Question
Create a investment portfolios based on the clients objectives below. The first portfolio focuses on growth 1. Bill wants to grow his non-registered investment portfolio
Create a investment portfolios based on the clients objectives below. The first portfolio focuses on growth
1. Bill wants to grow his non-registered investment portfolio to $1,000,000 within 20 years. His starting value is $50,000 and he wants to know how much he needs to invest monthly assuming an average annual compound growth rate of 10%. He can tolerate a maximum volatility of 40% in any one year. If you are recommending managed funds make sure you use at least four different funds for this objective. You should provide some historical and current data to support your recommendations such as past performance, fees, management style and risk profile
Please make sure that the funds you recommend are suitable for each objective within the constraints of risk-adjusted returns (using the same risk measure for comparison such as beta or standard deviation). You are free to recommend any managed investment fund or individual security but make sure you create diversified portfolios given the amounts involved. It may be easier for most students to recommend managed funds (mutual funds, ETFs, pooled portfolios, model portfolios, etc.) as creating diversified portfolios with individual securities will be very time consuming.
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