question archive You have just inherited $250,000 and you can only invest the funds for about 10 years or more in non-registered investments
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You have just inherited $250,000 and you can only invest the funds for about 10 years or more in non-registered investments.
There are two Types of investments
Based on your own personal circumstances, such as the following below, please invest the funds appropriately, within the three asset classes.
KNOW YOUR CLIENT (KYC)
Perform the following tasks below:
1. make a ÍÍ. Then, devise your strategic asset allocation based on your risk tolerance. You will need to include an asset allocation questionnaire.
Cash = Money market, T-bills, High Interest Savings Account
Fixed Income = GIC, Bonds/Debentures (Bond & Mortgage mutual Funds) PPNs
Equities = Stocks/Shares, ETFs, Hedge Funds, Crypto-currency
Cash = 10% ($25,000)
Fixed Income = 60% ($150,000)
Equities = 30% ($75,000)
2. Invest a minimum of 10 securities in total, spread amongst the three asset classes. You must have at least 1 investment in each asset classes.
o You can purchase more than 10 securities if you like, but at least 10 securities.
o Provide the specific names of the investments you are choosing and not a generic name.
§ For example, RBC Canadian Dividend Fund, Apple common shares, to name a few)
o The investments could be any investment vehicles we have learned thus far in the CSC Volume 2
§ Common shares, preferred shares, bonds, mutual funds, closed-end funds, principal protected notes (PPNs), indexed-linked GICs, segregated funds, hedge funds, to name a few.
§ The investments can be Canadian, US, or foreign investment vehicles
3. Provide an explanation as to why you chose each investment with either a fundamental analysis or technical analysis. You may also provide an economic outlook to validate your investment choices.
o For example, if your investment decisions are based on fundamental analysis, then maybe provide:
§ P/E ratios, EPS, Current Ratio, Dividend Yield, to name a few.
o If choosing mutual funds, segregated funds, and hedge funds, you may provide the following:
§ Rate of return, (YTD, 1 year, 3 years, 5 years, and 10-year rate of returns)
o For example, if your investment decisions are based on technical analysis then maybe provide patterns that you may have identified (i.e., Head and Shoulders).