What are Good Books for Analysis of Financial Statements?

Dear Mr.Abhishek Rout

I have not had the occasion to read a specific book on financial statement analysis. I will recommend two books in the context of investing, both of which are classics and master pieces.

1. Security Analysis: 
   

This is a book written by Benjamin Graham and David L Dodd. Graham is my Guru Warren Buffett’s Guru. It is a bulky book, but a classic that will take you a long way in life

2. The Intelligent Investor:

This is again by Benjamin Graham. This is the ‘Bhagavat Gita’ for investors.

Though both the books are not addressed directly about financial statement analysis, both cover the subject more than adequately.

Happy Reading!

Thank you,

With Best Regards,

Anand

Please Note: This is almost a reproduction of the question I had answered on the website ‘Quora’, which I thought could be useful to the visitors to this blog site also.

Can Partnership Firms Invest in Mutual Funds?

Dear Friend!

A very valuable question.

The answer to the question, "Can Partnership Firms Invest in Mutual Funds?" is an emphatic Yes. A partnership firm can invest in mutual funds, by opening a mutual fund account, as it opens and operates a bank account. 

The partnership deed, the contractual instrument that brings the firm into existence, shall expressly permit such investment. The mutual fund(s) will usually demand a certified copy of the partnership deed to ensure that such investments are permitted. The deed should also mention which partner(s) are authorised to apply for make investments in mutual funds.

With respect to questions like how to invest in mutual fund, what type of mutual fund to choose, whether it is a single lump-sum or sip investment, for how long to make and keep the investment intact, fund management costs, etcetera, the firm may seek financial advice from an honest and competent person. The firm better beware that advisors are known to be good at earning fat fees for themselves rather than earn a return for the investor.

Even though a partnership firm can make investments, one should understand that a partnership firm is not a separate legal entity like a company incorporated under the company law. Therefore, the partners are technically joint owners. As long as the firm continues to exist it will hold all assets and liabilities. In the event of dissolution of the partnership firm, the assets and liabilities are either liquidated or distributed among partners, in which case the mutual fund investments may get transferred to one or more partners or sold off.

Suggested Further Reading:

• Types of Mutual Funds
• How to Choose the Right Mutual Fund to Invest?
• How Frequent Changes to Mutual Fund Portfolio Affect Investor Interest?

In conclusion, the answer to the question, "Can Partnership Firms Invest in Mutual Funds?" is a definite yes. Partnership firms can make and hold mutual fund as well as all other types of assets as well as investments.

Thank you,

With Best Regards,

Anand