StudentShare solutions
Triangle menu

Money Management Final-1 - Assignment Example

Nobody downloaded yet

Extract of sample
Money Management Final-1

Investing the entire sum of money in a single stock exposes the investor to the risk of that asset. So, in case when the price of that security falls in the market due to any reason, the investor will suffer huge losses. This, risk of concentration of money in a single stock is mitigated through diversification. Risk Profile Analysis Investments are subject to market risks and a rational investor always prefers to minimize risk over given investment return of maximize return over given risk. The risk profile of a portfolio is determined on the basis of risk appetite of investor. If the investor is risk prone then such investor would prefer investing larger portion of portfolio in risky assets such as common stocks or growth EFTs where as an investor with a lower risk appetite would prefer investing in safer assets to ensure protection of principal investment. The logic or procedure to determine the amount to be invested in risky assets is determined on the basis of time horizon, objectives, and diversification. Objectives and Asset Mix The main objective of the portfolio is to get adequate amount of long term growth in income. In order to achieve this objective, substantial amount of the investment corpus should be invested into equity class ETFs and fewer portions should be invested in debt instruments. This is because, while the equity will ensure long term capital growth for the investor through proper diversification, debt portion of portfolio will ensure fixed and stable income for the investor. Proper diversification will help reduce the overall portfolio risk by spreading stock specific risk into combination of securities. Determining Time Frame of Investment In order to evaluate the performance of the portfolio, sufficient time horizon should be chosen since the objective of portfolio is long term capital growth and not speculative trading. Keeping the objective of portfolio, a time horizon of minimum five years will be chosen to evaluate the performance of the securities. Money Management through ETF On the basis of the portfolio objectives, time frame of investment and risk profile analysis discussed earlier it can be said that Exchange Traded Funds (ETF) can be an effective money management tool. ETFs are investment funds that are often traded as commodity in the stock markets. Thus, ETF funds are traded similar to stocks in the stock exchanges but at the same time it is essential to know the process of buying and selling of ETFs in the stock exchanges. The process allows market players to determine ETF prices by analyzing the forces of demand and supply of ETFs in the market throughout the day. If appropriate strategy is not formulated then the investor might be adversely affected from price fluctuations throughout the day. Further the investment objective will determine whether the portfolio will be able to provide sufficient returns to the investors to attain such objectives ...Show more


MONEY MANAGEMENT FINAL- 1 Table of Contents Introduction 4 Risk Profile Analysis 4 Objectives and Asset Mix 5 Determining Time Frame of Investment 5 Money Management through ETF 5 Portfolio Selection 7 Asset Allocation 8 Equity Investment 9 BLDRS Europe 100 ADR Index (ADRU) 9 AdvisorShares WCMBNY Mln Fcsd GR ADR ETF (AADR) 11 Direxion Daily Small Cap Bull 3X Shares (TNA) 12 iPath DJ-UBS Cotton TR Sub-Idx ETN BAL 12 Bond Investment 13 AdvisorShares Peritus High Yield ETF HYLD  13 Franklin Templeton Investment Funds- Templeton Global Aggregate Bond Fund (FTAAEH1) 13 Conclusion and Recommendations 13 References 15 Introduction A portfolio is group of securities such as bonds, stocks, commoditi…
Author : eleanoraconroy
Money Management Final-1 essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Money Management Final-1"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

HR Management Quiz 1
Another example of unfair discrimination is where a business is advertising for a job, but specifically states that the company will accept male applicants only. This is unfair because it discriminates against females, who may or may not be more qualified than male applicants.
3 pages (750 words) Assignment
Money Management Finance and Accounting Assignment
This report would discuss on a particular case as to how an individual may be able to utilize a saved amount of funds after he has reached his retirement, which approach may prove to be a better approach for the individual and which stock should he select to invest depending on different factors that need to be taken into consideration.
8 pages (2000 words) Assignment
Money Management Final-1
In order to make investments, first of all it is required to examine own risk profile in order to evaluate overall acceptance to take risk which is influenced by numerous factors such as current financial situation, personal needs and goals, time horizon, structure of my current investment, risk tolerance attitude, investment goals and objectives, liquidity, age and income and degree of familiarity with investment issues.
12 pages (3000 words) Essay
Final Exam
Along their journey up, a member of the group comes down the mountain and dumps a hurt sadhu(Holyman) at their feet and states that he had done what he could to take care of him and head back to the mountain to continue with his journey. The
6 pages (1500 words) Assignment
Final Memo
ation of the programs has ascertained the importance of implementing these programs in the US and in different nations including Brazil, Thailand, China, Jordan and Tanzania among others with the objective of minimizing the prevalence of non-communicable diseases and effect of
10 pages (2500 words) Assignment
Final Exam
Judicial accountability and judicial independence are closely related and it can be said that they are mutually dependent. Therefore, judges and administrative law judges can be both independent and accountable. In regard to the judicial independence and
6 pages (1500 words) Assignment
Money and banking final q's
Scholars such as De Kock hold that the dispensation of issuing notes was all over with its inception associated with the origin and expansion of central banks. However, central banks enjoy partial monopoly in some parts of the world in issuing notes. India for instance,
4 pages (1000 words) Assignment
Money and Banking Assignment
An integrated and well-developed money market organization is necessary not only for an effective policy in any country but also for improving the operational efficiency of the banking system and modernizing its working in the context of the long-term objectives of the
6 pages (1500 words) Assignment
International Business Management ( Final Project)
The company chosen for the report is Tesco Plc, which is the third largest retail giant in the world. Tesco is headquartered in the United Kingdom and is listed under the London Stock exchange (Tesco, 2015). The reason for selecting Tesco for preparation of the report lies
8 pages (2000 words) Assignment
International Financial Management final
The strategy is considered a foreign direct investment because the firm possesses full control and influence on the operations of the business. 2. Assume that Live Co. has expected cash flows of
2 pages (500 words) Assignment
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Assignment on topic Money Management Final-1 for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us