Portfolio Management for Ms Melody: Investment Opportunities and Risk Evaluation

ASSIGNMENT

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1.Setting up of Specific and realistic goals regarding the funds that needed:........................3
2.Calculation of money that need to save and invest in each month:.....................................3
3.Alternatives available to client:...........................................................................................4
4.Development of investment policy statement:....................................................................4
5.Explanation on how the stocks, bonds, funds, futures, debts, and other investment
instruments are being traded in financial markets:.................................................................5
6.Analysing the investment opportunities that are align with financial goals:.......................6
7.Recommendation on specific investments so as to create the portfolio on available capital:
................................................................................................................................................6
8.Evaluate of risk on recommended investment and the impact of diversification, taxes,
inflation, and currency fluctuation on the proposed portfolio:...............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Portfolio management is the selection, prioritisation and manage of an organisation's
programmes and projects, in step with its strategic goals and ability to deliver. The purpose is to
stability the implementation of extrude projects and the protection of business-as-usual, even as
optimising go back on investment. In the given report the portfolio needs to construct with
respect to Ms Melody who is 28 years of age and she won’s the lottery. After payment of all the
taxed and the spending she has left with $ 1900000 which she wants to invest in the securities
market in such a way that she can live the most lavish lifestyle that she can afford for the rest of
his life (Dimitriadis, Bessler, and Walker, 2019).
TASK
1.Setting up of Specific and realistic goals regarding the funds that needed:
Financial goals are the saving or the investments targets which an individual wants to achieve
over the decided period of time. The list of financial goals which needs to be addressed by Ms
Melody could be mentioned under:
 Make the budget regarding the expenses that she has to beer throughout the year so that
investment to be made accordingly.
 It is important that she has to pay off all her debts on timely basis as the interest element
on the debt creates lot of burden upon her.
 Certain amount of funds must be kept for emergency purpose so that it can be utilised on
emergency purpose.
 She has to develop skill in order to invest these remaining funds from the lottery in the
financial market so that the funds get doubled over the period of time.
 It is important for her to make sure that all the funds should be invest in the diversified
way so that the loss on one security will be compensated from the profit she earns from
another security (Dodge, 2018).
2.Calculation of money that need to save and invest in each month:
The amount of investment she has to make on every month in order to gain defined return
for n number of period will be arrived with the help of time value of money. It is given that she
want to invest on per month basis then the compound value of annuity needs to be calculated.