Essays on Personal Finance Assignment

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May 11, 2012.Index Abstract Chapter I: Personal FinanceIntroduction Elements of the investmentInvestment goals and objectives Return and RiskInvestment PhilosophyAsset AllocationChapter II: Investment PortfolioBullion Market GoldSilver PlatinumStock market Qatar TelecomIndustries Qatar Co. United Development Co. Qatar Gas Transport Co. FOREX Market USD/QAREUR/QAR GBP/QAR JYP/QAR Chapter III: Return OutcomesConclusionReferences Appendices AbstractThis report will account for investment undertaken for two months on bullion market where gold, silver and platinum were the main metals invested in this market. The other investment category was the stock market where four different companies stocks from Qatar are included in the portfolio these companies include Qatar Telecom, Industries Qatar Co. , United Development Co.

and Qatar Gas Transport Co. Finally, FOREX market currencies like GBP, USD, JYP and EUR against Qatari Riyal (QAR) will be included in our portfolio. These assets will be bought and sold in order to earn capital gains with the aim of increasing the initial capital. In the end we will evaluate the portfolio performance and measure up against our investment goals and objectives. Chapter I: Personal FinanceThis chapter will introduce the project report and outline our investment goals, objectives and philosophy and finally show how the investment amount has been distributed among the investment categories or assets.

Introduction The process of investment plan begins with construction of the policy statement. Policy statement is a road map that focuses on long-term and short-term needs, familiarity with capital market history and investors’ expectations (IAM, 2012:Byu. edu, 2012). In a policy statement, the investor specifies the type of risks they are willing to take and their investment goals and constraints. All the investment decisions are based on the policy statement to ensure they are appropriate for the investor because investor needs change over time.

Policy statement must be periodically reviewed and updated. The second stage in investment process is the investment strategy which focuses on examination of the current and projection of the financial, economic, political and social conditions. It focuses on short-term and intermediate term expected conditions to use in constructing a specific portfolio. Thirdly is the implementation of the plan by constructing a portfolio. This focuses on meeting investor’s needs at minimum risk levels with the investor’s policy statement and financial market forecast as the input.

Finally, continued monitoring of the portfolio by updating the investor’s needs environmental conditions and performance evaluation (IAM, 2012:Byu. edu, 2012). Therefore, this report will undertake the above four stages to manage an investment portfolio that has an initial investment amount of QR 1,000,000 with an objective of increasing this amount by the end of the investment period. Elements of the investmentInvestment goals and objectives The investment time frame is two months; this implies that as investors we will prefer more conventional investment such as cash which will make sure that initial capital is readily available within this time horizon.

This means that we may not be going for stocks as they are long-term in nature and they are growth assets in which investors are not concerned with short-term movements or price fluctuations. But since we are speculating we will still invest in stocks.

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