Conservative Investment Portfolio Investors

Conservative_Investment_Portfolio

1. MODERN INVESTENT portfolio

2. Conservative TYPE OF INVESTOR

3. "Ms. Rodriguez, a 50-year-old retiree, approached our financial advisory firm seeking guidance on how to manage her retirement savings, totaling ₱3,000,000.00. After conducting a thorough risk assessment, we determined that Ms. Rodriguez has a conservative risk appetite, prioritizing capital preservation and steady income over aggressive growth. Given her stage in life and financial goals, we crafted an investment portfolio that aligns with her conservative approach. The following outlines the diversified investment portfolio tailored to Ms. Rodriguez's needs." INTRODUTION

4. Ms. Rodriguez's primary investment goals include capital preservation, steady income generation, and financial stability throughout her retirement years. Investment Goals:

5. Ms. Rodriguez has a conservative risk appetite, prioritizing capital preservation and steady income over aggressive growth. She seeks investments with lower risk levels and is more comfortable with stable returns, even if they may be lower compared to higher-risk investments. Risk Tolerance:

6. As a retiree, Ms. Rodriguez has a relatively short time horizon and aims to maintain her financial stability throughout her retirement years. While she seeks steady income, she also considers the need for her investments to last throughout her retirement. Time Horizon:

7. The diversified investment portfolio for Ms. Rodriguez includes allocations to Fixed-Income UITFs, Treasury Bonds, Money Market Funds, Dividend-Paying Stocks, and Conservative Allocation Funds. Each asset class is carefully selected to align with Ms. Rodriguez's conservative risk profile and investment goals. Asset Allocation:

8. We provide regular monitoring and reporting of Ms. Rodriguez's investment portfolio, keeping her informed of performance, asset allocation, and any necessary adjustments. This ensures transparency and accountability in managing her investments. Risk Management:

9. 1. Fixed-Income UITFs : Provide steady income and capital preservation. 2. Treasury Bonds : Offer relatively low risk and predictable returns. 3. Money Market Funds : Enhance liquidity and minimize risk with short-term, low-risk securities. 4. Dividend-Paying Stocks : Balance risk with potential capital appreciation and inflation protection. 5. Conservative Allocation Funds : Provide diversification and access to professionally managed portfolios with a balanced approach to risk and return. Investment Portfolio:

10. We provide regular monitoring and reporting of Ms. Rodriguez's investment portfolio, keeping her informed of performance, asset allocation, and any necessary adjustments. This ensures transparency and accountability in managing her investments. Monitoring and Reporting:

11. We provide regular monitoring and reporting of Ms. Rodriguez's investment portfolio, keeping her informed of performance, asset allocation, and any necessary adjustments. This ensures transparency and accountability in managing her investments. Risk Management:

12. The investment return for Ms. Rodriguez's portfolio and then use the Modern Portfolio Theory (MPT) to optimize the portfolio allocation. Investment Return & Modern Portfolio Theory (MPT) for Ms. Rodriguez:

13. Proposal: - Initial investment amount: ₱3,000,000.00 - Investment period: 1 year Portfolio allocation (example): - Fixed-Income UITFs: 40% (1,200,00) - Treasury Bonds: 30% (900,000) - Money Market Funds: 10% (300,000) - Dividend-Paying Stocks: 15% (450,000) - Conservative Allocation Funds: 5% (150,000) Expected annual returns (example): - Fixed-Income UITFs: 4% (48,000) - Treasury Bonds: 3.5% (31,500) - Money Market Funds: 2% (6,000) - Dividend-Paying Stocks: 7% (31,500) - Conservative Allocation Funds: 5.5% (8,250) (TOTAL ANNUAL RETURN: Php 125,125 )

14. Investment Return Calculation: 1. Calculate the weighted returns for each asset class: - Weighted return for Fixed-Income UITFs = 40% * 4% = 1.6% - Weighted return for Treasury Bonds = 30% * 3.5% = 1.05% - Weighted return for Money Market Funds = 10% * 2% = 0.2% - Weighted return for Dividend-Paying Stocks = 15% * 7% = 1.05% - Weighted return for Conservative Allocation Funds = 5% * 5.5% = 0.275% 2. Sum the weighted returns to get the portfolio's expected return: - Expected portfolio return = 1.6% + 1.05% + 0.2% + 1.05% + 0.275% = 4.175%

15. By constructing a diversified investment portfolio tailored to Ms. Rodriguez's conservative risk profile, we aim to help her achieve her financial goals of generating steady income, preserving capital, and maintaining financial stability throughout her retirement years. This approach reflects our commitment to providing personalized and effective financial advice to meet our clients' needs. Conclusion:

16. Group 1: Cservative-Type Colbe, Emmanuel Pepito, Maresol Tamma, Madheline Albino, Gee Ann Banate, Justin Cochesa, Jessa