Report On Portfolio Selection | Investment Decision

Added on -2020-02-14

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INVESTMENT
PORTOFLIO
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
(B) Marco and micro view on investment...................................................................................6
(2) Fund diversification....................................................................................................................9
(a) Industry..................................................................................................................................9
(b & c)Country/ developed and developing markets..................................................................9
(d) Investment vehicles...............................................................................................................9
(3) Identify the holdings.................................................................................................................10
(a) Factors that suggest that holding will perform better over chosen time period...................10
(B) Comparison between intrinsic value and market price ......................................................10
(c) Risk factors in portfolio.......................................................................................................11
(d) Expectation of performance form the portfolio...................................................................11
(4) Conclusion ...............................................................................................................................11
(5) Investment theory ....................................................................................................................12
(a) Modern portfolio theory .....................................................................................................12
(b) CAPM..................................................................................................................................12
(c) Gordon’s growth model.......................................................................................................12
(d) Investment styles.................................................................................................................13
(e) The efficient market hypothesis...........................................................................................13
REFERENCES..............................................................................................................................14
INDEX OF TABLES
Table 1: Portfolio of equity..............................................................................................................4
Table 2: Return percentage on equity after deducting stamp duty cost...........................................4
Table 3: Portfolio of mutual fund....................................................................................................5
Table 4: Actual return percentage on mutual fund after deducting initial cost...............................5
Table 5: Portfolio of bond................................................................................................................6
Table 6: Portfolio of bullion............................................................................................................6
Table 7: Portfolio of commodity......................................................................................................6
Table 8: Liquid amount that remaining after making investment in different financial instruments
..........................................................................................................................................................7
Table 9: Investment of cash in banks...............................................................................................7
Table 10: Aggregate capital gain of entire portfolio........................................................................7
INTRODUCTION
Making investment decisions is a very tough task and for this one need to review lot of
things. In order to earn profit investment can not be make on single asset. It is very difficult to
prepare a portfolio. In this report portfolio of different securities are prepared. Valid reason for
selection of security in the portfolio are given in the report. Along with this, in the end part of
report investment theories are explained in detail.
Table 1: Portfolio of equity
Companies Price
Expecte
d
return Stocks
Expect
ed
price
Capit
al
gain
Current
value
Total
value at
end
Total
capital
gain
Admiral group
(ADM) 1954 23.92% 25 2421
467.4
7 48850.00 60536.78 11687
Berkeley group
(BKG) 3198 13.01% 27 3614
416.0
0 86346.00 97577.89 11232
Barratt development
(BDEV) 565 13.60% 28 642 76.84 15820.00 17971.41 2151
Hargreaves
Lansdown plc 1339 21.84% 14 1631
292.4
2 18746.00 22839.83 4094
Hargreaves
Lansdown plc 3173 13.21% 23 3592
419.0
3 72979.00 82616.61 9638
Intertek group plc 2866 9.96% 20 3151
285.4
0 57320.00 63027.98 5708
Total
capital
gain
44509.48
9364
Return
percentag
e 14.84%

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