Economics 12
Investment Portfolio Assignment
My name is Samin Moradkhan and I am 19 years old now. I have graduated from high school this year, but I have decided to take a gap year before attending university and plan to earn money to be assured of my post-secondary education. My family have always been supportive, so they have lent me 100,000 Dollars to invest or run a business on my own. This is a great opportunity for me to be financially independent. As I am really interested in business and even planning to study this course at university, I have done some research about different companies worth investing in. I myself am a risk averse person who is not significantly affected by the upswing and downswing of an investment thus I tend to invest about 25 percent of the investment on safer types with low risk, 35 percent in moderate risk and the rest on riskier types of investment. I do want to invest in companies that give a monthly or regular return to spend on daily costs. I am also planning for long term investments to earn money for my future family to be able to support them.
REALESTATE (FUNDRASE):
When I was doing some research about real estates, I visited the company’s website. As soon as I started finding out about the company, a manager began to chat with me and asked for any help I needed. She accepted to send me the most recent Economic Report on Top Investment towns in BC following the real estate cycle. Due to their help and appropriate costumer service beside the good condition of their company I decided to partially invest my money in real estates. there are so many ways to invest in real estate. One alternative which interested me is a company called Fundrise. Fundrise provides the opportunity for investors to invest small amounts of money by buying commercial properties. This investment is suitable for me as I do not have to deal with the property itself beside owning a part of commercial real estate project. It has a choice of investing my money for 90 days and if I were not satisfied, I would be able to have my money back with the same amount I invested.
QTRADE INVESTOR (ETF):
This company has many great assets that I have been looking for which includes: low trading commissions, perfect costumer service, powerful tools and, vast selection of investment options. It also provides online service and is free from commission for the first 100 units of stock. It has a trial account for beginners to find out more about the investment. I chose it because of the trial account which allows me to decide to continue or not after one year and because of the low commissions it is suitable for me. I think it might be a good investment as I would learn more about the investment and also earn money from trading stocks. What makes it different among the similar companies is its special offer for young investors aged between 18 to 30.
YESTERPAY HOLDING (BONDS):
It lets qualified investors to buy bonds and indirectly invest in financing the factoring business of CapitalNow Inc (CNI). Yesterpay has successfully worked since 2012 in raising funds for lending to CNI. It offers fixed rate bonds which interests are compounded monthly. I chose this company because it is only available in Alberta and British Columbia which makes it more secure. This investment fits my strategy as the turnover is compounded monthly and I will receive more money each month which helps me with buying daily stuff. I think it would be a good investment as the past performance of the company indicates the progress they have made through years so I can be assured of earning money from my investment.
COLLECTIBLES (STAMPS):
Collectibles have a low risk to invest because people mostly do it because of their interest and do not really care about the amount of money they spend on it. I have been keen on collecting stamps since I was a kid and because of my interest, my father has also gifted me the stamps he has collected in his childhood which made my collection more valuable and scarcer. I have not value my collection yet but because I think there are some collectors who are fond of collecting stamps, since there would be fewer and fewer of the stamps I collected the value will increase over time and I can sell it to convert it to cash money or even keep it in order to be the owner of such a valuable collection. What motivated me to choose this collection is having stamps from all over the world which makes the market more favorable and there would more buyers demanding it from all over the world.
PRECIOUS METALS (APMEX: GOLD):
Precious metals are considered a long-term investment although there are some upswings and downswing in short term but there are somewhat stable in overall. I have chosen to invest in gold as it is the most demanded metal in the world, I would rarely get in trouble for selling it. This online shop has free shipping for orders more than $ 99. Which avoids spending my money on unimportant things. Gold price is $1242.30 per ounce so I can buy 10 or more ounces of gold and invest in this precious metal. This investment fits my strategy as it never significantly decreases in price and I can sell with approximately no loss. I think it would be a good investment because gold never decreases in value and would not lose its popularity around the world so there is nothing to be scared of when investing in this precious metal.
BITCOINS:
Bitcoins are so risky investments that you may lose are your investment in short time. Bitcoins are a type of currency which allows people to buy certain things only with bitcoins in some countries. I have decided to invest in bitcoins as there is a chance of earning money faster as well as losing all your investment. It has been popular in past years and as they are traded by investors and the price fluctuates due the high demand, I would be able to sell them at a higher price to make profit. It fits my strategy as I had decided to invest 40 % of the total money in riskier investments. The most important thing about bitcoins is the company offering it which should have proven their reputation. NEWSBTC is one of the best companies trading bitcoins. It offers a lot of information about investing for beginners and they have different types of bitcoins for selecting.
FOREIGN EXCHANGE: SWISS FRANC AND US DOLLARS
Switzerland is one of the richest countries in the world and is also known as politically neutral, it has a competitive economy which leads to having a great currency value. The currency is mostly traded with US Dollars. It fits my strategy because USD is always useful in Canada so if I want to get rid of the Swiss Franc, I can buy USD and convert it to Canada Dollars. It has low risk because the value would not change significantly and the risk of losing a large amount of money in my investment is low. I decided to invest my money in a company named FOREX because they provide every necessary information for trading including: calculations, predictions, graphs, and an online manager to chat with.
MUTUAL FUNDS (COAST CAPITAL SAVINGS):
I have decided to invest a part of my money in mutual funds because most types of it, are safe and they provide a regular return which fits my strategy. I chose Coast capital Savings because of the lower management expense ratio fees, conservative fund management which avoids losing all my money, the choice of contributing $50 monthly or $1000 for the start, vast selection of investments and it is also available for non-registered accounts. The account I choose to invest is the income 100 fund because it is 100 % fixed income and is suitable for long term growth, so I can get higher returns to spend on education. What makes it different from similar companies is its different selections of investments.
COMMODITIES (AGRICULTURE):
Hancock Agricultural Investment Group is one of the companies who invest in commodities. In the past year they have managed 3.0 billion USD in farmland assets on institutional investors behalf. The assets are located in over 336000 acres of farmland in major agricultural regions. They provide the clients and the investors with benefits including; high returns, excellent capital preservation, medium risk, and low correlation to equities and bonds. I chose this company to invest in commodities because I believe they would perform well as they have been working since 1990 successfully and they do have many investors. The other reason is that their investments are based on research and their strategy fits my portfolio. It can be a long-term investment which benefits more over time.
STOCKS AMAZON:
I want to invest in stocks because I believe people can benefit from investing in stocks for long term. As my other investments were kind of short and I receive money monthly I would like to also experience long term investments to examine the difference of the money earned from each. The stock I chose is amazon stock. According to some research this stock is growing 40 % each year and experts predicted that the price may hit $ 2000 in 2019. As amazon is one of the world’s most successful companies, the price would not drop and cause loss significantly. It fits my strategy because I have some money remained from the $100000 that I want to be assured of a high return investment. Looking it the price fluctuations informs that the price had raised since years ago and it continues raising so I can sell the stocks at a higher price.
INVESTMENT: risk Number of units Purchase price spending
1.Real estate (fundraise) medium
Minimum of
$500 $10000
2.Qtrade investor (ETF) medium 10 Minimum of $ 1000 $10000
3.Yesterpay holding (bonds) low
$8100
4.Stamps (collectibles) low 2 albums
$2000
5.Ampex (precious metal: gold) low 10 ounces $ 1242.3 per ounce $12423
6.News BTC Bitcoins (currency) high 2 $ 5316.36 $ 10632.72
7.Forex (foreign exchange) low 10000 CHF:1.01 USD $ 10100
8.Coast capital savings (mutual fund) medium
Minimum of $1000 $ 15000
9.agriculture (commodities) medium
$ 7000
10.Amazon (stocks) high 10 $ 1465.34 $ 14653.4
total $ 99909.9
References:
https://fundrise.com/ https://www.qtrade.ca/en/investor/trading/investment-choices.html
https://www.cvcmarketpoint.com/investment-opportunities/yesterpay/?gclid=EAIaIQobChMIwfPaiLOd3Wivc8RkCh3KQQDgEAEYAyAAEgJPN_D_BwE
https://www.apmex.com/spotprices/gold-price
https://www.forex.com/en-ca/lp/forex-brand-trust-live/?src=201806CAS191806&cid=0002789873&gclid=CJKjn-H3qd8CFYKJxQIdjakHJA&gclsrc=ds
https://www.coastcapitalsavings.com/media/1694/fundfact_income100.pdf
https://www.coastcapitalsavings.com/investments/investment-products/lfmfm
http://goldminerscooperative.com/?a=page&id=about_us
hancocknaturalresourcegroup.com/
https://www.forbes.com/sites/petercohan/2017/05/31/4-reasons-to-buy-amazon-before-it-hits-2000-in-2019/#53b734b14faa