C&B (u2 ip&db) Essay Example | Topics and Well Written Essays - 500 words

C&B (u2 ip&db) - Essay Example In addition, out-of-pocket expenses are likely to be less than they would be for other types of programs. Fourth, co-payments are very low or nothing. Fifth, anything that is not covered under Medicare may be available at a small fee or for nothing. Sixth, there is virtually no paperwork. Finally, â€Å"You will not need Medigap insurance to supplement your Medicare coverage because the plan provides you with all or most of the same benefits at no additional cost. Unlike Medigap insurers who in some cases can refuse to sell you a policy if you have a health problem, plans generally must accept all Medicare applicants† (U.S. Department of Health and Human Services, 2008). There are only a few disadvantages to the program, and given the chance, I would definitely enroll. This is mainly because I have gone so long without insurance that these benefits sound amazing to me. The only disadvantages I could find were that enrollees must use pre-determined, plan physicians, hospitals, or care providers; certain services require pre-approval from the enrollee’s primary care physician; and that it can take up to 30 days to leave the program if you so choose (U.S. Department of Health and Human Services). Medicare Managed Care. (2008). U.S. Department of Health and Human Services. Retrieved August 1, 2008, from http://www.pueblo.gsa.gov/cic_text/fed_prog/mm_care/medcare.htm#What%20are%20the%20Advantages Medicaid is a program that can make it possible for those who would not otherwise be able to afford healthcare coverage to obtain it, get healthy, and stay healthy. According to the Centers for Medicare and Medicaid Services (2008, pg. 1), â€Å"Medicaid is available only to certain low-income individuals and families who fit into an eligibility group that is recognized by federal and state law. Medicaid does not pay money to you; instead, it sends payments directly to your health care providers. Depending on your states

Effects of Rover Sell Off on the Financial Performance of BMW Case Study

Effects of Rover Sell Off on the Financial Performance of BMW - Case Study Example This is amidst the rising gross profit margin (16.04 to 16.28) from 1998 to 199 indicating that the company is trying to make higher profit by charging a higher mark-up. Asset turnover have also significantly declined from 1997 to 1999 reflecting the company's inability to manage assets as efficient as the previous years. In 1999, a dollar of the company's asset yields only $0.91 in total sales compared to the $1.11 in 1997. In terms of leverage, the three year span under consideration also sees the increasing dependence on debt as a major source of financing. Total debt as a percentage of total assets is 40.92% in 1999 which is significantly higher than the 34.34% and 36.75% reported in 1997 and 1998, respectively. BMW appeared satisfactory in terms of liquidity as its current assets can more than pay-off its immediate obligations. It current ratios are 1.33 in 1999, 1.09 in 1998, and 1.27 in 1997. However, the ballooning of accounts receivable is evidenced by the increasing percent age of receivables to current assets which peaked to 57.36% in 1999. Three years after the sell-off of Rover, BMW seem to fail in improving its financial position except its profitability. In fact, its computed financial ratios indicate further deterioration in terms of leverage, asset utilization, and liquidity.

Identity Formation and the Development of National Interest

Identity Formation and the Development of National Interest Constructivism Ideas, Identity and Foreign Policy In the analysis of international politics, the process of identity formation and how national interests are conceived should represent central issues, as they are inextricably linked to a states foreign policy. The importance of identities results from the fact that they perform two vital functions: expressing to the self and others who the self is, as well as expressing to the self who others are. Due to the first function, having a certain identity determines an associated set of preferences regarding the choices of action in various circumstances and when different actors are involved. That is why a states identity generates its interests and subsequent behaviour towards fellow members and situations related to the international system. The second function implies that a state perceives others according to the identities it attributes to them, while simultaneously reproducing its own identity through social interaction and practice (Tajfel, 1981:255). These notions have been conce ptualised and emphasised in IR theory by constructivist scholars, who argue that global politics originates not only in the international system but also in an international society. Constructivists stress the constitutive effects of ideas and norms that set the parameters within which identities and interests are formulated (Brown and Ainley, 2003:49). When studying inter-state relations, it has become essential to analyse how ideas are created, how they evolve and influence states perceptions and response to their situation. In order to achieve such an objective, constructivism plays a key role by promoting the tenet that the manner in which the material world shapes and is shaped by human action and interaction depends on dynamic normative and epistemic interpretations of the material world (Adler, 1997:322). From this perspective, constructivist frameworks show that even the most enduring institutions are based on collective understandings. Their important contribution to the st udy of IR lies mainly in emphasising the ontological reality of intersubjective knowledge, along with its epistemological and methodological implications. That is why constructivism argues international relations consist primarily of social facts, which have acquired such a status due to human agreement. They represent reified structures that were conceived ex nihilo by human consciousness, subsequently being diffused and consolidated until they were taken for granted (Adler, 1997:322-323). Constructivist scholars also believe that actors attach meanings to and cognitively frame the material world as well as their experiences. So collective understandings or the distribution of knowledge offer the reasons why certain elements are as they are, as well as the indications as to how actors should deploy their material capabilities (Wendt, 1992:397). One might deduce from the previous statement that the context of collective meanings structures the preferences and behaviour of political actors, which would suggest that constructivism features deterministic tendencies. On the contrary, its theoretical premises have a much more nuanced nature and the constructivist position within the agency-structure debate asserts that the two elements are mutually constitutive. Constructivism argues that meaningful conduct is possible only within an intersubjective social context, since agents develop relations with and understandings of others via ideas, norms and practices. In their absence, actions like the exercise of power would be devoid of meaning because ideas and norms have constitutive effects on identity, specifying the features that will enable others to recognise that identity and respond to it accordingly (Jepperson, Wendt and Katzenstein, 1996:54). In this process, agents exert their influence by consciously perpetuating and repro ducing the social context through their prolonged actions and practices. A significant point to remember is that structure becomes meaningless without some intersubjective set of ideas and norms, so neither anarchy nor the distribution of capabilities alone can socialise states to a particular conduct (Dessler, 1989:459-460). Until now the discussion of constructivism has mentioned several times the notions of constitutive effects or being mutually constitutive, but without describing more elaborately what they entail. The relation of constitution must be differentiated from that of causality, as constitutive theories enquire about the conditions which instantiate a phenomenon, rendering it possible. In this respect, Robert Cummins employs the concept of property theories because they have a different objective from causal explanations: to account for the properties of things by reference to the structures in virtue of which they exist (Cummins, 1983). Another key aspect of constitutive theorising refers to the fact that the counterfactual claim of necessity is conceptual or logical, not causal or natural (Wendt, 1998:106). For instance, the conditions constituting a phenomenon define what the latter is, which conveys a relationship of identity not causal determination. These two components are inextricab ly linked, so that when the conditions come into being, the phenomenon comes into being with them. By contrast, causal explanations rest on two different assumptions: the factors causing an event exist independently from their outcome and are also temporally prior to it. If one applies these theoretical assumptions to the context of ideas, several implications become immediately apparent. The significant role that ideas play in international relations is fully acknowledged only when we recognise their constitutive effects (Wendt, 1999:87). The relationship of constitution derives from the fact that ideas create political outcomes by shaping their properties, meanings, perceptions or interpretations. These are in turn dependent on their ideational source, they exist only in virtue of those ideas terrorism cannot be conceived apart from a national security discourse that defines it. The national security discourse is in turn inextricably linked to constructing a notion of terrorism, since without it the concept would be meaningless. When analysing foreign policy, dominant schools of thought in IR theory usually ignore ideas and identity or regard them as intervening variables at best, helping to account for outcomes which surpass the explanatory abilities of traditional materialist factors like power and interests. The approach in question is problematic as it does not encompass fully the ideational impact ideas in fact create materialist causes. The bottom line of what becomes most contested in the materialist-idealist debate is the relative contribution of brute material forces to power and interest explanations as opposed to ideas (Wendt, 1999:94). At this point it might be useful to consider briefly the traditional view of materialism which originates in Marxism. The classical Marxist dichotomy portrays the material base as the mode of production, while culture, ideology and other ideational factors belong to a non-material superstructure. Wendt believes the same principles can be extended and applied to re alism; after all, modes of destruction are as basic as modes of production (Wendt, 1999:94). Both instances contain a crucial issue, namely that ideational factors become completely separated from economic and military considerations. Here D.V. Porpora noted a conceptual contradiction, considering the fact that Marxism defines the modes of production not only via forces, but also via relations of production. Relations represent ideational phenomena embodied by institutions that ultimately refer to shared norms (Porpora, 1993:214). The obvious implication points to the fact that the material base of Marxism is actually infused with ideas and norms, which also reveals their constitutive role concerning materialism generally To further reinforce such an argument, it is necessary to challenge the conventional materialist view of interests by acknowledging their nature interests are actually cognitions or ideas. This perspective has been promoted by two distinct fields of knowledge and their associated scholars: cultural anthropology and philosophy. Drawing on cognitive psychology, the anthropologist R.G. DAndrade (1992:28) sees interests, desires or motivations as schemas (frames, representations, ideas), which reflect knowledge structures that make possible the identification of objects and events. A significant aspect to remember is that schemas are not given by human nature. DAndrade (1992:31) admits that some interests can be rooted in biological drives which alludes to their material nature, but biology fails to explain most of the goals human beings seem capable of pursuing and these are learned through socialisation. In this sense, the anthropologist offers the example of an interest for achievem ent: it implies a social standard about what counts as a legitimate aspiration and the individuals desiring to achieve have internalised that standard as a cognitive schema (DAndrade, 1992:35). A very similar opinion has been advanced by R.B.K. Howe who draws on philosophy to articulate a cognitive theory of interest or desire. He too acknowledges that biological mechanisms influence interests, yet even very primitive desires are mostly directionless and depend on beliefs or ideas about what is desirable to render them meaningful (Howe, 1994). That is why ideas play a key role in defining and directing material needs; one perceives a goal as valuable, which in turn determines ones interest in accomplishing it. These perceptions are learned sometimes by interacting with nature which resonates with materialist factors, but mostly they are learned through socialisation to culture an inherently idealist phenomenon (Howe, 1994). Consequently, having reached similar conclusions starting from different premises, scholars in cultural anthropology and philosophy identify the cognitive basis of interests, or that ideas and not material drives create interests to a great extent. In foreign policy analysis, the concept of national interest has been accorded considerably more explanatory ability compared to other variables, particularly due to the influence of the classical realist and neorealist frameworks. However, is its nature inherently materialist and objective as the realist school of thought would have one believe? Or does it rather represent the product and construct of different interpretation processes, in which case ideas and identity become essential? The neorealist approach to international relations rests on the assumptions that the distribution of material capability in the states system can be objectively assessed and that threats to national interests can be accurately recognised. Such a perspective largely ignores that threats are not self-evident and the national interest, when confronted with a problematic situation, becomes a matter of interpretation (Weldes, 1996:279), hence the significant influence of ideas and identity. Moreover, cons tructivism convincingly challenges the objective and materialist view of realism concerning national interests, reintroducing the crucial role of ideas and identity. It does so by promoting the tenet that people act towards objects, including other actors, on the basis of the meanings that the objects have for them (Wendt, 1992:396-397). Wendts work has had a fundamental contribution in reconceptualising the national interest as the product of intersubjective processes of meaning creation. Nevertheless, consistent with the neorealist tradition, he regards states through the black box metaphor, their internal processes being irrelevant to the construction of state identities and interests. Wendt (1992:401) argues that the meanings which states attach to phenomena and subsequently their interests and identities are shaped via inter-state interaction. This does reflect an important facet of identity formation, but also neglects the historical and political contexts in which national in terests are deeply embedded, because the interpretations defining state interests cannot be restricted to the meanings and ideas generated by inter-state interaction. After all, any state is inextricably linked to the domestic actors that take decisions in its name. These agents do internalise the norms characterising the international environment, yet they also approach politics with an already formed appreciation of the world, the international system and the position of their state within it (Weldes, 1996:280). The national actors ideas and interpretation of all these issues stem partly from domestic political and cultural contexts. As Antonio Gramsci (1971:112) noted, civil society is the sphere in which the struggle to define the categories of common sense takes place. After revealing interests as expressions of ideas, one might advance the counterargument that such a conceptualisation applies only to individuals, becoming irrelevant in the case of states and the international system. The latter brings forward another essential point of this paper, which argues that states articulate a constructed collective identity that influences what they perceive their interests to be. It is best shown when taking into account the example of foreign policy, a domain in which various actors make decisions according to their ideas and perceptions of the national interest. Following the collapse of the communist regime, Romania and its political leaders were faced with the opportunity to choose the appropriate future course for the emerging democracy. Their decision was to actively pursue a transformation for the new state, seeking to create a collective identity with the West. But before proceeding with the empirical discussion, it has become imperative to defin e and conceptualise one of its central notions identity. This context particularly deals with state identity because it represents the most relevant instance for analysing foreign policy. In the philosophical sense, identity can be defined as whatever makes an entity what it is, although such a definition is too broad to render the concept meaningful. That is why, for analytical purposes and conceptual utility, identity will be understood using a two-faceted definition. On the one hand, it can be regarded as a property of intentional actors that generates motivational and behavioural dispositions (Wendt, 1999:224). On the other hand, identity cannot be conceived without recognising that which is like, other and simultaneously like and other, or without an understanding of the self which comes from this recognition (Norton cited by Campbell, 1992: 78-79). Both facets of the definition suggest that identity contains at base a subjective or unit-level quality rooted in an actors self- understandings. Their meaning will often depend on whether others represent that actor in the same way, a feature which configures the inter-subjective quality of identity (Wendt, 1999:225). Even a simple example can illustrate the point in a more enlightening manner: Helen might think she is a lecturer but if that belief is not shared by her colleagues and students, then her identity will not operate in their interaction. In other words, both internal and external structures constitute an identity and it takes form under two types of ideas: those held by the Self and those held by the Other. The character of this internal-external relationship varies, which leads to the existence of several kinds of identity, rather than one unitary phenomenon susceptible to a general definition. Building on the work of James Fearon (1999), a typology that features several kinds of identity will be presented here, all inextricably linked and feeding into each other: personal and social, type, role, corporate and collective. First, personal identity is constituted by the self-organising, homeostatic structures that make actors distinct entities (Greenwood, 1994). These structures have a material base represented by the human body, as well as a social component. The latter points to a set of attributes, beliefs, desires, or principles of action that a person thinks distinguish her in socially relevant ways and that (a) the person takes a special pride in; (b) the person takes no special pride in, but which so orient her behavior that she would be at a loss about how to act and what to do without them; or (c) the person feels she could not change even if she wanted to (Fearon, 1999:25). What differentiates the personal identity of intentional actors from that of other entities is a consciousness and memory of Self as a separate locus of thought and activity (Wendt, 1999:225). It cannot be denied that people constitute distinct entities in virtue of biology, but without consciousness and memory a sense of I they are not agents. This aspect resonates even more in the case of a state, since its people must have a common narrative of themselves as a corporate actor. Therefore, the state itself might be considered a group Self capable of group-level recognition (Wilson and Sober, 1994:602). In the former, an identity is just a social category, a group of people designated by a label (or labels) that is commonly used either by the people designated, others, or both. This is the sense employed when we refer to American, French, Muslim, father, homosexual, (p.10) National identities, like American or Russian, are examples of type identities. There are almost no contexts in which it would make sense to speak of the the role of an American, except in a theatre play where role means part. Other social categories that are almost wholly type identities include party a_liation (e.g., Democrat or Republican), sexual identity (heterosexual, homosexual, bisexual, etc.), and ethnic identity. Some identities or social categories involve both role and type. For example, mother is a role, but nonetheless we expect certain beliefs, attitudes, values, preferences, moral virtues, and so on, to be characteristic of people performing the role of mother (understandings that may change through time.) On the other hand, some role identities, which mainly but not exclusively comprise occupational categories, have few if any type features associated with them (for example, toll booth collector). Lastly, collective identity brings the Self-Other relationship to another stage and its logical conclusion identification. The latter represents a cognitive process in which the distinction between the two becomes blurred and sometimes even transcended, namely Self is categorised as Other. Identification tends to be issue specific and always involves extending the boundaries of the Self to include the Other. In this respect, collective identity uses both role and type ones and at the same time goes beyond their limits. It builds on role identities since both depend on the mechanism of incorporating the Other into the Self, which generates a socially constituted Me. The essential difference refers to their contrasting objectives: role identities use the mechanism to enable the Self and Other to play distinct roles, whereas a collective identity aims to merge the two entities into a single one. In the case of type identities, the situation is slightly more complicated. Collective iden tity builds on them as both require shared characteristics, but not all type identities are collective because not all involve the identification process Especially over the past decade, the discipline of IR has experienced what Yosef Lapid and Friedrich Kratochwil (1996) called the return of culture and identity in IR theory. The 1950s and 1960s had brought for IR scholars an intense preoccupation with the role of national identities, particularly in the context of early EU integration studies by Karl Deutsch and Ernst Haas. Unfortunately, later on the concept became once again marginalised in favour of more objective and scientific approaches like neorealism and rational choice. The recent return of identity does not necessarily imply that the current use of the term may be considered equivalent to that of the 1950s-1960s. Rather, since the late 1980s, a new strand of theory regarding identity has emerged and slowly developed, which rejects essentialist notions while emphasising the constructed nature of social and political identities (see for example McSweeney, 1999; Albert et al., 2001). One of the works that is most often cited when discussing the relationship between state identity and foreign policy is that of David Campbell. In his 1992 book Writing security, he challenges the traditional narrative of asking how foreign policy serves the national interest and instead examines how the practice of foreign policy helps write and rewrite state identity. According to Campbell Danger is not an objective condition. It is not a thing which exists independently of those to whom it may become a threat (Campbell 1992: 1). As danger is an effect of interpretation (Ibid: 2), nothing is more or less dangerous than something else, except when interpreted as such. In terms of the non-essentialistic character of danger, the objectification and externalization of danger need to be understood as an effect of political practices rather than the condition of their possibility. As danger is never objective, Campbells argument continues, neither is the identity which it is said to threaten. Rather, the contours of this identity are subject to constant (re)writing, and foreign policy is an integral part of the discourses of danger which serve to discipline the state. Campbells theory a declared challenge to conventional approaches which assume a settled nature of identity is thus that state identity can be understood as the outcome of practices assoc iated with a discourse of danger. We speak about the foreign policy of the state x or state y, thereby indicating that the state is prior to the policy, but Campbells creative insights come to challenge such a position. He explains that national states are paradoxical entities which do not possess prediscursive stable identities (Ibid: 11). As states are always in the process of becoming, for a state to end its practices of representation would be to expose its lack of prediscursive foundations'(Ibid: 11). Ironically, the inability of the state project of security to succeed is the guarantor of the states continued success as an impelling identity. The constant articulation of danger through foreign policy is thus not a threat to a states identity or existence: it is its condition of possibility'( Ibid: 12). Building on such theoretical understanding, this paper offers an account of the processes through which Romanian state identity and its insecurities are produced, reproduced, and potentially transformed.

Free College Essays - Anger in the Work of D. H. Lawrence :: Biography Biographies Essays

Anger in the Work of D. H. Lawrence D. H. Lawrence was probably a very angry man. His writings are full of extremely intense feelings of anger and hate which do not seem to belong. This anger is usually connected to love, but can be classified by what other emotions it is also linked to. For example, in "Second Best," there is no real reason for Anne to feel great fury, yet she does towards the mole. Anne somehow equates the mole with a barrier to her success in love, so she hates it. In "The Shadow in the Rose Garden," the intense anger is connected to jealousy. The husband is extremely jealous of his wife's prior involvement with Archie. In "The White Stocking," the anger is also associated with jealousy. Ted does not like the fact that Elsie has been accepting gifts from Sam Adams. The sisters in "The Christening" have intense resentment towards their youngest sister Emma, who ruined the family reputation. This translates into anger directed at her and the world in general. Lastly, the title character and the Orderl y in "The Prussian Officer" have a love-hate relationship, except one hates, the other loves. The Orderly, as recipient of unwanted love, feels great resentment and anger towards the Officer, so much so that he kills him. Lawrence uses anger as an all-purpose front for and manifestation of deeper negative feelings. For this reason, the anger often seems unnecessary and out of place. Its common occurrence, however, allows us to treat it as a motif. In all of the stories above listed, there are characters involved in intensive love relationships. In "Second Best," "Shadow" and "Stocking," there are either married couples, or soon to be. "The Christening" has a family, and "The Prussian Officer" involves a gay officer. There is something dysfunctional about all of these relationships, however, and the anger exposes it. There is no reason for anger if there is not something wrong, so we know that there is underlying unrest in, Ted and Elsie's marriage, for example. The anger is supposed to hint at trouble, then it is up to the reader to discern from clues in the rest of the text the particular irregularity in the story. In "Shadow" and "Stocking" the anger is among husbands and wives. The two stories are basically equivalent in message and structure: wife has hidden secret from husband, husband finds out, responds with jealous rage. Free College Essays - Anger in the Work of D. H. Lawrence :: Biography Biographies Essays Anger in the Work of D. H. Lawrence D. H. Lawrence was probably a very angry man. His writings are full of extremely intense feelings of anger and hate which do not seem to belong. This anger is usually connected to love, but can be classified by what other emotions it is also linked to. For example, in "Second Best," there is no real reason for Anne to feel great fury, yet she does towards the mole. Anne somehow equates the mole with a barrier to her success in love, so she hates it. In "The Shadow in the Rose Garden," the intense anger is connected to jealousy. The husband is extremely jealous of his wife's prior involvement with Archie. In "The White Stocking," the anger is also associated with jealousy. Ted does not like the fact that Elsie has been accepting gifts from Sam Adams. The sisters in "The Christening" have intense resentment towards their youngest sister Emma, who ruined the family reputation. This translates into anger directed at her and the world in general. Lastly, the title character and the Orderl y in "The Prussian Officer" have a love-hate relationship, except one hates, the other loves. The Orderly, as recipient of unwanted love, feels great resentment and anger towards the Officer, so much so that he kills him. Lawrence uses anger as an all-purpose front for and manifestation of deeper negative feelings. For this reason, the anger often seems unnecessary and out of place. Its common occurrence, however, allows us to treat it as a motif. In all of the stories above listed, there are characters involved in intensive love relationships. In "Second Best," "Shadow" and "Stocking," there are either married couples, or soon to be. "The Christening" has a family, and "The Prussian Officer" involves a gay officer. There is something dysfunctional about all of these relationships, however, and the anger exposes it. There is no reason for anger if there is not something wrong, so we know that there is underlying unrest in, Ted and Elsie's marriage, for example. The anger is supposed to hint at trouble, then it is up to the reader to discern from clues in the rest of the text the particular irregularity in the story. In "Shadow" and "Stocking" the anger is among husbands and wives. The two stories are basically equivalent in message and structure: wife has hidden secret from husband, husband finds out, responds with jealous rage.

Investment Analysis and Portfolio Management

EXECUTIVE SUMMARY In an economy, people indulge in economic activity to support their consumption requirements. Savings arise from deferred consumption, to be invested, in anticipation of future returns. Investments could be made into financial assets, like stocks, bonds, and similar instruments or into real assets, like houses, land, or commodities. The aim of Portfolio Manager is to provide a brief overview of three aspects of investment: * The various options available to an investor in financial instruments. The tools used in modern finance to optimally manage the financial portfolio. * Lastly the professional asset management industry as it exists today. Returns more often than not differ across their risk profiles, generally rising with the expected risk, i. e. , higher the returns, higher the risk. The underlying objective of portfolio management is therefore to create a balance between the trade-off of returns and risk across multiple asset classes. Portfolio management is th e art of managing the expected return requirement for the corresponding risk tolerance.Simply put, a good portfolio manager’s objective is to maximize the return subject to the risk-tolerance level or to achieve a pre-specified level of return with minimum risk. 1. Investment and Its objectives Mini Content 2. 1 Define Investment 2. 2 Defining Investment Objectives 2. 3 Goals and Needs 2. 4 Types of investors 2. 5 Investment Process 2. 6 Investments available in India Define Investment Investment is putting money into something with the expectation of gain that upon thorough analysis has a high degree of security for the principal amount, as well as security of return, within an expected period of time. . The action or process of investing money for profit or material result. 2. Two main classes of investment are (i)  Fixed income investment  such as  bonds,  fixed deposits,  preference shares, and (ii)  Variable  income investment such as  business  ownersh ip  (equities), or property ownership. In  economics, investment  means  creation of  capital  or  goods  capable of  producing  other goods or  services. Expenditure  on  education  and  health  is recognized as an investment in  human capital, and  research and development  in  intellectual capital. Return on investment (ROI)  is a key  measure  of an  organization's  performance.DEFINING YOUR INVESTMENT OBJECTIVES: Investing wisely is a function of your speci? c needs and goals. Each investor has different objectives that need to be met depending on age, income, planned activities, and attitudes about risk. How can you work with your investment advisor to best determine which investments are right for you? Among the important factors to consider are personal status, plans, and constraints. Some of the issues that you and your advisor should consider in de? ning the objectives that are right for you are listed below. Goals and Need s: You may have speci? goals and requirements that you want your investment portfolio to ful? ll. For example, you may be funding college for children, business expansion, travel plans, or retirement needs. You should identify these goals and needs clearly with your investment advisor so that his or her recommendations for your portfolio can assist you in meeting them. Age: Your age is an important consideration when deciding how much risk to assume. Portfolio assets that are riskier and that will ? uctuate more over time may be appropriate for younger investors but not for others.An individual who does not expect to liquidate the assets in his or her portfolio for a number of years has more time to recover from a market downturn, while an investor close to retirement may be more likely to prefer stable assets and capital preservation. Age also affects the choice between income-earning securities and those oriented toward capital gains. An investor who is employed and near peak earn ing power will probably want to minimize paying taxes, and will therefore lean toward investments that do not provide current income. Income :Both your absolute income level and your income requirements in? uence your investment objectives in several ways. First, income, like age, in? uences the choice between dividend-paying or interest-paying investments, and those whose primary return is in the form of capital gains. You may prefer income-producing investments if you need to supplement or replace earned income. Your income level also affects your investment choices because it determines your tax rate. Low-tax-bracket investors — generally those whose income is lower — will be more likely to prefer income-producing investments.High-tax-rate investors are more likely to choose tax-deferred or tax-sheltered assets. Income also may in? uence risk preferences. High income investors may be more willing to choose higher risk investments since they can more easily contribut e additional investment capital should they sustain losses. Taxes Your after-tax return is the return that matters. You should fully inform your investment advisor about your tax rate and any special tax circumstances that might apply to you. This will determine whether you should seek tax exempt or tax-sheltered securities as a part of your portfolio.The appropriateness of income or capital gains should be discussed in the context of your personal situation, so you may want your investment advisor to consult with your accountant. Occupation Your occupation also can affect portfolio objectives. Some professions produce more stable incomes than others, enabling the investor to tolerate more investment ? uctuations. Your profession also may determine other assets. For example, does your job provide an adequate retirement plan, or must you fund your retirement from your investment portfolio?If your employer provides a stock-purchase plan, this may be a substantial part of your personal wealth, and you should consider it as a diversi? cation issue when you make other portfolio choices. If you receive tax-quali? ed or tax-deferred assets from your job, these also will in? uence your investment decisions. Wealth Investment objectives should take into consideration the assets you hold outside the portfolio. For example, if you have substantial equity in your home, you may want to minimize real estate holdings in your ? nancial assets, or you may need to consider a different type of real estate asset.If you hold illiquid assets, then new investments may emphasize liquidity. The value of your existing assets will probably affect your tolerance for risk. In addition, your level of wealth has probably in? uenced your lifestyle. Maintaining a desired lifestyle into retirement and throughout will need to be factored into your investment objectives. Time Horizon An important consideration in setting investment objectives is your time horizon. When do you expect to liquidate a portfolio? Should you choose assets of short or long maturity?Do you have time to recover from a declining market, or is capital preservation important to meet an immediate ? nancial need? Liquidity Liquidity is the ease with which you can convert your assets to cash at fair market value. It is essential that you recognize the need to convert your assets into cash at the appropriate times. Do you require a portfolio that can be liquidated easily, or can you afford to wait? Since greater liquidity generally results in lower return, it is necessary to give serious consideration to the inherent tradeoffs. Tolerance for Risk Your tolerance for risk is a very personal decision, and a question that is dif? ult for many investors to answer. In general, markets tend to provide higher returns in exchange for bearing higher risks. Often you will ? nd that the investments with the highest long-term returns are very volatile in the short run. It is important to be honest with yourself in ass essing whether you are comfortable with market volatility, and the level you can tolerate. While it is easy in hindsight to wish you had invested in a risky segment of the market that has performed well recently, a more realistic view is to look forward at the risk that might occur in the future. Other Special CircumstancesAre there other considerations of which your advisor should be aware? Consider here any special needs, goals, or problems you have not already addressed. Types of investors There is wide diversity among investors, depending on their investment styles, mandates, horizons, and assets under management. Primarily, investors are either individuals,in that they invest for themselves or institutions, where they invest on behalf of others. Risk appetites and return requirements greatly vary across investor classes and are key determinants of the investing styles and strategies followed as also the constraints faced.A quick look at the broad groups of investors in the mark et illustrates the point. Individuals While in terms of numbers, individuals comprise the single largest group in most markets, the size of the portfolio of each investor is usually quite small. Individuals differ across their risk appetite and return requirements. Those averse to risk in their portfolios would be inclined towards safe investments like Government securities and bank deposits, while others may be risk takers who would like to invest and / or speculate in the equity markets.Requirements of individuals also evolve according to their life-cycle positioning. For example, in India, an individual in the 25-35 years age group may plan for purchase of a house and vehicle, an individual belonging to the age group of 35-45 years may plan for children’s education and children’s marriage, an individual in his or her fifties would be planning for post-retirement life. The investment portfolio then changes depending on the capital needed for these requirements. Insti tutionsInstitutional investors comprise the largest active group in the financial markets. As mentioned earlier, institutions are representative organizations, i. e. , they invest capital on behalf of others, like individuals or other institutions. Assets under management are generally large and managed professionally by fund managers. Examples of such organizations are mutual funds, pension funds, insurance companies, hedge funds, endowment funds, banks, private equity and venture capital firms and other financial institutions. We briefly describe some of them here. Mutual fundsIndividuals are usually constrained either by resources or by limits to their knowledge of the investment outlook of various financial assets (or both) and the difficulty of keeping abreast of changes taking place in a rapidly changing economic environment. Given the small portfolio size to manage, it may not be optimal for an individual to spend his or her time analyzing various possible investment strategi es and devise investment plans and strategies accordingly. Instead, they could rely on professionals who possess the necessary expertise to manage their funds within a broad, pre-specified plan.Mutual funds pool investors’ money and invest according to pre-specified, broad parameters. These funds are managed and operated by professionals whose remunerations are linked to the performance of the funds. The profit or capital gain from the funds, after paying the management fees and commission is distributed among the individual investors in proportion to their holdings in the fund. Mutual funds vary greatly, depending on their investment objectives, the set of asset classes they invest in, and the overall strategy they adopt towards investments. Pension fundsPension funds are created (either by employers or employee unions) to manage the retirement funds of the employees of companies or the Government. Funds are contributed by the employers and employees during the working life of the employees and the objective is to provide benefits to the employees post their retirement. The management of pension funds may be in-house or through some financial intermediary. Pension funds of large organizations are usually very large and form a substantial investor group for various financial instruments. Endowment fundsEndowment funds are generally non-profit organizations that manage funds to generate a steady return to help them fulfill their investment objectives. Endowment funds are usually initiated by a non-refundable capital contribution. The contributor generally specifies the purpose (specific or general) and appoints trustees’ to manage the funds. Such funds are usually managed by charitable organizations, educational organization, non-Government organizations, etc. The investment policy of endowment funds needs to be approved by the trustees of the funds. Insurance companies (Life and Non-life)Insurance companies, both life and non-life, hold large por tfolios from premiums contributed by policyholders to policies that these companies underwrite. There are many different kinds of insurance policies and the premiums differ accordingly. For example, unlike term insurance, assurance or endowment policies ensure a return of capital to the policyholder on maturity, along with the death benefits. The premium for such policies may be higher than term policies. The investment strategy of insurance companies depends on actuarial estimates of timing and amount of future claims.Insurance companies are generally conservative in their attitude towards risks and their asset investments are geared towards meeting current cash flow needs as well as meeting perceived future liabilities. Banks Assets of banks consist mainly of loans to businesses and consumers and their liabilities comprise of various forms of deposits from consumers. Their main source of income is from what is called as the interest rate spread, which is the difference between the lending rate (rate at which banks earn) and the deposit rate (rate at which banks pay).Banks generally do not lend 100% of their deposits. They are statutorily required to maintain a certain portion of the deposits as cash and another portion in the form of liquid and safe assets (generally Government securities), which yield a lower rate of return. These requirements, known as the Cash Reserve Ratio (CRR ratio) and Statutory Liquidity Ratio (SLR ratio) in India, are stipulated by the Reserve Bank of India and banks need to adhere to them. In addition to the broad categories mentioned above, investors in the markets are also classified based on the objectives with which they trade.Under this classification, there are hedgers, speculators and arbitrageurs. Hedgers invest to provide a cover for risks on a portfolio they already hold, speculators take additional risks to earn supernormal returns and arbitrageurs take simultaneous positions (say in two equivalent assets or same asset i n two different markets etc. ) to earn riskless profits arising out of the price differential if they exist. Another category of investors include day-traders who trade in order to profit from intra-day price changes.They generally take a position at the beginning of the trading session and square off their position later during the day, ensuring that they do not carry any open position to the next trading day. Traders in the markets not only invest directly in securities in the so called cash markets, they also invest in derivatives, instruments that derive their value from the underlying securities. Types of investment in Indian Financial Market Banking SectorIntroductionThe Reserve Bank of India (RBI) is India's central bank.Though the banking industry is currently dominated by public sector banks, numerous private and foreign banks exist. India's government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India.During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process. As far as the present scenario is concerned the banking industry is in a transition phase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology.On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India. Induslnd Bank was the first private bank to be set up in India.IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank etc are some foreign banks operating in India. Private and foreign banksThe RBI has granted operating approval to a few privately own ed domestic banks; of these many commenced banking business.Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. RBI bankingThe Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 5 foreign banks operate in India with full banking licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. Some of its main objectives are regulating the issue of bank notes, managing India's foreign excha nge reserves, operating India's currency and credit system with a view to securing monetary stability and developing India's financial structure in line with national socio-economic objectives and policies. Indian banking systemThe banking system has three tiers.These are the scheduled commercial banks; the regional rural banks which operate in rural areas not covered by the scheduled banks; and the cooperative and special purpose rural banks. Scheduled and non scheduled banksThere are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.RBI restrictionsThe Reserve Bank of India lays down restrictions on bank lending and other activities with large companies. These restrictions, popular ly known as â€Å"consortium guidelines† seem to have outlived their usefulness, because they hinder the availability of credit to the non-food sector and at the same time do not foster competition between banks. Indian vs. Foreign banksMost Indian banks are well behind foreign banks in the areas of customer funds transfer and clearing systems. They are hugely over-staffed and are unlikely to be able to compete with the new private banks that are now entering the market.While these new banks and foreign banks still face restrictions in their activities, they are well-capitalized, use modern equipment and attract high-caliber employees. Grey futureOne more reason being the opacity of the The Reserve Bank of India. This does not mean a forecast of doom for the Indian banking sector the kind that has washed out south east Asia. And also not because Indian banks are healthy. We still have no clue about the real non-performing assets of financial institutions and banks. Many banks are now listed. That puts additional responsibility of sharing information.It is now clear that it was the financial sector that caused the sensational meltdown of some Asian nations. India is not Thailand, Indonesia and Korea. Borrowed investment in property in India is low and property prices have already fallen, letting out steam gently. Our micro-meltdown has already been happening. | Bank Deposit Schemes * Bank Deposit Schemes for Resident Indians * Bank Deposit Schemes for Non Resident IndiansBank deposits are preferred more for their  liquidity and safety  than for the returns thereon. Various banking and other facilities that one gets by opening a bank account viz.ATM cards, ATM-cum-Debit cards, Credit Cards, On-line / Internet banking, collection / realization of cheques and other instruments, safe deposit lockers, better customer service etc. are also a major reason in favour of bank deposits vis-a-vis other options. The deposit accounts offered by banks fall broadly under following categories :Bank Deposit Schemes for Resident IndiansFollowing deposit accounts are offered by banks to Resident Indians: * Savings Bank Accounts:  These accounts are opened for savings, liquidity and safety of funds and convenience in making day to day expenses and also earning some interest income.These accounts inculcate the habit of thrift in account holders. View salient features of Savings Bank accounts. * Current Accounts:  These accounts are opened for liquidity and safety of funds and for meeting day to day expenses. Current accounts are opened and maintained primarily by business and commercial organizations. No income is earned on these deposits. Individuals usually open these accounts for availing overdraft facility as overdraft facility is not available in Savings Bank accounts. View salient features of  Current Accounts. * Recurring Deposit Accounts:  These accounts are opened for saving purpose only.Some fixed amount is deposited at monthly int ervals for a pre-fixed term. These accounts generally earn higher interest than Savings Bank Accounts. View salient features of  Recurring Deposit accounts  in banks. * Fixed Deposit or Term Deposit Accounts:  These accounts are opened for investing funds for fixed terms to earn higher interests. Usually deposit for a longer period of time earns higher Interest Rate. The account holders have option of getting periodic payment of interest at monthly/quarterly intervals or re-investing the interest to be paid on maturity with the principal.View salient features of  Term / Fixed Deposit Accounts  in banks. * Special Bank Term Deposit Scheme – Bank Deposit Scheme under section 80C:  This is the only  Tax Saving Scheme  available with banks. The accounts opened under this scheme are eligible for  relief under Section 80C  of the Income Tax, Act. View salient features of  Bank Deposit Scheme for tax saving. Bank Deposit Schemes for Non-Resident IndiansFollowin g deposit accounts are offered by banks to Non Resident Indians: * Non-Resident External (NRE) Accounts:  These Accounts can be opened by Non Resident Indians individually or jointly with other Non Resident Indian(s).The accounts can be opened in Savings Bank, Current Account, Term/Fixed Deposit with monthly/quarterly interest payment or Term/Fixed Deposit with interest reinvestment types. The account holders can grant Power of Attorney to Resident Indians to operate upon their Savings Bank or Current Accounts. The accounts are maintained in Indian Rupees. View salient features of  NRE Accounts * * Foreign Currency Non Resident (FCNR) Accounts:  These Accounts can be opened by Non Resident Indians individually or jointly with other Non Resident Indian(s).The accounts can be opened as Term/Fixed Deposit with the option of monthly/quarterly Interest payment or of re-investing the interest for payment on maturity with the principal. The accounts are maintained in foreign currenci es viz. US Dollars, Euros, Sterling Pounds, Canadian Dollars, Australian Dollars and Japanese Yen. View salient features of  FCNR accounts. * Non-Resident Ordinary (NRO) Accounts:  These accounts can be opened by Non Resident Indians individually or jointly with other Non Resident or Resident Indian(s). These accounts can also be opened by Resident Indians by foreign inward remittance.The accounts are maintained in Indian Rupees. View salient features of  NRO Accounts. Mutual fundsMutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund  issues units to the investors in accordance with quantum o f money invested by them.Investors of mutual funds are known as  unit holders. The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. Schemes according to Maturity Period:A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.Open-ended Fund/ SchemeAn open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity. Close-ended Fund/ SchemeA close-ended fund or scheme has a stipulated maturity period e. g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme.Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i. e. either repurchase facility or through listing on stock exchanges.These mutual funds schemes disclose NAV generally on weekly basis. Schemes according to Investment Objective:A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:Growth / Equity Oriented SchemeThe aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities.Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented SchemeThe aim of income funds is to provide regular and steady income to investors.Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market ins truments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The  NAVs  of such funds are affected because of change in interest rates in the country. If the interest rates fall,  NAVs  of such funds are likely to increase in the short run and vice versa.However, long term investors may not bother about these fluctuations. Balanced FundThe aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However,  NAVs  of such funds are likely to be less volatile compared to pure equi ty funds.Money Market or Liquid FundThese funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Gilt FundThese funds invest exclusively in government securities.Government securities have no default risk. NAVs  of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. Index FundsIndex Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S;P NSE 50 index (Nifty), etc These schemes invest in the securities in the same  weightageà ‚  comprising of an index. NAVs  of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as â€Å"tracking error† in technical terms.Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges. Postal savings| Postal Services in India India possesses the largest postal network in the world with 154,866  post offices, of which 139,040 (89. 78%) are in rural areas and 15,826 (10. 22%) are in urban areas. It has 25,464 departmental PO s and 129,402 ED BPOs. spread all over the country . Post offices in India play a vital role in the rural areas.They connect these rural areas with the rest of the country and also provide banking facilities in the absence of banks in the rural areas. Post Offices offer various types of schemes. These are : * Monthly Income Scheme * National Savings Certificate * Public Provident Fund * Time Deposit Scheme * Senior Citizen’s Saving Scheme * Saving Account Monthly Income Scheme (MIS) This scheme appeals to conservative investors with traditional values, and for good reason. This scheme offers monthly income and is a safe, guaranteed-by-the-government option. For retirees, widows and others looking or a steady income, it can be ideal. Read on to learn more. The Post Office Monthly Income Scheme, or PO MIS, is offered by Indian Post Offices. A lump sum amount is deposited with the post office and monthly interest earned each month is paid out to you. As the scheme is offered by post offices, it is backed by the government. Thus, the PO MIS is one of the safest investments available. Salient Features: * Interest rate of 8. 5% per annum payable monthly w. e. f. 01. 04. 2012 * Maturity period is 5 years. * No Bonus on Maturity w. e. f. 01. 12. 2011. * No tax deduction at source (TDS ). * No tax rebate is applicable. Minimum investment amount is Rs. 1500/- or in multiple thereafter. * Maximum amount is Rs. 4. 50 lakhs in a single account and Rs. 9 lakhs in a joint account. * Auto credit facility of monthly interest to saving account if accounts are at the same post office. * Account can be opened by an individual, two/three adults jointly, and a minor through a guardian. * Non-Resident Indian / HUF cannot open an Account. * Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian. * Facility of premature closure of account after 1 year but on or before 3 years @ 2. 0% discount. * Deduction of 1% if account is closed prematurely at any time after three years. * Suitable scheme for retired employees/ senior citizens and for those who need regular monthly income. National Saving Certificate (NSC) National Savings Certificates (NSC) are certificates issued by Department of post, Government of India and are avai lable at all post office counters in the country. This scheme is specially designed for Government employees, Businessmen and other salaried classes who are IT assesses. It is a long term safe savings option for the investor.Trust and HUF cannot invest. The scheme combines growth in money with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 5 years. Salient Features: * NSC VIII Issue (5 years) – Interest rate of 8. 6% per annum w. e. f. 01. 04. 2012 * NSC IX Issue (10 years) – Interest rate of 8. 9% per annum w. e. f. 01. 04. 2012 * Minimum investment Rs. 100/-. No maximum limit for investment. * No tax deduction at source. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under NSC – section 80C of IT Act. Certificates can be kept as collateral security to get loan from banks. * Trust and HUF cannot invest. * A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. * The interest accruing annually but deemed to be reinvested will also qualify for deduction under NSC – section 80C of IT Act. Public Provident Fund (PPF) Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them.The balances in PPF account cannot be attached by any authority normally. Salient Features: * Interest rate of 8. 8% per annum w. e. f. 01. 04. 2012. * Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,00,000/- per annum * The scheme is for 15 years. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest is completely tax-free. * Deposits can be made in lumpsum or in 12 installments. * One deposit with a minimum amount of Rs 500/- is mandatory in each financial year. * Withdrawal is permissible from 6th financial year. Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01. 12. 2011 shall be 2% p. a. However, the rate of interest of 1% p. a. shall continue to be charged on the loans already taken or taken up to 30. 11. 2011. * Free from court attachment. * Non-Resident Indians (NRIs) not eligible. * An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons. * Ideal investment option for both salaried as well as self employed classes.Time Deposit Scheme A Post-Office Time  Deposit  Account  (RDA) is a  Ã‚  banking  service  similar to a Bank Fixed Deposit   offered by Department of post, Government of India at all post office counters in the country. The scheme is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of one year to two years, three years and a maxim um period of five years. Investor gets a lump sum (principal + interest) at the maturity of the deposit. Time Deposits scheme return a lower, but safer, growth in investment. Salient Features: 1 year, 2 year, 3 year and 5 year time deposits can be opened. * Interest payable annually but compounded quarterly: PERIOD| RATE OF INTEREST| One Year| 8. 2%| Two Years| 8. 3%| Three Years| 8. 4%| Five Years| 8. 5%| * Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/- thereafter. No maximum limit. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest income is taxable. * Facility of redeposit on maturity of an account. * In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01. 12. 011 between 6 months to one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable. * 2 year, 3 year or 5 year accounts on o r after 01. 12. 2011 if closed after one year, interest on such deposits shall be calculated at a discount of 1% on the rate specified for respective period as mentioned in the concerned table given under Rule 7 of  Post office Time Deposit Rules. * Account can be pledged as security against a loan to banks/ Government institutions. * Any individual (a single adult or two adults jointly) can open an account. Group Accounts, Institutional Accounts and Misc. account not permissible. * Trust, Regimental Fund or Welfare Fund not permissible to invest. Senior Citizen’s Saving Scheme A new savings scheme called ‘Senior Citizens Savings Scheme’ has been notified with effect from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country. Salient Features: * Interest @ 9. 3% per an num from the date of deposit on quarterly basis w. e. f. 1. 04. 2012 * Minimum deposit is Rs 1000 and multiples thereof. Maximum limit of 15 lakhs. * Maturity period is 5 years and can be extended for a further period of 3 years. * Age should be 60 years or more, and 55 years or more but less than 60 years who has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement. * No age limit for the retired personnel of Defence services provided they fulfill other specified conditions. * The account may be opened in individual capacity or jointly with spouse. TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per annum. * Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act. * Interest can be automatically credited to savings account provided both the accounts stand in the same post office. * Pr emature closure is allowed after one year on deduction of 1. 5% of the deposit and after 2 years on deduction of 1%. * No withdrawal permitted before the expiry of a period of 5 years from the date of opening of the account. * Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.Saving Account Post office saving account is similar to a savings account in a bank. It is a safe instrument to park those funds, which you might need to liquidate fully or partially at very short notice. Post office savings accounts are especially suited for those living in rural and semi-rural areas where the reach of banks is very limited. Salient Features: * Rate of interest 4. 0% per annum * Minimum amount Rs 50/- in case of non-cheque account, Rs. 500/- in case of cheque account. * Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a joint account. Interest Tax Free. * Any individual can open an account. * Cheque facility av ailable. * Group Account, Institutional Account, other Accounts like Security Deposit account ; Official Capacity account are not permissible. Equity Indian Equity Market The Indian Equity Market is also the other name for Indian share market or Indian stock market. The forces of the market depend on monsoons, global fundings flowing into equities in the market and the performance of various companies. The Indian market of equities is transacted on the basis of two major stock indices, National Stock Exchange of India Ltd. NSE) and The Bombay Stock Exchange (BSE), the trading being carried on in a dematerialized form. The physical stocks are in liquid form and cannot be sold by the investors in any market. Two types of funds are there in the Indian Equity Market; Venture Capital Funds and Private Equity Funds. The equity indexes are correlated beyond the boundaries of different countries with their exposure to common calamities like monsoon which would affect both India and Banglade sh or trade integration policies and close connection with the foreign investors.From 1995 onwards, both in terms of trade integration and FIIs India has made an advance. All these have established a close relationship between the stock market indexes of India stock market and those of other countries. The Stock derivatives add up all futures and options on all individual stocks. This stock index derivative was found to have gone up from 12 % of NSE derivatives turnover in 2002 to 35 % in 2004. The Indian Equity Market also comprise of the Debt Market, dominated by primary dealers, banks and wholesale investors.Indian Equity Market at present is a lucrative field for the investors and investing in Indian stocks are profitable for not only the long and medium-term investors, but also the position traders, short-term swing traders and also very short term intra-day traders. In terms of market capitalization, there are over 2500 companies in the BSE chart list with the Reliance Industr ies Limited at the top. The SENSEX today has rose from 1000 levels to 8000 levels providing a profitable business to all those who had been investing in the Indian Equity Market.There are about 22 stock exchanges in India which regulates the market trends of different stocks. Generally the bigger companies are listed with the NSE and the BSE, but there is the OTCEI or the Over the Counter Exchange of India, which lists the medium and small sized companies. There is the SEBI or the Securities and Exchange Board of India which supervises the functioning of the stock markets in India. In the Indian market scenario, the large FMCG companies reached the top line with a double-digit growth, with their shares being attractive for investing in the Indian stock market.Such companies like the Tata Tea, Britannia, to name a few, have been providing a bustling business for the Indian share market. Other leading houses offering equally beneficial stocks for investing in Indian Equity Market, of the SENSEX chart are the two-wheeler and three-wheeler maker Bajaj Auto and second largest software exporter Infosys Technologies. Other than some restricted industries, foreign investment in general enjoys a majority share in the Indian Equity Market. Foreign Institutional Investors (FII) need to register themselves with the SEBI and the RBI for operating in Indian stock exchanges.In fact from the Indian stock market analysis it is known that in some specific industries foreigners can have even 100% shares. In the last few years with the facility of the Online Stock Market Trading in India, it has been very convenient for the FIIs to trade in the Indian stock market. From an analysis on the Indian Equity Market it can be said that the increase in the foreign investments over the years no doubt have accentuated the dynamism of the Indian market of equities. Foreign investors are allowed to buy Indian equity for the purpose of converting the equity into ADR or GDR.Thus, the growing f inancial capital markets of India being encouraged by domestic and foreign investments is becoming a profitable business more with each day. If all the economic parameters are unchanged Indian Equity Market will be conducive for the growth of private equities and this will lead to an overall improvement in the Indian economy. Insurance Insurance  is a form of  risk management  primarily used to  hedge  against the  risk  of a contingent,  uncertain  loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of  appraising  and controlling risk, has evolved as a discrete field of study and practice. The transaction involves t he insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss.The insured receives a  contract, called the  insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities, both persons and organizations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium. Insurance products are multipurpose and offer the following benefits: Protection to the investors * Accumulate savings * Channelize savings into sectors needing huge long term investments. Insurance involves  pooling  funds from  many  insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an  insurable risk.Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also  self-insure  through saving money for possible future losses. Insurability Risk which can be insured by private companies typically share seven common characteristics: 1. Large number of similar exposure units: Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the  law of large numbers  in which predicted losses are similar to the actual losses.Exceptions include  Lloyd's of London, which is famous for insuring the life or hea lth of actors, sports figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates. 2. Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire,  automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory.Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements. 3. Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost.Events that contain speculative elements, such as ordinary business risks or even purchasing a lottery ticket, are generally not considered insurable. 4. Large loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses.There is hardly any point in paying such costs unless the protection offered has real value to a buyer. 5. Affordable premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that the insurance will be purchase d, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer.If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. 6. Calculable loss: There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim. . Limited risk of catastrophically large losses: Insurable losses are ideally  independent  and non-catastrophic, meaning that the losses do not happen all at once and individual losses are not severe enough to bankrupt the insurer; insurers may prefer to limit their exposure to a loss from a single event to some small portion of their capital base. Capital  constrains insurers' ability to sell  earthquake insurance  as well as wind insurance in  hurricane  zones. In the US,  flood risk  is insured by the federal government.In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer's capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the  reinsurance  market. Legal When a company insures an individual entity, there are basic legal requirements. Several commonly cited legal principles of insurance include: 1. Indemnity  Ã¢â‚¬â€œ the insurance company indemnifies, or compensates, the insured in the case of certain losses only up to the insure d's interest. . Insurable interest  Ã¢â‚¬â€œ the insured typically must directly suffer from the loss. Insurable interest must exist whether property insurance or insurance on a person is involved. The concept requires that the insured have a â€Å"stake† in the loss or damage to the life or property insured. What that â€Å"stake† is will be determined by the kind of insurance involved and the nature of the property ownership or relationship between the persons. 3. Utmost good faith  Ã¢â‚¬â€œ the insured and the insurer are bound by a  good faith  bond of honesty and fairness. Material facts must be disclosed. 4.Contribution – insurers which have similar obligations to the insured contribute in the indemnification, according to some method. 5. Subrogation – the insurance company acquires legal rights to pursue recoveries on behalf of the insured; for example, the insurer may sue those liable for insured's loss. 6. Causa proxima, or proximate caus e – the cause of loss (the peril) must be covered under the insuring agreement of the policy, and the dominant cause must not be  excluded 7. Mitigation – In case of any loss or casualty, the asset owner must attempt to keep the loss to a minimum, as if the asset was not insured.Indemnification To â€Å"indemnify† means to make whole again, or to be reinstated to the position that one was in, to the extent possible, prior to the happening of a specified event or peril. Accordingly,  life insuranceis generally not considered to be indemnity insurance, but rather â€Å"contingent† insurance (i. e. , a claim arises on the occurrence of a specified event). There are generally two types of insurance contracts that seek to indemnify an insured: 1. an â€Å"indemnity† policy, and 2. a â€Å"pay on behalf† or â€Å"on behalf of†Ã‚  policy. The difference is significant on paper, but rarely material in practice.An â€Å"indemnity† p olicy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an â€Å"indemnity† policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be â€Å"indemnified† by the insurance carrier for the out of pocket costs (the $10,000). [4][5] Under the same situation, a â€Å"pay on behalf† policy, the insurance carrier would pay the claim and the insured (the homeowner in the above example) would not be out of pocket for anything.Most modern liability insurance is written on the basis of â€Å"pay on behalf† language. An entity seeking to transfer risk (an individual, corporation, or association of any type, etc. ) becomes the ‘insured' party once risk is assumed by an ‘insurer', the insuring party, by means of a contract, called an  insurance policy. Generally, an insurance contract includes, at a minimum, the following elements: identification of participating parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i. . , the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions  (events not covered). An insured is thus said to be â€Å"indemnified† against the loss covered in the policy. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a claim against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium.Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims — in theory for a relatively few claimants — and for  overhead  costs. So long as an insurer maintains adequate funds set aside for anticipated losses (called reserves), the remaining margin is an insurer's  profit. Types of Insurances * Life Insurance * General Insurance Life Insurance Life insurance  is a contract between an  insurance policy holder  and an  insurer, where the insurer promises to pay a designated  beneficiary sum of money (the â€Å"benefits†) upon the death of the insured person.Depending on the contract, other events such as  terminal illness  or critical illness  may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits. The advantage for the policy owner is â€Å"peace of mind†, in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events.Specific exclusion s are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion. Life-based contracts tend to fall into two major categories: * Protection  policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. * Investment  policies – where the main objective is to facilitate the growth of capital by regular or single premiums.Common forms (in the US) are  whole life,  universal life  and  variable life policies. General Insurance General insurance  or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be  life insurance. It is called  property  and casualty  insurance  in the  U. S. and  Non -Life Insurance  in Continental Europe. Commercial lines  products are usually designed for relatively small legal entities.These would include workers' comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels. Personal lines  products are designed to be sold in large quantities. This would include  autos  (private car),  homeowners  (household), pet insurance, creditor insurance and others. ACORD  which is the insurance industry global standards organisation.ACORD has standards for personal and commercial lines and has been working with the Australian General Insurers to develop those XML standards, standard applications for insurance, and certificates of currency. PORTFOLIO MANAGEMENT A good way to begin understanding what portfolio management is (and is not) may be to define the term  portfolio. In a business context, we can look to the mutual fund industry to explain the term's origins. Morgan Stanley's  Dictionary of Financial Terms  offers the following explanation: If you own more than one security, you have an investment portfolio.You build the portfolio by buying additional stocks, bonds, mutual funds, or other investments. Your goal is to increase the portfolio's value by selecting investments that you believe will go up in price. According to modern portfolio theory, you can reduce your investment risk by creating a diversified portfolio that includes enough different types, or classes, of securities so that at least some of them may produce strong returns in any economic climate. Note that this explanation contains a number of important ideas: * A portfolio contains many investment vehicles. Owning a portfolio involves making choices — tha t is, deciding what additional stocks, bonds, or other financial instruments to buy; when to buy; what and when to sell; and so forth. Making such decisions is a form of management. * The management of a portfolio is goal-driven. For an investment portfolio, the specific goal is to increase the value. * Managing a portfolio involves inherent risks. Objectives of Portfolio Management:- The objective of  portfolio management  is to invest in securities is securities in such a way that one maximizes one’s returns and minimizes risks in order to achieve one’s investment objective.A good  portfolio  should have multiple objectives and achieve a sound balance among them. Any one objective should not be given undue importance at the cost of others. Presented below are some important objectives of portfolio management. 1. Stable Current Return: – Once investment safety is guaranteed, the portfolio should yield a steady current income. The current returns should at least match the opportunity cost of the funds of the investor. What we are referring to here current income by way of interest of dividends, not capital gains. 2. Marketability: –A good portfolio consists of investment, which can be marketed without difficulty. If there are too many unlisted or inactive shares in your portfolio, you will face problems in encasing them, and switching from one investment to another. It is desirable to invest in companies listed on major stock exchanges, which are actively traded. 3. Tax Planning: – Since taxation is an important variable in total planning, a good portfolio should enable its owner to enjoy a favorable tax shelter. The portfolio should be developed considering not only income tax, but capital gains tax, and gift tax, as well.What a good portfolio aims at is tax planning, not tax evasion or tax avoidance. 4. Appreciation in the value of capital: A good portfolio should appreciate in value in order to protect the investor from any erosion in purchasing power due to inflation. In other words, a balanced portfolio must consist of certain investments, which tend to appreciate in real value after adjusting for inflation. 5. Liquidity: The portfolio should ensure that there are enough funds available at short notice to take care of the investor’s liquidity requirements.It is desirable to keep a line of credit from a bank for use in case it becomes necessary to participate in right issues, or for any other personal needs. 6. Safety of the investment: The first important objective of a portfolio, no matter who owns it, is to ensure that the investment is absolutely safe. Other considerations like income, growth, etc. , only come into the picture after the safety of your investment is ensured. Investment safety or minimization of risks is one of the important objectives of portfolio management.There are many types of risks, which are associated with investment in equity stocks, including super stocks . Bear in mind that there is no such thing as a zero risk investment. More over, relatively low risk i

The Growing Up of John Donne in His Love Poetry

The Growing up of John Donne in his Love Poetry â€Å"Love, all alike, no season knows, nor clime, nor hours, days, months, which are the rags of time† is a quote from John Donne which talks about how love defies time however he did not always have such an optimistic view of love. John Donne was a writer in the 1700s’ who used the theme of love in quite a few of his poems. Donne can be a pessimistic poet, which often creates misunderstandings in both the theme of love and how the poem is written. Since love is so unclear and there is nothing definite about love, it makes it difficult to write about and often misunderstood says R. V. Young (251). Donne shows his love in these poems through references to physical love, the union of two souls, and journeys. These references can be seen in â€Å"To his Mistress Going to Bed,† â€Å"The Flea,† â€Å"The Extasie,† and â€Å"A Valediction: Forbidding Mourning†. One of the ways Donne expresses the theme of love is through physical love. The two main poems that refer to physical love are â€Å"To his Mistress Going to Bed† and â€Å"The Flea. Donne’s poem â€Å"To his Mistress Going to Bed† is about the speaker trying to convince a women to remove her clothes by saying â€Å"Off with that girdle, like heaven's zone glittering, / But a far fairer world encompassing. / Unpin that spangled breast-plate, which you wear† (lines 5-7). The speaker talks in great detail about his wishes for this woman to remove her clothing even though the woman does not want to. In order to comfort her, he says â€Å"there is no penance due to innocence† (line 46) meaning that removing her clothes is an innocent act and not a sin; therefore there is nothing for her to fear. In this poem, the speaker does not say that he loves this woman; he only refers to the physical relationship he wishes to have with her and how happy he is to share a romantic encounter with her but not looking to further any relationship that may follow together. The speaker says, â€Å"My mine of precious stones, my empery; / How am I blest in thus discovering thee! † (lines 29-30) which is the speaker’s way of expressing his happiness created by being with this woman while also complementing her on her beauty and power over him. Donne ends â€Å"To my Mistress Going to Bed† by saying, â€Å"To teach thee, I am naked first; why than, / what needst thou have more covering than a man? † (lines 47-48) which gives off the impression that the women gave into the speaker’s temptations and removed her clothing. The other work of poetry that discusses physical love is â€Å"The Flea† which has a very obscure plot line that contains an ambiguous way of symbolizing physical love shared between two romantic partners. In this poem, the speaker once again is trying to persuade a woman to participate in an expression of physical love by saying that â€Å"me it suck'd first, and now sucks thee, / And in this flea our two bloods mingled bee† (lines 3-4) meaning the flea had bitten him and his partner causing their blood to be combined, which in his time â€Å"signifies loss of virginity through heterosexual copulation† (Mansour 7), but the woman refuses his advances. The speaker then tries to comfort the woman, like the previous poem,  by saying â€Å"thou know'st that this cannot be said / A sin, nor shame, nor loss of maidenhead† meaning that it was not sinful or shameful to express physical love however the woman still refuses his advances. The woman reacts to the speaker’s attempts to persuade her into physical love by eventually killing the flea. By killing the flea it showed that her answer was not going to change and that she wished the speaker to stop pressuring her (7). Donne also has many poems that deal with the theme of love that instead of referencing physical love; they reference the topic of two souls becoming one and show Donne’s desire for a deep connection which was not seen in â€Å"To his Mistress Going to Bed† and â€Å"The Flea. †. The topic of two souls becoming one can be seen in the poems â€Å"The Extasie† and â€Å"A Valediction: Forbidding Mourning†. Donne's works when looked at collectively cover a variety of topics and experiences. Donne does not limit himself to one category or care if one poem contradicts another. This can be seen when comparing â€Å"The Extasie† and â€Å"To his Mistress Going to Bed† (Young 251). â€Å"The Extasie† refers to the souls uniting and becoming one as the purest form of love, while â€Å"To his Mistress Going to Bed† holds physical love as the most important aspect in a relationship. Donne’s concentration on showing how two souls uniting is the purest form of love causes physical love to seem unimportant. â€Å"The Extasie† begins with a description of two people sitting on a river bank with their hands â€Å"firmly cemented† (line 5) while their â€Å"eye-beams twisted† (line 7). They laid there all day â€Å"like sepulchral statues† (line 18) saying nothing. This description shows the deep connection the two people already have without physical love. Their love is deeper and more substantial then physical because it is emotional love. â€Å"The Extasie† is about having a relationship before engaging in the act of physical love. Donne holds this relationship up on a high pedestal at the beginning of the poem then the tone changes when they say â€Å"Our bodies why doe wee forbeare? They'are ours, though they'are not wee; Wee are / The intelligences, they the spheare. † (lines 51-53) and talk about possibly engaging in physical love so that they truly can become one soul. They later decide they need to engage in physical love â€Å"so soul into soul may flow† (line 60), however, their act of physical love is different because they have a relationship, and it means more than if they were to engaged in physical love without a prior re lationship. According to Donne, this unity of the souls is supposedly more gratifying than the physical love itself. The flowing of souls is used to represent how, if there is a deep connection, the physical love does not seem to matter as much anymore. This idea of having a deep connection before engaging in physical love contrasts the concepts mentioned in â€Å"To his Mistress Going to Bed† and â€Å"The Flea† because in this poem Donne does not mention this connection that he holds up so highly in this poem. The other poem that mentions the idea of souls becoming one is â€Å"A Valediction: Forbidding Mourning† which is a goodbye poem to his wife before he leaves on a journey. The speaker considers his wife to be his soul mate, and in this poem, he tells her that their souls are one soul, hinting at the deep connection there is between the two. The speaker mocks how â€Å"ordinary love† needs to be close and not capable of dealing with distance. The speaker tells his wife that if she is able to cope with the distance it will make their love stronger when he returns. In this poem, Donne uses the image of souls becoming one not to show how the deep connection is related to physical love, but how the deep connection makes their love stronger (Levchuck 207). The speaker says â€Å"Our two souls therefore, which are one, / Though I must go, endure not yet† (lines 12-13) meaning that because they are one soul, the distance will be easier to deal with and they will come out stronger, which is very important to the speaker. Having a strong relationship is a desire that was not present in â€Å"To his Mistress Going to Bed† and â€Å"The Flea† so the readers begin to see Donne’s opinions toward love change and how important this union of souls is becoming to him. â€Å"A Valediction: Forbidding Mourning† is also used when talking about physical journey, but actually meaning an motionally journey. Journeys are a topic mentioned in John Donne’s love poems. â€Å"A Valediction: Forbidding Mourning† is a poem that discusses the use of journeys in Donne’s love poetry. †A Valediction: Forbidding Mourning† is the speaker’s way of giving his wife reassurance before leaving her for a long period of time while he went off on a trip. The poem is meant to comfort her by comparing their love to â€Å"the way virtuous men behave at the moment of death† (Pipkin 212) which may appear to be a dark message, but the poem is actually meant to show the deep connectedness of the lover. The speaker says that even though they will not be close because he leaving on a journey, their love will survive and be even stronger when he returns. The speaker does not â€Å"tear-floods, nor sigh-tempests move† (line 6) because the speaker believes that if she cries or shows sadness, it means their love is not as deep as he thought it was as he wants to say their love so resilient that no distance could tear them apart (Bussey 1). The poems says â€Å"Moving of th’earth brings harms and fears† (line 9) meaning that his moving brings up some fears that the speaker does not want. The speaker wants their love to be exceedingly strong and to be able to with stand any dilemma they face together. Throughout this poem the speaker seems to really stress the point of having a strong relationship. This want for a strong faithful relationship is significantly greater in â€Å"A Valediction: Forbidding Mourning† then when mentioned in â€Å"The Extasie†. John Donne’s opinions have changed vastly since his writing about his desire for physical love now; Donne now desires for a strong and faithful relationship. Though â€Å"To his Mistress Going to Bed,† â€Å"The Flea,† â€Å"The Extasie,† and â€Å"A Valediction: Forbidding Mourning† John Donne expresses references to physical love, the union of two souls, and journeys. Donne mentions physical love in â€Å"To his Mistress Going to Bed† and â€Å"The Flea. † In these the reader sees an immature version of Donne and his desire for the expression of physical love. In â€Å"The Extasie†, and â€Å"A Valediction: Forbidding Mourning† which discussed the union of two souls, the readers begins to see a more sophisticated side of Donne. Donne begins to see to there is more to love then physical love and the importance of a relationship. Also in the â€Å"A Valediction: Forbidding Mourning† the readers see this concept of journeys. This concept of journeys and moving past the idea of love being the emotion felt just on the surface and more a deep connection with a strong relationship shows how much Donne’s idea and perception of love has since change from his poems about physical love.