Comparison of Individual Pension System and Bank’s Deposit System for Low-Risk Investors
Journal Title: Alphanumeric Journal - Year 2016, Vol 4, Issue 2
Abstract
The individual pension system (IPS) is an investment tool with regular payments that provides necessary savings for better live in retirement period. The demand for the IPS are substantially increased in recent years with the encouragements of the governments. In this study, revenues of bank’s deposit system (BDS) and IPS are compared for low-risk profile investors. For this reason, four scenarios are created and are evaluated for three different amounts of initial payment by using net present value and profitability index methods under both static and dynamic environments. Artificial neural networks and Monte-Carlo simulation approaches are used in creation of financial forecasts. As a result, while the BDS is more profitable for short-term investments, the IPS is clearly a more profitable investment for long-term investments in both static and dynamic environments.
Authors and Affiliations
Özcan Mutlu, Muhammed Ordu, Olcay Polat
Keywords
Related Articles
- EP ID EP197306
- DOI 10.17093/aj.2016.4.2.5000191707
- Views 152
- Downloads 0
Assessing The Effects of Various Socio-Economic and Health Indicators on HDI Country Categories
The human development indicator (HDI) is based on three indicators: standard of living, life expectancy, and education level. Although being widely known and commonly used, the accuracy of the HDI has been criticized in...
A New Descriptive Statistic for Functional Data: Functional Coefficient Of Variation
In this study, we propose a new descriptive statistic, coefficient of variation function, for functional data analysis and present its utilization. We recommend coefficient of variation function, especially when we want...
Determination of Effective Critical Factors in Successful Efficiency Measurement of University Departments by Using Fuzzy DEMATEL Method
Successful efficiency measurement of university departments is very important issue in today’s globalised world and depends on paying high attention on critical input and output factors affecting efficiency measurement....
The Evaluation Of The Development Agency Regions In Turkey In Terms Of Some Socioeconomic Indicator With Factor Analyses
The actual aim of this paper is to update the periodic studies on defining social-economic development levels of cities in Turkey according to established development agencies. It is believed that considering the develop...
Performance Evaluation In Family Physician: The Application of TOPSIS Multi-Criteria Decision Making Method
In this study, a performance analysis was carried out for the Family Practice application offered to the public by the Ministry of Health. Performance management serves a different purpose in public sectors which provide...