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    FIM Individual Assignment Name: Bille Sai Dinesh PGDM: 18096

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    Sai Dinesh Bille
    The document discusses an individual's investment plan for Rs. 10 lakhs of savings across various mutual funds. Considering a medium to long term investment horizon of 5 years with a moderate risk appetite and focus on liquidity and tax benefits, the individual proposes to divide the funds as follows: 50% in gilt funds for preservation of capital and moderate returns from government securities; 30% in an aggressive balanced fund for moderate risk and returns from a mix of stocks and bonds; and 20% in a gold exchange traded fund to benefit from gold's performance and liquidity of trading fund units like stocks.

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    FIM Individual Assignment Name: Bille Sai Dinesh PGDM: 18096

    Uploaded by

    Sai Dinesh Bille
    17 views3 pages
    The document discusses an individual's investment plan for Rs. 10 lakhs of savings across various mutual funds. Considering a medium to long term investment horizon of 5 years with a moderate risk appetite and focus on liquidity and tax benefits, the individual proposes to divide the funds as follows: 50% in gilt funds for preservation of capital and moderate returns from government securities; 30% in an aggressive balanced fund for moderate risk and returns from a mix of stocks and bonds; and 20% in a gold exchange traded fund to benefit from gold's performance and liquidity of trading fund units like stocks.

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    The document discusses an individual's investment plan for Rs. 10 lakhs of savings across various mutual funds. Considering a medium to long term investment horizon of 5 years with a moderate risk appetite and focus on liquidity and tax benefits, the individual proposes to divide the funds as follows: 50% in gilt funds for preservation of capital and moderate returns from government securities; 30% in an aggressive balanced fund for moderate risk and returns from a mix of stocks and bonds; and 20% in a gold exchange traded fund to benefit from gold's performance and liquidity of trading fund units like stocks.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views3 pages

    FIM Individual Assignment Name: Bille Sai Dinesh PGDM: 18096

    Uploaded by

    Sai Dinesh Bille
    The document discusses an individual's investment plan for Rs. 10 lakhs of savings across various mutual funds. Considering a medium to long term investment horizon of 5 years with a moderate risk appetite and focus on liquidity and tax benefits, the individual proposes to divide the funds as follows: 50% in gilt funds for preservation of capital and moderate returns from government securities; 30% in an aggressive balanced fund for moderate risk and returns from a mix of stocks and bonds; and 20% in a gold exchange traded fund to benefit from gold's performance and liquidity of trading fund units like stocks.

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    FIM

    Individual Assignment
    Name: Bille Sai Dinesh
    PGDM: 18096

    Q.) If I was to invest Rs. 10 lakhs of your hard-earned savings, which single fund or which
    combination of funds from among the following will you choose?
     Equity fund
     Debt fund
     Balanced fund
     Gilt fund
     Index fund
     Gold exchange traded fund
     Real estate fund

    Explain with reasons


    Mutual Fund:
    Mutual funds are those where several people who wish to earn wealth (investors) combine
    their resources to create a huge amount. This large corpus is then invested into various
    companies across industries, operating in different sectors of the economy - depending on the
    type of fund chosen. All the investors of a mutual fund share in its profits, losses, incomes, and
    expenses in direct proportion to their level of investment.
    Investing in mutual funds is good as it gives optimal returns with minimal risk. It helps us to
    diversify our portfolio with tax benefits in some cases.
    I am considering below mentioned assumptions:
     I can take low and medium risk
     Investing in medium and long-term funds (5years) with moderate return
     Invest in High liquid and Tax benefitting funds
    Based on above assumptions, I want to invest 10 lakhs in combination of funds.
    Gilt fund:
     Gilt funds only invest in government securities ranging from medium to long-
    term horizons.
     As I want to invest in medium and long term, I will invest in Gilt fund
     These funds invest in low-risk debt such as government securities
     Here Preservation of capital is there along with moderate returns.
     Examples like Edelweiss Government security fund, Aditya Birla Sun Life Government
    Security Fund.
     I will invest 50% of 10 lakh in Gilt Fund.

    Balanced fund
     These funds basically invest in both equities and fixed income securities.
     This kind of mutual funds as a rule gives higher return simultaneously it is more kind
    of verified and secured investments roads in light of bonds.
     Less risk than Equity funds.
     These are Two types:
     Aggressive funds: These mutual funds invest in both Stocks and Debt/Bonds. However
    focus on stocks is higher with 65-80% of total investments in stocks and rest in bonds.
     Conservative funds: These mutual funds invest in both Stocks and Debt/Bonds.
    However focus on bonds is higher with 75-90% of investments in bonds and rest in
    stocks.

    So, keeping my risk appetite I will 30% of my money in Aggressive Fund where I can
    take moderate risk with moderate returns.

    Gold exchange traded fund


     Gold, a staple of the Indian upper class is a commodity like no other in the Indian retail
    market.
     Even in recession, buying and selling gold has continued across the length and breadth
    of India and there is no evidence which suggests this won’t continue.
     A Gold Exchange Traded Fund (ETF) is an investment fund which invests money in
    gold bullion and gold producing firms by trading their Gold ETF units on the stock
    exchange, just like one may trade stocks.
     Physical Gold’s price varies at each jeweller’s shop. However, that is not the case with
    Gold ETFs. The price is same wherever you look.
     Examples like ICICI Prudential Gold ETF.
     So based on above reasons I want to invest 20% of my money in this Fund.

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