Question

selecting a retirement portfolio. create your own retirement portfolio consisting of a stock fund and a bond fund. The one‐page paper

(single‐space text, font 12) will discuss the criteria (return, risk, and fees) in selecting the two funds and present an analysis of past performance of the two funds.

Answer 1

Icici US Bluechip equity fund has been on eof highest performing equity fund while bind fund named DSP Blackrock Debt Hybrid fund has too been amongst best performing bond fund.

The expense ratio or fees for ICICI is 1.82% while DSP stands at 2.2%.

Moreover, the Net Asset Value stands at 110 for ICICI and for DSP it is 77.

While ICICI being equity fund and has exposure to 99 percent equity and 1 percent tiwards money market the overall risk exposure is very high and gives an annualised return of 18.8 percent over 5 years.

Similarly, DSP being hybrid fund the allocation is diversified into Commercial papers, Gold ETF, Securitues, Repurchase agreement, CDO, Money Market, etc and hence has lower risk with annualised 5 year return at 11.3%.

Overall standards deviation for both averages around 7.1 and Beta or volatility of ICICI fund is way higher than DSP making it prone to oscillating returns and hence riskier.

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