Investment Plan: Equity and Stocks Analysis - Finance Course

This assignment presents a detailed investment plan focused on equity and stocks, designed for long-term financial growth. It explores various investment strategies, including a high-risk, high-reward approach with a significant allocation to equities. The plan involves analyzing specific investment vehicles like the Vanguard 500 Index and Fidelity Select, assessing their historical returns over 5, 10, and 15-year periods. The analysis includes potential returns on a $10 million investment over five years, and emphasizes the importance of sector diversification, particularly in real estate, consumer staples, and healthcare. The project suggests a strategic allocation of investments across different sectors, with a significant portion in technology services and consumer staples. References to relevant academic research are also included to support the investment plan's rationale.

Investment Proposal
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Student Name
Student Number
Date
Course Id

Investment Proposal
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The investment plan which must be considered in context to the pitching of an investment
idea must in relation to the asset class of equity or stocks . Primarily, on account of the long term
planning and on any time horizon for the current year scenario . The best plan of action deals
with a possibility where the process is drafted on the basis of the aggressive risk-taking portfolio
which in clear terms explains the aspect where more than or at least ninety percent of the assets
is governed by equity or stocks. The left over percentage is accounted with the combination of
the bonds as well as the cash or cash equivalent targets. This investment plan primarily deals
with putting the returns on a maximum value basis where the degree of risk is very high and can
exceed the level of risk taking and on the other hand, it may lead to a possibility where the return
will enhance the margin and the profit level to a much higher and a promising note.
Understanding as to how the class action plan will work it is evident to take an analysis on the
portfolio stock or fund analysis which are listed as follows:-
1) Vanguard 500 Index (VFINX)
2) Fidelity Select Consumer Staples (FDFAX)
3) Vanguard Health Care (VGHCX)
4) Manulife Global Small Cap Fund
5) TD’s Global Entertainment and Communications Fund
(Plastun, Sibande, Gupta, & Wohar, 2020)

Investment Proposal
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The returns listed above ranges in a period timeline on 5 years , 10 years as well as 15 years
and further, considering the fair margin of five years the following aspect which is profitable as
the returns for a five year ranges from a negative return of 1.47 percent roughly to about massive
hike of 8.97 percent. On an average basis the return value will be around 5.34 percent which is
fair value in connection with investing in balanced fund or an low risk policy (Minh, 2019). In
terms with the real money value output if the investor invest around $ 10 Million , the return
which is expected in five years of investment will be around $ 563000 which is a great value and
can go as high as $ 900000 which is a great money return in comparison to any policy plan.
The other element which must be checked in terms with the equity asset classification is
investing in industry which are doing fairly very well. It definitely depends on the segmentation
eleven sector where the major benefit will be while investing in the real estate’s as well as the
consumer staples and the health care. This will actually lead to provide better equity value than
expected in connection with the other fund value investments. The investment plan in terms with
the sector basis where the equity fund has been generated by around sector portfolio and
diversification. Thus, the equity investment can be divided under a massive investment of say
about seventy percent of the technology services sector where the reward return will aim at
around ninety eight percent (Minh, 2019). The other massive investment must be in consumer
staples as the return will be around fifty percent. Henceforth, the above investment plan is best
suited for the long term analysis, and high value money return.
Reference
Minh, N. T. T. (2019). Implied cost of capital: An empirical analysis for the Canadian
stock market (Doctoral dissertation, Vietnamese-German University).

Investment Proposal
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Plastun, A., Sibande, X., Gupta, R., & Wohar, M. E. (2020). Historical evolution of
monthly anomalies in international stock markets. Research in International Business and
Finance, 52, 101127.