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Fin 402 Demo
Fin 402 Demo
Assignment on
Udayshankar Sarkar
Lecturer
City University
Prepared by:
AL-Mamun
ID no: 181471514
Batch: 47
Campus: City Campus
Date: 15-03-2021
Definition of Portfolio
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and
cash equivalents, including closed-end funds and exchange-traded funds (ETFs). People
generally believe that stocks, bonds, and cash comprise the core of a portfolio. Though this is
often the case, it does not need to be the rule. A portfolio may contain a wide range of assets
including real estate, art, and private investments. You may choose to hold and manage your
portfolio yourself, or you may allow a money manager, financial advisor, or another finance
professional to manage your portfolio.
Types of Portfolios
There can be as many different types of portfolios and portfolio strategies as there are investors
and money managers. You also may choose to have multiple portfolios, whose contents could
reflect a different strategy or investment scenario, structured for a different need.
A Hybrid Portfolio
The hybrid portfolio approach diversifies across asset classes. Building a hybrid portfolio
requires taking positions in stocks as well as bonds, commodities, real estate, and even art.
Generally, a hybrid portfolio entails relatively fixed proportions of stocks, bonds, and alternative
investments. This is beneficial, because historically, stocks, bonds, and alternatives have
exhibited less than perfect correlations with one another.
A Portfolio Investment
When you use a portfolio for investment purposes, you expect that the stock, bond, or another
financial asset will earn a return or grow in value over time, or both. A portfolio investment may
be either strategic—where you buy financial assets with the intention of holding onto those
assets for a long time; or tactical—where you actively buy and sell the asset hoping to achieve
short-term gains.
I have mention the 4 sectors are: Bank, Textile, Pharmaceutical and Chemical, Fuel and Power
have taken the data.
Sector 1: Bank
We have selected 7 companies from the bank sector, ranked them by consideration
of the factor of fundamental tools.
Sector 2: Textile
S Company Name Curren EPS- P/E ratio Sponsor Cash NAV Ran
N t share Basic (Using Share Dividen per k
price (Half Basic Holding d Share
Yearly EPS Percentag
) Based on e
Audited
Financial
Statemen
t)
1 ACI Ltd 520.10 16.62 6.33 44.45 115% 443.7 1
0 2
2 Beximco 112.00 4.030 14.64 13.18 15% 56.70 4
Pharmaceutic
al Industry
Ltd
3 The IBN 247.60 7.140 21.5 44.38 37.50 38.72 6
SINA %
Pharmaceutic
al Industry
Ltd
4 Square 285.70 11.39 16.56 36.34 40% 65.04 2
Pharmaceutic 0
al Industry
Ltd
5 Renata Ltd 1137.7 30.19 18.14 51.16 85% 206.6 7
0 0 1
6 The ACME 117.00 5.420 18.05 39.95 35% 77.34 3
Laboratories
Ltd
7 Global Heavy 41.00 0.800 22.43 69.03 15% 53.20 5
Chemicals
Ltd
Sector 4: Fuel & Power
Portfolio Formatting
After analyzing different securities for portfolio formation, we can recommend the
following issue:
The lower P/E ratio of the security should be considered when ranking the
company`s security. If the P/E ratio is more than 25 the security of the company
shou ld not take for ranking.
Thcee other factor, price should be considered to rank the security. The lower
current price should be considered.
We should consider the higher EPS, higher cash dividend and analyzing security
for portfolio formation.
No one should invest only one sector though the performance of the fundamental
analysis of the securities is positive. We should diversify the investment in
different sector to reduce risk.
Conclusion
The portfolio is mainly done to reduce the risk. Our present market has faced a
huge crash recently. So investing in the share market may seem insane. But by
doing fundamental analysis we have shown in our report that our selected shares
are attractive to invest. All financial indicators are giving green sign to invest to
those share. So by hoping the best we are introducing this portfolio which will be
higher monitored and highly analyzed. If the market is steady and the industry
where we are investing is good we will be able to generate higher return.