Fundamentals of Investing: MRS A's Portfolio Analysis and Advice

This project focuses on creating a suitable investment portfolio for MRS A, considering her financial needs and goals. The analysis evaluates investment options from Great Union National Bank Ltd and Pentagon Resources Pte. Ltd, assessing their potential returns and risks. The student recommends a diversified portfolio, allocating investments between the two companies to maximize returns while managing risk. The project includes detailed financial analysis, portfolio composition, and recommendations for MRS A's investment strategy, aiming to support her financial obligations and long-term financial security. The student provides a comparative analysis of the two investment options, considering the return rates, investment amounts, and portfolio compositions to determine the most suitable allocation for MRS A's specific needs. The final portfolio recommendation is designed to balance risk and reward, ensuring the client's financial objectives are met.

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

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Table of Contents
Introduction:...............................................................................................................................2
Conducting evaluation on investment option presented to MRS A and depicting her
investment needs:.......................................................................................................................2
Providing recommendations to MRS A:....................................................................................4
Reference and Bibliography:......................................................................................................6

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Introduction:
The main aim of the assessment is to identify adequate portfolio for MRS A, which
could help in supporting her expenses annually. Relevant evaluation of different investment
schemes is conducted to identify the actual financial instrument, which could be used in
improving MRS A’s return generation capacity. Moreover, both the investment companies
have directly provided all the relevant financial instruments, which could be used in
providing the return from investment. Furthermore, the financial instrument could eventually
help in generating high levels of return, which might allow MRS A to support her financial
needs. Lastly, adequate portfolio is created after the evaluation of investment schemes
provided by both the investment companies.
Conducting evaluation on investment option presented to MRS A and depicting her
investment needs:
The rising expenses of MRS A needs to be complemented with an adequate portfolio,
which could provide higher returns and support her financial obligations. From the evaluation
of case study, it could be identified that MRS A has no other sources of income, which could
be used in supporting her financial obligations. Furthermore, Mediclaim and other insurance
products has been purchased by MRS A, which needs no further investments. Moreover,
MRS A needs a constant return providing portfolio, which could help in supporting her
financial obligations as and when they turn up. Therefore, adequate focus in preparation of
the portfolio needs to be conducted, as higher returns is expected by MRS A from the
investments (Alberg & Lipton, 2017).

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Evaluation of both the portfolios provided by Great Union National Bank Ltd and
Pentagon resource Pte. Ltd needs to be conducted to identify the most viable options, which
could be included in the portfolio.
Great Union National Bank Ltd Rate Amount
Initial Investment SGD 1,000,000.00
Return 5% SGD 50,000.00
Return 15% SGD 150,000.00
The above table mainly helps in depicting the probable returns that could be provided
by Great Union National Bank Ltd, if adequate investments are conducted. The minimum
investment requirements for Great Union National Bank Ltd is relatively at the levels of SGD
1,000,000, which could help in generating range of return from 5% to 15%. This would
eventually allow the company to generate returns of SGD 50,000 to SGD 150,000 on annual
basis. In addition, this would eventually allow MRS A to grow her investment and provide a
constant return from investment. The portfolio created by Great Union National Bank Ltd
mainly comprises of local stocks (50%), cash deposits and foreign currencies (10%), bonds
(10%) and foreign stocks including the US, EU, and Japan (30%). The portfolio composition
depicted in the above statement indicates the financial returns, which could be generated from
investment. The portfolio mainly depicts a diversified investment option, which would allow
investors to increase their performance and return generation capacity. This diversified
portfolio also helps in reducing the risk that is involved in Investments (Naik et al. 2017).
Hence, the portfolio would eventually allow MRS A to raise the level of investments, which
could be generated from investments in funds of Great Union National Bank Ltd.

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Pentagon Resources Pte. Ltd Rate Amount
Initial Investment SGD 700,000.00
Return every quarter 3% SGD 84,000.00
The above table mainly helps in identifying the investment scope, which is provided
by Pentagon Resources Pte Ltd to MRS A. The portfolio designed by the company relatively
invest in oil and energy sector, which has high returns from investment (Finn, 2017). In
addition, the company also indicates a return of 3% in each quarter, which would allow MRS
A to support her financial obligation. This indicates that 12% annual returns could be
generated by MRS A if relevant investments are conducted in Pentagon Resources Pte Ltd.
Moreover, there is no minimum investment capital that is required by the investment
company, which could allow MRS A to maximize their returns from investment.
Providing recommendations to MRS A:
Particulars Amount Amount
Great Union National Bank Ltd SGD 1,000,000.00 SGD 1,000,000.00
Pentagon Resources Pte. Ltd SGD 700,000.00 SGD 700,000.00
Total investment SGD 1,700,000.00 SGD 1,700,000.00
Return Great Union National Bank Ltd SGD 50,000.00 SGD 150,000.00
Return Pentagon Resources Pte. Ltd SGD 84,000.00 SGD 84,000.00
Total return on average basis SGD 134,000.00 SGD 234,000.00
Return in percentage 7.88% 13.76%

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Adequate portfolio is mainly depicted in the above table, which could provide MRS A
relevant returns from investment that could be used in supporting her financial obligations.
The portfolio mainly comprises of both the investment scopes provided by investment
companies, which might help in improving the return generation capacity of MRS A.
Moreover, investment of SGD 1,000,000 needs to be conducted in fund of Great Union
National Bank Ltd, while the rest SGD 700.000 needs to be invested in Pentagon Resources
Pte. Ltd. This could eventually help in raising the overall return that could be used by MRS A
while supporting her financial obligations. The designer portfolio could eventually allow
MRS A generate adequate Returns, which might help in supporting her family expenses and
daughter’s education (Davis, 2017).
The portfolio really helps in identifying a range of returns that could be provided by
both Investments. this identification of the returns could eventually allow MRS A to make
adequate investment decisions for supporting her daughter’s education and annual financial
obligations. From the portfolio the range of returns that could be provided from investment
amounts to 7.88% to 13.76%, which could help MRS A in improving her financial return.
Both investments selected for MRS A is relatively adequate, as it helps in supporting both
risk and return segments of investment. The diversification of the portfolio has been allowed
MRS A to reduce the risk from investment and generate higher rate of return.
Therefore, it is recommended for MRS A to adequately invest how capital according
to the drafted portfolio, as it might help in reducing the risk from investment and improving
her capital growth. The diversification conducted in preparing the portfolio would eventually
allow MRS A to support her daughter’s education and other financial expenses needed on
annual basis.

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Reference and Bibliography:
Alberg, J., & Lipton, Z. C. (2017). Improving Factor-Based Quantitative Investing by
Forecasting Company Fundamentals. arXiv preprint arXiv:1711.04837.
Benton, A. I., Huerta-Sanchez, D., & Pyles, M. K. (2017). The Impact of Market Conditions
on Voting Results in a Student-Managed Fund. The Journal of Trading, 13(1), 72-79.
Davis, P. (2017). Bonds: Getting to the Fundamentals. In Practice, 2(1).
Davis, P. (2017). Value Investing: Do Quant Strategies Measure Up?. In Practice, 2(1).
Finn, A. (2017). Smart Women Love Money: 5 Simple, Life-changing Rules of Investing.
Simon and Schuster.
Naik, V., Devarajan, M., Nowobilski, A., Page, S., & Pedersen, N. (2017). Factor Investing
and Asset Allocation: A Business Cycle Perspective. Research Foundation
Publications, 2017(1), 22-26.