STEX Research & Development has led us to Invent a Next Generation Financial Instrument called the "Community Mutual Fund" - A 21st Century Solution. STEX - 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 and the funds are invested in the stock market to create gains for the investors. The stock market is essentially a Zero Sum Game where when One investor gains, another loses money. Stocks are the primary underlying instrument of traditional mutual funds and therefore have a large number of disadvantages. - STEX has conceptualized a Brand New Innovative and secure 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 Four entities Involved

  • The Individual belonging to a Community
  • Governments [ National level or State level ]
  • The Community Fund Manager
  • The Technical Company or the Consortium that - provides technical knowhow Services and Sub contracts work.
Inner Workings of Community Mutual Funds
  • The Process begins with a proposal for a Utlity/Industrial project by a Technology Corporation and a fund Manager. A response to the Project is received from the public and The contract is made positive only after an evaluation of the response/interest from the Public [ Community of Individuals ] and Supporting Governments. The three entities [ Corporation - Public- Goverments] Invest into the projects together.
  • The Ratio of Ownership and Ratio of Profit Share are Pre-declared in the Community Mutual Fund contract proposal in the Initial Stage.
    e.g.50% ownership for the Community + 20% Ownership for the Government + 30% ownership for the Consortium Company. Note: The ownership Ratio has no corelation to the Profit Share ratio pre-agreed in the Contract. e.g. 90% Profits retained by the Corporation or Consortium company and 10% Profits distributed to government and Communities.
  • Please Note: A guaranteed 10% Profit percentage is a far more systematic and attractive Instrument, rather than than relying on a dividend from a stock. Dividend yields usually range from 0% to 5% on an escalated stock price. Many companies dont even declare dividends, because they are not obligated to do so.
  • The Community Mutual Funds are of Four Types types - International Projects, 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 Corporation/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.
  • Note: National Governments and State Level Governments may also Investment along along with public Communities and they further clear regulatory hurdles.
The Advantages of Community Mutual Funds
  • The Communities get developed as they get necessary Infrastructure and Necessities. This improves the standard of living.
  • Corporation/Consortium Company get Work Contracts.
  • Wealth created is shared between Community of Individuals, Governments and Corporation/Consortium Companies .
  • There is a positive certainty by Agreement and logic that Communities of Individuals would use/utilise the Infrastructure and services provided by the Corporation/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 Inytelligent Planet".
  • By Measuring the demand for any kind of services/Infrastructure(Healthcare/Road/Rail/Aviation/Electricity, Water..) through the Community Mutual Funds, Corporation/Consortium Companies 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.
  • Nation level and State Level Governments may invest into the projects and it would allow easier Regulatory Clearances.
The Disadvantages of Community Mutual Funds
  • 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 Contract 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.
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