Investment options for MS B

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 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	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.