B. M. S.

COLLEGE OF ENGINEERING
(AUTONOMOUS UNDER VTU)

COUSE TITLE: INVESTMENT MANAGEMENT

ASSIGNMENT ON
"INVESTMENT PORTFOLIO FOR A CLIENT WITH INCOME
BELOW Rs 1000000 OF SINGLE INCOME FAMILY"

SUBMITTED BY:
K M MOHAMMED ANSAF 1BM16MBA23
JYOTHIPRAKASH KG 1BM16MBA22

SUBMITTED TO: Ms. SMITHA. V. SHENOY

ASSISTANT PROFESSOR

DEPT OF MBA AND RESEARCH CENTRE

2017-18
CLIENT PROFILE

NAME XXXXXXXXXXX
TYPE OF INCOME Salary
AMOUNT 10,00,000 Per Annum
PORTFOLIO TYPE Single income family with income less than 10 lakhs
No. of members in Family 3
Number of Dependents 2

YEARLY INVESTMENT

The client gets the total income of 10,00,000

Of which 25000 per month is the expense of the house, which makes it to 300000 p.a

And the client has the habit of saving 15000 p.m. amounting to 1,80,000

So, the total amount available for investment is 1000000 – 480000 = 5,20,000

CLIENT OBJECTIVE AND CONSTRAINTS

The objective and the constraints can be understood by giving them the risk profile assessing
questionnaire. Through which the investors personality, psychology and the type of the
investor can be understood. The constraint is that the client needs to invest in atleast 4 types
of investments.

INVESTMENT GOAL AND HORIZON

INVESTMENT GOAL INVESTMENT HORIZON

House renovation 2 years
Daughter’s Education 5 years

Investments and Its Return

1. 1,20,000 in Suryoday Small Finance Bank Fixed Deposit Scheme In this year. With
its 2-year FD scheme of 8.16% of 2 years, which can be helpful while planning for
 house renovation. So, this year the remaining amount available for investment is
3,00,000.
2. The stocks which can be considered for buying are Maruthi Suzuki Pvt Ltd (30).
The price of the stock as on November 1 is 8230 the rice as on December 1 is 8607.75
For the investment, the investor would get a 405% increase in just one month.
3. 1,00,000 in SBI Bluechip fund which has a return up to 20% for 5 years.
4. Investment in State bank of India 9.95 perpetual bond.

COMPANY/BOND PRICE OF YTM (%) INVESTMENT RETURN (Rs)

BOND (Rs) (Rs)
SBIN 99.10 10.36 53100 58595

Proportion of Investment

Investment

1.2

Fixed Deposit
Shares
4.8
2.469 Bonds
Mutual Funds
Expenses and savings

0.531