You are on page 1of 4

Assignment On

Accounts And Finance

Submitted byNaman Shrivastava MBA- IB Form No.-1681504

Question put forwardYou have been given rupees one crore to invest in to the various investment options available in the market. Promising an effective rate of return to be 30% design an effective strategy for investment. Strategy is to be based upon the performance trends of various sectors / companies during the past one month

There are several assets which can give us 30% annual return in the long run. Few of them are: Real Estate Stock Market Mutual Fund Precious metals/ Stones

My investment strategy would be Real Estate Out of 1 Cr I have I would invest 40% in Real Estate. It is the most promising investment as there is need to accommodate more and more people, due to population boom. Also the price appreciation in this sector is exponential. 40 lac invested today become 2-3 cr in less than 3 yrs. Thus real estate is the most prudent investment.

10 Lac in a DLF project in either metros or 2nd tier cities. 10 Lac flat in an upcoming housing society. 20 Lac in land that can be sold or rented later on.

Stock market Out of the remaining 60 lac I would invest 20 lac in the stock market. Shares of Fortune 500 companies are a wise investment. These shares generally do not easily depreciate. Thus the money is safe and when the right time comes the selling of these shares can bring in profits up to a whopping 200%.

Few of the Stock market results in past few months are:


Kotak Mahindra Bank Q1 cons PAT seen up 29% to Rs 424 cr

Jul 20, 2011 at 05.06 PM

Kotak Mahindra Bank is expected to report a 29% rise in its first quarter FY12 consolidated profit after tax to Rs 424 crore against Rs 327.7 crore in the year ago period, according to CNBC-TV18 estimates. Standalone profit after tax is seen going up by 30% to Rs 243.5 crore from Rs 187 crore during the same period.

Net interest income is likely to go up by 22% to Rs 624 crore from Rs 508.6 crore year-on-year. Expect advances growth at 29% Expect deposits growth at 24%

Dr Reddy's Labs Q1 PAT seen up 34% to Rs 281 cr Jul 19, 2011

Dr Reddy's Labs is expected to report a 34% rise in its first quarter FY12 profit after tax to Rs 281 crore against Rs 209.6 crore in the year ago period, as per IFRS. Revenues are seen going up by 19% to Rs 2,005 crore from Rs 1,683 crore year-on-year, according to CNBC-TV18 poll.

EBITDA is likely to go up by 28% to Rs 363 crore from Rs 262.5 crore yearon-year. Operating profit margin is seen improving at 18% versus 15.6%.

HDFC Bank Q1 PAT seen up 31% at Rs 1,064.2 cr Jul 19, 2011

India's second largest private sector lender HDFC Bank is expected to report a 31% rise in first quarter FY12 profit after tax of Rs 1,064.2 crore as against Rs 811.7 crore in a year ago period, according to CNBC-TV18 estimates. Net interest income is seen going up by 19.7% to Rs 2,874.6 crore from Rs 2,401 crore on year-on-year basis.

Mutual Funds Another good investment is in the areas of mutual funds. These funds today are profitable for almost every investment. Mutual funds have advantages compared to direct investing in individual securities. These include: Increased diversification Daily liquidity Professional investment management Ability to participate in investments that may be available only to larger investors Service and convenience Government oversight Ease of comparison

Thus an investment of 20 Lac in mutual funds in todays scenario is a good investment.

Precious Metals/ Stones Due to the rising prices of gold and silver today there can be profitable investment in metals. Stones like Diamonds, Rubies etc are an all time asset. These can be invested into like an evergreen spring. Thus another investment of the final 20 Lac in this sector seems a promising investment.

An investment of ` 1 Crore in this way will almost certainly guarantee a 30% return.

You might also like