The investment portfolio performance since inception has portrayed significant gradual changes.

From
the first week of inceptions, the constantly appearing changes indicate a better future for the portfolio
investment. However, the Standard and Poor’s 500 index funds (S&P 500) climbed with 1.1% from the
previous week’s 17.6% to 18.7% which is the biggest daily gain for the last three weeks. The mutual
fund's trends also indicated that the S&P 500 index funds that outperformed the NASDAQ and DOW
would bump again in the following week. The investment portfolio in the previous week indicated a
positive return on investment although it was much lower than in the fifth week. The positive gradual
returns on investment. According to Thune (2020), mutual funds meet the needs of investors both the
new and the advanced investors. The investment portfolio was not an advanced investment since the
investment portfolio had only undergone four weeks of investment. The mutual funds are affordable,
easy to buy, understand, and can be diversified depending on the desires of the investor. Although the
investment was at the initial stages, it recorded an increase from the previous week's 17.6% which was
the weighted index for market capitalization. The S&P 500 index funds seemed to favor long-term
investments than the short term investments more than short-term investments although the short-
term investments indicated a positive return on investment. The rise in mutual funds contributed to
significant impacts on the financial positions for the investment. The investment needs to generate
income for profitability and support the operational needs of the investment. Good returns on
investment enhance better cash flows in the financial statements of the investment. Enough funds for
the investment and its sustainability means that the investment portfolio set objectives and goals can be
achieved with ease. The previous investment in the investment portfolio was $ 50,000 which was
enough for reinvestment since the returns on investment and the period of investment did not allow
reinvestment on more amount than $50,000. In the fifth reinvestment, the investor decided to reinvest
the same amount of $ 50,000 as the previous reinvestment. The contentment in the market for mutual
funds enhanced the reinvestment in the mutual funds. From the inception of the portfolio, the
investment has attained the expected returns on investment although at a slower pace than the
intended one. There were several challenges faced by the investor to sustain the investment and the
investor, therefore, needs to work on the strengths and improve on the weaknesses to achieve the set
goals and meet the long-term financial needs. The investment portfolio was able to meet the short-term
monetary needs by portraying outstanding performance since inception. The investor conducted
corporate bond valuations to determine the type of reinvestment and have clarity of the set goals for
the appropriate modifications to have better performance of the investment portfolio in the next
investment portfolio.

S$P 500 tracker

Cash and Returns
Rate of return in $  At Income in
Weeks mutual funds on investment in
close: 5:12PM EST $
investment in $ $
 
Week 50,000 S&P 500 50177.08 177.08

1 3,714.24
 -73.14(-1.93%)
 
 
S&P 500

Week 3,886.83
50,000 51,948.04  1,948.04 
2 +15.09(+0.39%)

 
 
sWeek
50,000  3,887.75  53,724.06 3,724.04 
3
+9.75(+0.25%) 
Week 3,798.25
  +29.78(+0.79%)    
4  
Week
       
5

The S&P 500 index fund dropped from the previous week although it was with a small margin. Still, it
was much higher than the first week's performance after the investment portfolio's inception. Due to
the decline, the investor decided to retain the same amount of reinvestment as the previous week. The
returns on investment were however outstanding since the decline in S&P 500 did not make changes or
rather have a bigger impact on the returns on investment. The investor opted to have the short-term
investment goals instead of the long-term investment goals. The investor has room to make the
appropriate and timely changes on the investment portfolio when need be since the short-term
investments allow the investor to make any necessary random changes that increase the interests and
more returns on investment (Thune, 2021). The investor had to maintain the steady increase in
investment returns or ensure that there is no decline at the end of the following week by making timely
adjustments to the portfolio. The investor had to make the necessary balancing of the investment
portfolio if there are serious deviations that would impact the performance of the investment portfolio.
However, the investment portfolio was still at the cutting edge and thus there was no need to make any
changes on the side of the investor. The investment affiliated were low as per the expectations of the
investor and thus the investment was balanced. Diversification of the investment would not make
progressive impacts on the investment and thus the investor did not consider diversifying the
investment. Substitutive investments and other investments that the investor would opt to did not
portray to give better returns on investment like the mutual funds thus the investor decided to retain
the investment on the mutual funds. As at the closure of the market, the stocks had declined by 3%
which indicated a significant reduction in their performance. The investor, therefore, had to reinvest in
the mutual funds due to the decline. However, the performance of the investment portfolio was at a
lower rate than the expected rates. The investor ensured that all the outlined strategies and measures in
making the necessary adjustments are incorporated to ensure the effectiveness and efficiency of the
investment portfolio. The investment portfolio was still in the early stages since it was a short-term
investment thus the investor did not involve brokerage that would in return increase the investment
affiliated costs and minimize the returns on investment. For the investment portfolio to be successful,
there is a need for the investor to ensure that there are minimal costs on investment and maximize the
output. The investor conducted assessments on the potential or rather the exposure risks to the
investment and all the necessary modifications as per the previous assessments on the investment
portfolio. The assessment would enhance a rebalance on the investment portfolio in the future through
an increase in the interests and risk minimization. The slow rate of the returns on the investment
although steady made the investor reinvest $ 50,000 that was the most suitable amount for
reinvestment due to the progressive trend of the returns on investment. The progressive returns on
investment facilitated meeting the short-term investment goals since soon deviations from the intended
performance are noticed, they are rectified and thus enhance more performance for the investment
portfolio.

Adding corporate bonds to the investment portfolio

The prevailing economic conditions seemed to be tougher than expected since the returns on
investment for the mutual funds were still at a slower pace for the previous assessments on the
investment portfolio. The investor needs to conduct stock valuation and search the share price units for
the mutual funds. No brokerage for determination of the stock’s valuation for the investment to reduce
the investment costs. According to Nguyen (2021), there are various strategies or ways stock of stock
valuation aims at delivering the same result. Models like the Capital Asset Pricing Model (CAPM) and the
Dividend Discount Model (DDM) are used by the investor for portfolio future forecasting and
determining the investment portfolio current prices respectively. The total reinvestment of the portfolio
was $ 150,000 whereby the investor after an analysis of the portfolio decided to add $50,000 for
reinvestment and reinvest $200,000. The reinvested amount was enough for the investor to meet the
set goals for the next portfolio analysis. The investor was motivated enough to have the biggest amount
of reinvestment since the start of the investment portfolio. The yields increased with time despite the
changes in the business environment worldwide. The investor considered all the investment portfolio
risks before reinvesting in the portfolio. The risks were less than in the other forms of investment like
the stocks that had reduced performance. The investor, therefore, decided to retain the mutual funds as
the only investment in the investment portfolio.

Investment portfolio goals review

The overall goal aim of the investment is to generate more income and increase the returns on
investment within the stipulated investment period. The investor intended to invest to attain a better
financial position at the end of the intended time compared to the investment inception period. The
review of the investment goals involves reviewing the current goals, the stipulated time to achieve the
set goals and the risk tolerance of the investment. The investments require modifications if the targeted
goals in the investment portfolio do not align with the desired or rather the resulting performance of the
portfolio. The main objectives and goals of the investment portfolio are set by the investor at the
inception of the portfolio so that the investor can put efforts towards the desired performance. The
actual performance of the investment portfolio was as per the expectations of the investor despite that
the returns on investment were increasing gradually at a slower pace. The set goals by the investor did
not need amendments since the yields of the investment were evident within the stipulated timeframe
since the inception of the investment. The changes in the business environment did not affect the
effectiveness of the set goals although the investors needed to have corrective measures to respond to
the changes in the business environment that is centrally or rather not in line with the desired.
According to Kenton (2020), the traded public shares in the shares market contribute to the adjustments
in the company's market capitalizations. Investments need to actively adjust to all the changes to
maintain or maximize the returns. The portfolio can be used by the investor to act as a guide to
determine the changes and what the investor needs to analyze to restructure or formulate the goals
depending on the experienced fluctuations. The investment risks for the previous weeks indicate that
the mutual funds can reduce the affiliated risks if it is a long-term investment since there are more
fluctuations in the short-term investment. The investor had to increase the reinvestment from $150,000
to $200,000 which would increase the returns on investment and enhance the achievement of the
ultimate goal of the investment portfolio.

The mutual funds demonstrated the ability to give good returns on investment than stocks which posed
a 3% reduction in the performance. The difference in performance indicates that the mutual funds have
fewer investment risks than the other available alternatives. The returns on investment in the previous
week increased with the increase in the reinvestment amount. The time horizon for the investment was
appropriate and there was no need to extend the timeframe. The investor needs to make suitable goals,
use the appropriate strategies and manage the investment portfolio to have the maximum returns on
investment or rather achieve the goals within the set time horizon.

References

Thune, K. (2020). What Are the Advantages of Investing in Mutual Funds? Retrieved from
https://www.thebalance.com/top-benefits-of-mutual-funds-2466564