Investment Portfolio Performance Analysis: Value Investing Strategy Results Over Five Weeks
Overview
This paper presents results from a five-week investment portfolio exercise using $100,000 allocated across equities (48%), fixed income securities (44%), and cash equivalents (8%). The student employed an active investment strategy based on value investing principles and achieved a 3.2% return, slightly underperforming the S&P 500 mutual fund benchmark of 3.33%.
What this coursework covers
- Abstract and introduction outlining investment objectives and portfolio strategy rationale
- Asset allocation breakdown and methodology for applying value investing concepts
- Results section presenting ending security values, comparative performance metrics, and analysis of underperformance
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Investment Portfolio Results
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Abstract
An investment portfolio is a set of investments held by an individual or organization. Investment performance is analyzing the returns on an investment portfolio and is measured over a given period. This research paper indicates the results of my investment portfolio, considering the concepts of value investing. Information gathered for the research was obtained from my portfolio performance developed during the course. Empirical data and all the results in the form of figures are were obtained from the performance portfolio. Additional information was gathered from scholarly peer-reviewed material. The paper provides information about the investments made using the available $100,000 for five weeks. It also highlights the different strategies and factors that would have made the results more valuable.
Introduction
An investment portfolio is a crucial part of the investment process as it examines the success of an investment in regards to generating a profit. Investment involves the sacrifice of current money and other resources intending to acquire benefits in the future. The two primary aspects of investments are risk and time. The most significant measures when assessing investment performance are relative return and absolute return.
In my portfolio, my investment objective was for wealth creation. $100,000 was invested in bonds and stock to obtain maximum returns from the investment (Komala, L. A. P., & Nugroho, P. I. 2013). An active investment strategy was chosen for this aggressive portfolio.