GSP177E Fundamentals of Investing: MRS A's Investment Analysis Report

This report, prepared for the GSP177E Fundamentals of Investing course, analyzes two investment options presented to MRS A by Great Union National Bank Ltd and Pentagon Resources Pte. Ltd. The report evaluates the investment options based on MRS A's financial needs, particularly her daughter's annual study expenses of SGD 70,000. The analysis includes the evaluation of returns, risk, and investment composition, recommending a diversified portfolio that combines both investment schemes. The report provides detailed calculations of potential returns, considering both initial investment amounts and quarterly or annual returns, and concludes with recommendations for MRS A to maximize her investment returns and meet her financial obligations. The report also includes a comprehensive reference and bibliography section.

\Running head: GSP177E FUNDAMENTALS OF INVESTING
GSP177e Fundamentals of Investing
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Introduction:...............................................................................................................................2
Evaluation of both Investment option presented to MRS A:.....................................................2
Recommendations provided toy MRS A:..................................................................................4
Reference and Bibliography:......................................................................................................5

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Introduction:
The overall investment options mainly evaluate all the relevant attributes of MRS A
investment needs and designs an adequate investment option, which could support her
financial obligations. the investment options and criteria provided by both the investment
houses Great Union National Bank Ltd and Pentagon Resources Pte. Ltd are evaluated to
identify the most viable investment option for MRS A. MRS A needs to be comply with the
financial obligations and expenses towards her daughter’s study expense, which needs to be
conducted on yearly basis. Therefore, the return generation capacity of the both the
investment options is evaluated, as it could support its future financial obligations
Evaluation of both Investment option presented to MRS A:
MRS A needs an adequate portfolio, which could comply with her rising financial
obligations. There are no other sources of income, which could support financial obligations
of MRS A. Hence, investment in portfolio providing constant return could eventually allow
MRS A to gather constant return from investment (Clarke, De and Thorley 2016). This would
eventually help in generating high level of income to support her financial obligations. MRS
A needs to support her daughter’s studies, where expenses of SGD 70,000 annually need to
be conducted.
Great Union National Bank Ltd Amount
Initial Investment SGD 1,100,000.00
Return 5% SGD 55,000.00
Return 15% SGD 165,000.00

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The overall evaluation of above investment option can be help in identifying the
returns which could be provided by wealth management company can be identified. The
above table indicates the return of SGD 55,000 to SGD 165,000 can be provide by the
investment in Great Union National Bank Ltd. The company mainly initiates that MRS A
invests in portfolio comprising of local stocks (50%), cash deposits and foreign currencies
(10%), bonds (10%) and foreign stocks including the US, EU, and Japan (30%). This
composition of the portfolio could eventually allow MRS A to generate constant return from
investment. MRS A mainly needs a constant return, as there are no other forms of
information that needs to be conducted from investment. The portfolio created by Great
Union National Bank Ltd comprises of diversified investment options, which would help in
reducing the risk from investment and generate constant returns (Naik et al. 2017). The
portfolio mainly provides the required level of return, which is needed by MRS A for the
investment.
Pentagon Resources Pte. Ltd Amount
Initial Investment SGD 600,000.00
Return 3% every quarter SGD 72,000.00
The option provided by Pentagon Resources Pte. Ltd mainly comprises of high return
yielding stocks, which could raise the level of returns from investment. In addition, the
returns of 3% is mainly provided on quarterly basis by Pentagon Resources Pte. Ltd.
Moreover, the returns are relatively higher than other investment scope, where 12% annual
returns are generated from investment. Furthermore, investment in oil and energy sector are
mainly conducted by Pentagon Resources Pte. Ltd, where returns and risk are relatively high.
The investment scope presented by Pentagon Resources Pte. Ltd is relatively high, as

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investment securities used by the company are relatively volatile in nature and could change
due to altering trend (Titman and Martin 2014).
Recommendations provided toy MRS A:
Particulars Amount Amount
Total investment SGD 1,700,000.00 SGD 1,700,000.00
Total return on average basis SGD 127,000.00 SGD 237,000.00
Return in percentage 7.47% 13.94%
The above portfolio mainly indicates the overall range if retune that could be
generated from investments conducted by MRS A. In addition, MRS A for increasing the
relevant return from investment on yearly basis needs to invest in both investment schemes.
This would eventually allow MRS A to increase return and grow her investment capital,
which in turn could support her future obligations. The investment of SGD 1,100,000 could
be conducted in fund of Great Union National Bank Ltd from which range of returns could be
provided annually. This range of returns provided from Great Union National Bank Ltd could
be used in supporting MRS A financial obligations. In addition, the investment of SGD
600,000 needs to be conducted in Pentagon Resources Pte. Ltd, where MRS A could receive
quarterly returns. This would eventually help in supporting her daughter’s studies and
provide funds for accommodating the spending of SGD 70,000 annually.
Both the funds would eventually allow MRS A to raise the levels of return, which
could be generated from investments. The returns that could be generated from investment of
SGD 1.7 Million ranges from 7.47% to 13.94%. This could eventually help MRS A to

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support her expenses, which needs to be conducted on yearly basis. Thus, MRS A should
follow the recommended portfolio for investment.