Excel Model: Financial Instrument Comparison

Título: Financial Instrument Comparison

 Descripción:

 

This spreadsheet is designed to help users compare different financial instruments based on various criteria. It includes sections for setting up the comparison, recording details of each instrument, and summarizing the comparison results. Key components include:

  • Setup: Initial configuration of the spreadsheet to establish comparison parameters, including risk level and liquidity.
  • Financial Instrument Comparison: A detailed comparison of various financial instruments, including initial investment, risk level, expected return, liquidity, final value, time period, variance percentage, and tax implications.

 

Advice/Tips:
  • Setup:
    • Ensure all initial configurations are correct before recording financial instrument details.
    • Regularly update the comparison parameters as needed.

  • Financial Instrument Comparison:
    • Accurately record each financial instrument’s details to ensure precise comparisons.
    • Review comparison results to identify the best investment opportunities based on your criteria.

Fuente: Custom Calculator

Click the following icon to open the full workbook viewer in a new tab, allowing you to easily edit and save.

Click the following icon to download the spreadsheet, allowing you to save the file on your computer along with edits.

Example of using calculator:

Detailed example of using Spreadsheet: Tasks for user to complete:

 

  1. Setup Section:
    • Enter the risk levels and liquidity options.
      • Example values: Risk Level – Low, Medium, High, Very Low, Very High; Liquidity – Low, Medium, High.

  2. Financial Instrument Comparison:
    • Enter details of each financial instrument including initial investment, expected return, and tax implications.
      • Example values:
        • Stock A: Initial Investment – $10,000, Risk Level – High, Expected Return – 8%, Liquidity – Medium, Final Value – $14,693.28, Time Period – 5 years, Variance Percentage – 47%, Tax Implications – Capital gains tax.
        • Bond B: Initial Investment – $20,000, Risk Level – Low, Expected Return – 4%, Liquidity – High, Final Value – $24,333.06, Time Period – 5 years, Variance Percentage – 22%, Tax Implications – Interest income tax.
        • Mutual Fund C: Initial Investment – $15,000, Risk Level – Medium, Expected Return – 6%, Liquidity – Medium, Final Value – $20,073.38, Time Period – 5 years, Variance Percentage – 34%, Tax Implications – Diversified holdings.
        • Real Estate Investment Trust (REIT): Initial Investment – $25,000, Risk Level – Medium, Expected Return – 5%, Liquidity – Low, Final Value – $31,907.04, Time Period – 5 years, Variance Percentage – 28%, Tax Implications – Dividends taxed at lower rate.
Why is interactive calculator useful:

This spreadsheet consolidates all information related to different financial instruments in one place, making it easier to compare them based on various criteria. By providing a clear view of each instrument’s performance and characteristics, it helps users make informed decisions to optimize their investment portfolio.

 

Fuente: Custom Spreadsheet

Conclusión:

The Financial Instrument Comparison spreadsheet is an invaluable tool for managing and optimizing investments by comparing various financial instruments based on key criteria. By providing a detailed and organized approach to recording and comparing investment options, it helps users achieve financial stability and growth while making informed decisions. Regular updates and reviews ensure that the investment strategy remains aligned with changing goals and market conditions.

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