Case Study: Designing a Bond Portfolio for a Short-Term Investor
Budget: ₹600 – ₹1,500 INR
Background
An investor has recently come into liquid funds and is considering investment opportunities in the
fixed-income market. The investor is conservative in approach and prioritizes the safety of principal
while still expecting competitive returns.
Investor Profile
• Available Capital: ■1 Crore
• Investment Horizon: 15 months
• Key Objective: Buy a residential property after 15 months
Requirements
1. Safety of Principal – The investor does not want to risk capital loss as the funds are earmarked
for a house purchase.
2. Target Returns – The investor is looking for ~10% annualized return (XIRR).
3. Defined Timeline – Investment period is strictly 15 months, after which liquidity is required.
The Challenge
The investor has approached you to design a bond portfolio that meets the following conditions:
• Generates an XIRR of ~10%.
• Ensures capital safety through secured instruments.
• Aligns with the 15-month horizon.
Deliverables
Your task is to:
1. Construct a Bond Portfolio – Select appropriate bonds (from Wint Wealth’s live bond section).
2. Excel Model – Show investment allocation, cash flows, coupon payments, maturity values, and
XIRR calculations.
3. PowerPoint Presentation – Create a structured presentation covering:
• Investor problem statement
• Proposed portfolio design
• Expected returns & maturity value
Objective of the Case
Convince the investor that the proposed bond portfolio best meets his requirements of safety,
returns, and liquidity within the 15-month time frame.
An investor has recently come into liquid funds and is considering investment opportunities in the
fixed-income market. The investor is conservative in approach and prioritizes the safety of principal
while still expecting competitive returns.
Investor Profile
• Available Capital: ■1 Crore
• Investment Horizon: 15 months
• Key Objective: Buy a residential property after 15 months
Requirements
1. Safety of Principal – The investor does not want to risk capital loss as the funds are earmarked
for a house purchase.
2. Target Returns – The investor is looking for ~10% annualized return (XIRR).
3. Defined Timeline – Investment period is strictly 15 months, after which liquidity is required.
The Challenge
The investor has approached you to design a bond portfolio that meets the following conditions:
• Generates an XIRR of ~10%.
• Ensures capital safety through secured instruments.
• Aligns with the 15-month horizon.
Deliverables
Your task is to:
1. Construct a Bond Portfolio – Select appropriate bonds (from Wint Wealth’s live bond section).
2. Excel Model – Show investment allocation, cash flows, coupon payments, maturity values, and
XIRR calculations.
3. PowerPoint Presentation – Create a structured presentation covering:
• Investor problem statement
• Proposed portfolio design
• Expected returns & maturity value
Objective of the Case
Convince the investor that the proposed bond portfolio best meets his requirements of safety,
returns, and liquidity within the 15-month time frame.