Equities refer to the shares and assets that have no fixed interest rates, and investment can be made by holding and buying in a stock exchange market with a view of gaining income and capital gains. A bond, on the other hand, refers, to the fixed income security or investment to increase capital. Another type of asset is a mutual fund is a programme of investment managed professionally and funded by shareholders trading in different types of holdings. Further, ETFs are funds or investments dealt in stock exchange markets, the assets involved are commodities, stocks and bonds traded at a value close to the net profit hence reduce deviations in the market.

A philosophy generally means the guidelines used by investor’s when deciding to invest in properties underpriced in the market and expect it to gain value in the market. This paper seeks to analyze and critically evaluate the investment philosophy in the choice of securities and asset allocation. The process of determining the best strategies in choosing the best portfolio for the assets, and the distribution it involved identifications of time horizon and objectives, the risk tolerance, the leading target portfolio and the general selection of the investments.

With initial funding of 1000, 000dollars, the asset with the most investment percentage is the bonds this is due to the high risk tolerance it posses in the market due to its existence as fixed investment. The warrants also suffer less volatility daily compared to other securities like stocks.  The second investment priority is the ETFs since the investment gives more extensive varieties of securities to invest in their characterized by its high tolerance on risks that arise from such investments. Equities will receive a small percentage of 10% each since risks associated are high and the philosophy guide aims at limiting challenges highly. During the simulation period, the numbers of transactions to be carried out were limited to a total of 200 operations with a commission rate at each sale. Therefore, the investment policy operated such that the numbers of transactions were minimal with little commissions incurred since the purchase of the assets was done in bulk limiting and evading risks involved in the process.

Finally, the fundamental strategy in the allocation of assets is the development of a portfolio. This portfolio became the underlying basis for the determination of the investment percentage in the different securities and assets. Therefore, in an attempt to monitor and manage all assets obtained, evasion of risk became the underlying agenda forming the philosophy for the acquisition of securities and allocation of assets. The diversification of investments by purchasing different holdings in the market creates goals and strategies that minimize the loss as a result of stock exchange shifts in the trading of different markets. Hence, obtaining a commodity or security such as the bonds that prevail under any market inefficiencies is the best option for investing in such a short period with an expectation of gaining capital.