Dividend Appreciation Idx Inv Case Analysis Essay

Which positions exceeded your expectation and which factors created a gap? The position of company Vanguard Dividend Appreciation Idx Inv (VDAIX) was beyond the expectations. The reason is that when we invested in the stock it was operating at the share price of 30.16 on 1st February. In this way, the historical stock price trend of the company indicates that the company was operating profitably and we invested in this portfolio. However, the stock started to decline and the fluctuations were in between $29 to $31 per share. In this regard, we were disappointed that this portfolio will not result as favorable. However, the prices of the stock increased and reached to 32.61 and we got benefit through this investment by $ 148.79. In addition to this, the stock performance that was beyond the expectation was of Federated Strategic Value Dividend A (SVAAX). T he day 1st February we made investment in this stock and the prices were standing at …show more content…
These fluctuations lead to increasing or decreasing prices of the stocks of the companies. As a result, the investment in stocks and bonds of the companies ends up with some profit and loss. In this way, we have learnt that before, investing in the stocks of the companies and making a portfolio we must analyze that how the company will be able to grow in future and the how making investment in these assets will return to us. An initial estimate should have to be made before investing different portfolio because portfolio management is a risky task. Thus, if the managers do not have an estimate of the market conditions they would be facing continuous loss. In addition to this, we have learnt that a diversified portfolio of the companies should have to be made so that the risk of one investment can be managed with the risk of other investment by of setting. This is one of the greatest success strategies in portfolio