Monthly Archives: July 2018

Blockchain Technology – 5 Amazing Facts

You might have heard about the Blockchain technology through its well-known benefit known as the cryptocurrency and now, we are here to know more about it through these 5 amazing facts!

  • It’s impregnable!

There is a powerful reason for these digital currencies to be glorified everywhere, which is the impregnable nature of the technology that produced them! Yes, to deal with these digital currencies, the respective entry has to be made into the system aka the Blockchain, which cannot be tampered by anyone, no matter how genius they are. It is because to tamper with an entry means modification of all other entries following it, which is mathematically an impossible process.

  • It’s Transparent

As stated earlier, anybody accessing the technology is expected to make their entry into the system, which means, all details are available to the concerned. A bonus news on this, the anonymous founder Satoshi Nakamoto mined the first-ever Block 0 in 2009, which contains the message “The Times 03/Jan/2009 Chancellor on brink of the second bailout for banks”. These transparent natures of the system, negates the success of the scammers and therefore, no wonder the experts highly favor the technology!

  • It’s not limited

The world got to know the powerful nature of the technology only through the cryptocurrency (Bitcoin) and it is only natural to limit the benefits of the technology to the digital currencies. But, fortunately, the technology’s benefits are unlimited such as running the smart contracts in the case of Ethereum, curbing the fraudulent electoral voting activities and so on that can offer great benefits to the humankind and their world, indisputably!

  • It’s growing very quickly

Although only 0.5% of the world’s population is using this technology, it is expected to grow massively to reach a market worth of $20 billion by 2024. The growth of its pioneer cryptocurrency Bitcoins serves as a proof to this statement, where more than 8 million Bitcoin accounts are in use today, astonishingly! Yes, since its inception in the year 2010, the Bitcoins were keeping on growing more than 100% per year to reach this at present favorable situation and therefore, understand how the favorable growth of its source aka the Blockchain technology could be in the future with all those varying benefits identified?

  • It’s decentralized yet, centralized

Well, don’t be confused before reading what we are about to say. In a ‘Public Blockchain’ all the users are allowed the access and therefore, it is decentralized in nature. Whereas in a ‘Private Blockchain’, the access is restricted to a group of members, and therefore, its ways are centralized!

Fund Management-A Broader Perspective

We live in an era where jobs are taken up not only as a means of the live hood, but also to satiate the passion to do things in a certain way. An exciting option to win over clients to manage their huge corpus funds interests many who have a keen interest in the financial service industry. The asset management is an industry which is anticipated to grow bigger, with trusted advisors the funds are invested in a different mix of investment tools, this is one industry which has scaled back rapidly after the financial crisis with more than a few trillion and an average growth of 6 %.

Types of funds

Broadly analyzing there are two types of funds:

Passive – they monitor the performance of large indices, where the client’s money is invested in the index tracker and then gets allocated to a different array of the portfolio in form of:

  • stock
  • bonds
  • sovereign wealth fund
  • ETF’s
  • Large pension funds among the other basket of fund allocations

The advantage of for the investors is that the fees charges are low and since the investment portfolio has more into long-term debt funds, the risk is minimal, though the turn over may not be very high. The indices like S& P 500 are tracked and then the funds are invested to get a good growth, on a consistent basis and advise the clients on the performances periodically by the fund managers. Exchange traded funds are tradable securities the prices of which fluctuate as the stocks in the stock markets. This type of market is more driven by the external factors and directly depends on the market performances.

Active- this is based more of how the equity markets perform, the Dow Jones industrial average is considered, it is more action-driven and highly volatile equity-based markets, the bond markets are also touched upon, here the investors are more interested in the brand and big players in the markets. The fees charged are considerably higher by the fund managers as the risk exposure is high and the switching if the funds are more frequent in this market.

The different investment terms and tenure are ways to high light how secure the fund is if invested in a bottom up or top down asset performing in the industry. Depending on the performance of the funds in certain sectors like power, manufacturing comes in the top-down category, while the rest including service and enabled services industry come in the bottom down a basket of investment options for clients based on how small or big their portfolio and amount invested in the markets.