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Stock Investment Analysis - Assignment Example
Author : boscojulius
Finance & Accounting
Pages 4 (1004 words)
Financial Analysis Name Grade Course July, 7, 2012 Financial Analysis The business and investments all over the world today is proving to be very dynamic. For that reason it is becoming hard to predict what the future holds and the risks that may be expected…
What each and every investment requires is to perform well and fetch good returns. This is made possible when the business or investment is able to consistently build and maintain a long term growth on capital. The FLCSX fund tries to meet this general requirement through the investment in large capitalization stocks across the world (Vishwanath, & Krishnamurti, 2009). These large capitalization companies are the companies that are firmly established and have a high return on their capital. The FLCSX fund maintains a massive 80% of its investments in these kinds of companies (Elton, 2010). In essence there are some benefits that are expected to be drawn from these kinds of companies which include security and lower risk as compared to the small and middle cap companies (Vishwanath, & Krishnamurti, 2009). However these companies may not offer good returns as compared to the middle and small cap companies when one invests in stocks, which are the main area of investment for the FLCSX fund. This fund also poses some possibility of risk due the investment in foreign stocks. Naturally the foreign stocks experience some difficulties especially in areas such as economic developments political state of the invested country among other factors (Vishwanath, & Krishnamurti, 2009). ...