GSP177E Fundamentals of Investing Samples †MyAssignmenthelp.com

Question: Discuss about the GSP177E Fundamentals of Investing. Answer: Introduction: The overall investment options mainly evaluate all the relevant attributes of MRS A investment needs and designs an adequate investment option, which could support her financial obligations. the investment options and criteria provided by both the investment houses Great Union National Bank Ltd and Pentagon Resources Pte. Ltd are evaluated to identify the most viable investment option for MRS A. MRS A needs to be comply with the financial obligations and expenses towards her daughters study expense, which needs to be conducted on yearly basis. Therefore, the return generation capacity of the both the investment options is evaluated, as it could support its future financial obligations Evaluation of both Investment option presented to MRS A: MRS A needs an adequate portfolio, which could comply with her rising financial obligations. There are no other sources of income, which could support financial obligations of MRS A. Hence, investment in portfolio providing constant return could eventually allow MRS A to gather constant return from investment (Clarke, De and Thorley 2016). This would eventually help in generating high level of income to support her financial obligations. MRS A needs to support her daughters studies, where expenses of SGD 70,000 annually need to be conducted. Great Union National Bank Ltd Amount Initial Investment SGD 1,100,000.00 Return 5% SGD 55,000.00 Return 15% SGD 165,000.00 The overall evaluation of above investment option can be help in identifying the returns which could be provided by wealth management company can be identified. The above table indicates the return of SGD 55,000 to SGD 165,000 can be provide by the investment in Great Union National Bank Ltd. The company mainly initiates that MRS A invests in portfolio comprising of local stocks (50%), cash deposits and foreign currencies (10%), bonds (10%) and foreign stocks including the US, EU, and Japan (30%). This composition of the portfolio could eventually allow MRS A to generate constant return from investment. MRS A mainly needs a constant return, as there are no other forms of information that needs to be conducted from investment. The portfolio created by Great Union National Bank Ltd comprises of diversified investment options, which would help in reducing the risk from investment and generate constant returns (Naik et al. 2017). The portfolio mainly provides the required level of return , which is needed by MRS A for the investment. Pentagon Resources Pte. Ltd Amount Initial Investment SGD 600,000.00 Return 3% every quarter SGD 72,000.00 The option provided by Pentagon Resources Pte. Ltd mainly comprises of high return yielding stocks, which could raise the level of returns from investment. In addition, the returns of 3% is mainly provided on quarterly basis by Pentagon Resources Pte. Ltd. Moreover, the returns are relatively higher than other investment scope, where 12% annual returns are generated from investment. Furthermore, investment in oil and energy sector are mainly conducted by Pentagon Resources Pte. Ltd, where returns and risk are relatively high. The investment scope presented by Pentagon Resources Pte. Ltd is relatively high, as investment securities used by the company are relatively volatile in nature and could change due to altering trend (Titman and Martin 2014). Recommendations provided toy MRS A: Particulars Amount Amount Total investment SGD 1,700,000.00 SGD 1,700,000.00 Total return on average basis SGD 127,000.00 SGD 237,000.00 Return in percentage 7.47% 13.94% The above portfolio mainly indicates the overall range if retune that could be generated from investments conducted by MRS A. In addition, MRS A for increasing the relevant return from investment on yearly basis needs to invest in both investment schemes. This would eventually allow MRS A to increase return and grow her investment capital, which in turn could support her future obligations. The investment of SGD 1,100,000 could be conducted in fund of Great Union National Bank Ltd from which range of returns could be provided annually. This range of returns provided from Great Union National Bank Ltd could be used in supporting MRS A financial obligations. In addition, the investment of SGD 600,000 needs to be conducted in Pentagon Resources Pte. Ltd, where MRS A could receive quarterly returns. This would eventually help in supporting her daughters studies and provide funds for accommodating the spending of SGD 70,000 annually. Both the funds would eventually allow MRS A to raise the levels of return, which could be generated from investments. The returns that could be generated from investment of SGD 1.7 Million ranges from 7.47% to 13.94%. This could eventually help MRS A to support her expenses, which needs to be conducted on yearly basis. Thus, MRS A should follow the recommended portfolio for investment. References: Bhardwaj, G., Gorton, G.B. and Rouwenhorst, K.G., 2016. Investor Interest and the Returns to Commodity Investing.Journal of Portfolio Management,42(3), p.44. Clarke, R., De Silva, H. and Thorley, S., 2016. Fundamentals of Efficient Factor Investing (corrected May 2017).Financial Analysts Journal,72(6), pp.9-26. Gitman, L.J., Joehnk, M.D., Smart, S. and Juchau, R.H., 2015.Fundamentals of investing. Pearson Higher Education AU. Naik, V., Devarajan, M., Nowobilski, A., Page, S. and Pedersen, N., 2017. Factor Investing and Asset Allocation: A Business Cycle Perspective.Research Foundation Publications,2017(1), pp.22-26. Titman, S. and Martin, J.D., 2014.Valuation. Pearson Higher Ed. Viehs, M., 2015. Understanding ESG Investing: Fundamentals and Implementation. InCFA Institute Conference Proceedings Quarterly(Vol. 32, No. 7, pp. 56-63). CFA Institute.