Project 1

Scenario Analysis:

Fund Debt Equity Futures & Options Risk Score Target Return Futures & Options
Return

A 50% 30% 20% 40/100 15% 10%

B 40% 40% 20% 55/100 16% 14%

C 30% 40% 30% 65/100 17% 21%

Analysis:

Based on the scenario table, Fund C has the highest potential to achieve Mr. X's desired return of 15-
18%. However, it also carries the highest risk, with a risk score of 65/100. Fund A, on the other hand,
is the least risky, with a risk score of 40/100, but it also has the lowest potential return. Fund B falls
in the middle, with a moderate risk score of 55/100 and a moderate potential return.

Recommendation:

Considering Mr. X's increased risk appetite, we recommend Fund C. However, it is important to note
that Fund C is also the riskiest option. Therefore, it is crucial for Mr. X to carefully monitor his
investments and be prepared to adjust his strategy as needed.

Optimal Investment Strategy:

Based on Mr. X's profile and risk appetite, we recommend the following optimal investment
strategy:

Debt: 20%

Equity: 20%

Futures & Options: 60%

This strategy will allow Mr. X to potentially achieve his desired return of 15-18% while still
maintaining a moderate level of risk.
Mutual Fund Recommendations:

Debt Fund:

Reliance Liquid Fund: This is a low-risk debt fund with a 5-year average return of 8.5%. We
recommend allocating 15% of Mr. X's portfolio to this fund.

Equity Fund:

Kotak Mahindra Mutual Fund Emerging Equity Fund: This is a diversified equity fund with a 5-year
average return of 18%. We recommend allocating 5% of Mr. X's portfolio to this fund.

Futures & Options Trading:

We recommend that Mr. X allocate 60% of his portfolio to futures & options trading. This will allow
him to potentially achieve a higher return than he could with traditional investment vehicles.
However, it is important to note that futures & options trading is a risky endeavor, and Mr. X should
only invest money that he can afford to lose.

Fund Manager Profile:

Reliance Liquid Fund: This fund is managed by Prashant Jain, who has over 20 years of experience in
the investment industry. Jain has a strong track record of success, and he has consistently
outperformed his benchmark.

Kotak Mahindra Mutual Fund Emerging Equity Fund: This fund is managed by Nilesh Shah, who is
one of the most respected fund managers in India. Shah has a proven track record of identifying and
investing in high-growth companies.

Expected Return:

By following this optimal investment strategy, Mr. X can expect to achieve an overall return of 15-
18%. However, it is important to note that past performance is not necessarily indicative of future
results.

Conclusion:

Mr. X's investment strategy should be carefully tailored to his individual circumstances and risk
tolerance. By carefully considering his options and seeking professional advice, Mr. X can increase
his chances of achieving his financial goals.