Portfolio for Individual #1

• Client: Frugal Tim “I am hoping that your

• Portfolio Composition suggested investment portfolio
would generate sufficient
Asset Class % invested Rationale
returns so that I never run out
Domestic Equities 15% Buy Blue Chip Stocks with high dividend payment and growth of of money at the beaches of
average 10%.
Mauritius!”
Overseas Equities 5% Buy stocks of top companies with average previous growth and
dividend payment
Fixed-Income Nominal 15% Buy nominal bonds as volatility is low and decent return is there.
Bonds
Inflation-Linked Bonds 35% Buy maximum linked bonds as they are inflation protected and
volatility is low and and return rate is preety good with 4.5%.
Real Estate 25% Buy real state because they are inflation protected with average
return of 10% to 12%.
Cash and Cash Equivalent 5% Average return of cash and cash equivalent is 3.5% so we will
invest in that too.
Total 100%
 Portfolio for Individual #2

• Client: Spendthrift Elizabeth

“I am hoping that your
• Portfolio Composition suggested investment portfolio
Asset Class % invested Rationale would generate 1,000% annual
Domestic Equities 35 Average return of domestic equities is 10% to 12% so I will invest return every year until I retire!”
in that according to costumer need.
Overseas Equities 15 Since costumer is risk taker so I will invest in overseas equity too
as it has annual return of around 7%.
Fixed Income Nominal 10 Will invest here too as it has annual return of around 5%.
Bonds
Inflation Linked Bonds 20 Will invest highly in linked bonds as it inflation protected and
good growth.
Real Estate 20 Will invest in real state as it has annual return of around 10%
with inflation protection.
Cash and Cash equivalent 0 I will not invest in cash equivalents as it didn’t match costumer
profile.
Total 100%