Think about Mr. X's investment possibilities for 3 years holding period in real investment
environment. He works in a MNC in India, he is 51 years of age. His family comprises of Mr.X,
his wife and a kid pursuing MBA in a reputed B-School. His take home salary is Rs 8 Lac per
annum.
a) What could be his investment objectives? State as bullet points.
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b) What amount of funds he could invest for 3 years period? State with brief justification.
[2]
c) What investment vehicles could he use for investment? (What types of investment vehicles are
available in your investment environment?) State with brief justification.
[2]
[2]
d) What type of investment vehicles would be relevant to him? Why?
e) What factors would be critical for his investment decision making in this particular investment
environment?
Answers
Answer:
see2005
eptember 1. Started business with Rs. 100,000, paid into Bank Rs. 40,000,
2. Bought furniture for Rs. 10,000 and machinery for Rs. 20,000
3. Purchased goods for Rs. 28,000.
6. Sold goods for Rs. 16,000.
8. Purchased goods from Ishtiaq & Co. Rs. 22,000.
10. Paid telephone rent for the year by cheque Rs. 1,000.
11. Bought one typewriter for Rs. 4,200 from Universe
Typewriter Co. on credit.
15. Sold goods to Khurram for Rs. 24,000.
17. Sold goods to Ajmal for Rs. 4,000 for cash.
19. Amount withdrawn from bank for personal use Rs. 3,000.
20. Withdrew from bank for business use Rs. 7,000.
21. Received cash from Khurram Rs. 23,800, discount allowed Rs. 200.
22. Paid into bank Rs. 11,600.
25. Goods worth Rs. 2,000 found defective were returned to Ishta
& Co. and the balance of the amount due to them was settle
by issuing a cheque in their favour.
28. Bought goods worth Rs. 4,200 from Aslam and supplied then
to Akram at Rs. 6,000.
30. Akram returned goods worth Rs. 200, which in turn were se
to Aslam at Rs. 140.
30. Issued a cheque for Rs. 2,000 in favour