Question

GSSC 1027 Winter 2019 Assignment #1: Investing

For this assignment, assume that you have $10,000 to invest. Using the internet, newspapers, investing chapter presentation materials or other sources for information, select at least 2 investments, starting on any date between Jan 21 – Feb 1. You may pick any investment instruments you wish including GICs, stocks (equities), bonds, mutual funds, gold, foreign exchange futures, keeping the funds under your mattress, or any other legitimate investment as long as there are at least *TWO* different types. In other words, don’t pick 2 stocks, 2 mutual funds, or 2 GICs. If you wish, you may also “buy” and “sell” during the period to change what investments you hold, but if you do, assume a $10 transaction fee and include the detail. This is a learning exercise, so grading is based on what you think happened and what you learned. You are *NOT* being graded on whether your investments made or lost money, rather on what you learned in the process. The assignment is worth 15% of your course mark, so invest you time accordingly.

The assignment is in two parts:

First part is your starting position. Hand in on paper (one-page maximum, less is more) in the February 5 or 6 class:
1. What is your investing objective?
2. List your original investments, amount and date “bought”, and your reasons as to why each was chosen.

Answer 1

Investment Objectives

Money always invested with some objectives. Different people have different objectives. Some basic objectives are

1. Security: - As future is uncertain, to make some surety of amount in hand people invest their money. For security money can be invested in insurance policies.
2. Earning Money: - Idle money does not generate anything hence it is better to do investment.
3. To meet financial goals
   1. Short term goals- Purchase gadgets, travel abroad, to give gifts etc.
   2. Long term goals- Purchase of luxury car, house. Higher education, Retirement plan, starting of new business etc.
4. Tax minimization: - Many investment attract tax exemption, this also may one of the objective.

Investment Chosen

1. Gold
2. Shares of Apple

S.no.	Investment	Date	Amount of Investment	Quantity taken	Unit	Rate
1	Gold	25-01-2019	4862.1	3.80	Ounce	1279.5
2	Shares of Apple	23-01-2019	5039.1	33	No.	152.7
	Total		9901.2

Reason for choosing these investment options

For Gold

1. Physical possession
2. Can be used as investment as well as for jewelry.
3. Diversified investment- other than shares/mutual fund /debentures.
4. Mitigate the risk –share market and gold market normally runs in reverse hence this is good investment to balance portfolio.
5. Good Trend: - it almost make give return over 200 % in last 15 years.
6. Long term goal.

For Shares of Apple

1. Good company
2. Provide nine times return in last ten years
3. Pays good dividend
4. Reliable
5. Rapid Growth