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    Business Objective

    Uploaded by

    Karan Purswani
    The document outlines the key steps in portfolio management: 1) Setting business objectives such as income, capital appreciation, and safety of principal based on the investor's priorities. 2) Choosing an appropriate asset mix of stocks, bonds, and mutual funds based on the investor's risk tolerance and investment horizon. 3) Formulating an active or passive portfolio strategy to earn superior risk-adjusted returns or maintain a diversified portfolio. 4) Selecting individual securities based on market and sector growth to diversify risk and gain returns. 5) Executing the portfolio by buying and selling specified securities in appropriate amounts. 6) Revising the portfolio as asset values and proportions change over time.

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    Business Objective

    Uploaded by

    Karan Purswani
    14 views2 pages
    The document outlines the key steps in portfolio management: 1) Setting business objectives such as income, capital appreciation, and safety of principal based on the investor's priorities. 2) Choosing an appropriate asset mix of stocks, bonds, and mutual funds based on the investor's risk tolerance and investment horizon. 3) Formulating an active or passive portfolio strategy to earn superior risk-adjusted returns or maintain a diversified portfolio. 4) Selecting individual securities based on market and sector growth to diversify risk and gain returns. 5) Executing the portfolio by buying and selling specified securities in appropriate amounts. 6) Revising the portfolio as asset values and proportions change over time.

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    The document outlines the key steps in portfolio management: 1) Setting business objectives such as income, capital appreciation, and safety of principal based on the investor's priorities. 2) Choosing an appropriate asset mix of stocks, bonds, and mutual funds based on the investor's risk tolerance and investment horizon. 3) Formulating an active or passive portfolio strategy to earn superior risk-adjusted returns or maintain a diversified portfolio. 4) Selecting individual securities based on market and sector growth to diversify risk and gain returns. 5) Executing the portfolio by buying and selling specified securities in appropriate amounts. 6) Revising the portfolio as asset values and proportions change over time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views2 pages

    Business Objective

    Uploaded by

    Karan Purswani
    The document outlines the key steps in portfolio management: 1) Setting business objectives such as income, capital appreciation, and safety of principal based on the investor's priorities. 2) Choosing an appropriate asset mix of stocks, bonds, and mutual funds based on the investor's risk tolerance and investment horizon. 3) Formulating an active or passive portfolio strategy to earn superior risk-adjusted returns or maintain a diversified portfolio. 4) Selecting individual securities based on market and sector growth to diversify risk and gain returns. 5) Executing the portfolio by buying and selling specified securities in appropriate amounts. 6) Revising the portfolio as asset values and proportions change over time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    1.

    Business objective
    The objective sort by the investor is current income, capital appreciation and safety of
    principles. The relative importance of these objectives should be specified. further
    portfolio manager will take his decision while investing in market in different kinds of
    sector as per his business objectives
    2. Choice of the asset mix
    The most important decision in portfolio management is asset mixed decision very
    broadly this is concerned with proportion of stocks (equity, bonds, and mutual funds).
    The appropriate stock bond mix depends mainly on the risk tolerance and investment
    horizon of the investor
    3. Formulation of portfolio strategy
    Once a certain asset mix is chosen and appropriate portfolio strategy has to be formed
    two broad choices are available A)active portfolio strategy B) passive portfolio strategy
    An active portfolio strategy strives to earn superior risk adjusted returns by resorting to
    market timing or sector rotation or security selection or some combination of this
    Passive portfolio strategy on the other hand involves holding a broadly diversified
    portfolio and maintaining a pre determined level of risk exposure
    4. Selection of securities
    Generally investor pursue on active stage with respect to security selection. Generally
    portfolio manager select security as per the growth in the market and as per the sector
    wise . Hence it is necessary to select right securities before investing in the market. A
    good decision for selection of securities will help in diversification, so that your risk or
    loss will be minimum. It is very important for the earning prospectus so that the investor
    will gain more returns on the holdings
    5. Portfolio execution
    This is the phase of portfolio management which is concerned with implementing the
    portfolio planned by buying or selling specified securities in human amounts. Hence it is
    necessary to implement your decision regarding portfolio management. after planning,
    choice of asset, selection of securities there is a need of implementation in market
    6. Portfolio revision
    The value of portfolio as well as its composition. The relative proportion of stock and
    bond components may change as stocks and bond fluctuate. So after implementing
    investment in market there is a need of portfolio revision so that performance of
    investment can be executed properly.
    7. Evaluation of portfolio
    The performance of portfolio can be evaluated on the investment invested in market .after
    revision of portfolio, portfolio manager will get feedback on its clients investment.
    Feedback like % of returns, loss, growth of sector, risk etc. this feedback will help the
    portfolio manager while investing next time in the market

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