Maintaining An Internal Mutual Fund For Urban Growth Management Company

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Establishing and maintaining an internal mutual fund for Urban Growth Management Company, with smart investments will allow the company to become a stable flourishing corporation. Listed below is the recommended investments to establish a mutual fund for Urban Growth Management Company. An explanation and breakdown of your investments are written out below the breakdown of funds allocated. The fund allocations through various corporations and companies will shift and foster into new opportunities. Not all opportunities are created equal, and there will always be risk involved. Continuous management and evaluation of distributed funds should be considered on an annual basis. A definition of terms will allow you to understand how and why…show more content…
The allocated investment of $2,000,000 to the over the counter drug market was invested with growth and stability as a basis of analysis. Over the counter drugs market is expected to see continued future growth. With the projected increase cost of health care and aging society, the over the counter drug market will see an steady growth due to individuals looking to treat themselves by self medicating. Medication usage and regulations have allowed the release of once only subscribed drugs to become over the counter drugs, which in return has given the average person the ability to purchase their medication over the counter without a subscription. The return on equity for over the counter drug industry is 20.3%, however, the debt to equity is 81.8%. The debt to equity can be explained due to high cost of equipment and research which goes into making the drugs. Investments in drug companies does have moderate risk. If a particular drug fails or creates complications on a large scale, a once over the counter drug can be removed off the market, ultimately costing shareholders. If drug company runs into legal issues, they can be a burden on the over the counter industry. Price earnings ratio is 15.8%, however, the current state of health care and politics currently involved with the governing of the health care system, the

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