Let\'s pretend that someone handed you $ 20,000 that you could invest anyway you
ID: 1108975 • Letter: L
Question
Let's pretend that someone handed you $ 20,000 that you could invest anyway your choose. Where would you put the money? You would not be allowed to spend it on current consumption or use it to pay off existing debt. You must invest it for a period of at least 3 years. After the 3 years all of the money remaining, plus any capital gains or return on investment you have made will be yours to keep. Describe where and how you would invest the money. If you choose the stock market be specific about what companies you would want to buy stock in and how much you would spend on each company. Provide details about where all of the $ 20,000 would go. You may want to be diversified so give some explanation for each of your choices.
Explanation / Answer
Answer : If someone give me $ 20,000 then definately I will invest this amount on stock market. Because by only stock market I can be more profitable in short term and long term. In the question it is given that I can invest at least for 3 years i.e., I can invest my money for 3 or more than 3 years. In that case I decide to invest on three company. Firstly, as an Indian I will invest my money on ITC ( Indian Tobacco Company ). The reason is that ITC is the biggest company in India. This company has 5 segments. These are FMCG ( Fast-Moving Consumer Goods ), Agricultural Business, Information Technology, Paper & Packaging , and Hotels. Secondly, I decide to invest on HDFC bank. In India HDFC bank is a leading banking and financial service company. It is a largest bank of market capitalisation in India. This bank provide many services to people. These are various type loans like car loan, property loan, personal loan etc., Treasury, Retail banking and Wholesale banking. Thirdly, my third investment will be on Asian paints company. By investing on paint industry I can be profitable because of evergreen industry. In paint industry Asian paint is the largest company. Because this company engaged in business of selling and distribution of paints, manufacturing, home decor product, bath related services, coatings.
By the above ways I will get my $ 20,000 which was my princple investment and lots of extra profit.
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