Investment Portfolio Project: Investor Profile, Goals and Decisions

This report provides an analysis of an investment portfolio project, focusing on a hypothetical client, Ellen DeGeneres, and her financial goals. It begins with an investor personality profile, outlining her income sources, net worth, and investment objectives, which primarily center around securing future earnings and retirement. The report then details an investment goal, recommending long-term investment strategies to maximize profits and mitigate inflation's impact. An asset allocation model is presented, dividing investments into cash, fixed income (rental property and debentures), and equity segments. Finally, the report discusses specific investment decisions, including stock recommendations and debenture allocations, tailored to the investor's risk tolerance and financial objectives. The conclusion emphasizes the importance of portfolio management for sustainable wealth creation and achieving long-term profitability.

Creating an Investment
Portfolio Project Overview
1

Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
A. Investor personality profile.....................................................................................................3
B. Investment goal.......................................................................................................................4
C. Asset allocation Model............................................................................................................5
D. Investment decision................................................................................................................6
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
This is important for an individual to create a portfolio for the investment purpose so that the
budget can be prepared of all her income and expectations. There are various ways to invest
money but it is extremely important for an individual that this investment portfolio gives an
accurate and sufficient return (Archibald & Archibald, 2016). It is seen that the various portfolio
managers exist in the society which applies the non-practical solutions which gives negative
return to the investor (Kerzner & Kerzner, 2017). This report is based on analysing the investor
profile as a portfolio investor and achieving its investment goals. Also asset allocation model
would be discussed while at the last how the investment decision affects the investor would be
discussed.
Main body
A. Investor personality profile
For gaining knowledge about the client and summary about her financial condition certain
questions and answers are required to be answered by the person as follow:
Q1. Are you self-employed or work for someone else on salary basis?
Ans. I am a self-employed person work in the entertainment industry.
Q2. What is your target investment criteria is it long term or short term?
Ans. My objective is to go for long term investment for securing my future earning and old age
life.
Q3. What are the different sources of income that creates your wealth?
Ans. Most of the income that comes from the Stand-up comedy acts and rest comes from the
movies. My current net worth in the year 2018 was $450Mn.
Q4. How many members are there in your family?
Ans. There are only two members which includes me and my spouse named Portia de Rossi.
Q5. What is the reason of making the investment portfolio?
Ans. The main reason of making the investment is to achieve the objective of securing the future
needs and also to secure after retirement life.
3

Profile of the client
This report is based on an individual who is a famous personality and is one of the
renounced name in the field of entertainment (Bessarabov and et. al., 2017). The name of the
investor is Ellen DeGeneres and is successfully earning a good amount of money from her
dashing skills and knowledge in the entertainment industry (Kaiser, Arbi & Ahlemann, 2015).
Ellen DeGeneres has applied to us as she wants to invest some of her money in the assets which
would give her best return in future and helps in saving the money for the retirement as her goal
of planning (Bradley, 2016). Ellen DeGeneres is married and is in the age group of 60s and has a
great and significant worth for investment. Hence she has the vast opportunity to grab the
decision to perform investment. Also Ellen DeGeneres is married and is living with her spouse.
She is working in the field of entertainment and is very well known person while she is
earning a great amount of money which is best for her to invest so as to get a better return a well
as be secured for the future at the time of retirement (Jenner, 2016). Ellen DeGeneres earns most
of the income from stand-up comedy and acting which makes the total net worth to around
$87Mn till date. Ellen DeGeneres objective of making investment is to achieve maximum profits
from the investment so as to increase her wealth and to achieve the requirement of retirement
benefits as she would not be able to work in her old age.
B. Investment goal.
This has been seen that Ellen DeGeneres is performing her obligations in best and
sufficient manner. As it is seen that the client is preferring to invest the money for long term
duration hence she should invest in the long term decision as this has been seen that she is
obliged to do the investment for her retirement and hence she should save the money in the long
term investment plan from today itself so that she is able to achieve the advantage of making
maximum profits (Carstens, Richardson & Smith, 2016). The wealth of Ellen DeGeneres is to
increase in a way so that her wealth increases in best manner to achieve at least a target of 30%
return from the invested money.
As this has been seen due to inflation the things that can be purchased today at a price
cannot be purchased at the prevailing price and would be purchased at a higher price. Also at the
old age the expenses of hospitalisation and medicine increases which leads to higher burden of
money requirements (Jackson, 2018). Hence Ellen DeGeneres should invest in the bonds that are
4

of long term nature, in the securities of the company for long term as this is highly liquid asset
which helps tin achieving the objective of maximising the profits, also she can invest in the
insurance sector as they provided return for the same as well as they provide the insurance in
case of any Miss happening. It is also seen that government provides relief to the investors who
wishes to invest for the long term purpose by reducing the tax rate on the amount of interest
received on the same (Devaux, 2015). The minimum amount that is required for investment in
this for Ellen DeGeneres is $120,000 P.a. Which would be best for her to earn so much that she
would be able to get a good return for her retirement.
Hence by calculation,
For the year it would be =$120,000 per year
Also she would increase the amount of investment every year by 50%.
And if Ellen DeGeneres saves this amount for 5 years it would be=
$120,000+180,000+240,000+300,000+360,000 = $12, 00,000. Which is a good amount for her
to save.
C. Asset allocation Model
As the budget of $120,000 has been suggested for investment in different sectors, hence
based on the profile of the investor various investment options are founded which are mixed and
are divided into cash, fixed income and the equity segment.
 So for the cash segment: Here Ellen DeGeneres should invest in a very liquid assets such as
stock market or deposit some of the money in bank or make a fixed deposit which can be
converted into cash as and when required (Dobrovolskienė & Tamošiūnienė, 2016). The
amount that is required by for investment in the cash sector is taken as less as these are less
return giving product (Kolupaev and et. al., 2015). Hence for this the amount of budget is
taken out is $40,000. She should invest around 40% of the money in the bank account and
should invest remaining 60% in the fixed deposit account which would give them a fixed
return at a lower rate.
 For Fixed income: This has been seen that Ellen DeGeneres use to give her portion of house
on rent which helps her in giving a good amount of return and also helps in giving the fixed
return in every month. This has been taken into consideration that Ellen DeGeneres should
make another floor in her house and also let it out so that it gives a fixed amount of rent
every month which will give her a fixed income (Dobrovolskienė & Tamošiūnienė, 2016).).
5

It is recognised that this would lead to increase in the rental income to $250 which would be
fixed every month to the investor. Also Ellen DeGeneres should invest in the debentures of
the company which would provide her a fixed rate of interest every year on the amount
invested, and the budget that is decided for this is $50,000. Which is considered as a good
budget for investment and through this she would gain a fixed rate of return
 For Equity: For investment in equity the amount of money that is regarded is around
$30,000 which would be invested in the large cap company shares as the market is in its
stage of growth which would give them the reason to achieve the objective of profit
maximisation in the long run.
D. Investment decision.
The investment decision is all dependent on Ellen DeGeneres as she is considered as the
sole owner of her assets (Galaz and et. al., 2015). The budget for investment and savings is
decide to be around $40,000. Hence it is utmost important for her to invest in a different
segments of the products that are available to him. This can be seen as below:
 Investment in Equity: This is seen that the investor should invest the money in the equity
share at the pre specified price (Gotze, Northcott & Schuster, 2016). There are various
stock in the market which are available at a lower price and are growing at a fast rate
these includes the following:
6

o Tesla Inc. which is available at the price of $275.43 and 100 stocks should be
purchased of this. This stock has given a good return at a small period of time
(Mazzucato & Penna, 2016).
o Also InflaRx N.V. industry chess depository is one of the best funds to invest in
which is available at a price of $47.40 hence 200 share of this would be
purchased. Its earning per share and market Beta is at a good level (Schwalbe,
2015).
o Last stock that would be purchased would be Silicon laboratories Inc. which is
currently prevailing at a price of $82.14 (Turner, 2016). As this has given a return
of 30% within a year.
 Investment for fixed income: She should allocate the fund of around $50000 on the
dentures of the company as this would give a higher return (Heldman, 2018). Also the
amount of interest here would be around 12% which is maximum fixed income
percentage that the investor can purchase (Weber, Alfen & Staub-Bisang, 2016). Hence it
should invest in the open debenture which is available for sale in the market.
As this would provide her best benefit and would also help for increasing the profits every year.
Hence by analysing which sector is giving her best result she would increase the investment in
that sector.
Conclusion
From the above report it is concluded that portfolio management is one of the main task
for making the future sustainable of person. This is important as it would help to increase the
wealth of the person and it would also increase yearly profits in best and efficient manner. It is
seen as the utmost importance so that person can achieve its obligation of maintaining a best long
term profitability and does not get out of reserves in the future. This helps to bring the person
from loss making to the profit optimisation and helps to invest in the other investment category
so that she can achieve its future goals.
7

REFERENCES
Books and Authors
Archibald, R. D., & Archibald, S. (2016). Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Bessarabov, D., Human, G., Kruger, A. J., Chiuta, S., Modisha, P. M., Du Preez, S. P., ... & Ren,
J. (2017). South African hydrogen infrastructure (HySA infrastructure) for fuel cells and
energy storage: Overview of a projects portfolio. International Journal of Hydrogen
Energy, 42(19), 13568-13588.
Bradley, G. (2016). Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Carstens, D. S., Richardson, G. L., & Smith, R. B. (2016). Project management tools and
techniques: A practical guide. CRC Press.
Devaux, S. A. (2015). Total project control: a practitioner's guide to managing projects as
investments. CRC Press.
Dobrovolskienė, N., & Tamošiūnienė, R. (2016). An index to measure sustainability of a
business project in the construction industry: Lithuanian case. Sustainability, 8(1), 14.
Dobrovolskienė, N., & Tamošiūnienė, R. (2016). Sustainability-oriented financial resource
allocation in a project portfolio through multi-criteria decision-
making. Sustainability, 8(5), 485.
Galaz, V., Gars, J., Moberg, F., Nykvist, B., & Repinski, C. (2015). Why ecologists should care
about financial markets. Trends in Ecology & Evolution, 30(10), 571-580.
Gotze, U., Northcott, D., & Schuster, P. (2016). INVESTMENT APPRAISAL. SPRINGER-
VERLAG BERLIN AN.
Heldman, K. (2018). PMP: project management professional exam study guide. John Wiley &
Sons.
Jackson, K. (2018). Asian contagion: the causes and consequences of a financial crisis.
Routledge.
Jenner, S. (2016). Transforming government and public services: realising benefits through
project portfolio management. Routledge.
Kaiser, M. G., El Arbi, F., & Ahlemann, F. (2015). Successful project portfolio management
beyond project selection techniques: Understanding the role of structural
alignment. International Journal of Project Management, 33(1), 126-139.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kolupaev, R. V., Rogacheva, L. I., Moskalenko, A. V., Ulrikh, I. V., & Mikhailova, T. A.
(2015). Special considerations of the financial investment in Russia. Asian Social
Science, 11(7), 297.
Mazzucato, M., & Penna, C. C. (2016). Beyond market failures: The market creating and
shaping roles of state investment banks. Journal of Economic Policy Reform, 19(4),
305-326.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Turner, R. (2016). Gower handbook of project management. Routledge.
Weber, B., Alfen, H. W., & Staub-Bisang, M. (2016). Infrastructure as an asset class: investment
strategy, sustainability, project finance and PPP. John wiley & sons.
8

9