From the overall evaluation of the above figure the investment options presented to MS B can be identified. The investment options help in identifying return, which could be generated from investment and support financial obligations of MS B. Adequate demand for property in Singapore has grown, which might allow investors to generate higher returns from investment (Benton et al. 2017). Therefore, adequate portfolio could be created for MS B for supporting her financial obligations and improve her return generation capacity.
The investment scope is presented in above figure, which could be used by MS B for improve her return generating capacity. The shares are mainly related to property and REIT, where adequate closing price, dividends and other information are provided, which are used in the portfolio creation phase. Dividends and share value growth are mainly used in understanding the financial performance of stocks, which could help in creating an adequate portfolio for investment (Finn 2017). Hence, stocks with high dividend yield can provide the maximum amount of returns, which are used in creating the overall portfolio for MS B.
|
Investment |
Per sqft |
Price per sqft |
Amount |
Return |
Return |
|
Residential Condominium |
1,200.00 |
2,800.00 |
SGD 3,360,000.00 |
SGD 84,000.00 |
SGD 114,000.00 |
|
Commercial Office |
1,200.00 |
2,800.00 |
SGD 3,360,000.00 |
SGD 84,000.00 |
SGD 114,000.00 |
|
Mortgage payment |
SGD (84,000.00) |
SGD (84,000.00) |
|||
|
Return |
SGD 84,000.00 |
SGD 144,000.00 |
|
Investment |
Current share price |
Number of Shares |
Amount |
Return |
Return |
|
F-REIT |
2.9 |
250,000 |
SGD 725,000 |
SGD 32,625 |
|
|
P-REIT |
1.5 |
610,000 |
SGD 915,000 |
SGD 61,763 |
|
|
Total Investment |
SGD 5,000,000 |
SGD 178,388 |
SGD 238,388 |
|
Particular |
Value |
Amount |
|
Total return from investment |
SGD 178,388 |
SGD 238,388 |
|
Return from investment |
3.57% |
4.77% |
|
Inflation rate |
3.00% |
3.00% |
|
Percentage return from investment |
0.57% |
1.77% |
|
Amount return from investment |
SGD 28,387.50 |
SGD 88,387.50 |
From the evaluation it could be detected that the portfolio of MS B consists of both property and REIT, which could allow her to generate adequate returns and diversify her investment. The portfolio consists of F-REIT and R-REIT stocks, as they provide the highest dividend yields. These combination of the portfolio is relevantly adequate to support financial stability and return from investment. In this context, Alberg and Lipton (2017) mentioned that investors by using adequate diversification method can generate high level of income from investment. On the other hand, Naik et al. (2017) criticises that portfolio creation is conducted with adequate research or else risk from investment generally increases over time and hampers investment capital.
The tables mainly depict the overall portfolio, which is calculated for MS B and might help in generating high level of return from investment. For improving the financial performance of MS B adequate portfolio is created, which comprises of real-estate property and REIT, as it could help in generating high level of income from investment. The returns from property mainly ranges from SGD 84,000 to SGD 144,000, which might help in detecting the minimum and maximum return from investment. The portfolio includes both Residential Condominium and Commercial Office, which helps in generating high level of returns. Moreover, mortgage measure is used in accommodating both the property in portfolio, which help in generating high level of income from rent revenue. After adequate mortgage payment the returns provided by property investment ranges from SGD 84,000 to SGD 144,000. Finn (2017) stated that investors by using technical and fundamental analysis can detect investment opportunity, which might support their return generation capacity. However, Prokopenko and Tymoshenko (2017) indicated that stock evaluation mainly loses friction when economic crises is in progress, as the entire stock value declines during the period.
The financial viability of the portfolio can be detected from investment, as it allows MS B to generate high level of income. The portfolio is well invested in both shares and property, which falls under real-estate industry. This relevantly indicates that financial performance of the portfolio ranges between 0.57% to 1.177% after deducting the overall inflation rate from returns. This would eventually allow MS B to generate high level of income from investments. From the overall investment return of SGD 28,387.50 to SGD 88,387.50 can be obtained by MS B in adverse and positive situation. This range of investment could provide MS B to improve her return from investment, which is been invested in property industry of Singapore. Kok, Ribando and Sloan (2017) mentioned that range of investments allow investors to identify the risk adjusted return from investment, which could be provided from different stocks.
Hence, the above drafted portfolio could allow MS B to generate constant return from investment, which in turn could raise investment capital. The focus of investment is based on property market, which is currently situated in Singapore. In addition, the use of dividends is mainly used in formulating the portfolio, as high dividend yield REIT is used in the portfolios. Therefore, MS B with the drafted portfolio could compensate for the rising inflation rate and generate returns, which ranges between 0.57% to 1.177%.
Reference:
Alberg, J. and Lipton, Z.C., 2017. Improving Factor-Based Quantitative Investing by Forecasting Company Fundamentals. arXiv preprint arXiv:1711.04837.
Benton, A.I., Huerta-Sanchez, D. and Pyles, M.K., 2017. The Impact of Market Conditions on Voting Results in a Student-Managed Fund. The Journal of Trading, 13(1), pp.72-79.
Finn, A., 2017. Smart Women Love Money: 5 Simple, Life-changing Rules of Investing. Simon and Schuster.
Kok, U.W., Ribando, J. and Sloan, R., 2017. Facts about formulaic value investing. Financial Analysts Journal, 73(2), pp.81-99.
Naik, V., Devarajan, M., Nowobilski, A., Page, S. and Pedersen, N., 2017. Factor Investing and Asset Allocation: A Business Cycle Perspective. Research Foundation Publications, 2017(1), pp.22-26.
Prokopenko, V. and Tymoshenko, O., 2017. The Mechanism of Ensuring Ecological and Economic Efficiency of the Iron-Ore Deposit Exploitation. In Advanced Engineering Forum(Vol. 22, pp. 128-134). Trans Tech Publications.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download