Question

selection of the investment instrument according to the incestment horizon

The investment horizon must be clearly established for each of the three investors

that are suggested. (Just graduated, father with small children, adult person with older children)

(10%)

It must be clearly established, through some quantitative and / or qualitative tools

investor profile. (Conservative, moderate, aggressive) Eg Questionnaires and interviews (15%)

An investigation should be made on the internet and pages of banks or brokerage houses on the

different investment alternatives for each of the investment profiles and horizons

selected. (Comparative tables of the different alternatives) (15%)

Definition with Criteria for selecting the funds to recommend and final selection for each

customer (15%)

Fund information (20%):

-Minimum amount to invest

-Recruitment requirements

-Performance

-Rating and Risk

-Purse

-General data

-Commissions

Bibliography (10%)

Answer 1

Investment horizon is the term used to describe the total length of time that an investor expects to hold a security or a portfolio. Generally three types of investment horizons are talked about

... Short term investment horizon .. This is best for individuals in their later years preparing for retirement.

... Medium term investment horizon .... Investors who are less risk averse and not looking for cash for retirement or a large purchase are better suited to a medium investment horizon.  

... Long term investment horizon ... For investors willing to take big risks for big rewards and who have the time to wait for the payoff or to recoup losses after risky endeavours, long term investment horizon are often the way to go.

Investors have a lot of options for where to put money. It is important to weigh them carefully. Investments are generally bucketed into three major categories : stocks, bonds and cash equivalents.  

Few investments generally considered for long long term growth are

...Stocks.. A stock is an investment in a specific company. When you purchase a stock, you're bullying a share - a small piece of that company's earnings and assets. Companies sell shares of stock in their businesses to raise cash, investors can can 4th enter buy and sell among themselves. Stocks sometimes earn high retuurns but also come with more risk than other investments.

.... Bonds.. A bond is loan you make to a company or government. These are considered safer than stocks, but they also offer lower returns.

... Mutual funds... Mhtuual funds are for those who are not keen on spending time and money choosing stocks and bonds. Mutual funds allow investors to purchase a large number of investments in a single transaction. These funds pool money from many investors, then employ a professional manager to invest that money know stocks, bonds or other assets.  

...index funds... It is a type of mutual fund that passively tracks an index, rather than paying a manager to pick and chose investments.  

...Exchahe traded funds... ETF. s are a type of index fund : they  track a benchmark index and aim to mirror that index performance.

...Options... An option is a contract to buy or sell a stock at a set price, by a set date. Options offer flexibility, as the contract doesn't actually obligate you to buying or sellvthe stock.  

Conclusion : A person looking for investments will need a brokerage account. With globalisation many multinational brokerage houses are working worldwide with latest investment solutions and plans. With entry of  discount brokerage houses, traditional brokers are feeling the heat. Investors are more aware about the options they have and discount brokerage account, investors save lot of money under the head of commissions and brokerages.