Understanding The Process of Portfolio Management

1
Understanding The Process of Portfolio Management
2
Investment Strategy

• We have come across certain aspects which is
  quite important. It is quite daunting in
  comparison to the investment strategy in the long
  term. It helps the individual to make an
  investment with a lot of confidence. There is
  some clarity regarding the future. We need to
  create the investment portfolio and it requires
  deliberate along with accurate process of
  portfolio-planning.

3
Understanding Present Situation

• Planning is made for future and it needs good
  concept of the present situation of investor. It
  is associated with the location they would like
  to be present. It needs proper assessment of the
  present liabilities, assets, investments and cash
  flow. It is vital target of the investor. The
  target is to state it clearly and understand the
  quantity. There is an examination to point out
  the gaps between present strategy of investment
  and stated goals. It is a step which required
  clear discussion on the values of investor. There
  are importance and beliefs of a particular course
  for creating the strategy of investment.

4
Set Up Objectives of Investment

• We need to set up the objectives of investment
  and they are associated with the profile of risk
  return of the investor. We have to understand the
  extent of the risk of investor and they are going
  to assume them. The investor must have some
  volatility and they must be able to tolerate. The
  primary fact is the creation of portfolio
  strategy. It will give returns in the right risk
  level. After the development of the profile of
  risk-return to the right level, the benchmarks
  could be set up. The goal is to check the
  performance of portfolio. We have to check the
  performance of portfolio against those benchmarks
  which permits minor changes created in this
  process.

5
Understand Allocation of Asset

• With the help of profile of risk-return, the
  investor could create the strategy of asset
  allocation. They can make a choice from different
  classes of asset along with options of
  investment. The assets are allocated by the
  investor and it reaches the right
  diversification. They make a target of returns as
  per the expectation. The percentages are allotted
  by the investor for different classes of asset.
  It consists of bonds and stocks. There are
  alternative investments and cash. It made on the
  basis of range of the volatility for a particular
  portfolio. There is a plan for asset allocation
  and it is made on the basis of the present
  condition of the investor. There are goals of the
  investor and they have been adjusted when there
  is life change. For instance, as the investor
  reaches the date of retirement, the allocation
  might be changed to show less tolerance in the
  risk and volatility.

6
Choose Alternative Investment

• The Individual investments have been chosen on
  the basis of parameters in the strategy of asset
  allocation. There is particular investment form
  chosen on the basis of big portion of presence of
  investor for passive or active management. When
  the portfolio is dealt actively, it consists of
  individual stocks along with bonds, there are a
  lot of assets to get the right diversification.
  It is greater than 1 million in the assets.

7
Benefit of Small Portfolios

• There are small portfolios which could get the
  right diversification in managed funds in a
  professional way. They are mutual funds or it
  might be funds, which are exchange-traded. The
  investor is going to create the passively managed
  portfolio having index funds chosen from
  different classes of asset along with economic
  sectors.

8
Measure, Monitor, and Rebalance

• With the application of the portfolio plan, we
  have to start the process of management. It
  consists of checking investments along with
  calculating the performance of portfolio in
  comparison to the benchmarks. This is important
  to create the performance of investment
  regularly. It could be made quarterly and we
  have to check portfolio plan on yearly basis. It
  happens one time in a year. The situation of
  investor must be assessed. The target should be a
  reviewed to understand whether there is an
  important modification. Portfolio review finds
  out whether the allocation has been a target for
  checking the risk-reward profile of that
  investor.

9
Contact Us

• Visit  https//www.dreamassignment.com/portfolio
  -and-investment-management-analysis-help
• Email info_at_dreamassignment.com
• Call 14235002312

10
Thank You!