T&C Vectors Research & Development has led us to Invent a Next Generation Financial Instrument called the "Community Mutual Fund" - A 21st Century Solution. T&C Vectors - community Mutual Funds products would be marketed under the Brand "OverRide" - signifying overriding traditional thinking and operational mechanisms.


In traditional industry a large number of Financial firms offer a product called the Mutual Fund. The Mutual Funds are funds created by collecting investments from a large number of people. The funds are invested in the stock market to create gains for the investors. After studying the disadvantages of traditional mutual funds - T&C Vectors has conceptualized a Brand New Innovative Financial Product called the “Community Mutual Fund”. This Engineered financial Instrument would lead the world's Economies and People to financial freedom.

Patent - (3047/MUM/2011)-SYSTEMS AND METHODS TO ENABLE AND ADMINISTER COMMUNITY MUTUAL FUNDS.


How do Community Mutual Funds Work

There are Three entities Involved

The Individual belonging to a Community.

The Community Fund Manager.

The Technical Company or the Consortium that - provides technical knowhow Services and Sub contracts work.

The Individuals in the community & the Technical Consortium agree on a Partnership through the Instrument called the Community mutual Funds and both invest in the same.

The Ratio of Ownership is Pre-Accepted, and declared by the Community Mutual Fund.
e.g.-20% ownership for the Community - 80% ownership for the Consortium Company. Note: The Ratio of Ownership has nothing to do with How much of the Funds are collected. The Amount of Funds collected would depend on the size/Scale of the Project or the Solution. e.g. A consortium may collect 50% of the funds from the community and Invest 50% of the funds on it's own, but at a ownership ratio of 20%:80%. Therefore Amount of Investment may not match the Ownership ratio.These ratio's can vary according to the types of projects and demand.
Please Note: A guaranteed 20% Return on Profits is far more attractive than relying on a dividend from a stock.Dividend yields usually range from 0% to 5%. Many companies dont even declare dividends, because they are not obligated to do so.

The Community Mutual Funds are of three types - Nation Level Funds (For National Development), State Level Funds( For State Development), City Level Funds(For City/Town Development).

The Wealth created by the development of Communities would be shared between the Community of Individuals and the Consortium company in the ratio of Ownership every year.

The Technical Consortium Company takes responsibility of all Projects and Operation, by directly offering services or Subcontracting the work.

The Community Fund Manager would manage the entire funds collection and operations and distribution of wealth.


The Advantages of "Community Mutual Funds"


The Communities get developed as they get necessary Infrastructure and Necessities. This improves the standard of living.

Consortiums get Work Contracts directly from Communities without it being channeled as Govt contracts. Ofcourse the Rules and Regulations of the local Government and National Government would be followed but operationally inefficient Govts channels would be overridden.

Wealth created is shared between Community of Individuals and Consortiums.

There is a positive certainty by Agreement and logic that Communities of Individuals would use/Utilise the Infrastructure and services provided by the Consortium companies, so the Operations & economics cycle is profitable and sustainable.

A cycle of Job Creation and Wealth Creation cycle is Setup - We call this "A Smarter Engineered sustainable World".

By Measuring the demand for any kind of services/Infrastructure(Healthcaare/Road/Rail/Aviation/Electricity,Water..) through the Community Mutual Funds, Companies and Consortiums may be able to Draw intelligent conclusions whether the investments and operations would be sustainable and profitable.

All information about the Accounts( Expenditures and Profits ) would be transparently shared between the community of individuals and the Consortium company.

There is a Disadvantage though that the Community Mutual Funds may be Transferable but not rectractable or Withdrawable, however if the consortium companies dont see a bright future for the services, the Partnership deal between the community and the Consortium companies may be "Dissolved" with the investments returned as per the ratio of Investment.

Another Disadvantage is that this kind of Instrument would be useful only for those sectors or solutions which are essential necessities for a community to maintain a good standard of living. Ths instrument may not be useful if the the solution in the context is not a community solution - for e.g you cannot raise money to open Burger Chains through Community Mutual Funds, unless ofcourse the entire community wishes to avail of the burger chain services.

This instrument - may seem to show traits of Socialist thinking, however it's not so. These are Smarter World Instruments to promote Sustainable Enterprises, Employment and development of Nation/States. This Instrument creates Sustainable Modern Ecosystems.


Disadvantages of Existing Solutions like Stocks and Mutual Funds

Stocks were an Instrument introduced in the year 1602.These Instruments may not be the Best solutions for the 21st century where the population on earth has increased to 7 Billion. This instrument was not a Designed or Systematically Engineered Financial Instrument. Stocks as an Instrument are not rational Instruments - They rely on heavily on emotions of people and people are not always the best judge of which investmentss are of lasting value and which are not.Stocks are therefore volatile and Risky.

Although the Stock is a Risky Volatile Instrument - the Financial Industry as introduced High Risk Leveraged Instruments like Derivatives(Futures and Options) with the Underlying basis of Stocks.Even Mutual Funds are instruments introduced to invest in stocks.

It may well be remembered that these mutual funds as instruments too invest in the stock markets and escalate the price of stocks without Serving any real investment purpose.It is so because the stock market doesn’t have instruments to allow these funds to be used by companies to grow further.These funds only increase the notional value of the stock and introduce new Financial jargons like “Market Capitalization”.

One may remember that, in the StockMarket principle when “one” gains, some one else loses wealth. This encourages predatory practices to create wealth rather than priciples that create mutual growth and Benefits.They dont always teach you the right stuff at school!.

Examples - explaining demerits of stocks

We'll give you some examples to explain the demerits of stocks.
Analysts make estimates about earnings and revenues. The News paper and Wall street headlines reads -"Earnings beat wallstreet Analyst expectations". The Next week Major Indices lose 10% of the value, and perhaps because some bank in greece or kenya is exposed to highly leveraged risky derivatives. Stocks as an instrument therefore have large traits of unpredictability built into them. We could contemplate - what happened to the value of options through the Black–Scholes mathematical equation.The Equation can probably give you a few functional parameters(Index Volatility coefficients etc..) as to what can lead to an options price - however the entire logic is nullified when investors are playing a totally blind game with respect to "Measurement of Risk".

The Irrational Movements of Underlying instruments like stocks, negate all the other prameters used to arive at the derivatives pricing. Enterprise and Government ecosystems have not been designed to allow "effective Measurement of Risk and additionally the Risk induced by introduction of Highly leveraged Instruments like derivatives". High leverage Instruments like Derivatives encourage betting and gambling more than than hedging. Leveraged instruments can also lead to manipulation of the Underlying stock prices to make swift gains.
It's clear that all these financial instruments are predominantely driven by human perception and behaviour rather than actual performance and payout by Enterprise performance.
High fequency Computer controlled - Trading has also led to Volatality of indices. The programs are used only to capitalise on the shortcomings of human behaviour and responsiveness.
This leads us to the Question where is the Human Purpose?

Another Example explaining demerits of stocks

Lets draw out another example of to understand how stock markets work with a Father, son and grandson story.The Father buys a stock at 200$ thinking it'll go to 300$. The son comes to buy the stock at 300$ and expects the stock to grow to 500$. The grandson buys the stock at 500$ expecting it to go to 800$. Did you realise that money taken by businesses from investors(Father,Son & Grandson) through the stock exchanges is most likely never returned by the enterprise. It's only accumulated as Cash in the Business cashbooks. The stocks only keep rising because there's always another grandson who's willing to buy the stock at 800$ thinking someone else would buy it a 1200$. The stocks stop rising when the world runs out of grandsons!. When a significant negative event occurs - an emotional call sets in that drives expectations and the stock prices down. All logic is lost because - the stock market price of the stock was only supposed to measure the performance of the Enterprise.
Stocks as instrument only allow Money or cash to flow from one stock to another but never really serve as a purpose for investment in growth and development.

Media Jargon

Terms like Market Capitalization are "High Frequency - Media Jargon".The term itself conveys nothing. A stock may have a market capitalization of a 10B$ today and may lose it's market capitalization by 50% tomorrow. It doesn't make a difference to the Enterprise. A Lasting Market cap only conveys the fact that there are a large nos of people interested in the stock so a person who probably buys a stock at 500$ could have some figment of hope, that since this stock is of high interest, there could be buyers to buy the stock at 600$.
Instruments that are largely affected by Human judgement and emotions are not an instrument that needs analysis.(Some Individuals therefore refer to stock markets as gambling!. Dervatives are therefore leveraged Gambling instruments - (Low Investment High Return). )
One solution to the stock market principle could be to pre-fix or pre declare the Payout(Profit share) by the enterprise before the IPO.

Systems thinking leads us to into conceptualizing Community Mutual funds - which adhers to rules,Logic and Rationality and allow community and enterprise systems to grow effectively.

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