10+ Bonito Designs Interview Questions and Answers

Portfolio management is the art of selecting and managing a group of investments to meet specific goals.

• Portfolio management involves analyzing risk tolerance, diversification, and asset allocation.

• Optimal portfolio requires a mix of different types of investments such as stocks, bonds, and cash.

• Investment instruments required for optimal portfolio include mutual funds, exchange-traded funds (ETFs), and individual stocks and bonds.

• Portfolio management aims to maximize returns...read more

I would invest in a diversified portfolio of stocks, bonds, and real estate to minimize risk and maximize returns.

• I would allocate a portion of the funds towards blue-chip stocks with a proven track record of consistent growth and dividends.

• I would also invest in a mix of government and corporate bonds to provide a steady stream of income.

• To further diversify, I would invest in real estate through REITs or rental properties.

• My estimated CAGR would be around 8-10% based on his...read more

Wealth management involves managing investments and assets to achieve financial goals. IRR is a metric to measure investment returns.

• Wealth management involves creating a personalized investment strategy for clients based on their financial goals and risk tolerance.

• IRR (Internal Rate of Return) is a metric used to calculate the profitability of an investment over time, taking into account the time value of money.

• CAGR (Compound Annual Growth Rate) is a metric used to measure t...read more

LTCG and STCG have different tax implications. Losses can be set off and carried forward.

• LTCG (Long Term Capital Gains) are taxed at a lower rate than STCG (Short Term Capital Gains).

• STCG is added to the income and taxed as per the applicable tax slab.

• Losses from both LTCG and STCG can be set off against gains from the same category.

• If there are no gains in the same category, losses can be carried forward for up to 8 years.

• For example, if you have a loss of Rs. 50,000 from ST...read more

Efficient portfolio roadmap involves diversification, risk management, and regular monitoring.

• Identify investment goals and risk tolerance

• Diversify investments across different asset classes and sectors

• Regularly monitor and rebalance portfolio

• Consider tax implications and fees

• Implement risk management strategies such as stop-loss orders

• Example: Allocate investments across stocks, bonds, and real estate investment trusts (REITs) based on risk tolerance and investment goals

• Exam...read more

I cannot provide a specific stock recommendation as it goes against company policy.

• As a Relationship Manager, I am not authorized to provide specific stock recommendations to clients.

• It is important to follow company policy and regulations to maintain ethical and professional standards.

• Instead, I can provide general market insights and trends to help clients make informed investment decisions.

• It is also important to understand each client's individual financial goals and risk...read more

Efficient portfolio is a diversified investment portfolio that maximizes returns and minimizes risks.

• Efficient portfolio theory was developed by Harry Markowitz in 1952.

• It involves selecting a combination of assets that offer the highest expected return for a given level of risk.

• The portfolio is optimized to achieve the highest possible return for a given level of risk.

• Efficient portfolios are typically diversified across different asset classes, such as stocks, bonds, and re...read more

Capital gains can be eligible for deductions in income tax.

• Long-term capital gains are taxed at a lower rate than short-term gains.

• Investments in certain sectors like infrastructure and startups may be eligible for tax exemptions.

• Losses from capital gains can be carried forward to offset future gains.

• Tax-saving investments like ELSS can also help in reducing tax liability on capital gains.

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period. A put option is a financial contract that gives the buyer the right, but not the obligation, to sell an asset at a specified price within a specific time period.

• Call option allows the buyer to purchase an asset at a predetermined price, known as the strike price.

• Put option allows the buyer to sell an asset at a prede...read more

I realized my interest in finance during my BTech and pursued it further.

• Studying finance alongside engineering helped me understand the financial aspects of business

• I enjoyed learning about financial analysis and investment strategies

• I saw the potential for growth and career opportunities in the finance industry

• I believe my technical background combined with financial knowledge will make me a valuable asset as an Assistant Manager

I achieved a per day revenue target of $10,000 in my previous company.

• In my previous company, I was responsible for generating revenue through client acquisition and retention.

• My per day revenue target was $10,000, which I consistently met and exceeded.

• I achieved this target by building strong relationships with clients and identifying their needs to offer tailored solutions.

• I also collaborated with cross-functional teams to ensure seamless delivery of services to clients.

• My ...read more

The common wealth management strategy in India involves a mix of traditional investments like real estate and gold, along with modern financial instruments like mutual funds and stocks.

• Diversification of investments to reduce risk

• Focus on long-term wealth creation

• Utilization of financial advisors for guidance

• Preference for safe investments like fixed deposits and government bonds

• Growing interest in alternative investments like cryptocurrencies

Equity refers to the ownership interest in a company or property.

• Equity represents the residual value of assets after liabilities are paid off.

• It can be in the form of stocks, shares, or ownership in a property.

• Equity holders have voting rights and are entitled to a share of profits.

• Equity can increase or decrease in value based on market conditions and company performance.

• Examples of equity include common stock, preferred stock, and real estate ownership.

Derivatives futures and options are financial contracts that derive their value from an underlying asset.

• Derivatives are used for hedging or speculation

• Futures are contracts to buy or sell an asset at a future date and price

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a certain price before a certain date

• Derivatives are commonly used in the stock market, commodities market, and foreign exchange market

Risk analysis of a HNI user involves assessing their financial stability, investment portfolio, and potential risks associated with their high net worth.

• Evaluate the HNI user's financial goals and risk tolerance

• Analyze their investment portfolio for diversification and risk exposure

• Assess any potential risks such as market volatility, economic factors, or regulatory changes

• Consider the impact of geopolitical events or personal circumstances on their financial situation

• Use qua...read more

Delta, vega and theta are important measures used in options trading.

• Delta measures the rate of change of an option's price in relation to the underlying asset's price.

• Vega measures the sensitivity of an option's price to changes in volatility.

• Theta measures the rate of decline in an option's value due to the passage of time.

• Delta is positive for call options and negative for put options.

• Vega is higher for options with longer expiration dates.

• Theta is higher for options that ...read more

A financial contract whose value is derived from an underlying asset or security.

• Derivatives contracts are used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• They allow investors to take positions on the future price movements of an asset without actually owning it.

• Derivatives can be traded on exchanges or over-the-counter (OTC).