Personal Finance Research Paper Example | Topics and Well Written Essays - 2500 words

Personal Finance - Research Paper Example The investment period is one month starting on Thursday 1st May 2014 to Saturday 31st May 2014. It is mandatory that we return the funded amount at the end of the investment period and hence as a group we have to select a portfolio of assets to invest in that will enable us to earn income that is above the inflation rate at the end of the period. We have an option of investing on either or all of the available investment options which are; Stock Market Investment (National/International), Bank deposits (Only Non-Islamic Qatari Banks), Gold & Other Metals, Bond / Debenture Investment International Market) or Forex Market (Currencies). In selecting among the options we consider the tradeoff between risks faced and the potential returns. This paper focuses on the major investment portfolios and their returns with an aim of determining the profitability of the various investments. It will be useful to the group members to identify the significance of investing in case the returns are positive. The main aim of investing this amount is to for capital growth. Our wish is for the amount to grow at a higher rate than the inflation rate within the month of May. From the returns we can buy more assets in the future and also use the incomes to support our lifestyles. We therefore are to consider investments with stable incomes and low risks on our original investment. We need to select the best mix of the available investment opportunities that will give us maximum returns and expose us to minimum risks. A higher percentage of the amount should be invested in less risky investments which in most cases result to lower returns. It is also important to invest in risky investments which result to higher returns. A stock is a certificate of ownership that shows partial ownership of a Company. Purchase of stock will make us part owner of the company. In investing in stocks we consider major factors to