his needs. An idea came that if these would have to work the space between Mondays to Friday should change. The decision was consulted with his parents and with all staff of our house that Jake will attend every day of the week for a shorter period of time in order to make a difference. I find this method to be very efficient and it has been proven with another student of our house and clearly worked. Less time during the day but on a scale that will include the whole week. Also during this review because of all the disturbing behaviour he was engaging when he was picked up by the taxi and his previous care workers, I decided that this will stop and he should be picked up by his mum or different taxi driver and staff. His mum agreed. After all this changes Jake has shown a lot of more calm and ease to be with us. He started to engage more in the house and with his co-workers and he started to attend more and more workshops that he has dismissed previously. He had at the beginning a two to one co-worker and now after six months he has progressed to a one to one co-worker. There are times still when he acts out but he has also learned to have a time out or a break when he needs it. The staff is focusing on the positive behaviour rather than the bad one and once Jake was calm and ready to listen everything has been explained to him. Everyone from the co-workers does the same thing and we all stand together on a common ground in order to help Jake. Once the plan is set out, everyone is to care it out accordingly. When a set of practice are respected and applicable by everyone in the team as an united front this has proven to give tremendous results in the care of the child/young persons needs. As positive child behaviour methods and techniques CSA, uses a series of behavioural techniques which have been specified on page A of this paper. Through art, baking and always teaching them to ask nicely and to say thank you when they expect something to happen. Counselling and trying to make them understand is also a method that CSA uses which has been very effective with Jake. And lastly the consequences for example when they have less than a great day has been proven to be as equally effective when used as a united front. At home it has been agreed that they should use similar techniques when Jake becomes a little bit less aware/unsettled. For example to keep his bedroom tidy, no video games after 10 and so on. In order to keep and maintain a positive outcome but most importantly a positive behaviour Jake has agreed that he when overwhelmed will take a break/time out in order to collect his thoughts where he will not feel pressure from staff in order to attend the next activity for example. In our weekly meeting we discuss and evaluate all sides. Everyone gets the chance to speak and to offer an opinion, support for the work. Once things are discussed especially on improvements and how to best support that positive behaviour within the program I take the decision to sustain or to cancel something that it is less than that. For example Jake didnt want to have snack with everyone else so instead was offered to have a picnic outside together with 2 other co-workers and another student which seemed to make Jake very happy. This has been later integrated in his program because of the positive impact it had on Jake.

Management Essay -- essays research papers

In order to perform the functions of management and to assume multiple roles, managers must be skilled. Robert Katz identified three managerial skills that are essential to successful management: technical, human, and conceptual*. Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees. Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas. A manager's level in the organization determines the relative importance of possessing technical, human, and conceptual skills. Top level managers need conceptual skills in order to view the organization as a whole. Conceptual skills are used in planning and dealing with ideas and abstractions. Supervisors need technical skills to manage their area of specialty. All levels of management need human skills in order to interact and communicate with other people successfully As the pace of change accelerates and diverse technologies converge, new global industries are being created (for example, telecommunications). Technological change alters the fundamental structure of firms and calls for new organizational approaches and management skills. O... Management Essay -- essays research papers In order to perform the functions of management and to assume multiple roles, managers must be skilled. Robert Katz identified three managerial skills that are essential to successful management: technical, human, and conceptual*. Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees. Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas. A manager's level in the organization determines the relative importance of possessing technical, human, and conceptual skills. Top level managers need conceptual skills in order to view the organization as a whole. Conceptual skills are used in planning and dealing with ideas and abstractions. Supervisors need technical skills to manage their area of specialty. All levels of management need human skills in order to interact and communicate with other people successfully As the pace of change accelerates and diverse technologies converge, new global industries are being created (for example, telecommunications). Technological change alters the fundamental structure of firms and calls for new organizational approaches and management skills. O...

Study on Mutual Funds

OBJECTIVE OF THE STUDY The main objective of the present study to understand how mutual funds function in India. Specifically the study seeks to answer the following question: 1. What is the present status of mutual funds industry in India? How does it compare with mutual funds in foreign countries? 2. How mutual funds operate to create value for their investors? 3. What consideration an investors should keep in mind while making investment in mutual funds? 4. What is the regulatory frame work for mutual funds in India? 5. What are the problems faced by mutual funds industry in India & what are its future prospects? RESEARCH DESIGN & METHADOLOGY The Present study has been completed on the basis of secondary data colleted from internet and from various books, publicity materials and brochures issued by various mutual funds co. Reference has also been made to the regulations issued by securities and exchange board of India in regard to mutual funds. The data and the resource material so collected have been analysed within the frame work of 5 sections each focusing on a particular questions the study seeks to answer. PLAN OF THE STUDY The Study has been completed within the frame work of five sections. The Section wise plan is as follows:- I. PRESENT STATUS OF MUTUAL FUND INDUSTRY II. OPERATION OF MUTUAL FUNDS III. INVESTMENT CRITERIA IV. REGULATORY FRAME WORK OF MUTUAL FUNDS V. PROBLEMS AND PROSPECTUS I PRESENT STATUS OF MUTUAL FUNDS IN INDIAN CAPITAL MARKET Retail investors usually want to participate in the capital market, but due to paucity of funds, lack of expertise knowledge and limited risk-bearing capital, they have limited access to capital market. Mutual funds provide a mechanism that helps the retail investors enter the capital market. the mutual funds manage their funds for maximum gain with minimum risk and in the most professional way and work as agent for growth and stability of capital market. Till 1964, there were no mutual funds in India. In 1963, UTI Act, 1963 was enacted for the establishment of first mutual fund. The UTI launched its first scheme, US-64; in1964 which later became the most popular unit scheme in India. In1987, the RBI issued guidelines for bank-sponsored mutual funds. The evolution of mutual funds in India is consisting of different phases as follows: PHASE I: History of mutual funds started in India in 1964 when the first mutual fund in the name of Unit Trust of India was established in July 1964. UTI launched its first scheme US-64 which eventually became the most popular scheme and could accumulate the largest corpus. After 1964, it started several other schemes also. Till 1987, UTI remained the synonym for mutual fund in India. It was a sole player and gathered shape of monolithic mutual fund with millions of investors in several schemes. PHASE II: In 1987, the Government allowed the public sector banks to establish mutual funds. SBI Mutual Fund in 1987. Other mutual funds to follow suit were Canbank Mutual Fund (1987), PNB Mutual Fund (1989), IndBank Mutual Fund (1989), LIC Mutual Fund (1989), GIC Mutual Fund (1990), etc. The position continued till 1992 and other mutual funds were also established. PHASE III: There was a historical change in 1993 when the government allowed private sector mutual funds also. The first mutual fund in the private sector was Kothari Pioneer. Thereafter, in 1994, the foreign mutual funds were also allowed to operate schemes in India, and Morgan Stanley was the first foreign mutual fund in India whose initial issue of units was overwhelmingly subscribed by the investors. In 1992, SEBI was established and it issued guidelines for the working and supervision of mutual funds. PHASE IV: In 1966 a need was felt for the modification of SEBI (Mutual Funds) Regulations. On the basis of ‘Mutual Funds-2000’ Report, SEBI framed new Regulations in 1996. There have been several amalgamations of mutual funds. After 1996, a number of foreign mutual funds as well as Indian mutual funds have been established. At the end of march 2004, there were 33 mutual funds and Assets Under Management of Rs 1,39,616 crores. After 1996, mutual funds have become very popular among retail investors. The increase in number of mutual funds and their schemes speak of the underlying strength of the investors’ confidence in them. As in April, 2005, there were 28 mutual funds operating in India. Some of the mutual funds operating in India at present are as follows (in alphabetical order): ABN AmroDSP Merril LynchJM Sahara Bank of Beroda Escorts Kotak Mahindra SBI Benchmark Fidelity LIC Standard Chartered Birls Sunlife Franklin Tempelton Morgan Sundarum Canbank HDFC Principal Tata Cholamandalam HSBC Prudential Tauras Deutsche ING Vysya Reliance UTI A large number of mutual funds have intensified competition and led go to product innovation. Each of these mutual funds has a number of schemes operating with different features and characteristics. There are more than 500 schemes in operation at present. II OPERATION OF MUTUAL FUNDS A mutual fund is a financial intermediary which acts as an instrument of investment. It collects funds from different investors to a common pool of investible funds and then invests these funds in a wide variety of investment opportunities. Small investors who are unable to participate in capital market, can access the stock market through the medium of mutual funds which can manage their funds for maximizing return. The investment may be diversified to spread risk and to ensure a good return (dividend or capital gain or both) to the investors. The mutual funds employ professional experts and investment consultants to conduct investment analysis and then select the portfolio of securities where the funds are to be invested. Thus, a mutual fund is a pool of funds contributed by individual investors having common investment preferences. FEATURES AND CHRACTERISTICS OF MUTUAL FUNDS A mutual fund is a financial intermediary and works as an investment company. It has distinct features and characteristics which differentiate it from other financial intermediaries. Some of the features of mutual funds are: (i) Mutual fund is a pool of financial resources. Investors bring their individual funds together. Sometimes, the funds which otherwise may not come for investment in the capital market, are invested through mutual funds. (ii)Mutual funds are professionally managed. The resources collected by mutual funds are managed by professionals and experts in investment. These professionals can undertake specialized investment analysis such as fundamental analysis, technical analysis, etc. , which are not otherwise expected on the part of individual investors. (iii)Mutual fund is an indirect investing. The individual investors invest in the mutual funds which in turn invest in the shares, debentures and other securities in the capital market. The proportionate funds given by an investor are represented by the units of mutual fund. Investors own these units. The shares, debentures are owned by the mutual fund. Investors have no direct claim on these securities. In case of closure or liquidation of the proceeds of these securities are proportionally distributed among the unitholders. (iv)Investment in mutual fund in not borrowing-lending relationship. Investors do not lend money to the mutual fund. Consequently, the investors have to share the gains or losses of operations of the mutual fund. (v)Mutual fund is a representative of investors. The mutual funds collect the funds from investors under a particular investment scheme. as a representative, the mutual fund has to invest these funds as per the designated scheme only. MECHANISM OF MUTUAL FUND OPERATIONS A mutual fund represents pooled savings/funds of individual investors. Professional managers of the mutual fund invest these funds in different types of securities. They have to take different decisions from time to time. The revenue returns may be distributed by the mutual funds to the unitholders. Capital appreciation in the mutual funds also belong to the investors. MUTUAL FUND SCHEMES One of the main objectives of mutual funds is to provide better returns to investors at minimum risk. Mutual funds issue units to the investors in proportion to the funds contributed by the investors. The income of the funds are shared by the investors in the proportion to the number of units held. These mutual funds offer different types of schemes from time to time to attract investors and to take care of their needs, on the basis of nature of investment, type of operations and type of income distribution. Mutual funds may launch different schemes to offer one or more of the following: (a)Regular and steady flow of income, (b)High capital appreciation, c)Capital appreciation and regular return,and (d)Return with tax benefits. There are different ways in which various mutual fund schemes can be classified. Following shows the classification of mutual fund schemes with reference to schemes being offered in India: 1. On the basis of Life Span. (a) Close-ended Schemes (b) Open-ended Schemes 2. On the basis of Income Mode (a) Income schemes (b) Growth schemes 3. On the basis of Portfoli o (a) Equity schemes (b) Debt schemes (c) Balanced schemes 4. On the basis of Maturity of Securities (a)Capital Market Schemes (b)Money market Schemes 5. On the basis of Sectors Different Sectoral Schemes 6. On the basis of Load (a) Load Schemes (b)No Load Schemes 7. Special Schemes: (a) Index Schemes (b)Offshore Schemes (c) Gilt Securities Schemes (d) Exchange Traded Funds (ETF) (e) Fund of Funds. Some of these schemes have been explained below: OPEN-ENDED AND CLOSE-ENDED MUTUAL FUNDS SCHEMES As per SEBI Regulations, 1996, open-ended scheme means a scheme of mutual fund which offers units for sale without specifying any duration for redemption. On the other hand, close-ended scheme is one in which the period of redemption is specified. The open-ended mutual fund scheme sells and repurchases the units of mutual fund on a continuous basis. Any investor can become a member (by purchasing units) or can exit (by selling these units back to the mutual fund). These sales and repurchases of units take place at a price called Net Assets Value (NAV) which is calculated periodically on the basis of the market value of the portfolio of the mutual fund. The sale and repurchase prices are announced by the mutual fund on a periodic basis. The Unit Scheme-1964 (US-64) was an open-ended mutual fund scheme. The essential feature of open-ended scheme is the liquidity. On the other hand, close-ended mutual fund scheme is only one in which the limited number of units are sold to investors during a specified period only. Thereafter, any transaction in these units can take place only in secondary market, ie, the stock exchanges. So, after the initial public offering, the mutual fund goes out of the picture and subsequent sale and purchase take place among the investors. The market price of the units of a closed-ended mutual fund scheme is determined by the market forces of demand and supply. The liquidity to investors provided by the market. However, all the closed-ended mutual fund schemes are redeemable at the end of a specified period when all the investment of the scheme are sold and the proceeds are distributed among the unit holders on a proportionate basis. There are several close-ended schemes such as Master Share Scheme of the UTI. INCOME FUND AND GROWTH FUND The mutual funds are called income funds when they promise a regular and/or guaranteed return in the form of dividends to the investors. For example, UTI launched several Monthly Income Schemes. The portfolio of these schemes is usually consisting of fixed income investments such as bonds, debentures, etc. The income schemes are also known as dividend schemes. These schemes are ideal for investors who need or seek intermediate cash flows in the form of dividend payment. A growth fund scheme is one which offers capital appreciation as well as a variable dividend opportunity to the investors. The investors may get dividend income from the mutual fund on a regular basis and the capital appreciation is available in the form of increase in market price. Growth schemes are good and suitable for investors having long-term investment perspective. In addition, there may also be income-cum-growth (hybrid funds) where the investor may be offered fixed incomes as well as growth opportunities. An example of a growth fund is UTI Growth and Value Fund which is an open-ended equity oriented scheme. The objective is to seek capital appreciation by making investments primarily in listed securities of Indian companies. A variant of income fund is known as Dividend Yield Fund. These invest funds in shares of those companies that pay high dividends. In addition, any appreciation of share price adds or subtracts investors return. DOMESTIC FUNDS AND OFF-SHORE FUNDS The domestic funds schemes are those which are open for subscription by the investors of the country of origin only. Most of the mutual funds launched in India are domestic mutual funds. The off-shore mutual funds bring funds (in the form of foreign exchange) to the capital market. At present, several off-shore mutual fund schemes have been floated in India. Ind Bank Off-Shore Mutual Fund, 1993 and Common Wealth Equity Mutual Fund, 1993 are examples of off-shore mutual fund schemes. TAX-SAVING SCHEMES These mutual fund schemes are designed to avail tax exemptions and concessions to the investors. These schemes help individual investors in their tax planning. CANPEP MEP 1994, PNB-ELSS were some of the tax-savings schemes. These schemes are also known as Equity-linked savings schemes were entitled to tax benefit under Section 88 of the Income Tax Act. Recently, private sector mutual funds have also launched these schemes such as HDFC Tax Plan, KP Tax Shields, etc. MONEY MARKET MUTUAL FUNDS (MMMF) SEBI Regulations, 1996 define an MMMF, as one which has been set up with the objective of investing in money market investments which include commercial papers, commercial bills, ‘T-Bills, etc. The funds collected by these mutual funds are invested exclusively in money market instruments. Money market mutual funds are a part of short-term pooling arrangement of funds. These are open-end funds. These funds are very liquid and risk free because of nature of their investments. MMMF provide better returns than short-term bank deposits and are often considered to be good alternative to bank deposits. The Reserve Bank of India has announced Guidelines for money market mutual fund in April 1992. However, at present, the MMMF are also regulated under SEBI Regulations, 1996. SPECIALISED SECTOR FUNDS Sector funds schemes are those under which the funds are planned to be invested in a particular region, industry or sector. For example, Pharma (D) Scheme of Franklin Templeton Mutual Fund, Technology Company Scheme of DSP Merill Lynch Mutual Fund, Banking (D) of Reliance Mutual Fund are some specialised sector schemes of mutual funds. INDEX SCHEMES In this case, the funds collected by the mutual funds are invested in the shares forming the Stock Exchange Index. These funds are also known as growth funds. The funds are allocated o the basis of proportionate weight of different shares in the underlying Index. For example, Nifty Index Scheme of UTI Mutual Fund, Index Fund (Sensex) of Tata Mutual Fund, Index Fund (D) of Principal Mutual Fund are Index Schemes. There are 13 Index Funds which use S & P CNX NIFTY as the underlying index. EQUITY FUNDS SCHEMES Under these schemes, the funds are invested primarily in equity shares only. The equity fund schemes are high on the risk scale as the share prices are volatile. These funds try to reduce the risk by diversifying the investments in different types of shares. If invested rationally and properly, these schemes may give high returns commensurate with risk taken. The choice of investee companies is made by the mutual fund. These schemes may be income schemes or growth schemes. Fidelity Equity Fund is an open ended equity growth scheme with the objective of generating long term capital growth from a diversified portfolio of equity and equity-related securities (95%) and Money Market Instrument (5%). DEBT FUNDS SCHEMES In case of debt funds, the collected funds are invested in debt securities. A variant of debt funds schemes may be in the form of government securities funds scheme wherein the funds are invested in government securities only. Debt schemes are generally income scheme. A debt fund scheme is an ideal option for investors who are averse to risk which is associated wit equity schemes. BALANCED FUNDS A balanced fund provides both growth and regular incomes as these schemes invest both in debts and equity instruments in the proportion as disclosed in the offer document. These schemes are appropriate for investors who look for moderate growth. The NAV of these schemes are likely to be less volatile than the pure equity funds. GILT FUNDS The funds of these schemes are invested exclusively in government securities. These funds are low return and low risk and popular among the risk averse investors. Some of the gilt funds operating in India are Gilt Plus (Birla Sunlife Mutual Fund), Gilt Investment (Cholamandalum Mutual Fund), FT Gilt (Franklin Templeton Mutual Fund), Gilt long-term (HDFC Mutual Fund), Gilt Treasury (Prudential ICICI Mutual Fund), etc. SCHEMES BASED ON MARKET CAPITALIZATION In recent past, mutual funds in India have launched several schemes with a focus on market capitalization of companies. For example, UTI Large Cap Fund, UTI Small-Cap Fund, Chola Multi-Cap Fund, HDFC Premier Multi-Cap Fund, etc. are schemes based on market capitalization. It may be noted that the classification between large, small and mid-cap is arbitrary and can vary from market to market. In India, the National Stock Exchange defines mid-cap companies as those having average 6-months market capitalization between Rs. 75 crores to Rs. 750 crores. In Case of multi-cap or flexi-cap schemes, the investments ar e made across companies with different market capitalization-large, small or mid. LOAN AND NO-LOAN FUNDS A load fund is one that charges a % of NAV (Net Assets Value) as entry or exit fees. Whenever an investor buys or sells the units, a fee is charged by the fund to meet the administrative expenses. On the other hand, a no-loan fund is one which does not charge any fees for entry or exit. In case of no-loan fund, all transactions of sale and repurchase of units are done at NAV while in case of load funds, the repurchase is made at a price less than NAV and sale is made at a price more than NAV. FUND OF FUNDS A fund of funds scheme means a scheme that invests primarily in other schemes of same mutual fund or other mutual funds. Benchmark Mutual Fund has started a FOF under the name of FOF Junior BeES. EXCHANGE TRADED FUNDS Exchange Traded Funds (ETFs) refers to basket of securities that are tradeable at a stock exchange. They are somewhat similar to Index Fund Schemes. The ETFs are so called because they are listed on a stock exchange and are traded as any other listed security. So, ETFs have characteristics of open-ended mutual funds as well as that of listed shares. ETFs do not sell their units directly to the investors. Rather, a security firm creates an ETF by depositing a portfolio of shares in line with an Index selected. The security firm creates units against this portfolio of shares. These units are sold to the retail investors. So, the ETF has portfolio of shares as well as a liability towards the holders of ETF units. ETFs are different from Mutual Funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (fund) takes the shares of companies comprising the index from various categories of investors like authorized participants, large investors and institutions. In turn, it issue them a large block of ETF units. Since dividend may have accumulated for the stocks at any point in time, a cash component to that extent is also taken from such investors. In other words, a large block of ETF units called a â€Å"Creation Unit† is exchanged for a â€Å"Portfolio Deposit† of stocks and â€Å"Cash Component†. The number of outstanding ETF units is not limited, as with traditional mutual funds. It may increase if investors deposit shares to create ETF units; or it may reduce on a day if some ETF holders remeed their ETF units for the underlying shares. These transactions are conducted by sending creation/ redemption instructions to the Fund. In case of mutual funds, the portfolio of the investments made under the scheme may change, but in case of ETF, this is not so, because the ETF portfolio created once does not change. The market value of the units of ETF changes in line with the Index automatically. The funds managers are not required to actively manage the portfolio resulting in lower expense level of the fund. Consequently, the NAV of the ETF would be higher than the NAV of the Index Fund with the same portfolio. As the ETFs are listed on a stock exchange, they provide a lot of liquidity and price is determined by the demand and supply forces and the market value of the shares held. As opposed to ETF, the sale/ purchase prices of the units of a mutual fund are based on the NAV. A comparison of ETF, Open-ended funds and close-ended funds has been presented in table below: 1. Parameter Open-ended Fund (OEF) Closed-ended Fund (CEF) Exchange Traded Fund (ETF) Find Size Flexible Fixed Flexible 2. NAV Daily Daily Real Time 3. Liquidity Provider Fund itself Stock Market Stock Market/Fund itself 4. Sale price At NAV plus load, if any Significant Premium/Discount to NAV Very close to actual NAV of Scheme 5. Availability Fund itself Through Exchange where listed Through Exchange where listed/ fund itself. 6. Portfolio Disclosure Monthly Monthly Daily/Real-time ETFs have edge over the ordinary mutual funds. In case of latter, an investor cannot take the benefit of intra-day movement of price of shares because the mutual fund units can be traded at the closing NAV based rate. However, the performance of ETF is based on the underlying index and ETF can be traded through out the day taking benefit of intra-day movement in price. In India, several ETFs, have been created so for. Bench Mark Mutual Fund has created 5 ETFs. 1. Liquid BeES 2. Nifty BeES 3. Nifty Junior BeES 4. Bank BeES, and 5. FOF Junior BeES All these 5 ETFs are listed and traded at the capital market segment of the NSE. Prudential ICICI Mutual Fund has launched SPICE which tracks the Sensex. It combines features of both open-ended scheme and exchange traded share. It is listed at Mumbai Stock Exchange and can be traded in a lot of one unit. Value of one SPICE is 1/100 of the Sensex value. UTI Mutual Funds has launched SUNDERS, which is also listed at Mumbai Stock Exchange. Certain ETFs traded at American Stock Exchange are QUBES (Representing NASDAQ-100), SPIDERS (representing S&P 500), DIAMONDS (Representing Dow Jones Industrial Average), etc. NET ASSETS VALUE (NAV) OF A MUTUAL FUND Investors are the owners of the mutual fund. Funds collected under a particular scheme are invested in different securities. So the ownership interest of the unit holders is represented by these securities. Net Assets Value (NAV) refers to the ownership interest per unit of the mutual fund, i. . , NAV refers to the amount which a unit holder would receive per unit if the scheme is closed. NAV is represented as follows: An amount of Rs. 50,00,000 has been collected by a mutual fund by the issue of 5,00,000 units of Rs. 10 each. The amount has been invested in different securities. The market value of these securities at present is Rs. 56,00,000 and the mutual fund has a liability of Rs. 4, 50,000 in respect of expenses, etc. The NAV of the fund is: The units of an open-ended mutual fund scheme are sold and purchased by the mutual fund at a price based on NAV. The NAV of a mutual fund scheme is calculated by dividing the net assets of the scheme by the number of outstanding units under that scheme on the date of valuation. SEBI Regulations, 1996 provide that while determining the price of the units, the mutual fund has to ensure that the repurchase price is not lower than 93% of the NAV and the selling price is not higher than 107% of the NAV. Further that the difference between the selling price and the repurchase price shall not exceed 7%, calculated on the selling price of the units. The NAV varies from time to time and is published in newspapers so as to enable the nvestors to know the value of their investments. SEBI Regulations, 1996 require that the NAV of a mutual fund scheme shall be calculated and published at least in two daily newspapers at an interval of not exceeding one week. III INVESTMENT CRITERIA MAKING THE INVESTMENT DECISION Ones main considerations as an investor, besides choosing which vehicles are right, lie in the a reas of risk management, taxes and inflation, and asset allocation. In order to reach your financial objectives, you must choose from diverse investment alternative – all of which vary greatly in the degree and type of risk and potential return. The key to developing a sound portfolio is to strike the right balance between potential reward and risk, based on your financial objectives, financial situation and investment style. We’ve all heard the expression, â€Å"Nothing ventured, nothing gained. † Perhaps nowhere does this maxim hold truer than in the financial markets, where pursuing potentially higher returns means accepting higher levels of risk. Before you venture anything, you should determine your personal level of risk tolerance, given your needs and goals. To do this, you should familiarize yourself with the various kinds of risk and how they affect different types of investments. THE MANY OF FACES OF RISK Risk is the possibility that one may lose some or all of his investment in real terms, or that his investment may not increase in value. Several factors may influence the amount of risk one can comfortably accept, including ones age, family situation, income, time horizon and financial goals. When investing, one faces the following key risks: †¢Market Risk: This is the possibility that an investment (e. g. , a stock) will decline in value. As a result, if you sold the investment, you would receive less than what you initially paid for it. †¢Credit Risk: This is the possibility that the issuer of an investment (e. g. , a corporate bond) may not live up to its financial obligations. A default by the issuer could mean that you lose your invested capital and the expected interest payments. †¢Inflation Risk: This is the possibility that the value of a long-term asset (e. g. , a government bond) may not grow enough to keep up with inflation, reducing your purchasing power as a result. †¢Reinvestment Risk: This is the possibility that interest rates will fall as an investment (e. . , a bond) matures. If this occurs, you may be unable to reinvest matured assets at the rate of return you were accustomed to receiving. This type of risk also applies to reinvesting the coupon payments received from bonds and other fixed-income payments. †¢Liquidity Risk: This is the possibility that you will be unable to liquid ate an asset (e. g. , real estate) when you want and at the price you want. As a result, you may be forced to retain the asset or accept less than you wanted for the sake of liquidity. †¢National, International, and Political Risk: The possibility that a country’s government will suddenly change its policies. Events such as wars, embargos, coups, and the appointments of individuals with unfavorable economic policies can impact the financial markets, especially concerning investments related to that country. Possible results changes in tax structures and changes in bond or stock ratings. †¢Economic Risk: The risk that the economy will suffer a downturn as a whole. Such an event generally affects all the financial markets across the board, from product prices to the job market. †¢Industry Risk: The risk that a specific industry will suffer a downturn. Often, industries related to the one that experiences problems will suffer as well. Tax Risk: The risk that high taxes will make investments less profitable for both businesses and investors. Businesses that have no pay expand or improve. Investments that carry heavy tax baggage generally lead to lower dividends for an investor. How Much Risk Is Right? The amount of risk that is right depends upon person to person. To determine the r isk comfort level, one may ask this himself: Am I willing to tolerate greater volatility for potentially higher returns from my investments, or do I place more emphasis on quality, with less risk? Several factors may influence the amount of risk one can comfortably accept in ones portfolio, including: †¢Age †¢Family situation †¢Income †¢Financial goals In addition, the markets evolve and ones personal goals will inevitably change with time. One of the best ways to keep ones investments on target is to meet with financial professional regularly. In these meetings, the investor and his financial professional can discuss the investment objectives, determine the individual risk tolerance level and help to understand the various risks associated with an investment. The financial professional can also help an investor build a portfolio that has the potential to provide the highest returns consistent with the amount of risk one wish to assume. HOW TO CHOOSE WHICH RISKS TO TAKE? Whenever one considers a new investment, he may wish to ask his financial professional the following questions: †¢What types of risk are involved? Once the financial professional has explained the risks, one must ask how he or she can help to manage or minimize the different kinds or risk for the investment one is considering. Not all kinds of risk will apply to every investment. †¢What could happen to the principal in a â€Å"worst-case† scenario? The financial professional can explain how diversifying ones portfolio can help mitigate the effect of a downturn in any one market or industry. For example, assume you invested in the stock of a highly speculative biotechnology company. The stock’s trading price could fall substantially if the company’s only product fails to get FDA approval or is shown to be inferior to a competitor’s product. Spreading ones money across different asset classes – stocks, fixed – income investments, and cash equivalents – could help one manage the risk better than investing all his funds in this one stock. †¢How will adding this investment to the holdings help to manage the portfolio’s overall risk? Managing market risk through a balance of financial assets in ones portfolio is a significant component of long-ter m investment success. Ideally, ones portfolio should offer a measure of protection during inevitable market downturns and be positioned for opportunity when markets heat up. In addition to risk there are other factors also which need to be considered before investing, as stated below: INFLATION: Inflation taxes are two factors always on the minds of investors. Inflation is the persistent increase in the cost of goods and services, and the reason why the same loaf of bread that costs you $1. 00 today will probably cost you $1. 05 next year. For your purchasing power to grow in â€Å"real† terms, your returns must outpace the inflation rate. TAXES: Additionally, taxes must be a consideration. There are investments available that are both taxable and tax-free; others are tax-deferred or tax-deductible. The differences are significant, but not as dizzying as they seem. ASSET ALLOCATION: Asset allocation refers to the diversification of your portfolio across all the different classes of assets. The goal of effective asset allocation is to develop an appropriate mix of investments based on your specific investment objectives that maximizes performance potential with an acceptable level of investment risk. The goal is more consistent returns, lower volatility and a greater chance of achieving financial objectives. SELECTION OF A MUTUAL FUNDS There are thousands of funds to choose from, but there are some general guidelines that can help you choose a fund. †¢Define your investment time horizon and financial goals. Meeting a long-term goal (e. g. , starting a college fund for a newborn) will require different investments than in meeting a short-term goal (e. g. , accumulating money to purchase a car). †¢Understand your risk tolerance and the risk of different mutual funds. Risk tolerance is based on your comfort level in the fluctuation of price, which will affect your investment principal. Once this is determined, you can match fund types that have historically shown commensurate price movement. Keep in mind, however, that past performance is no guarantee of future results. †¢Combine your goals, time horizon and risk tolerance and find a fund category that matches these objectives. This will help in deciding what types of funds you may want to consider. You will find that there are still many funds to choose from within a specific category. Your prudential financial professional will be able to perform a comparative analysis of the individual funds to find the most appropriate choice. Check with your tax advisor prior to investing in a tax-exempt or tax-managed fund. Match the term of the investment to the time you expect to keep it invested. Money you may need right away (for example, if your car breaks down) should be in a money market account. Money you will not need until your retire in decades (or for a newborn’s college education) should be in longer- term investments, such as stock or bond funds. Putting money you will need soon in stocks risks having to sell them when the market is low and missing out on the rebound. Expenses matter over the long term, and of course, cheaper is usually better. You can find the expense ratio in the prospectus. Expense ratios are critical in index funds, which seek to match the market. Actively managed funds need to pay the manager, so they usually have a higher expense ratio. Sector funds often make the â€Å"best fund† lists you see every year. The problem is that it is usually a different sector each year. Also, some sectors are vulnerable to industry-wide events (airlines do come to mind). Avoid making these a large part of your portfolio. Closed-end funds often sell at a discount to the value of their holdings. You can sometimes get extra return by buying these in the market. Hedge fund managers love this trick. This also implies that buying them at the original issue is usually a bad idea, since the price will often drop immediately. Mutual funds often make taxable distributions near the end of the year. If you plan to invest money in the fund in a taxable account, check the fund company’s website to see when they plan to pay the dividend; you may prefer to wait until afterwards if it is coming up soon. Research. Read the prospectus, or as much of it as you can stand. It should tell you what these strangers can do with your money, among other vital topics. Check the return and risk of a fund against its peers with similar investment objectives, and against the index most closely associated with it. Be sure to pay attention to performance over both the long-term and the short-term. A fund that gained 53% over a 1-yr. period (which is impressive), but only 11% over a 5-yr. period should raise some suspicion, as that would imply that the returns on four out of those five years were actually very low (if not straight losses) as 11% compounded over 5 years is only 68%. Diversification can reduce risk. Most people should own some stocks, some bonds, and some cash. Some of the stocks, at least, should be foreign. You might not get as much diversification as you think if all your funds are with the same management company, since there is often a common source of research and recommendations. The same is true if you have multiple funds with the same profile or investing strategy; these will rise and fall together. Too many funds, on the other hand, will give you about the same effect as an index fund, except your expenses will be higher. Buying individual stocks exposes you to company-specific risks, and if you buy a large number of stocks the commissions may cost more than a fund will. The compounding effect is your best friend. A little money invested for a long time equals a lot of money later. The decision to invest in a mutual fund is one you have to make on your own. However, when you try to choose an investment, it’s usually best to seek the guidance of an investment representative. Why? Consider that there are more mutual funds than there are stocks listed on the New York Stock Exchange. While many of these funds share the same objectives, no two are exactly alike. Similarly, as an investor, your goals are unique. An investment representative can help you determine the fund that’s right for you. A mutual fund investor has more options than ever before – stock, bond, and money market funds to satisfy all outlooks, from the most conservative to the most venturesome. Generally speaking, in investment management, intelligently assumed risk creates the opportunity for greater returns. †¢A money market mutual fund aims for current income at minimal risk. †¢A municipal bond mutual fund aims for current tax-free income. †¢Government income funds aim for current income with principal security. †¢Corporate bond funds aim for a high rate of current income. †¢An income fund aims for a higher rate of current income. A balanced fund aims for current income with some capital appreciation. †¢Growth and income funds offer the possibility of more growth than a balanced fund, but probably less income. †¢A growth fund aims for the accumulation of capital, with little or no current income. †¢Aggressive growth funds offer the prospect of maximum capi tal appreciation, with more than average risk. In addition, specialized funds are available – for instance, those that invest only in certain geographic regions or in certain sectors or industries (like health care, technology, or energy). There are even funds that have adopted certain social objectives or that follow specific investment philosophies. For more complete information, including charges and expenses, obtain the mutual fund’s prospectus. Read it carefully before you invest or send money. The Securities and Exchange Commission (SEC) requires every open-mutual fund (where the fund’s managers issue new shares on demand) to provide you with a copy of its prospectus before – or coinciding with – a purchase of shares. A prospectus is a key source of information regarding a mutual fund and often is the best place to start when you are considering investing in one. It will describe the fund’s objectives, risks, and operations. TURNOVER Turnover is a measure of the amount of securities that are bought and sold, usually in a year, and usually expressed as a percentage of net asset value. It shows how actively managed the fund is. A caveat is that this value is sometimes calculated as the value of all transactions (buying, selling) divided by 2; i. e. , the fund counts one security sold and another one bought as one â€Å"transaction†. This makes the turnover look half as high as would be according to the standard measure. Turnover generally has tax consequences for a fund, which are passed through to investors. In particular, when selling an investment from its portfolio, a fund may realize a capital gain, which will ultimately be distributed to investors as taxable income. The very process of buying and selling securities also has its own costs, such as brokerage commissions, which are borne by the fund’s shareholders. The Dalbar Inc. consultancy studied stock mutual fund returns over the period from 1984 to 2000. Dalbar found that the average stock fund returned 14 percent; during that same period, the typical mutual fund investor had a 5. percent return. This finding has made both â€Å"personal turnover† (buying and selling mutual funds) and â€Å"professional turnover† (buying mutual funds with a turnover above perhaps 5%) unattractive to some people. IV REGULATORY FRAME-WORK OF MUTUAL FUNDS Immediately after its constitution, SEBI issued the Mutual Fund Regulations in 1993. However, with the growth of mutual funds, it was imperative that they should follow prepared a ‘Mutual Fund 2000 Report’ and on the basis of this report, it prepared more stringent and comprehensive regulations in 1996, known as SEBI (Mutual Fund) Regulations, 1996. ince then, there have been number of amendments in Regulations, 1996. Besides, SEBI has also issued several guidelines in respect of working of mutual funds. Some of the provisions of the SEBI (Mutual Fund) Regulations, 1996 (as amended from time to time) have been summarized hereunder: 1. The sponsor, who wants to establish a mutual fund, should have a sound track record and a general reputation of fairness and integrity, i. e. , must be in business of financial services for 5 years, and must have contributed at least 40% of the net worth of the Asset Management Company. 2. A mutual fund is constituted in form of trust. The trust shall incorporate an Asset Management Company (AMC). The trustees shall ensure that the AMC has been managing the schemes independently of other activities. 3. Two-thirds of the trustees shall be independent persons and not be associated with the sponsor. 4. The trustees shall ensure that activities of the AMC are in accordance with the Regulations, 1996. 5. The trust shall periodically review the investors’ complaints received and shall be redressed by the AMC. 6. The mutual fund shall appoint a custodian to carry out the custodial services for the schemes. The sponsor or its associates shall no have 50% or more of the share capital of the custodian. 7. No scheme shall be launched by the AMC unless the offer document contains disclosures which are adequate in order to enable the investors to make informed investment decisions. 8. Advertisement in respect of every scheme shall be in conformity with the Advertisement Code. 9. Every close-ended scheme shall be listed at a recognized stock exchange, or there will be a repurchase facility. 10. The close-ended schemes may be converted into open-ended schemes under certain conditions. A close-ended scheme may be allowed to be rolled over if necessary disclosures about NAV, etc. , are made to the unit holders. 11. In case of over-subscription for a new scheme, the applicants applying for upto 5,000 units shall be allotted full. The refund to applicants, if any, shall be made within 6 weeks from the data of closure of the list. 12. No guaranteed return shall be provided in a scheme, unless such return is fully guaranteed by the sponsor or the AMC. 13. An open-ended scheme shall be would up after the expiration of the mixed period, or in case, 75% of the nit holders decide so, after repaying the amount due to the unit holders. 14. The money collected under any scheme shall be invested only in transferable securities in money market or capital market or private placed debts or securitized debts. 15. The mutual fund shall not borrow any money except to meet temporary liquidity needs and borrowing, if any, need not be more than 20% of NAV of the scheme, and for period o f less than 6 months. 16. The funds of a scheme shall not be used in option trading or a carry forward transaction. However, derivatives can be traded by a mutual fund at a recognized stock exchange for portfolio balancing. 7. A mutual fund can enter into underwriting agreement. 18. NAV for each scheme shall be calculated by dividing the total assets of the scheme by the number of outstanding units. The NAV of the scheme shall be published in two daily newspapers at interval of not exceeding one week. 19. In case of open-ended schemes, the repurchase and sale price shall be published at least once a week. 20. The mutual fund shall ensure that the repurchase price of a unit is not less than 93% of NAV and the sale price is not more than 107% of NAV. In case of close-ended schemes, the repurchase price shall not be less than 95% of the NAV. 1. The AMC may charge the mutual fund with investment and advisory fees as per rates prescribed in the Regulations. The issue expenses and redempt ion expenses of a scheme shall not exceed the limits given in the Regulations. 22. The mutual funds are required to raise at least Rs. 20 crores or Rs. 50 crores (for close-ended and open-ended schemes respectively) or 60% of the target amount, otherwise the entire subscription be refunded. Each scheme should have a minimum of 20 investors and not single investor should account for more than 25% of the corpus of the scheme. 23. The unquoted debt instruments shall not exceed 10% in case of growth funds and 40% in case of income funds. 24. Investment in one company under any scheme should be restricted to 5% of the corpus of the scheme. Under all schemes, the investment in one company should be restricted to 5% of the paid-up capital of the company. Total investment in all securities (debts and shares) in one company shall be restricted to 10% of the corpus of the mutual fund. 25. Funds under the same AMC mutual not be lent or invest from one scheme to another, unless the funds are transferred at the prevailing market price. 26. All mutual fund must distribute a minimum of 905 of their profits in any given year. The e3arnings must be segregated as current income, short-term capital gain and long-term capital gain. 27. Trading by mutual funds shall be restricted to hedging and portfolio balancing purposes only. The securities held shall be marked to market by the AMC to ensure full coverage of the investments made in derivative products. 28. Mutual funds are permitted to participate in the Securities Lending Scheme of SEBI under certain guidelines. 29. Mutual funds are allowed to invest in ADRs/GDRs issued by Indian companies. They can also invest in foreign securities under certain conditions and within limits. 30. Mutual funds can also invest up to 10% their funds in equity of listed overseas companies which have a shareholding of at least 10% in an Indian company listed on a recognized stock exchange. 31. The AMC and the trustees are required to review and disclose the performance of their schemes. They are also required to disclose the performance of the benchmark indices. Any of the following indices may be selected for this purpose: BSE Sensex, S&P CNX Nifty, BSE 100, BSE 200 or S&P CNX Nifty 500. 32. Several Guidelines have been prescribed in respect of Advertisement to be issued by mutual funds. Any advertisement, communication, sales literature, or presentation, etc. , should not be misleading. 33. Detailed guidelines are prescribed for valuation of investments. For this purpose, the investments are classified into traded, thinly traded and non-traded investments. 34. Guidelines for identification and provisioning for NPA are also provided. For this purpose, an asset is NPA if the principal/ interest is not received for one quarter. On NPA, no interest shall be accrued. If any interest is already accrued, it shall be provided. A provision @ 10%, 20% or 25% of the book value of NPA is required depending upon the period for which it is NPA. 35. A mutual fund and the AMC shall, before the expiry of 1 month from the close of half year, shall publish its financial results in respect of that half year. MUTUAL FUND INVESTMENT AND INVESTORS’ PROTECTION IN INDIA In case of mutual funds, small investors park their funds in expectation of a suitable return and safety of their funds. Mutual funds take decisions on behalf of the investors. There is a relationship of trust between the mutual fund and the investors. Market regulators should take a cognizance of this fact. The interest of the investors should be protected by framing a comprehensive set of regulatory provision. As the first mutual fund in India, the UTI was created as a statutory body under the UTI Act, the relevant provision regarding investment policies, etc. were all given in the UTI Act itself. However, the position changed after 1992 with the constitution of SEBI. The basic objective of SEBI is to â€Å"protect the interest of the investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental therewith. So, the regulation of mutual funds activities was make a matter under purview of SEBI. SEBI issued the Mutual Fund Guidelines, 1993 as a first attempt to provide for a regulatory framework to give directions to the functioning of mutual funds and to protect the interest of the mutual funds investors. Keeping in view the changing scenario, SEBI issued a new set of Mutual Funds Guidelines in 1996. A detailed list of the provisions of Guidelines, 1996 is already given in this chapter. Some other provision specifically dealing with investors protection are: (i)Each mutual fund must be registered with SEBI. The sponsor must have a sound track record and experience in financial services of at least 5 years. (ii)Number of terms and conditions have been provided in respect of Asset Management Company (AMC). The Directors of the AMC should here adequate professional experience in finance and financial services. (iii)The custodian of the mutual fund should also be approved and registered with SEBI. (iv)No mutual fund scheme can be launched unless approved with the trustees. (v)Minimum and Maximum amount to be raised under the scheme should be notified. (vi)Lot of disclosures are required in respect of the scheme in the prospectus. vii)No scheme with a guaranteed return can be issued unless such return is guaranteed by the AMC or the sponsor. (viii)Periodic report in respect of each of the scheme is to be published. Any information that has an adverse bearing on the investment should also be disclosed. (ix)There are investment norms provided for mutual fund investment with a view to contain t he investment risk. Investors’ interest is protected by prohibiting mutual funds from excessive risk exposure. (x)SEBI can impose several types of monetary penalties for violations of SEBI Regulations and Guidelines.

Postmodernism Essay

Different material, methods and media’s have been used in postmodern art, such as painting fine art, technology, architecture and fashion. A study of various types of powerful societal changes through time is tackled through art. These changes comprise of gender identity, globalisation growth, political power etc. Introduction The expression of Art has always been influential; many artists use it as a tactic to exploit political truths and ideas. Postmodernism is a â€Å"movement reacting against modernism, especially by drawing attention to former conventions† (pg821). This form of art allowed a new way of looking at reality in a society that is constantly reassessing its culture and values. Postmodern art focuses on a mixture of high and low cultures and dominant ideas; it went against repression, sexism, racism, political power, and violence. Deconstructing truths criticises and analyses contemporary issues. These deconstructionist feed on controversy, artists such as Alessandro Mendini, Andy Warhol, Jenny Holzer create colourful and ruinous, luxurious and outrageous artwork. The art allowed radical freedom to design, funny gestures confrontation and occasionally absurd. It was a style that has new self-awareness. Postmodernism rebelled against modernism; it was an attack on what had come before as it explored and disparaged any unspoken leading concepts and social customs. The disillusionment from World War II heavily influenced postmodern art. The style doesn’t have a clear central hierarchy or organising principle; it uses melancholy, extreme complexity, contradiction, ambiguity, diversity and interconnectedness. Loud colours, bold patterns, historical quotation and whit are used. During the 60s, critical practices of postmodernism were applied mainly in Italy. The idea of ‘Function follows form’ is abandoned. Exaggerated proportion and outrageous texture for the sake of decoration. Designers such as Ettore Sottsass and Alessandro Mendini who challenged social norms and the traditional taste of design. Italian born designer and architect, Alessandro Mendini played a part in postmodern design. He creates graphics, furniture, interiors, paintings and architectures. His work of ‘Destruction of the Monumento da Casa (Household Monument) is an enlarged photograph of a modernist chair. This literally displays the destroying of the past, the end of modernism and the beginning of postmodernism. It was an attack on what had come before, Mendini brought the chair to a stone quarry and set the chair on fire, photos were captured during the process in 1974. Popular culture, irony, historicism, eclecticism and pluralism are embraced by postmodernism. The artist believed that something new design would grow from the burning remains. One of the most iconic post-modern designs is the Proust armchair by Alessandro Mendini. He chose to add Signac painting as the pattern on a ready-made replica of an 18th century armchair. American language conceptual artist, Jenny Holzer is famous for her short statements. The postmodern fashion in the 80’s was a time when women were in power and this was mirrored in physicality and clothes. The artist uses modern information to expose and address the politics of discourse. The ‘Abuse of Power Comes as No Surprise’ by Hozler is one of her many controversial artworks. Jenny Hozler worked outside the regular conventions, as she believed that simplified phrases are the quickest way for everyone to comprehend. A lot of Jenny Hozler’s work victimises the woman, this method allows the audience to basically read the violence male dominance against women. Words such as ‘Crack the Pelvis so she lies right, this a mistake. When she dies you cannot repeat the act†¦Ã¢â‚¬â„¢ the brutal yet vivid words suggest male power over women. In order to communicate to foreign countries, her work was translated multiple times. Hozler’s techniques include a range of multimedia, posters, hats, T-shirts and L. E. D signs on large architecture. She received many negative feedbacks by the public, therefore, withdrew from her career until 1993. The postmodern artist came back with a new approach to immaterial; she is still driven against murder plus sexual pleasure, hence initiated a new series named ‘Lustmord’. Fine Art is also found in post modernism. Techniques found in painting were super-realism, mannered, academic, neoclassical, decorative, and self-conscious stylization. Originality had ended and there is a lot past styles referencing. Postmodern artist, David Ligare paintings looked extremely realistic. He focused on still life painting, Ligare believes that there is no limit and virtually anything now could be considered art, hence makes him a postmodern artist. David Ligare does narrative paintings based on Greco/Toman culture. Marcel Duchamp’s artwork incorporated jokes to add humour to his visual. Duchamp has made numerous pastiche works; his most famous is the ‘L. H. O. O. Q’, which stands for ‘Elle a chaud au cul’. It was a rebel against traditional art was the dominant idea of the time. Duchamp’s added moustache and beard to the postcard with the Mona Lisa, which contradicts regular conventions of the time. He wanted to take artistry lightly; it was an act of rebel against convention. This technique became known as ‘appropriation’, it is the idea of manipulating famous historical art pieces. This practice has become common in today’s art. Andy Warhol works exemplifies the final stage of postmodernism. Warhol’s paintings had always had something controversial, as theorist Fredric Jameson states, ‘they ought to be powerful and critical political statements’ Andy Warhol is a contemporary artist, which expresses the postmodernism of society though his artistry. Through his artwork, his expression seems to be very anarchy and chaotic, especially the major use of the primary and bold colours whereas in the mainstream artistry it is very subtle due to the dark or complimentary colours which can often be seen as conservative. Warhol’s ‘Dollar Sign’ from 1981 deconstructs the truth about money. The painting suggest money’s strength, its addiction and tactic for conspiracy, His artwork were powerful and held critical political statements because they were billboard-like images. One of his pieces was of the North Korean leader, Kim John IL. Normally in society Kim John IL would not be even spoken of due to the high political power he has over North Korea. And the fragility between other nations that Kim John IL has. Andy Warhol has done a piece of this leader using contrasting and chaotic colours that seemed random and unusual. Warhol used appropriation, taking and creating pastiche references. As Andy Warhol states, â€Å"Art is what you can get away with†. Yasumasa Morimura uses humour with referencing to historical art. His postmodernist artworks have the idea of rejecting a single fixed meaning in an image or artwork. He is a controversial Japanese artist who displaces societal currents in Japanese culture. Western assimilation, capitalism and gender values are shown in his designs. Yasumasa is an illusive creator with no boundaries; this sets his work off to a guttural response. He is best known for mimicking great subjects, in particular western art. One of his works uses historical art as reference is the ‘Blinded by the Light’ 1991, which was inspired by the ‘ Parable for the Blind’ by Pieter Brueghel in 1568. Morimura symbolises a satirical message on Western invasion. Yasumasa Morimura caused controversy by highlighting historical influences and transforming into the postmodern art world with eastern and western culture, sexuality and gender identity. His background influenced Morimura’s, he was an outsider dominated by western culture and art. Technology advancement such as digital editing allowed his work to become flawless. In the racist imagination of western culture, they perceive Asian men with weak physically, equivalent to a little white girl. Morimura embraces his influences and mixes his sexual influence with modern culture. This is reflected in his series of self-portraits, e. g. Morimura as Monroe. Throughout the postmodern period, globalisation had become widespread, the artist felt as if he was invaded by foreign ideas and culture. In response, he invaded western culture through their art, by slapping his face on the Mona Lisa or the Infanta Margarita. Famous artist, Barbara Kruger exploited truths through her works of being a graphic designer, art director, and picture editor. Rather than creating her own images, she uses images and juxtaposes them. She used her techniques and skills of being a graphic designer and worked on political, social feminist provocations, religion, sex, racial and gender stereotypes, consumerism, corporate greed, and power. Her techniques consist of using media sources and words and directly collaging them over each other. Her signature look comprises of cropped, large-scale, black and white photographic pictures against black, white and red sans serif letterform. They hold raucous, pithy, ironic sayings. The poster, ‘Your Body is a battleground’ proposes the idea of re-conditioning gender stereotypes. Originally, the image was used in Washington DC to advocate a pro-choice position and reproductive rights for women. This raises the issue of power, patriarchy, stereotyping and consumption. The poster has a black and white image of a woman’s face that is split symmetrically with direct eye contact. The positive and negative space could highlight ‘good vs. bad’. Judging from the woman’s hair and makeup, she appears to be a housewife. The image represents that women cannot be sold, it illustrated a political setting and subsequently their identities are favourably polished.

My Mentor

My Mentor life, in a bid to make me understand what he exactly meant. I wonder whether he wanted me to learn from his mistakes, but I think so. He rarely talks about politics. Rather, he methodically gives finite comments on the utterances of this and that politician. His views about politics become clear through positive or negative statements and policy issues articulated by this or that policymaker. I think he hates being boringly philosophical about life. This makes me perceive my tendency to get deeply philosophical in just about every topic to be a bit of a weakness. I recently asked him if this is a weakness and he said it was not. I think he meant that it is indeed a weakness but that there is nothing I can do about it. Apart from enabling me become a better communicator, Dr. Ekwe has helped me wade through lethal academic and career challenges. He is the one who alerted me about the job advertisement that I responded to in order to be hired as an intern at communications department in the ministry of foreign affairs. I am sure that the tips he offered me about the things to say or not to say in the application letter and resume counted a lot for my being shortlisted for the interview. Thereafter, I battled it out all by myself. I consider it intriguing that my mentor, Dr. Ekwe, says, through connotation, that he has learnt more things from me than I have learnt from him. Yet I wonder why he always turns down my requests whenever I ask him to accept to be a guest of honor at local fundraising meetings. Last month, he told me that he would be out of the country and I believed him. The second most important career lesson that I learnt from my mentor is about avoiding misplaced priorities situations. During the high school lecture, he used a very important analogy to illustrate his advice. I had sworn never to forget about this analogy so that I could share it with everyone on a platform like this one. However, early last year, I forgot everything about it! I will ask Dr. Ekwe to explain the analogy again when I get an opportunity to do so and then I will immediately share it with the world. I know little about the kind of people that Dr. Ekwe relates with. It seems to me that he has no permanent friends; he can make a good politician, although he denies it whenever the need for clarity on this matter arises. As for friendships, anyone can be his friend as long as two conditions are fulfilled: there is a common mission and that the job gets done. This is how the utilitarian in him comes out very clearly. Last month, he delivered a speech in which he was supporting the governments decision to delay the announcement of the statistics of the census that was held four months ago. I admired how he articulated his points. The following day, I tried to emulate him during the speech I delivered during a communications workshop, which I think was an instant success. Dr. Ekwes influence in my career life is that phenomenal.

Struggling Towards Understanding And Awareness Essays - Free Essays

Struggling Towards Understanding And Awareness Essays - Free Essays Struggling Towards Understanding and Awareness As characters transpire through a course of struggles, the traditional author carries them to a point of understanding and awareness. In the novel, Great Expectations, by Charles Dickens, characters are forced to face this struggle and eventually go on to reach their epiphany. However, this realization doesn?t occur until after much devastation and damage has been caused. The eccentric Miss Havisham is one of these characters that is in constant battle with her emotional past. She uses her bitterness against mankind by adopting a young girl and training her to mechanically break the hearts of men. After many years of seclusion at Satis house, she employs Pip to amuse her and train her adopted daughter, Estella. She uses Estella as a form of torture for Pip since she knows very well that Estella?s attractiveness will lure him in and capture her in his heart. Although Estella is completely inaccessible, Pip is still invited over and leaves the Satis house fully tormented. Miss Havisham?s devious ways give her enjoyment when she watches Pip suffer and yearn for a girl he can?t have. Also, when Pip discovers that he is intended for ?great expectations,? she continues to lead him on making him think that she is the secret benefactor. Miss Havisham merely uses Pip as a pawn to play and exploit with in her game of retaliation. Her role as a complete manipula tor helps her seek revenge to all mankind on account of her misfortunes. Miss Havisham?s fortune quickly alters when things don?t go as she has planned. She watches intently as Estella throws herself at Drummle and realizes that she?s the reason that Estella migrates towards a man of low stature like Drummle. Seeing Pip desolate and extremely hurt makes her feel like she betrays someone so undeserving of this kind of torment. Miss Havisham realizes that it?s too late to take back the past and change her meticulous ways. She can only remorse as she does her best to amend the disheveled situation, as she sees that there?s not any course of action that would improve it. She is no longer cynical and hard headed. In a way, to make up for what she has caused, she helps fill Pip?s request to help Herbert Pocket in the Clarriker firm. She sees a new light and understands that her malicious game hurts the people who are closest to her and benefits no one, leaving her without anyone when she passes away. Pip is another character in the novel that learns from his false pride and arrogant ways that he hurts the people that treasure him the most. While attending several visits to Miss Havisham?s house, Pip develops a snobbish superiority over Joe and the rest of his family. The standards at his common house could never live up to the lifestyle that the Havishams endure. He begins to develop a dislike of the ?commonness? of his lower class home. After being informed of his benefactor, Pip quickly leaves Joe to go to London without hesitation and remorse. As the years go on, he often comes back to visit Estella and Miss Havisham, but purposely avoids going back home. After living such a high class lifestyle, he can?t go back and associate with the common people. Even when Joe comes to visit him in his own home, Pip is completely ashamed of having Joe?s company. He even says, ?If I could have kept him away by paying money, I certainly would have paid money.? He is worrisome about what Herb ert and the other towns people will think if they happen to see Pip and Joe together. Then, as he learns that the convict is the benefactor, he becomes embarrassed and highly ungrateful since it isn?t Miss Havisham as anticipated. Pip?s head becomes so clouded by this new high society that he refuses to accept the people in his past. Coinciding with Miss Havisham?s realization, Pip begins to reach maturity and encounters the damage that he implements. He awakens to find that he does have a responsibility to Magwitch for his continuous generosity. While Magwitch is in jail, Pip visits and stays with him every day as he becomes Magwitch?s only companion when he

What Is Point of View First, Second, and Third Person

What Is Point of View First, Second, and Third Person SAT / ACT Prep Online Guides and Tips One of the best ways to prepare for the AP Literature exam is to learn about different literary devices and how you can use them to analyze everything from poetry to novels. Not only will this help you on the multiple choice section of the test, it’s critical for earning perfect scores on your essays, too! Today, we’re going to take a closer look at one specific device: point of view. First, we’ll give you the point of view definition, then we’ll explain how the work’s narrator affects its point of view. Then we’ll explain the four types of point of view and provide examples and analysis for each one. By the end of this article, you’ll be a point of view expert! So let’s get started. Point of View: Definition and Meaning In literature and poetry, point of view is defined as the perspective from which a story is told. Put another way, a story’s point of view is a way to articulate and analyze the position of the narrator in relation to the story they’re telling. Is the narrator a participant in the story they’re telling? Or are they describing events that happened to someone else? Both of these perspectives are different types of point of view (which we’ll talk about in a lot more depth later in this article, so hang tight)! So how do you figure out the point of view in a text? In order to find the point of view of a story, you first have to identify whose perspective the story is told from. That’s because the perspective of the story determines a piece of literature’s point of view! That means that in order to establish a text’s point of view, you have to figure out the narrator of the text first. What Is a Narrator? Okay...so obviously figuring out the narrator of a piece of literature is important. But what’s a narrator, exactly? No matter what type of text you’re reading- whether it’s a newspaper article, a textbook, a poem, or a best-selling novel- someone is communicating the story to the reader. In literary terms, we call that someone the text’s narrator. In other words, the narrator of a piece of literature is the person telling the story. And you know what’s even more helpful than that? Almost all written texts- whether they’re fiction, non-fiction, poetry, or otherwise- have a narrator. And since a narrator and point of view go hand in hand, that means that almost all texts have a point of view, too! Finding the Narrator So how do you figure out the narrator of a text? Sometimes the narrator of a text is pretty easy to determine. For example, for a newspaper article, the narrator of the story is obviously the reporter who’s written the piece to report the facts. They’re the person who followed the story’s trail, and now they’re sharing the story with you! Another good example of an â€Å"easy to find† comes from Herman Melville’s Moby Dick. The very first sentence of the book reads, â€Å"Call me Ishmael.† Because that’s a line in the text rather than a piece of dialogue that uses quotation marks, you know it’s the narrator speaking to the audience. In other words, the narrator of Moby Dick identifies himself and tells you his name in the very first line of the book! But figuring out the narrator of the text isn’t always that easy. For example, the Harry Potter books by J.K Rowling don’t have an easily identifiable narrator. Neither do some classic works, like The Giver by Lois Lowry or Pride and Prejudice by Jane Austen. What do you do in those situations? Well, just hang tight: we’ll walk you through how point of view can help you figure out the narrator in these tricky situations! Narrator vs. Point of View: What’s the Difference? Before we start really digging into point of view, it’s worth pausing a minute to talk about the differences between point of view and narration. Because narration and point of view are closely linked, it’s tempting to think of them as interchangeable terms. But the narrator of a text and the point of view of a text are two different things. The narrator is who is telling the story. In contrast, a text’s point of view is the perspective the story is being told from. If you think of the narrator as a person, their point of view is the angle they’re taking on the story. Think of it this way: in literature, point of view and narrators go together like...well, like thunder and lightning. You can’t have one without the other, but they’re definitely not the same thing. The 4 Types of Point of View Okay, let’s look more closely at the four different types of point of view found in literature. In the following sections, we’ll explain each type of point of view, give you tips for figuring out if something is written in that perspective, and then walk you through a real-life example of that point of view in literature. In first person point of view, you seethe story through the narrator's eyes First Person Point of View In first person point of view, the story is told from the narrator’s perspective. This allows the narrator to give readers their first-hand experience, including what they saw, felt, thought, heard, said, and did. Think of it kind of like The Blair Witch Project: in first person point of view, it’s like the narrator is wearing a GoPro camera strapped to their forehead. The reader sees exactly what the narrator sees and gets their singular perspective on the events that unfold. In other words, a first person point of view makes the narrator the eyewitness to the plot of the story. Using a first person point of view allows an author to dive much more deeply into the narrator’s character, since the reader gets to hear the narrator’s inner thoughts and experience the narrator’s emotions. Additionally, it makes the narrator the main character, or protagonist, of the story. If something is written in first person, it’s a pretty big indicator that the narrator is going to play a pivotal role in communicating the text’s messages or themes. But there are also some pretty major limitations to a first person point of view, too. Just like real life, readers won’t be able to get the thoughts and feelings of other characters in the novel. Also, the narrator’s observations might be skewed depending on how they feel about other people. Because of that, first person narrators can be unreliable, meaning that their perspective skews the accuracy of the story they’re telling. That means it's up to the reader to determine whether they believe the narrator is being truthful or not. Tips for Identifying First Person Point of View In many ways, a first person point of view is one of the easiest to pick out because it uses first person pronouns, like I, we, me, my, our, and us. If the book is written using these terms, then you can pretty much guarantee that the author is using first person! Keep in mind that not all first person narrators are the book’s main character, like Moby Dick’s Ishmael or The Hunger Games’ Katniss Everdeen. That’s because first person narrators aren’t always the main characters in the work. Take, for instance, the Sherlock Holmes stories, where Dr. John Watson is the narrator. While he’s an important character in the story, he’s definitely not the main characterSherlock Holmes is! Additionally, sometimes first person narrators are anonymous, like third person narrators often are. (Don’t worry: we’ll get into third person narration in just a minute.) That’s why it’s best to look for pronouns when trying to figure out a work’s point of view! If you’re trying to find the narrator’s name, it might not always be there. A good example of this is Shakespeare’s â€Å"Sonnet 130,† where the narrator is describing the woman he loves. The narrator of the poem is never named, but because he uses pronouns like â€Å"I† and â€Å"my,† you know it’s written in first person. Example of First Person Point of View: Shakespeare’s â€Å"Sonnet 29† Many of Shakespeare’s sonnets are written in first person, and â€Å"Sonnet 29† is no different. Let’s look at the full poem and see why it qualifies as being written in first person: When, in disgrace with fortune and men’s eyes, I all alone beweep my outcast state,And trouble deaf heaven with my bootless cries,And look upon myself and curse my fate,Wishing me like to one more rich in hope,Featured like him, like him with friends possessed,Desiring this man’s art and that man’s scope,With what I most enjoy contented least;Yet in these thoughts myself almost despising,Haply I think on thee, and then my state,(Like to the lark at break of day arisingFrom sullen earth) sings hymns at heaven’s gate; For thy sweet love remembered such wealth brings That then I scorn to change my state with kings. Remember, we can tell that something’s written in first person if it uses first person pronouns outside of dialogue. Since there’s no dialogue in this poem at all, we can look at the entire text to find evidence of the first person point of view. Notice that the narrator (or speaker, as the narrator is often referred to in poetry) uses words like â€Å"I,† â€Å"me,† and â€Å"myself† throughout the poem. This is a clear indicator that this poem is written in a first person point of view! Actually, â€Å"Sonnet 29† is a good example of something written in first person where the narrator isn’t named. But we can still learn quite a bit about them through the poem itself! For example, we learn that he’s an outcast (line 2) who is unhappy with his current status (line 4). Despite his all-encompassing misery (line 9), when he thinks upon his love, his spirits are lifted (lines 10, 11, and 12). As we start piecing the evidence together, we begin to get a clearer picture of who the narrator of the poem is, and the power love has to lift us out of even the bleakest circumstance. Other Works Written in First Person Point of View First person is a really popular writing technique, so it’s no surprise that there are tons of books written in this point of view! Here are a few other poems, books, and book series that you might be familiar with that use first person point of view: Shakespeare’s â€Å"Sonnet 18† Suzanne Collins’ The Hunger Games book series Harper Lee’s To Kill a Mockingbird Arthur Conan Doyle’s Sherlock Holmes stories Second person point of view uses pronouns like "you" and "your" to tell the story. Second Person Point of View In second person point of view, the story is told from the perspective of another character. Sometimes this character is another person in the book, but it can also be the reader themselves! More importantly, when a writer uses second person, they want readers to connect emotionally with the topic they’re writing about! Here’s an example of what we mean. Say you’re reading an article about the amount of plastic pollution in the ocean. If the writer wants to pull on your heartstrings and make you take the issue they’re writing about seriously, they might use a second person point of view and write something like this: â€Å"Imagine you’re on the vacation of your dreams sailing across the Caribbean. You can’t wait to get out into the open water, where everything will be calm, peaceful, and gorgeous. You take a nap as the captain sets sail, and when you return to the deck, you’re shocked by what you see. Instead of a vast expanse of sparkling blue water, you see a huge, bobbing mound of trash. Fast food containers, plastic bags, and discarded water bottles bob along the surface as far as you can see. It looks like you’re sailing through a garbage dump, and you feel equal parts disgust and despair.† Using the second person point of view in a passage puts the reader into the story- in this case, it’s a story about pollution. Second person makes the reader feel like they’re making every move...from the joy of going on vacation, to the shock of seeing so much plastic in the water, to the â€Å"disgust and despair† of realizing what pollution is doing to the sea. Suddenly, the reader becomes more invested in what the author has to say about the problem, since the second person point of view makes them feel like they’ve experienced it first-hand! While it’s very rare to find a text that’s written completely in second person, many authors will switch to this perspective when they want readers to feel connected to the topic they’re writing about. Tips for Identifying Second Person Point of View Like first person point of view, it’s pretty easy to spot the second person point of view...when you know what you’re looking for, that is. When something is written in second person, the writer uses second person pronouns (like â€Å"you,† â€Å"yourself,† and â€Å"your†) in the text that falls outside of dialogue, too. Like we just mentioned, it’s pretty rare to find a whole text that’s written this way. More than likely, you’ll find a few paragraphs written in second person, rather than an entire work. The one exception to this rule is the classic Choose Your Own Adventure book! You probably remember these from when you were a kid: each book had a topic, and at the bottom of each page, you were given decisions to make. Depending on what you chose, you’d flip to a different page in the book, and your decisions would affect the story! Example of Second Person Point of View: Bright Lights, Big City by Jay McInerny Jay McInerny uses second person to open his book, Bright Lights, Big City, which tells the story of life in the fast lane in 1980s New York. Let’s look at the first paragraph to see the second person point of view in action: You are not the kind of guy who would be at a place like this at this time of the morning. How did you get here? It was your friend Tad Allagash. Your brain is rushing with Brazilian marching powder. You are talking to a girl with a shaved head. You want to meet the kind of girl who isn't going to be here. You want to read the kind of fiction this isn't. You give the girl some powder. She still doesn't want you. Things were fine once. Then you got married. Notice that all the pronouns in this section are either â€Å"you† or â€Å"your,† which is a clear indicator that this is written in second person! It’s also a good example of how using second person can immediately pull someone into a narrative by making the reader and the main character one in the same. In this case, McInerny is creating a whole backstory for your character- from giving you friends like Tad to hinting at your dysfunctional marriage. Other Works Written in Second Person Point of View Second person is probably the rarest of the points of view. Usually writers will use second person in sections of their work to emphasize a point, rather than throughout their entire work. Here are some pieces of literature that use a second person point of view (at least in part): Langston Hughes’ â€Å"Hard Luck† Italo Calvino’s If On A Winter’s Night A Traveller Claudia Rankine’s Citizen: An American Lyric Emma Campbell Webster’s Lost in Austen: Create Your Own Jane Austen Adventure In third person omniscient point of view, the narrator is god-like and tells the reader everything! Third Person Omniscient Point of View The third type of perspective you can find in literature is a third person omniscient point of view. In third person omniscient, the narrator uses third person pronouns like â€Å"he,† â€Å"she,† â€Å"they,† and â€Å"their† to refer to all the characters in the work. As a result, the narrator removes themselves as a critical character in the work (unlike the narrators that use a first or second person point of view). Additionally, because this is a third person omniscient perspective, the narrator is given god-like qualities over the story. (Merriam-Webster defines an â€Å"omniscient† person as someone who has â€Å"universal or complete knowledge†!) That means the narrator can dive into any character’s head and share their thoughts and emotions with the reader. Additionally, the narrator can move around in time and place to show the reader events that the characters themselves may not be aware of! That includes jumping around from location to location, or even moving backward and forward in time. Using a third person omniscient narrator lets an author show the reader the whole gameboard, so to speak. There’s no real limit to what a narrator can show the readers! Consequently, it allows the author to build a robust world full of well-developed characters, since the author no longer has to contend with the single-character limits of a first or second person point of view. It’s also a particularly useful technique in works with large casts of characters, since the narrator can introduce the reader to each character more quickly- and with more detail- than other points of view would allow! Example of Third Person Omniscient Point of View: Middlemarch by George Eliot The narrator of George Eliot’s Victorian novel, Middlemarch, is an excellent example of how a third person omniscient narrator can give readers a comprehensive view of a text. Let’s take a look at the book’s opening paragraph to see this type of point of view in action: Miss Brooke had that kind of beauty which seems to be thrown into relief by poor dress. Her hand and wrist were so finely formed that she could wear sleeves not less bare of style than those in which the Blessed Virgin appeared to Italian painters; and her profile as well as her stature and bearing seemed to gain the more dignity from her plain garments, which by the side of provincial fashion gave her the impressiveness of a fine quotation from the Bible,- or from one of our elder poets,- in a paragraph of to-day's newspaper. She was usually spoken of as being remarkably clever, but with the addition that her sister Celia had more common-sense. Nevertheless, Celia wore scarcely more trimmings; and it was only to close observers that her dress differed from her sister's, and had a shade of coquetry in its arrangements; for Miss Brooke's plain dressing was due to mixed conditions, in most of which her sister shared. The pride of being ladies had something to do with it: the Brooke con nections, though not exactly aristocratic, were unquestionably "good:" if you inquired backward for a generation or two, you would not find any yard-measuring or parcel-tying forefathers- anything lower than an admiral or a clergyman; and there was even an ancestor discernible as a Puritan gentleman who served under Cromwell, but afterwards conformed, and managed to come out of all political troubles as the proprietor of a respectable family estate. Young women of such birth, living in a quiet country-house, and attending a village church hardly larger than a parlor, naturally regarded frippery as the ambition of a huckster's daughter. Remember: omniscient narrators are god-like in that they can give you more information than a single character could provide from their limited perspective. In this case, Eliot’s omniscient narrator gives us tons of information about Miss Brooke. We know that she’s beautiful but not financially well off ( the narrator calls this living in â€Å"mixed conditions†), which is reflected in her â€Å"plain garments.† Regardless, Miss Brooke is also â€Å"remarkably clever.† Beyond that, the narrator tells us about Miss Brooke’s family by looking into her past- which is easy given that the narrator is omniscient! We learn that she and her sister, Celia, aren’t aristocratic, but they come from a good family that includes admirals, clergymen, and politicians. This helps Eliot develop characters and situations quickly, which is important in a book with a large cast of characters like Middlemarch. Other Works Written in Third Person Omniscient Point of View Third person omniscient is a common point of view, especially in longer texts. Here are some examples of other works that feature an omniscient point of view: Louisa May Alcott’s Little Women Oscar Wilde’s The Importance of Being Earnest Nathaniel Hawthorne’s The Scarlet Letter Philip K. Dick’s Do Androids Dream of Electric Sheep? In third person limited point of view, it's as if the narrator is standing behind one character's shoulder. Third Person Limited Point of View The last point of view an author can use is the third person limited point of view. Just like the omniscient perspective we talked about earlier, texts written in a third person limited point of view use third person pronouns to discuss characters outside of dialogue. The difference between the two is in how much information the narrator shares with the reader.With a third person limited perspective, the narrator is limited to giving you the perspective of a single character. The narrator can peek inside the character’s head to share their thoughts, feelings, and experiences, similar to a first person point of view. Unlike first person, however, a narrator using a third person limited point of view can also zoom out to give readers a better understanding of how the character they’re following fits into the text’s plot, setting, or situation!Here’s an easy way of understanding the difference between a first person, third person omniscient, and a third perso n limited point of view. Think of the narrator as a person holding a camera. You, as the reader, get to see everything the camera sees. With first person point of view, it’s like the character has had the camera implanted in their brain. You can see whatever the character looks at and nothing more.With a third person limited point of view, on the other hand, it’s like the narrator is standing behind one character and filming over his shoulder. Not only can you get a sense of what the character is seeing, the narrator can also step back a little bit to show readers what’s going on around the character...as long as the character stays in the frame. Third person omniscient is the most comprehensive view. It’s as if the narrator is filming from the rafters of the building. They can zoom out to show everyone for a global perspective, or they can zoom in on different events to give you a better idea of what’s happening in specific situations.So why would a writer use a third person limited point of view? Well, it’s great for situations where knowing every single detail of a story would spoil the plot. Mystery novels, for instance, often use third person limited point of view. It allows the narrator to give you the detective’s thoughts and feelings while not spoiling the whodunit! It also allows the writer to focus on developing a single character while giving readers a better view of what’s going on around that character. Example of Third Person Limited Point of View: Harry Potter and the Sorcerer’s Stone by J.K. RowlingLike we mentioned earlier, all texts have a point of view...which means that the Harry Potter stories do, too! Let’s look at a passage from Harry Potter and the Sorcerer’s Stone to get a better idea of how a third person limited point of view works. In this scene, Harry and his friends, Hermione and Ron, are looking through the library to learn more about the sorcerer’s stone: Hermione took out a list of subjects and titles she had decided to search while Ron strode off down a row of books and started pulling them off the shelves at random. Harry wandered over to the Restricted Section. He had been wondering for a while if Flamel wasn’t somewhere in there. Unfortunately, you needed a specially signed note from one of the teachers to look in any of the restricted books, and he knew he’d never get one. These were the books containing powerful Dark Magic never taught at Hogwarts, and only read by older students studying advanced Defense Against the Dark Arts. It’s clear that this passage is written in third person: the narrator uses pronouns like â€Å"he,† â€Å"she,† and â€Å"them,† instead of first person pronouns like â€Å"I† or second person pronouns like â€Å"you.† But how do we know it’s third person limited? Well, we get Harry’s thoughts and feelings- like his curiosity about Nicholas Flamel- but no one else’s. We don’t know what Hermione and Ron are reading, or if they’re excited, nervous, or scared.Rowling wrote all seven Harry Potter books using a third person limited point of view that made Harry the focal point. The narrator can tell us what Harry’s thinking, feeling, and seeing- as well as zoom out to tell us more about the precarious situations he finds himself in. But because the narrator is tied to Harry, they can’t give us a glimpse into other characters’ minds, nor can it show readers what’s happening in other par ts of Hogwarts (where Harry isn’t). That helps readers get to know Harry, even as it helps Rowling maintain the mystery around the sorcerer’s stone (or the chamber of secrets, or the half-blood prince, etc.). Other Works Written in Third Person Limited Point of ViewThe third person limited point of view is a popular perspective for writers to use, so there’s no shortage of examples! Here are a few works you might be familiar with that feature a third person limited point of view: Samuel Taylor Coleridge’s â€Å"Christabel† Eudora Welty’s The Golden Apples Jane Austen’s Pride and Prejudice Madeleine L’Engle’s A Wrinkle In Time What’s Next? If you’re studying for the AP Literature exam, you’ll need to know about more literary devices than point of view. Why not check out our other comprehensive guides, like this one on personification? The more familiar you are with literary terms, what they mean, and how to use them, the better your test score will be! Did you know that there are two English AP tests? One is the literature exam, which focuses on literary analysis and comprehension. The second test is the language exam, which tests your ability to understand argument and write persuasively. Click here to learn more about the AP Language exam, how it differs from the literature exam, and what you need to do to knock it out of the park! After you learn the fundamentals, the best way to prepare for an AP exam is to take practice tests. Check out this article on how to find the best AP practice exams, and learn how to use them to boost your score!