Investment Strategy and Portfolio Management Assignment - 2

Investment Strategy and Portfolio Management - Assignment Example When choices increases, shaping and monitoring investment portfolios becomes more complicated and it is more exposed to excessive risks. To succeed in portfolio market, it requires one to make more research in order to learn how to evaluate fundamental issue and manage related risk. This increases effectiveness to clients and organization leading to more productivity. In order to succeed in investment environment, Nelly company they should have proper management of cash. They should always have knowledge of cash they receive from regular contribution of their members made and how much the fund grows. This will enable them to know the amount of money they will use to finance education (Kendrick, 2009).Later the company management should discus and make decisions on how to finance the education and how much they should have for the company to profit which will be available for contributor to make the withdraw. They should also come up with rules which should be favourable for the company and the contributor to minimize the amount they should withdraw than the amount they contribute (Elton & Gruber, 1995). The success of Nelly Company can be brought by setting complicated and favourable rules for members who would like to withdraw their funds and which can bring the member core benefits in future. The members who have more than four years and would like to withdraw their funds can be given a portion, say, 20 percent of their net contributions. The remainder should be used for funds creation at an interest which then and be allocated to these members on a residual basis. This ensures that the company remains a going concern and may not necessarily liquidate (Aiken, 2008). The company can also borrow quickly from other financing institution under a line of credit agreement, which permits company to have up to a specified maximum amount. The company will be able to buy marketable