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.

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.