Design the optimum portfolio for Mr Gaurav

Assignment Help Accounting Basics
Reference no: EM132609795

Question - You are an investment advisor and working in an investment firm. One customer Mr. Gaurav approaches you and wants some advice in investment related matters.

Mr. Gaurav is currently 30 years old and his wife is 28 years old. He is having a daughter of 2 years. Mr. Gaurav is working in MNC and earns Rs. 60,000 per month. His wife is also earning Rs. 45,000 per month. They are having a joint bank account in ICICI Bank and having Rs. 10,00,000 in their bank account. The income of both would grow @ 10% per annum.

Mr. Gaurav wants to invest the funds in an optimum portfolio which meets out their objectives. They want that their money should be invested in safe, liquid, tax saving and high return generated securities.

Mr. Gaurav wants to work till the age of 60 years and his wife planned to work till 50 years of age. They usually save around 60% of their regular income. They want to send their daughter to abroad for higher studies after 15 years which requires around Rs. 50,00,000. They have also planned the marriage of their daughter when she will attain the age of 25 years, and would require around Rs. 1,00,00,000.

Design the optimum portfolio for Mr. Gaurav and his wife and suggest them to invest in various investment avenues, so that they can utilise the funds efficiently and secure their retirement age.

Reference no: EM132609795

Questions Cloud

What is the portfolio weight of stock A : The portfolio has an expected return of 8.8%. Stock A has an expected return of 16% while stock B is expected to return 6%. What is portfolio weight of stock
Calculate the number of units of each product : Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars
NUM1102 Communication Skills for Nurses and Midwives : NUM1102 Communication Skills for Nurses and Midwives Assignment Help and Solution, Edith Cowan University - Assessment Writing Service
Why are black women three to four times more likely to die : Why are Black women three to four times more likely to die from pregnancy-related causes than their white counterparts? Why is the mental illness rate
Design the optimum portfolio for Mr Gaurav : Design the optimum portfolio for Mr. Gaurav and his wife and suggest them to invest in various investment avenues
How race plays a role of healthcare in america : COVID-19 is bringing forth how many people do not have insurance. This article discussed how race plays a role of healthcare in America.
Emphasis on electronically stored information : What likely effect will its emphasis on electronically stored information (ESI) have on an organization's need for a digital forensic capability?
Journalize the admission of Day to the partnership : Day is admitted to the firm by purchasing one-half of Cox's interest for $13,000. Journalize the admission of Day to the partnership
Prepare the journal entry to record : Prior to the distribution of cash to the partners, the accounts in the NJF Company are: Cash $28,000, Prepare the journal entry to record

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd