What Is Portfolio Acquisition?

Portfolio purchases involve the buying of lease contract packages and the remaining payments or discounted cash flows associated with them. It is regarded as a financial term which denotes the collection of investments done by any business organization or an individual.

Portfolio acquisition is done by many companies. Risk tolerance, Investment objectives and time frame are the factors on which the portfolio is designed. The economic value of each factor influences either the risk or reward ratio of the portfolio. It is referred to as the allocation of factors or assets.

The work of the companies is to make the portfolio in such a way that it maximizes your profiles and minimizes those assets which poses risks to it. They choose the most preferred ones by considering the risks and returns in the trade-off.

Many types of portfolios are available. Two of those are market portfolio and zero- investment portfolio. Depending on the purpose for which the portfolio is prepared, the type is chosen.Asset allocation is managed by different principles and investment approaches such as capitalization-weighting, equal weighting, risk parity, the capital asset pricing model, price-weighting or arbitrage pricing theory. Jeysen index, sharpe index and the treynor index are among the other factors.

Portfolio acquisition helps in growth of the company or individual. Detailed planning should be done before making one. It should help in:

• Increasing capitals
• Managing balance sheet concentrations
• Managing capital ratios.

However it should always be kept in mind that the company for the acquisition should be chosen wisely. They should be successful in ensuring that the measures taken to build up the profile show maximum profit.

To know more about portfolio acquisition log on to Atlanticus Holdings Corporation.

Read More

Debit Card Vs Credit Card: Risks And Benefits

Plastic money is the new way of having cash with you without actually having it.With easy cancellation facilities in case of theft these ensure that your money remains safely in your account while you transact with ease.

Does one score over the other on certain counts? The risks and benefits associated with using both are discussed below:

• Using a credit card means taking a small amount of loan from the bank and promising to repay the amount, usually within a month.

• Using debit cards mean using the cash already available in your current account without the concern of having to pay the lender back.

• Debit cards can be used to withdraw money from ATM machines as well. A PIN number is provided which might be required to be punched in sometimes while shopping.

• Debit cards do not require any picture ID before issuance unlike one for credit cards. Thus chances of fraud are high in the former.

• For a credit line, in case you do not pay the bills on time the lending company charges high interest on the balance amount. This is the greatest benefit with a debit card as you do not have to pay any interest on the money since it is all coming out of your existing funds.

• The legal liabilities are strict in case of credit facilities. The consumer liability is $50 for fraud cards if notified within 60 days in written.

• If you report the fraud in a timely manner then you are protected from the unauthorized purchases. The debit card owners may not always have this facility since many of these are contactless, meaning you wouldn’t need your pin if the purchase is below a certain amount.

While the balance may tilt in favour of debit cards some would still favour a credit line for making purchases. Therefore at the end of the day it remains a matter of personal choice.

To know more about financial schemes and services logon to
http://www.atlanticus.com

Read More