Question

1. “Equity investment option is treated best option in the market” Comment on this statement and also give your advice best investment option available in the market.

(Create an investment portfolio to support your answer.)

Note : Answers should be in Word Format : ( You Can copy and Paste from the Internet )

Answer 1

I would not confuse with much answer's availble on internet, but i will try to keep it as simple as i can.

the basic objective of any investment is to make profit, its depend how much profit we expect from our investment, because higher the profit higher the risk. however equity investment is always a good option because it moves with market trend and not fixed like bonds or any other fixed income investment.

but the rule of the game in equity is to spread your investment in multiple pockets; if one fails, other doesn;t.

Example :

Equities	Investment	Return %	Return
Equity 1	$10	12%	$1.2
Equity 2	$10	18%	$1.8
Equity 3	$10	-5%	($0.5)
Equity 4	$10	-15%	($1.5)
Equity 5	$10	20%	$2.0
Equity 6	$10	16%	$1.6
Equity 7	$10	18%	$1.8
Equity 8	$10	17%	$1.7
Equity 9	$10	-2%	($0.2)
Equity 10	$10	14%	$1.4
Total	$100		$9.3

Fixed Income Securities
Fixed Income Securities	Investment	Return %	Return
Bond 1	$20	9%	$1.8
Bond 2	$20	9%	$1.8
Bond 3	$20	9%	$1.8
Bond 4	$10	9%	$0.9
Bond 5	$10	9%	$0.9
Fixed Deposit	$10	7%	$0.7
T Bills	$10	7%	$0.7
Total	$100		$8.6