Student Investment Opportunities with an Initial Investment Amount under 5000 U.S. Dollars. Student Investment Portfolio Building.

Bc. Timur Elyas

Master's thesis

Abstract:

This thesis focuses on investment methods that the students might employ in an attempt to combat the harmful impact of inflation on their savings. Based on that, four research questions were set. Those questions, generally, ask what students can invest in and how does this process work. To answer the questions, an author firstly presents some theory about investment concepts and various investment assets, and then introduces the example of investment portfolio building. The built portfolio is then analyzed from the perspective of current riskiness and profitability, after which an author tries to forecast the riskiness and profitability of the portfolio for the future three years in three scenarios. Finally, presented scenarios, non-action scenario, and current profitability are compared to each other. As the result, optimistic, realistic scenarios and the current profitability of the portfolio are satisfying the aim of the paper to combat inflation. The pessimistic scenario, on the other hand, brings even higher losses to the investor than a non-action plan. In the conclusion, all research questions are finalized and answered.

Abstract:

This thesis focuses on investment methods that the students might employ in an attempt to combat the harmful impact of inflation on their savings. Based on that, four research questions were set. Those questions, generally, ask what students can invest in and how does this process work. To answer the questions, an author firstly presents some theory about investment concepts and various investment assets, and then introduces the example of investment portfolio building. The built portfolio is then analyzed from the perspective of current riskiness and profitability, after which an author tries to forecast the riskiness and profitability of the portfolio for the future three years in three scenarios. Finally, presented scenarios, non-action scenario, and current profitability are compared to each other. As the result, optimistic, realistic scenarios and the current profitability of the portfolio are satisfying the aim of the paper to combat inflation. The pessimistic scenario, on the other hand, brings even higher losses to the investor than a non-action plan. In the conclusion, all research questions are finalized and answered.

Keywords

Investment, Portfolio, Inflation, Crisis, Recession, Returns, Riskiness, Beta, Volatility, Assets, Stocks, ETFs, Diversification, Dividends, Growth, Discounting, Compounding, eToro, Brokerage Account, Trading Platform, Correlation

Language used: English

Date on which the thesis was submitted / produced: 16. 4. 2021

Thesis defence

• Date of defence: 9. 6. 2021
• Supervisor: Ing. Petr Mach, Ph.D.
• Reader: Mgr. Ing. Miroslav Jurásek, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Economics and Management