Money Management Strategies: Analyzing Investments in Apple Inc.

This report provides an analysis of money management with a focus on investments in Apple Inc. It examines Apple's stock prices and dividend payments over the past five years, evaluating the company's profitability and shareholder returns. The dividend yield method is used to assess the effectiveness of dividend payments, revealing a decreasing trend. The report also discusses the impact of macroeconomic factors such as inflation and unemployment on the financial market and investment opportunities. It concludes that while Apple's dividend yield has decreased, this may indicate the company is retaining profits for future growth. Desklib provides access to this and other student-contributed assignments.

MONEY MANAGEMENT

TABLE OF CONTENTS
QUESTION 1...................................................................................................................................3
Investing in Apple.......................................................................................................................3
QUESTION 2...................................................................................................................................6
QUESTION 3.................................................................................................................................12
REFERENCES..............................................................................................................................15

QUESTION 1
Investing in Apple
For the present study, the use of Apple has been undertaken for the study of the price and
dividend being paid is analysed. For analysing the success of the business it is very essential for
the company to make sure that the prices of the shares are increasing (Bamforth, Jebarajakirthy
and Geursen, 2018). Hence, for this it is very much important for the company that they must
evaluate the profits earned for past some years. This is pertaining to the fact that when the profits
will be compared for past some years then it will highlight the capability of company for earning
the profit.
This will assist the company in deciding that how much the company has increased their
earning capacity in comparison to the last some years. In addition to this the current study will
also involve the data relating to the dividends which the company has paid till date. This is
necessary for the reason that the dividend is the payment which is made by the company to their
shareholders out of the profits. Hence, this is the major cost which the company has to incur to
keep the shareholders happy and satisfied with the company (Kulic, Minello and Zella, 2020).
When the shareholders will be getting good return then they will be happy with the company and
its operations.
The price of apple has been increasing since last five years and the chart is as follows-

The above graph highlights the prices of Apple within the last five years that is 2017 to 2021.
this clearly highlights the fact that prices of the share of the company has been on an increasing
trend since the last five years (Apple PE ratio 2006- 2021, 2021). Hence with this can be implied
that the companies earning continuous profits because the prices of the shares of company
increasing rapidly.
Dividends paid
Further, with the data relating to the evidence it was clearly visible that the dividend
payment of Apple is constant increasing as compared to the last years. The major reason behind
this factors that due to the increase in the prices the number of shareholders of the company has
been increasing hence the dividend payment has also increased to a great extent. In addition to
this since 2016 the operations of the company has also been increasing which has resulted in
more of the prophets. Thus, when the profit will be more than company will be providing more
of the dividend to the shareholders which is a good sign of development for the company. with
the above data it is clear that in the year 2016 the cash dividend declared per share was 0.545.
this was a 0.7 95 in the year 2020 with simply means that the dividend paying capacity of the
company has increased within the time frame provided (Ksendzova, Donnelly and Howell,
2017). Hence it can be reflected that the capability of company for earning profits and paying the
dividend has increased to a great extent.
Dividend yield method

the dividend yield method is displayed as a percentage of the amount of money which the
company pays to the shareholders with the current stock price is. This is the simplest method in
analysing the fact that how much dividend is being paid by the company to the investors. This is
very essential for the company to ensure because if team dividend paid will not be good then the
investors will not invest within the company (Dalla Pellegrina and et,al., 2021). Hence, for the
effective running and working of the company it is essential for the business to provide effective
dividends to the the shareholders so that they do not take the investment back. in addition to this
analysing the dividend paid is also very important because when a person thinks to invest within
the company then the first thing which they analyse is the dividend yield of the company. If the
dividend yield is higher than the investors will be interested in investing within the company
where is in case dividend yield is not higher than the companies will not get hired investors.
Dividend yield = Annual dividend per share/ current share price
Years Price Dividend paid
per share
Dividend yield
2016 24.35 0.545 0.022
2017 30.1 0.60 0.019
2018 47.67 0.68 0.014
2019 46.43 0.75 0.016
2020 62.98 0.795 0.012
with the evaluation of the dividend yield table it is clear that the dividend is of the
company is continuously decreasing. This is not good for the company as the dividend paying
capacity of the business has been decreasing. This simply means that a low dividend yieldis
considered as an evidence for the company that are experiencing rapid growth and future
diffidence might be higher. This is particularly because of the reason that when theevidence are
being paid less then it implies that the company's saving for the future working. Hence in case
the dividends are paid less than it means that the company is saving the money and is retaining
for the future use which simply implies that this saved money will be used in future for proper
utilisation of the resources.
Thus in the end it can be stated that for tea effective evaluation of the performance of the
company it is very essential that the dividend is being undertaken. The major reason behind this

factors that when the prices compared to the dividends paid then this simply outlines the
capability of the company to pay off the evidence to the shareholders. And in case the dividend
will be lower then this means that company is retaining the profits for the better utilisation of it
in future. hence for the effective analysis of the financial performance of Apple the use of
dividend yield was very helpful in order to analyse the dividend payment made by the company
to the shareholders.
QUESTION 2
Macro economic view
The investment is always a risky platform to perform the respective functions. The risk is
always a part of every portfolio investment or invests any type of capital or currency. This is
always a significant part of the portfolio investment. The macro economic factors certainly affect
each area of the financial market. The macro environment dimensions are all about influencing
different areas associated with the financial market. The financial market is a summarises view
point of different areas and factors that can fundamentally influence the operations and functions
of the business entities (Gambetti and Musso, 2017). Macroeconomic direction is a summarises
basis involvement of different factors that can significantly affect the operations and functions of
the financial market. The financial market is associated with bonds, shares, and debentures and
such like commodity that could precisely offer the capital maximisation possibility for the
business houses. This could make it happen for the business venture to certainly influence the
performance of shares, bonds and other such commodities. All this influence the financial market
in a most significant manner. This has been a fundamental associated with the financial market.
Macro economic factors are involving the inflation in economy. Inflation is an element
that fundamentally affects and influences the overall performance of the business venture and
organisation. The role of macroeconomic environment is such that this is directly associated with
the different element that drive the overall performance of the financial market. Inflation is a
factor that influences the value of currency exchange and drive the performance of the financial
entities. In case the rate of inflation getting down than this would allow and motivate the people
in the market to investment in a potential funds and the commodity that could further boost the
overall performance of the respective commodity (Nyangarika, 2019). The macroeconomic
factor inflation is directly affect over the performance of the financial market. The level of
inflation under economy would certainly drive the demand and supply of various commodities

and securities and its associated demand in the respective market. The role of macroeconomic
factor inflation is under driving the overall demand in the market and also under the supply of
the same in the respective market place. This is fundamental for the business entity to drive
towards the overall success of the financial market. The role of the securities and commodity is
very essential in the money market and it make it more reasonable for the money market to get
engaged with the financial market. Macroeconomic factor like inflation restrict the value of
currency in the commodity market. The value of currency influence every single element in the
market as it could also certainly decreases the values of commodity and the securities in the
respective market place.
Unemployment on the other hand is another key macroeconomic elements or factor that
certainly influences the overall performance of the financial market. Unemployment is a term
used to denote the fact that this is about the people who are eligible enough but do not get the
employment based on potential and ability. Unemployment becomes a huge issue in every
country as this is certainly not possible to create a job in proportion to the supply in the market.
Unemployment is increases when the overall demand of professionals and graduates in market is
more than the total supply of such professionals under the respective market place. This is a term
denoted the fact that unemployment is more like the eligible professionals not able to find the
right job for itself (Jamaludin, Ismail and Ab Manaf, 2017). Unemployment is always a
fundamental factor that influences the performance of the financial market. The more people
employed the more the investment opportunity is created in the market. Finance market and its
success is certainly associated with the number of investors available in the market. Employment
rate certainly increases the number of investors in market. Also the quality of income
professional gain also influence the level of employment created in the market.
Unemployment significantly influence the overall performabnce financial market
entertains in the respective business entity. The more the unemployment existed in the market
the more the financial market decline. This is an obvious fact that unemployment certainly
decreases the demand of product under financial market that can also influence the performance
of the financial market. Government always try to decrease the unemployment rate of the
country so that more growth oriented opportunities could be created especially for the finance
market. This is a basic nature of the finance market that it requires and seeks more demand of
products in market. The entire world is progressing rapidly. Investment becomes more prominent

and strong for the professionals (Sepehrdoust and Ghorbanseresht, 2019). The macroeconomic
factor unemployment is a core element that drives the direction of the financial market. This is
important and essential direction of the financial market that this factor impacting over the
operations and functions of the financial market. The market is very much volatile that proper a
scope of each and every investor available in the market. The level of unemployment existed in
market the more the declining growth rose in relation to the financial market. This is a basic
element associated with the financial market that it is influenced with the aspects associated with
the financial market. The role of unemployment is huge in the overall success of the financial
market. All such economies or countries contain less unemployment rate contain more growth
possibility of the financial marketed and as compare to that such countries that contain more
unemployment rate consider less growth rate for the financial market of the country.
Every market contains some level of boosting elements that precisely boosts up the
overall growth and development possibility of the sector in the market. Unemployment and
inflation both the elements are certainly restrict the financial market to reduce the overall
demand and supply under the respective market place. This is a basic fundamental associated
with the finance market that could involve the areas and operations of the organization and the
financial establishment. Unemployment and inflation both the term is associated with the fact
that in both the areas income of the people of country get reduced (Su, Fang and Yin, 2019).
This is a basic characteristic of the financial market that it get influenced with the income of the
people in market. The more the income would be in market the more the investment related
possibility would arouse in the market. This is important for the overall success and growth of
the financial market that income of the potential investor gets increases every year than only they
would be capable enough to deliver the potential resources and financial stability in order to
channelizes funds and finances to invest in different aspects and areas.
Economic output on the other hand is another macroeconomic factor that influences the
overall demand and supply of the financial market. The economic output involve per capita
income of the people in country, average expenditure of the people in country and certain other
element that influence the buying power or the investment ability of the investors in market. This
is a basic characteristic of the investor in market that this gets influenced with the potential and
buying ability of the investor in the respective market place. This is essential for the investment
purpose of the investor that they get to deliver the effective funds in buying the different funds

and securities over the financial market (Paskevicius and Keliuotyte-Staniuleniene, 2018). All
the economic output get the investor a support and power that they can look over different
investing options where the respective individual can invest in the market to gain the capital
advancement. The basic requirements of the financial market are very significant that the
investor should have own the sufficient funds and financial resources to get involve under
different security options and choices. This is the need of the financial market that it directly deal
with the different types of economic outcomes that can allow the individual to invest in different
security options and choices as a part of the financial market (Fang, Yu and Li, 2017). The role
of the economic output is direct when it comes to impacting over the poverall growth of the
financial market. The basic characteristic of the financial market is that this is influenced with
the level of money supply and the wealth of the people in the market. Investors always look
around the performance of the funds when it comes to investing in securities and shares. All
these are the factors that get influenced against the economic output of the market place.
Investment is a risky choice and all aspect associated with the financial market and economy
would significantly affect over the performance of the funds in the financial market.
Analysis of own situation and risk profile
With the growth of the economies, there has been seen various investment avenues available for
the investors and thus those who are in need of money has been seen to have better and easy
access towards capital they needed (Cole and et.al., 2021). But for investors, it is necessarily
required to invest their monies into appropriate avenues by properly analysing each and every
aspects of the investment and invest their hard earned money into best possible avenue by
keeping in mind the risk constraints which is based on the individual’s ability to take risks. The
investors must frame their own investment strategy based on their own financial situations and
risk tolerance (Zawadzki, 2020). The best strategy may not be always based on the historical
returns but one which best suited with an individual’s financial status and objectives both in the
short and long run.
Particulars describing my own situation pertaining to make an investment are as follows:
Character: I am highly courageous to invest in stock market as I am a risk taking individual. My
aim is to maximise wealth through the route of capital appreciation (Kang and et.al., 2021). As
capital market is a platform where an investor can realise higher returns in the long term and my
individual financial goals are also needed to be fulfilled in the long run, therefore, stock market

is the best option. I have better knowledge of market and economy as a whole. It is believed that
various macroeconomic factors such as inflation rate, exchange rate and unemployment rate has
a great impact over the functioning of the financial market (Larsen and Larsen, 2018).
Lifestyle: There is an enough knowledge available regarding the stock market which contributes
towards making right choice while making an investment decisions. The investors concerned
here is an active investor who by using their vast knowledge of the market able to generate value
added returns on the investment (Pagano, Sánchez Serrano and Zechner, 2019). The investor is
belonging from rich class and thus falling into the category of higher income group which makes
it possible for him to take higher risk.
Time horizon: It refers to the investment horizon or the time period for which the investor is
expected to hold their portfolio of security or any other investment. Here the concerned
investor’s time horizon is long term which is more than 10 years.
Objectives: There can be many goals and objectives that an investor can have such as the
following:
 Here investor wants to create more wealth by utilizing their vast knowledge of stock
market by holding and shifting investment between different avenues for a long run
(Lobato, Rodríguez and Romero, 2021).
 Risk minimization is another objective which can be fulfilled when an investment is
being made for a very long run as the risk involved gets neutralised.
 Earning regular income through fixed return investments and getting capital gains are the
two basic objectives of an investor here.
 Reducing tax liabilities and processing fees associated with investment.
Here the investor is interested in investing in ETFs which helps in making investment in funds
which are traded on stock exchanges (Fang, Chen and Xue, 2019). ETFs is selected as an
investment avenue in order to invest in a diversified portfolio of securities which aids in reducing
risk associated with single security investment. It provides exemption from capital gain taxes.
Therefore, it has lower expense ratio than other mutual funds which leads to the generation of
higher returns if hold for the long run.
Global economic trends and its effects on ETFs
The mutual industry is showing a very impressive growth from last 10 years and as a result of
which mutual funds across the world has become a major financial intermediaries facilitating a

channel for cross border capital flows. Even in the industry, the actively managed funds and
exchange traded funds have shown a notable development in recent times in terms of managing
funds. The rate of increase in assets held ETFs is particularly rising at a higher pace than industry
as a whole making it possible for investors to gain more profits in terms of both returns and
capital appreciation (Ben-David and et.al., 2021). Such a notable performance of ETFs in the
industry results in more demand for investment in mutual funds which consequently leads to the
need of more employment demand from this industry. Also, higher level of professionalism is
desirable for managing huge amount assets under management. Therefore, professionals and
experts in the field if get hired by mutual fund companies, then there would definitely higher
returns for the investors in ETFs.
Such a growth and development of ETFs in the mutual fund industry is showing a rise in ETFs
across the globe.
Also, there is a rise in the risk of investing in the equities of the companies, and therefore
diversification has become necessary along with the advice of the professionals and experts and
this is what offered by ETFs. Accordingly, there is more demand of ETFs as an investment
avenue in recent times.
Assets allocation of an investor desiring for growth (moderately high risk taker)
Here by referring to an investor who is a moderately high risk taker and desiring for growth, the
asset allocation will be described in terms of how such an investor will allocate his investible
amount across the shares and bonds (DeVault, Turtle and Wang, 2021).
The timeframe involved for such a growth desiring is generally long term that is, seven to ten
year. The investor concerned here is willing to take high risk pertaining to the volatility of
investment value. Investor choses to invest 70% of the investible amount in growth securities
and 30% of the amount in defensive securities in an attempt to get higher performance of their
investment (Lee, Chen and Lee, 2021). From growth securities, higher return is desired while for
getting fixed return from interest bearing securities 30% has been invested in bonds.
Selection of portfolio of ETFs
The five ETFs selected for the portfolio are as follows:
1. MSCI emerging markets UCITS ETF
This fund invests largely in equities and is an open ended fund. The benchmark of this fund is
MSCI emerging markets and thus investment is being done in emerging market stocks mirrored

by the index. The NAV of this fund is 133.24 and the fund is a passively managed one (UBS
ETFs – Private Investors. 2021).
2. Bloomberg Barclays TIPS 1-10 UCITS ETF
The concerned asset class of this fund is fixed income securities and is an open ended fund. The
index of this fund is Bloomberg Barclays 1-10 year inflation linked bond of US government. The
index shows outstanding amount of US TIPS having time to maturity of not less than 1 year and
not more than 10 years. The NAV of this fund is 13.64 and is a passively managed one (UBS
ETFs – Private Investors. 2021).
3. MSCI EMU UCITS ETF
This fund is again concerned with the investment in equity class and also an open ended fund.
The benchmark of this fund is MSCI EMU and the NAV of this fund is 141.59. The investment
is done in large and mid-cap European stocks that are included in MSCI EMU index. Again, the
fund is a passively managed one (UBS ETFs – Private Investors. 2021).
4. MSCI ACWI SF UCITS ETF
The fund is based on equity asset class and is an open ended one. The benchmark of this fund is
MSCI ACWI. The NAV per share of this fund is 151.47 USD. It is a passively managed ETF
(UBS ETFs – Private Investors. 2021).
5. CH – Gold ETF
The fund basically invests in precious metals and thus the benchmark of this fund is LBMA gold
price. Like other ETFs in the portfolio, this fund is an open ended and passively managed fund.
The investment is done in physical gold bars ranging from 1 gram to 12.5 kilograms. The NAV
of this fund is 58.64 (UBS ETFs – Private Investors. 2021).
Therefore, there is enough diversification has been adopted by investing in multiple asset classes
that is, equities, fixed income bearing securities and precious metals.
Element of time in the investment plan
The time horizon involved in the above all the funds included in the portfolio is ranging between
seven to ten years and thus the investment planning involves long term period which is necessary
for getting higher returns from equities and creating wealth (Lau and et.al., 2017).
QUESTION 3
The selected Bond is 0.15 Swissgrid 20 -34. It is a government bond as it is issued by a public
concern known as Swissgrid AG. The company is under the supervision of Swiss Federal